Insurable Interest

by: Aaron Whitaker

We have all seen cars with big 3D logos stuck to the roof, often seen driving just a little too fast. Did you know that using a personal vehicle for commercial delivery is often excluded from a standard personal auto policy? If reported to the insurance company that the vehicle was used delivery purposes, the insurer can (and most likely will) deny claims related to the accident.

Auto Claims, Auto Insurance, Portage Auto Insurance

Delivery Drivers-

I like my pizza fast and cheap just as much as the next person, but is it worth putting those most likely to cause and accident, young drivers, at risk? Anyone delivering commercially (pizza, etc. included) with a personal vehicle should have a business auto policy for their vehicle. Some employers offer a limited amount of coverage out to employees, but that coverage is often not sufficient for our litigious society.

The Risk-

A personal vehicle being used for commercial purposes (e.g. delivery of food) is often excluded from personal auto policies in Michigan under most insurers vehicle eligibility forms. If you do get in an accident while using a personal vehicle for commercial purposes, you can easily be held accountable for any damage or litigation stemming from the accident.

If you’re thinking that those delivering pizzas (etc.) don’t have much to lose anyways, think again. The courts can garnish wages for years, removing money from the drivers checks directly from their employee payroll. The long lasting damage and financial consequences of allowing a child (or yourself) to be employed in the delivery business using a personal vehicle is a major risk to their financial future.

The fun doesn’t stop there. If it is your child that happens to cause an accident while delivering, and they still have your address on their driver’s license, even if they don’t live at home, the court system can find you liable for the accident. They will go after your personal assets if there is little to be had financially from your child.  An accident while delivering could do more than ruin your kid’s day, it could ruin you financially.

Final Word-

This subject is neither widely known or talked about, and that terrifies me. Usually I’m met with looks of skepticism when discussing this with clients. People have a hard time believing they wouldn’t have heard about something so prevalent on our streets being a major risk to the drivers performing the deliveries. Risk management is key to insuring yourself adequately, and this is an easy risk to avoid.

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About the author:

Aaron WhitakerAaron Whitaker joined Whitaker-LaChance in 2014 as a Personal Insurance Customer Service Representative. He brought with him extensive customer service experience from working in a retail professional camera store and computer electronic store for three years in Chicago. Aaron manages all personal insurance placement, marketing, account service and claim management. His expertise is in working with our clients to make sure their insurance program takes care of them through all the changes in life. Aaron is a graduate of Kalamazoo Home School Association and attended Columbia College in Chicago, where he studied Graphic Art Design. He is an avid photographer and enjoys fishing.

Read Aaron’s other posts Back to Insurable Interest