I currently have full coverage in the state of Michigan.
My employer has decided to require that I transport people I take care of as part of my job, in my own vehicle. They will reimburse me milage but im more concerned with the risks in the event of an accident. Does this fall under my insurance or my employers insurance?
My employer did ask for a copy of my car insurance.
Edit: decided to call my insurance company and they added business use to my personal insurance for no cost to me.
Employer asking me to transport with my own vehicle
byu/monkeyfudgehair inInsurance
Posted by monkeyfudgehair
5 Comments
It’s very likely your car insurance will not pay for any accidents or injuries sustained while transporting people for business use. You would also be at risk of being dropped by your carrier if they even found out you were doing so.
Your employer should have insurance that would cover you (you need to confirm) or reimburse you for you to obtain a business policy (this is sketchy and I don’t think is the best solution honestly).
Insurance follows the car, not the person. You will need to contact your agent to see if you need to add additional coverage to your vehicle because you would be using your vehicle for commercial purposes. Your company can add your vehicle to their policy, but if they refuse to do that, I would be really hesitant to use my vehicle for work purposes. They should provide you with a company car if they’re expecting you to transport people for work. It’s one thing if they are reimbursing your mileage to go to an event, but they’re requiring you to transport people for work. I would contact your agent asap.
If the employer can’t get you written confirmation they have the right kind of commercial auto coverage for reimbursing employees for personal auto use or a policy of paying employees expenses for upgrading their auto coverage you have to decline to do it citing the lack of valid state mandated insurance coverage for doing so.
Bike to work.
You said your insurance added business coverage, did you tell them you’re carrying people in the car? I only ask because this is a bigger risk and would normally cost more. I personally would call them back and clarify, something isn’t right.