Commercial Auto Insurance, Non-Owned Auto Insurance, Pizza Delivery and Your Teen

With the first day of school crawling up it’s time for your teen to start looking for an alternative to their full time summer job. Some places let teens cut their hours back when school starts, but others aren’t going to give them that option. Pizza delivery is a great option for teenagers looking for nighttime and weekend hours that will give them the flexibility and freedom to be a teen, but from the viewpoint of your auto insurance carrier pizza delivery is a nightmare come true.

Here’s why auto insurance companies hate pizza delivery jobs, and what you can do about it.

Non-Commercial Use of Your Vehicle

When you first bought your auto insurance policy you probably answered a million questions about what you were going to be using your car for and how much time you were going to be spending on the road. More importantly, your car insurance provider made absolutely certain that you weren’t going to be using your car for business purposes, even if those “purposes” are just running business-related errands during the day with your own vehicle. Why? Because cars that spend the day on the road are more likely to be involved in an accident. Your insurance company really hates that.

Now take into consideration the added risk of putting your teenager behind the wheel (who is, statistically speaking, 60% more likely to be in an accident than you are) and letting them spend six to eight hours on the road after dark. The risk of damage to your car climbs exponentially, which is why your regular auto insurance coverage probably isn’t going to cover your teen during work hours…even if they are driving your car.

Does Their Employer Carry Non-Owned Auto Insurance?

You may not have known this, but your teen’s employer is actually required to carry liability insurance on their delivery drivers. That applies whether they’re driving a company owned vehicle or their own. Many pizza delivery companies (such as Dominoes) prefer to provide their drivers with company cars because they’re cheaper to insure; however, those that have drivers driving their own cars are supposed to carry a non-owned auto insurance liability policy during work hours.

This non-owned auto insurance liability policy will cover:

a) Damages to other vehicles

b) Property damage

c) Medical expenses (for you, your passengers, the other drivers and their passengers)

What Non-Owned Auto Insurance DOESN’T Cover…

What a non-owned auto insurance policy isn’t going to cover is the damage your car is going to suffer after an accident. Since your teen’s employer isn’t going to offer comprehensive or collision coverage for your vehicle you’re probably going to want to look into purchasing that on your own. It beats having to buy a new car because your insurance company won’t touch your repair bills with a ten foot pole!

Some auto insurance companies might be willing to extend your coverage for an additional fee. Others are going to require you to pick up a commercial policy, which is more expensive but well worth the investment. Whichever way you decide to go you can rest easy knowing that your car is in good hands every time your teen is out on the highway.