“Mom, The Shuttle Bus Driver.“
Does that sound like you or someone you know? It may not be your full-time job, but if you have young children at home you probably take your turn at shuttling kids to and from after-school or weekend activities. And that means you’ve got a vehicle full of your own kids and maybe a few from the neighborhood. Does this pose a problem for your auto insurance policy?
You probably haven’t even thought about your auto insurance in this context before, but you really should — transporting children comes with certain risks that could affect your insurance. Here are a few important points you may not be aware of:
- Drivers are usually responsible in an accident and can be legally liable for passengers’ injuries. You need to make sure you have the right policy and the right amount of coverage when acting as a shuttle driver.
- Most personal auto policies cover injuries to passengers, even when you’re driving someone else’s car. However…
- …even if your insurance covers you when driving a car that isn’t yours, there may be a restriction on the size and type of vehicle involved. If you’re going to be renting or borrowing a van to drive the soccer team to an out-of-town match, you may not be covered. Also, if you’re a teacher or coach, you should use school district vehicles to transport students and players, rather than using your own personal vehicle.
- Your personal auto policy may not cover you while you’re driving your employer’s car. If you find yourself driving a company car, make sure you’ve checked with the company to ensure that their policy covers you.
- Finally, even if you are covered, if you have an accident where several passengers are involved, medical bills and other costs could easily exceed the limits of most personal auto policies. Personal insurance policies simply aren’t designed to cover accidents that involve lots of people. And if you’re trying to keep your rates low by having a minimum-coverage policy, you can be especially vulnerable.
So what can you do about it?
You can take a few steps to prevent disaster. Here are just a few:
- Increase your liability limits. It’s a good idea to consider increasing your auto liability limits if you’re driving with lots of people in the car. Liability insurance covers all injuries caused by an accident for which you are legally liable, including passengers in your car as well as other cars.
- Buy an umbrella for a rainy day. In addition to your auto liability coverage, you may want to consider a personal liability umbrella policy. This policy provides coverage that creates an “umbrella” of protection above all of your other personal liability policies (such as auto and homeowners). Your auto liability coverage may not be enough to pay for all the damages that result from an accident with lots of people involved, and if you’re the legally responsible driver, you could face significant out-of-pocket expenses.
- Talk to an insurance agent. Children are the most precious cargo your car will ever carry, and you just can’t afford to be under-insured. Most people don’t know what kind of policy their lifestyle requires, or how much coverage to get. Only an experienced insurance agent can offer the kind of expertise you need to get the right plan, and there’s never any out-of-pocket cost for this kind of expertise. If you’re local, please stop by my office in North Central Colorado Springs and I’ll be happy to sit down with you and discuss the kind of driving you do and find the exact coverage you need to keep you safe on the road. I can also show you some additional options, such as “non-owned vehicle coverage,” that may be appropriate for your situation.
-Mark Olsen
1870 Dublin Blvd, Ste E
Colorado Springs, CO 80918
719-593-9916
