Kevin : Would I be covered if another member of a car pool is driving the car? What auto insurance coverage should I opt for? How can I get low auto insurance rates for higher coverages?

Response :Whether the car owner’s protection is affected if an accident occurs while another member of a car pool is driving the car is occasionally a matter of concern. The answer is that coverage provided by the policy continues in full, provided the relief driver is operating the vehicle at the named insured’s request or with his/her permission, as is invariably the case.
The Insurance Information Institute has affirmed that participation in a car pool does not void automobile liability insurance provided the pool is not operated for a profit. There is no problem with the popular arrangement when the members of the pool use their respective cars approximately the same number of times. If one (or more) of the members does not share the driving but pays a regular sum, the insurance protection of the owner of a car involved in an accident remains intact-when the amount paid is a reasonable share of the gas and oil expense and depreciation on the car.
The intent of the insurance company is the same when its policy, in pertinent part, excludes coverage for losses involving vehicles “used to carry persons or property for a fee” (instead of their use “as a public or livery conveyance”), followed by an exception for “shared expense car pools.” The language of the exception must be taken literally. Payments by passengers must be limited to a fair share of the actual cost of vehicle use and not include profit for the car owner.

Substantial liability and medical payments limits clearly are needed by persons participating as drivers in car pools and by those who are the only drivers with whom the passengers share the expense. Vans and sport utility vehicles accommodate numerous passengers and, with their growing representation in pools, demonstrate the need for adequate insurance. Such use of passenger cars, large or small, is another reason for recommending personal umbrella liability insurance to many insureds.

Compare auto insurance online and you will find cheap auto insurance quote from the best companies

Be Sociable, Share!
  • more What are the implications of car insurance when car pooling is done?

Tagged with:

Filed under: Auto Insurance Procedures

Like this post? Subscribe to my RSS feed and get loads more!

Possibly related posts