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 Posted: Sat Jul 16, 2011 10:54 pm Post subject: Seeking advice for 18 year old working as a pizza deliverer. |
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| What kind of policy is necessary and who provides this coverage. I'm being told he needs a commercial policy up to $13,000 for 6 months. Appreciate any advice. |
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deanabencomo
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| Posted: Sun Jul 17, 2011 5:28 pm Post subject: |
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Who is telling you this? The delivery person needs insurance. Many policies are now written to exclude coverage when using the vehicle to make money. However, this is not typical... the carrier would need to have changed the policy to exclude this.
Best bet... speak to a local agent about this matter. |
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tcope
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| Posted: Wed Jul 20, 2011 5:24 pm Post subject: |
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Most policies will not cover a vehicle if it is being used in a commercial fashion. Making money by delivering pizza in commercial fashion. If something were to happen while he was working there is a chance is won’t be covered.
Thanks,
Shawn Camp,
Texas Auto Insurance |
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shawn_camp
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| Posted: Wed Jul 20, 2011 5:51 pm Post subject: |
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I can't speak for most policies or how they read now but standard forms exclude livery... not commercial use. Though I do know several companies that have added an exclusion for commercial use.
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tcope1
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| Posted: Thu Jul 21, 2011 5:20 am Post subject: |
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| You mean 1,300 not 13,00 right? That's ridiculous if in fact it is the latter!! From my understanding car insurance is what u pay for. However you decide to use your vehicle is totally up to u. Delivering for a pizza place doesn't mean that you r necessarily a commercial vehicle, like say a company delivery fan(than yes that's a commercial vehicle. Using your own personal vehicle is totally different. I'm not an expert by any means so I could be standed corrected. |
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Stevens
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| Posted: Thu Jul 21, 2011 6:54 pm Post subject: |
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| Quote: | | You mean 1,300 not 13,00 right? That's ridiculous if in fact it is the latter!! From my understanding car insurance is what u pay for. |
No, $1300 would be ridiculous! No state has a liability limit below $10,000, as far as I know. $13,000, however, is a very unusual number.
| Quote: | | However you decide to use your vehicle is totally up to u. |
Sure. It's your vehicle. Use it to push boulders off cliffs if you choose to. But what the insurance company covers is NOT up to you. If they won't cover what you choose to do with your car, that's their choice.
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MaxHerr
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| Posted: Thu Jul 21, 2011 7:24 pm Post subject: |
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| Well, you get ur insurance and full coverage, or liability. It is what it is. If ur in an accident and it's ur fault, let's say u only have liability then obviously ur insurance only covers the other drivers damages(however full coverage would cover both cars involved), but if your a delivery driver with ur own personal vehicle than whatever ur quote is, that's what you pay. "You don't say I'm going to be using my vehicle as a commercial vehicle to deliver pizza"! I mean ur son could be fired the next day or quit etc. Also, u just give the insurance ur sons name, and address age etc and get the best quote. That's it. I've deliverd many of times with my insurance and was involved in an accident while delivering. I had full coverage and everything was fine. My premium was around 1500 a year at 21 yes old. Now, because he's 18 it's prob going to be more expensive, maybe 1700-2000+. But to say commercial vehicle to deliver pizza is nuts. You don't mention a word of that for one and to it's a personal vehicle with non commercial plates. Landscapers for instance all of there trucks or any business owned vehicle is so called "commercial" or u could put him on ur policy, I'm assuming since he's 18 he lives under your roof? Idk just an observation. |
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Stevens
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| Posted: Thu Jul 21, 2011 8:39 pm Post subject: |
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| Quote: | | "You don't say I'm going to be using my vehicle as a commercial vehicle to deliver pizza" |
If they ask a question on the application about that, and you say, "NO", well, that's called MATERIAL MISREPRESENTATION, and for that, your policy can be rescinded to the moment before it existed, which means NO INSURANCE. You'll get a full refund of the premium, and you can use that as a down payment on the damages you do to someone else's car.
Your personal auto policy DOES NOT ask about COMMERCIAL USE . . . it asks about the use of your personal vehicle in a business or trade. COMMERCIAL USE is covered under a commercial policy -- doesn't necessarily mean that the vehicle has commercial plates at all. BUSINESS USE is just that -- are you using your vehicle IN YOUR OWN OR SOMEONE ELSE'S BUSINESS for gain. A pizza delivery driver does exactly that.
| Quote: | | I've deliverd many of times with my insurance and was involved in an accident while delivering. I had full coverage and everything was fine. |
Great. That simply indicates it was not excluded from coverage. Not all policies are as generous today.
| Quote: | | u just give the insurance ur sons name, and address age etc and get the best quote. That's it. |
Feel free to act with such disregard -- it's your car and your money. However, to conceal or misrepresent that use, either way, can eliminate your coverage in many policies today. Doesn't matter what you THINK, the only thing that matters is what is stated in the contract.
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MaxHerr
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| Posted: Fri Jul 22, 2011 5:15 am Post subject: |
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| Well if it's that big of a deal, and that much money(which isn't even worth it, I'd rather ride a electirc scooter than pay 13,000 for insurance to deliver pizza!!! Are u kidding me, I mean u can buy a brand new vehicle at that price! Honestly tho I'm not inexpert on insuance and I really should being commenting in thus conversation, but the 13,000 for 18 year old insurance policy, caught my eye. |
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Stevens
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| Posted: Fri Jul 22, 2011 10:51 am Post subject: insurance |
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| You're right, MAX.................Insurance companies are getting to be 'sticklers' on what and how our own vehicles are used. I have 'Full Coverage' on my car. I work with the Elderly (etc) and I run errands for them, etc. I don't have the 'clients' in my vehicle. However,...does it really matter if I did (thinking outloud here)? Wouldn't I STILL be covered by my Insurance? |
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sdchargersfan
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| Posted: Fri Jul 22, 2011 1:32 pm Post subject: |
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| Quote: | | pay 13,000 for insurance to deliver pizza!!! |
and
| Quote: | | No, $1300 would be ridiculous! No state has a liability limit below $10,000, as far as I know. $13,000, however, is a very unusual number. |
Sorry, I misread the original post. $13,000 in premiums for a commercial auto policy would be excessive for one vehicle, even with an 18 year old driver.
But the rest of the concept is correct. If your personal auto insurance company considers the use of the vehicle as a pizza delivery driver a "business" use and excludes it from coverage, then the options will be finding (1) a PAP that doesn't exclude it, or (2) a commercial auto policy, which might cost more, but it will come with very high limits, such as $1,000,000, not state minimums. An experienced local agent/broker will have the right solution at the right price.
SD . . .
| Quote: | | However,...does it really matter if I did (thinking outloud here)? Wouldn't I STILL be covered by my Insurance? |
Transporting a friend or neighbor is one thing, transporting one of your company's clients is another. While your personal auto policy would probably not exclude them from coverage, your company's general liability insurance most likely would -- if it was part of your job description to occasionally transport them.
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MaxHerr
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