Commercial Auto Insurance Policies

Your parents warned you that having teenagers was a good way to go insane. You believed them of course, they raised you! But you had no idea at the time that one of the biggest headaches was when your teenager took a job that removed them from your auto insurance policy. Very often the parents of pizza delivery employees find that to their consternation, their teen’s delivery job is going to be a financial issue, but you must make sure they are properly covered.

The cost of car insurance is based in large part on how much of a risk a driver or car is. When getting your own policy, you may recall having to answer a lot of questions. That was so the company could evaluate your risk level and figure out exactly how likely you are to need the insurance to ‘cash in. Insurance companies like it when cars are kept safe, which means, paradoxically, keeping them parked rather than driving them around as was their intended purpose. The more time driving, the greater the risk, and therefore the greater the expense to get and stay insured.

So, for example, if your teen is out driving the family car for a delivery job during rush hour frequently, your insurance company more likely than not will sidestep far away from covering any potential accidents with great haste. If you’re unlucky, you could be looking at dealing with thousands of bucks out of pocket for repairs or covering damages. No one wants to be in that kind of situation! So, what can you do about it, if companies are so unwilling to provide coverage in this situation? Well, you’re not completely helpless.

Check out an employer before letting your child work for them, and look into how they’re choosing to deal with insurance issues. Since companies making use of delivery drivers are required for them to be insured, many will do this by way of providing company vehicles to use. This lets them save a bit on insurane costs since they’ll have an absolute idea of the number of their cars out driving at any given moment.

Still others will use a non-owned style policy. This kind of insurance will work for delivery drivers using their personal family cars. However, it’s important to note that non-owned auto insurance only provides liability coverage. If your car gets banged up, you’re outta luck. That can be fine if you feel that the overall risk for other problems is low and your teen isn’t going to be doing the job for a very long time. But if there’s risk of other problems cropping up, or your child wants to be a delivery driver for a long time, you’ll definitely want to talk with the employer and see what can be done for a more comprehensive policy.

To do this you might be forced to buy a commercial auto insurance policy. The cost of commercial auto insurance might make you flinch at first, but remember-it’s going to cost a lot less to insure your car than it is to fix it. And if you’re very lucky, your teen isn’t going to be delivering pizzas forever! To go about this however, it may require you to get a commercial auto insurance policy. This is unfortunately not the cheapest around, but bear in mind that in comparison to damages to your car should anything happen, the cost is very reasonable (and worth it!). Let’s hope your teenager doesn’t decide on pursuing the pizza delivery career on a permanent basis though!

Susan Reynolds is the content coordinator for a leading South African Insurance Provider who specialises in Car Insurance Policies.

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