Car Insurance: Pizza Delivery and Your Child

By Insurance.com Posted : 04/06/2006

Here's a "pizza" advice for you about car insurance. If your child plans to use the family car on his or her part-time pizza delivery job, you'll need to check with your auto insurance provider to see if you'd be covered if your loved one were to get into a fender-bender in the line of duty.

"If your child is delivering pizza as part of his part-time job and is driving your car for business then it's your personal auto insurance policy that's on the hook if there's an accident or some other incident that could result in a claim being filed," according to Don Griffin, vice president of personal lines for the Property Casualty Insurers Association of America, in Des Plaines, Ill.

Griffin's advice? "Notify your auto insurer in advance that you're going to let your child use the family car to deliver food as part of his or her part-time job. The insurer will probably charge you extra, but that'll be a small price to pay when considering that if you fail to notify your insurer in advance and your child gets into an accident driving the family vehicle on the job, you may get an unpleasant surprise of no coverage when you file a claim."

Insurance.com agent Brad Vermilion said many insurers will shy away from covering your child using your family car for delivering pizza. "This type of job creates a lot of risk," points out Vermilion. Uncertainty about determining insurance pricing is a key reason why auto insurers aren't necessarily enamored with the idea of insuring a vehicle used to deliver pizza.

"The car is driven to a lot of places at different times of the day and night, and it would be difficult for the insurer to be able to accurately price the risk," observes Vermilion. "You might have to shop around to find a company that would provide protection under that set of circumstances. That could entail purchasing a commercial auto policy, which would figure to be significantly more expensive than your private passenger automobile policy. But it'll definitely be worth the extra money. You'll have some peace of mind knowing that there will be insurance protection if junior gets in a fender-bender backing out of the driveway of one of his pizza delivery customers."

A cautionary message comes from Dave Snyder, vice president and assistant general counsel, of the American Insurance Association, in Washington, D.C. "Maybe," says Snyder when asked about whether your auto insurance policy would come into play in the pizza delivery scenario. "Check with your insurance agent or your insurance company about possible policy exclusions that would be applicable in this situation. There's no substitute for checking with people in the know regarding your personal insurance situation."

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1 Responses to "Car Insurance: Pizza Delivery and Your Child"
  1. Robert 30, Dec, 2013

    I think that if you have a teenager who drives your car you'd be better off buying them their own car (maybe) and help them get insurance on their own for their pizza delivery job. Delivery jobs are legitimate jobs and you actually make money doing them. And I think if the insurance companies are smart they would maybe actually offer some kind of insurance based on weekly mileage for people who use their own vehicles such as in a pizza delivery job. Perhaps Obama should get congress to have the insurance companies to offer insurance if you get a job using your car for the job. This would stimulate the economy. I had a pizza delivery job and didn't tell my insurance about it and got hit by a drunk driver who was uninsured. They covered it but canceled my insurance. The Owner would just tell people do not tell your insurance company you work for us. I think Progressive covers people who use their own vehicle for business purposes or commercial and private use (maybe). The average pizza delivery was 3.5 miles there and back (though some trips were combined of course) and you could easy have more than 20 deliveries in a 8 hour shift. So that's approximately 70 miles of driving. Of course some people only work like 4 or 5 hour shifts for example. Only some of your driving involves the freeway and they have things that help you like apartment maps with all the numbers of each individual (in a binder) apartment so you can quickly get there. Also I had a million candel powered spotlight that plug into my cigarette lighter though there are also battery powered ones that help you read building numbers. It's actually a fairly easy job and your sitting down most of the time listening to the radio as you work because a lot of the places are repeat places. :-) Making pizzas is fairly simple also and clean up isn't too difficult at the end of the night. :-) I figure it would be good pay extra too make sure you had the coverage and wouldn't loose your insurance and theoretically the insurance companies should make money too offering it. If it was fairly expensive the drivers could ask for more money in their mileage fee or delivery charge to the company.

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