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KSlim

Should family add nanny to car insurance or not?

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My 18 year old son was hired for a part time nanny job where the mom needs him to drive her 3 kids ok a weekly basis. We requested for her to add him to her auto policy and that he drives her car but she responded that after speaking with her insurance agen All State car insurance says there’s no reason to add nanny to car insurance policy because my son’s the health insurance would cover injury in case of accident. Is this true?

 

Are there other risks I don’t know about if we do not have the mother add my son to her auto policy for this nanny job?

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3 hours ago, KSlim said:

We requested for her to add him to her auto policy and that he drives her car but she responded that . . . her insurance agen[t] [told her that] there’s no reason to add nanny to car insurance policy because my son’s the health insurance would cover injury in case of accident. Is this true?

 

There are a lot of things here, and it's not clear which you're asking about.

 

Your son's personal medical insurance will provide coverage for any injuries he sustains.  Likewise, the car owner's insurance should provide liability coverage if your son causes an accident.  Your son's own auto insurance should also provide coverage.  If the car owner's policy includes PIP coverage, then it would provide some coverage in addition to your song's personal medical insurance.

 

 

3 hours ago, KSlim said:

Are there other risks I don’t know about if we do not have the mother add my son to her auto policy for this nanny job?

 

There's no "we" here.  Your son is an adult.  And we obviously don't know what you do and don't know.

 

If your son wants to insist on being "added" to the employer's insurance and the employer refuses, then he gets to make a decision not to take the job or to take it without being added.  I'm curious what exactly you mean when you speak of your son being "added" to the employer's auto policy and what benefit you think would be achieved over and above the already existing coverage.  I have a guess, but I'll defer comment until you explain this (if you choose to do so).

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If your son is driving as part of his employment, that could be construed as commercial driving, and would likely be excluded by his policy, and by his employer's personal auto policy.  Speak to your agent.  Being added as an insured, to a policy that actually provides coverage, is not necessary.  Typically, the policy that "specifically describes" (e.g., the declarations page identifies the car/vin #) the automobile in question is conclusively presumed to be the primary policy.  If your son is operating the employer's car, the insurance policy of the owner will be the primary policy.  Your son doesn't need to be added to it.  He should, however, confirm through the owner's insurance agent that the policy will actually cover him if there is a collision while driving for employment.

 

If your son is hurt while driving or engaged in any other aspect of his employment, the employer's homeowner's policy will likely have a workers compensation provision that will apply.  His personal medical insurance will likely have an exclusion for medical care incurred as a result of injury in the course of employment.

 

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3 hours ago, RetiredinVA said:

Your son should be covered under the parent's auto insurance as a permitted driver of the vehicle.  Whether the insurance is adequate  is another question entirely.

 

3 hours ago, RetiredinVA said:

Your son should be covered under the parent's auto insurance as a permitted driver of the vehicle.  Whether the insurance is adequate  is another question entirely.

So if he is a permitted driver doesn’t that mean he needs to be formally added to their auto policy or does a written letter stating he is a permitted driver suffice?

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1 hour ago, pg1067 said:

 

There are a lot of things here, and it's not clear which you're asking about.

 

Your son's personal medical insurance will provide coverage for any injuries he sustains.  Likewise, the car owner's insurance should provide liability coverage if your son causes an accident.  Your son's own auto insurance should also provide coverage.  If the car owner's policy includes PIP coverage, then it would provide some coverage in addition to your song's personal medical insurance.

 

 

 

There's no "we" here.  Your son is an adult.  And we obviously don't know what you do and don't know.

 

If your son wants to insist on being "added" to the employer's insurance and the employer refuses, then he gets to make a decision not to take the job or to take it without being added.  I'm curious what exactly you mean when you speak of your son being "added" to the employer's auto policy and what benefit you think would be achieved over and above the already existing coverage.  I have a guess, but I'll defer comment until you explain this (if you choose to do so).

Although he is 18 I did not know since he is under our policy whether the family could possibly sue us should he be in an accident driving their car. I get that he can choose to take or not take the job my question is merely to understand what the risks are if he is not formally added to their auto policy 

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1 hour ago, HustleandJustice.com said:

If your son is driving as part of his employment, that could be construed as commercial driving, and would likely be excluded by his policy, and by his employer's personal auto policy.

 

This is a very good point that I didn't think about.

 

 

38 minutes ago, KSlim said:

Although he is 18 I did not know since he is under our policy whether the family could possibly sue us should he be in an accident driving their car.

 

You would not be subject to suit simply because he is covered under your auto policy.

 

 

39 minutes ago, KSlim said:

I get that he can choose to take or not take the job my question is merely to understand what the risks are if he is not formally added to their auto policy

 

There are no risks, and you didn't answer my inquiry about what you think would be achieved by having him "added."

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24 minutes ago, pg1067 said:

 

This is a very good point that I didn't think about.

 

 

 

You would not be subject to suit simply because he is covered under your auto policy.

 

 

 

There are no risks, and you didn't answer my inquiry about what you think would be achieved by having him "added."

I thought it was obvious what would be achieved by having him added to their policy to make sure he is covered in case his medical and auto policy excludes on the job accidents 

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16 minutes ago, KSlim said:

I thought it was obvious what would be achieved by having him added to their policy to make sure he is covered in case his medical and auto policy excludes on the job accidents 

If he is injured on the job, he is covered by worker's compensation.  That means,  his employer is responsible for his medical bills and a portion of his lost wages.  Whether they, and their auto insurer,  can afford to pay his medical expenses is another question.   

 

The major question is whether he is covered for liability if he injures someone else while he is driving his employer's car.  If he is liable for injuries to someone else while driving his employer's car he could easily be responsible for tens or hundred's of thousands of dollars of the other person's medical bills unless his employer has adequate insurance.  Your focus on your son's medical bills is a minor part of the question.

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A nanny is almost always an independent contractor who wouldn't be covered by workers comp (at least not in any state I'm familiar with, but I don't have any knowledge about PA), and a family hiring a nanny isn't going to have workers comp insurance.

 

As far as insurance coverage, personal medical insurance will not exclude on the job accidents (whether for employees or independent contractors).  However, personal auto policies almost always exclude coverage when the covered vehicle is being used for a commercial purpose.  This is a big issue for Uber and Lyft drivers.  Many assume that their personal auto policies will provide coverage, but that's not the case.  Therefore, even if the family "formally added" your son to its policy, there would be a real question about whether the liability component of the policy would provide coverage for your son (same as with his/your policy).

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