Leavitt Insurance Agency Blog
Is your Carpool Covered?
Environmental concerns, high gas prices, traffic congestion, convenience, poor public transportation, and expense of parking are all factors that contribute to commuters forming car pools. Parents use such arrangements to transport children to school, sports events and extracurricular activities.
Car pools are a permanent part of the American driving scene. The practice of a parent taking a group of children on an outing or to youth sports activities is common. Other examples of group driving exposures are:
- Church group activities
- Coaches taking players to practices or games
- Adults traveling together to events or sports
- Amateur musicians traveling in a van to a practice or performance
- Vacations within driving distance
In order to protect passengers, drivers involved in car pools may wonder if the situation is covered under their California Auto Insurance Policy. This concern is valid as many auto policies have restrictions. The intent of the restrictions is to prevent one from using their car for income-generating purposes. However, this exclusion does not affect coverage for car pool, driver group, and share-the-ride arrangements. Car owners may worry if their insurance is affected if another member of a pool is driving their car. The answer is that any person using the vehicle with the car owner's permission is covered along with the car owner.
In most instances, using a car in a typical share-the-ride arrangement or car pool will not affect the protection under the personal auto policy. Any fees received by a driver from car pool passengers should only reflect a reasonable share of the gas and oil expense and depreciation on the car. If you still have questions about your situation contact an insurance agent here at the Konecki Insurance Brokerage.