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Carpooling is a great way to save gas, make transportation more convenient, reduce traffic congestion, and assist your friends and neighbors with transporting themselves to work and school. Carpooling also allows you to use the HOV lane in many cities, saving time and avoiding traffic jams. Marvel Insurance encourages carpools but please keep in mind matters of car insurance…
Carpools include coworkers or those working nearby, church groups, coaches driving players to games, employees traveling together to lunch or team events, or children being taken to extracurricular activities – all within the same vehicle.
Liability Insurance Exclusion
Drivers involved in carpools and other group transporting arrangements should be assured that they are covered under their personal auto insurance plan. Although some auto policies have restrictions, as long as the car is not being used for business purposes or the driver is not being paid to drive the passengers, then the carpool situation is covered as usual.
You as the owner of the car is not affected if another member of a carpool is driving your car. As with any situation where you let someone else drive your vehicle, any person operating your vehicle with your, the owner’s, permission is covered. That being said, we may recommend that you carry higher bodily injury liability insurance limits or medical payments limits. Always disclose the full details of your carpooling situation to your agent so they can determine that any costs are strictly for operating the vehicle and not to be counted as income as a car for hire (excluding coverage). Just remember that any money received by the driver from carpool participants should only reflect a reasonable share of the gas and oil expense and depreciation on the car.