Deliveries And Auto Insurance - The World's Most Expensive P

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PostPosted: Fri May 14, 2010 7:42 pm
Deliveries And Auto Insurance - The World's Most Expensive Pizza Delivery
By Christy Perry Christy Perry
Level: Basic PLUS

Christy Perry had nearly fifteen years of management experience in the property and casualty insurance industry before she opened her agency. She began her career ... Article Word Count: 763 [View Summary] Comments (0)

Do you deliver pizzas, newspapers, mail, flowers, or any other product in your personal vehicle?

Does your son or daughter have a newspaper route and use the family car?

If you or your family member had an accident while delivering, do you know if your insurance would pay for the claim? Most policies would not pay it. That's why delivering pizza in the family car could be the world's most expensive pizza delivery.

What does a typical personal auto policy cover?

Auto policies are designed and priced for people who do not use their cars for business purposes. Commuting to work is expected, and driving for personal use is expected. Occasionally running an errand for work is okay.

Beyond that, you need to talk to your agent about your specific situation. Many types of business use are allowed on a personal policy, but at a slightly higher rate. If you are a salesperson and drive between appointments, ask about the business use rating.

However, most policies do not cover any sort of delivery of goods or transport of people for a fee. This includes taxi service, pizza delivery, newspaper delivery, mail delivery, and many other types of delivery.

What kind of policy do I need for deliveries?

Although a few companies might do this on a personal auto policy, most want to put it on a commercial auto policy. Commercial auto policies are designed and priced for risks where the driver goes to many different locations, often in a hurry to complete deliveries on time, and often looking at directions or maps to find the right home. It might cost more, but isn't it worth it to have the peace of mind knowing that the claim will be covered?

The employer usually has insurance only to protect itself. It should have non-owed, hired auto coverage on its business policy. If a driver causes an accident, and the claimant sues both the driver and the pizzeria, this coverage will protect the pizzeria from its portion of the liability judgment, but it will not pay for damage to the employee's car.

Unlike pizza and newspaper companies, businesses like flower shops and couriers are more likely to furnish company cars, with the company's fleet of cars insured on a business policy. This takes the insurance obligation away from the driver. In this case, however, the company will check their employees' driving records and restrict driving privileges only to those who drive safely and responsibly.

What if I just don't tell my agent that my son is delivering pizzas?

Don't ask, don't tell, right? Actually, not telling won't prevent coverage problems.

Policies vary widely from company to company and from state to state, but most policies have language in the policy that says something like, "We will not pay for damages arising out of the operation of the motor vehicle to carry persons or property for a fee." Read your policy. If your company has language like this, then your policy will not pay for such a claim.

This is the difference between underwriting and claims adjusting. The [color=#000000]"don't ask, don't tell" idea is that you can get a policy by not telling the whole story. You might think you've gotten away with it, just because the policy was issued. The claims process is based on the policy contract, however, and if the policy contract says it isn't covered, then you will not get a claim check.[/color]

What if I'm a real estate agent, and I carry passengers in my car?

Most policies allow this, because you are not transporting people for a fee. However, the company might charge more for "business use" because of the increased risk (high mileage, with passengers in the car).

Some policies require you to notify your agent that you are using the car for business, and exclude this type of coverage unless you have done so. Ask your agent if you need to have your policy rated differently.

Contact your agent!

Policies vary widely from company to company and from state to state. Contact your agent for more information on what your current policy covers.

Your car is one of your biggest assets, so you need to protect it properly. More importantly, your car is your dream. If your policy can't be adjusted to get the coverage you need, consider shopping for a different company. And if your agent can't answer your questions, consider shopping for a different agent. This type of consultation is the agent's job. It's why you pay him! Don't you deserve to have your car properly protected?


Ms. Perry had about 15 years of product management experience before she opened her agency just outside Columbus, Ohio. Because of her background, she focuses on annual protection reviews with her customers, helping them to find what their policies cover and what is excluded. For more information about the types of things you should discuss with your agent in your next annual protection review, please visit her web site at or her blog at

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"If you ain't on the road, you ain't makin' money!" - gregster


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Joined: Fri Nov 12, 2010 7:06 am

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PostPosted: Sat Nov 13, 2010 8:01 am
Thank you very much for posting this article. Its a very useful article. We will be acquire lot of things from this site.So i want some information about this post.

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PostPosted: Mon Nov 15, 2010 2:08 am
If you're not going to go commercial insurance (and really, who can afford that on our wages?), this article is a great example why driving a beater is best. I'm not going to cry much if my $400 car is totaled.

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