Insurance and liability considerations if caregiver drives your car

[Anonymous]

Can anyone weigh in on whether they added a caregiver to the car insurance and whether there is any other liability if the caregiver is in an accident in which someone else is harmed while they are on the clock?

Is it better to find someone who has their own vehicle or are the liability issues outside of the car itself the same if they are on the clock for you?

[Anonymous]

We added our nanny to our insurance. If the worst-case liability scenario happens and your nanny is in a wreck and badly injures or kills someone while on the clock, the other people's insurance are going to go after the deepest pockets: you. So insurance is no reason to ask her to use her own car.

I like having a nanny car because I control the car. I decide about the safety features I want, about the maintenance schedule, about the rules for use, and I don't have to pay mileage reimbursement. And, if my kids break something or mess something up in my car, I get to decide whether to fix it or live with it. If that happens in your nanny's personal vehicle, you just get to write a check.

FYI: If your nanny is driving and gets in an accident, her personal insurance will kick in first, then yours. Your insurance may tell you she doesn't need to be on the policy. Press them on that; it turned out that once I told them she was driving the vehicle daily, she did need to be on it.

[Anonymous]

I won’t drive my employers’ children unless I am on their insurance or they cover the difference between my personal and commerce al coverage. It’s always cheaper and easier for them to add me

[Anonymous]

Thanks, this is all helpful! Makes sense.

[Anonymous]

Yeah, not having her on your insurance policy won't protect you from liability if she's involved in an accident in the course of her employment with you. Ditto if she's driving her car v. one that you own. The liability comes from the employment relationship.

[Anonymous]

Our financial planner told us a nightmare story where an au pair was involved in a fatal accident, and the host parents were sued for their entire net worth. They had to pay, and ended up filing bankruptcy. He suggested an umbrella policy covering up to the amount of your net worth. They are not terribly expensive, but I was unable to get one from our insurer because the nanny had four speeding tickets and I had one. So get it before you add her to anything!

[Anonymous]

We are in the same position of needing to add our nanny and have her start to drive our kid, but really nervous due to liability Issues. Anyone with any experience who this has happened to care to comment?

[Anonymous]

She absolutely needs to be on your policy. When I was recently in an accident, one of the first things my insurer asked was whether I was working at the time of the accident. (I'm a parent, not a nanny, and wasn't, so our personal insurance covered it.) If you don't add her and they can prove that she regularly used the car or was driving for work, she's not covered as an incidental driver, and that's not a mess you want to be in.

[Anonymous]

Nanny used to drive her car to take DD around but the car was getting old so we just leased her a new car and put her on our insurance.