While many of us are glad school is in session, the countless extra-curricular activities that go hand-in-hand with the school year are in full gear. From football practice to French Club, each day brings new opportunities for parents everywhere to practice our favorite avocation—family shuttle service operator. And if your family is like my family, you’re probably shuttling not just your own kids but your kids’ friends as well.
While we’re mostly concerned with just getting our brood and their belongings sanely and safely from home to activity and back again, have you ever thought how those additional passengers would be covered by your auto insurance policy in the event of an accident? For instance, if you were held liable as a result of an automobile accident in which one of your kids’ friends got hurt, would your policy provide coverage for that child?
Fortunately, most personal automobile policies will provide coverage for injuries that occur to non-family vehicle occupants as a result of an accident that is your fault. Keep in mind though, that serious injuries often mean tens of thousands of dollars in medical bills. Plus, the more people injured in the accident, the greater the cost. It’s not uncommon for a serious automobile accident to exceed several hundred thousand dollars in bodily injury expenses.
So how can a family shuttle service operator best protect him or herself from the financial risks of their avocation?
1. Purchase high limits of liability on your auto policy. Coverage is available in most states up to $250,000 for each person and $500,000 for each accident. A high-limits policy ensures you’ll have the coverage you need in case the worst happens.
2. Consider a Personal Umbrella Policy. Did you know that for less than a dollar a day (in many cases) you could purchase a $1 million umbrella policy which provides additional coverage above and beyond the basic auto and homeowner’s policies?
3. Talk to your advisor before you load up. Don’t assume you’re covered. Let’s say you rent a 20-passenger van to take your teenager’s tennis team to an out-of-town tournament. The fact is, your personal auto policy may not provide coverage depending on the vehicle’s weight. Or let’s say you’re a coach, teacher, or volunteer who has regular access to the school’s vehicle in order to transport your team. The personal auto policy won’t provide coverage for vehicles you don’t own but are available for your regular use. It’s always safest to consult with your advisor first—when in doubt, give your advisor a shout!
