Car Pooling

Environmental considerations, traffic congestion, convenience, need to reduce driver stress, inadequate public transportation, absence or cost of parking are all aspects that contribute to commuters developing motorist organizations or car pools. Parents use such measures to transport kids to school, sporting activities and extracurricular activities. It's also typical for students owning a motor vehicle to carry classmates back and forth between home and school.



Irrespective of the title, driver groups, share-the-ride arrangements or car pools really are here to stay. Generally, numerous motorists alternate accepting the responsibility for driving their companions. It's typical for the turns to keep going for a week and might be performed on a revolving schedule. These folks often live in the same area and work in the same workplace, taking turns driving or frequently traveling in one car and paying the owner an acceptable fee to help pay for gasoline, maintenance and wear and tear.

The process of a parent or guardian taking a group of children on trips, to sports activities, and so forth is commonplace. Other samples of group driving exposures are readily available:

• Book club members driving for their regular meeting
• Church group activities
• Coaches taking players to practice or games
• Beginner musicians driving a van to a practice or performance
• Adults traveling with each other to bowling league games, softball practices, etc

Liability Insurance Coverage Exclusion:

Drivers linked to car pools as well as other group arrangements might question if the situation is included under their auto policy. This concern is legitimate as many auto policies have constraints. Commonly, liability coverage under a personal automobile policy  does not apply to "…liability arising out of the ownership or operation of a vehicle while it is being used as a public or livery conveyance." (A public conveyance is a vehicle used indiscriminately in transporting the public without being limited to certain persons or occasions. A livery vehicle is one that is offered for rental). There's small variance in language among policies issued by different insurance companies, however the intent is the same: to exclude the use of a personal auto for transporting people or property for income. On the other hand, this exclusion does not affect coverage for car pool, driver group, and share-the-ride arrangements. Using a car or SUV that is insured by a personal auto policy to transport people or goods for hire is unfair to insurers. The premium a company charges for private use is insufficient to cover "public or livery conveyances" that are typically:

• Driven more miles
• Subjected to worse (i.e., high density) traffic situations
• Driven under more pressure to meet delivery schedules
• Exposed to poorer driving conditions

Quite simply, such use calls for more careful underwriting, different or special coverage's and a higher premium. However, group-driving arrangements are another form of personal use such as using a car for commuting, vacations, personal errands, etc. The result is that a "personal" premium compensates an insurer for most car pool arrangements.

Are There Other Coverage Considerations?

Yes. Vehicle owners may worry if their insurance is affected if another member of a pool is driving their automobile. The correct answer is that any person using the vehicle with the car owner's permission is covered together with the car owner.

Individuals who drive in car pools might want to talk about the details with their NY insurance agent. An insurance agent may propose that you carry higher bodily injury liability insurance limits. Higher medical payments limits may also be in order. Providing detailed information can help an agent make sure that any charges involved in the arrangement represent coverage for the driver's operating expenses and not additional income.

A New Development

A Whole New arrangement has evolved. Some states are coming up with share-the-ride driving arrangements where different drivers use the same vehicles at different times of the day. In California, special legislation was passed concerning such arrangements, including the requirements for insurance. This is a different exposure that will call for special policy provisions. Drivers in such arrangements must be certain to secure the necessary coverage.

Conclusion:

In most instances, utilizing a car in a typical share-the-ride arrangement or car pool will not affect the protection in the private automobile policy. The fact that passengers offer financial help to cover auto expenses is not likely to eliminate insurance coverage since the car is not being used as a "public or livery conveyance." However, 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 your NY car insurance agent, a professional who's in an excellent position to provide you with answers.