Is my employer required to pay for my car insurance?

  • by Claudia
  • Jun 24,2018
  • 14 answers

I have many years working as a caregiver for various home health agencies in CA. We are likely to get more work if we have a car, as clients require transportation to and from doctors appointments and to run errands. We get reimbursed for mileage but i came across a problem with car insurance companies last year.
I was shopping around for cheaper rates and when i was asked about my job, they asked if my employer had their own insurance policies for us caregivers that were drivers. I found out through my agency that no, they do not have coverage and thats why they wanted us to make sure we are insured. The problem is that then i would have to pay for commercial vehicle insurance since I am using my car for "commercial purposes" . the receptionist at my employers office even encouraged insurance fraud, saying that if I ever WAS to get into an accident with a client in my car, I can lie and say it is a relative of mine, not a client!! Obviously if there were any serious injuries the truth would eventually come out!
I have worked these jobs for many years and upon hire I always have to submit proof of car insurance. Luckily i have never been in an accident, but if I were, would the agency be in more legal trouble or me??


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Insurance Answers (14)

Casey Y 2 weeks ago

Here is the thing. The business, most likely, has something called Hired and Non-Owned auto liability. So, if you were to be involved in an accident, the policy would cover the business...but would leave you out to dry.
You are voluntarily using your personal auto for the business...that's not their fault. If you don't want to have the appropriate insurance, they don't really care, since they are covered anyway. Its just you who will be left without coverage if you commit fraud and get caught.
You could try to record this person saying this and report them to the state's insurance commissioner...but you wont get anything out of it...

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lucy 3 weeks ago

The receptionist at your employer is an idiot, and if any of the employees there take her advice, since believe me to state that this person is a family member is unlikely to fly, since they will always talk to the passenger or person injured, and if I had to guess in your line of work may have a lot of people with dementia or memory problems, thus the employee would/could be sued, since ALL personal insurance policies (exclude) coverage in the course of business.
I know it sucks to have to pay more for a commercial policy vs a personal auto policy. But what is really awful, is that pizza drivers who have to use their own car, since that is their job to deliver pizzas (plus) many of them make minimum wage plus tips, that even when they work for mega pizza chains like Pizza Hut, Dominos etc, does NOT pay for the employees insurance. So many of these kids have no clue, that their own insurance won’t cover them, since if in an accident and delivering pizzas, that insurance (denies) the claim, (in the course of business) thus they can be on the hook for all damages/injuries. I have argued with them that (why) they don't cover them on the (mega) chain?
Now, I can only offer 1 suggestion to you is that do you have an agent you use for your insurance? If so, then like with (personal) auto insurance if you drive few miles get a discount, but if high miles pay more. With an agent/broker might be able to have you pay less, since my guess the number of miles you drive the clients vs someone who has a business maybe cheaper, since a lower risk.
Just a suggestion to think about

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STEVEN F 3 weeks ago

NO, your employer IS NOT required to pay for your car insurance. Even if they actually own the car, unless it is also used by other employees, they can require you to have your own insurance.

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curtisports2 3 weeks ago

No. Employers are not required to pay for insurance on their employees vehicles. However, you should tell your employer that you can no longer provide transportation for customers of the business - they are NOT your clients if you are an employee - unless the company is willing to pay the difference between a personal policy and a commercial policy.
They will probably refuse, and then you will have to make a choice. Stop working for them, have them terminate you if you won't transport their customers or have them give you less work, pay for the insurance, or take the risk of going uncovered and face bankruptcy if you are in an accident and one of these customers sues you and you have no coverage, or take the risk of committing insurance fraud by lying.

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babyboomer1001 3 weeks ago

You are required to have insurance on your car. The agency is not obligated. You are. And don't lie if you are involved in a crash. The officer will question everything, who, where, what, when - and will verify everything. Lying will get you fired and you would be in a lot more trouble than that.

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Lou C. Ferr 3 weeks ago

No.

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Judy 3 weeks ago

You would be the one in trouble. And no the agendcy does not have to pay for your insurance.

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D J 3 weeks ago

No, you pay your own insurance.

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Alright alright alright 3 weeks ago

No you don’t

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mbrcatz 3 weeks ago

It would be you, not the agency. They aren't required to buy your car insurance. And, if you were in an accident and your client was injured or God Forbid killed, it would most likely come out that you were driving in the course of employment, and your policy would deny the claim. That means, you'd write the check 100% for all injuries, along with any damage to your car or the other car.
I see claims like this denied ALL THE TIME for people who deliver pizzas.

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Gwen 3 weeks ago

You are liable to provide your own insurance. The agency would not be liable.
You can claim it back as a business expense on your taxes.

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conley39 3 weeks ago

No, they aren't, but you can claim it as a business expense for tax purposes

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Elaine M 3 weeks ago

No, unless the vehicle is 100% used for the home care and the vehicle is a company vehicle owned by them, it can't be covered by the employer.

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Mark 3 weeks ago

Is it their car or yours? If its your car then obviously they wont be paying for your insurance.

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