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Do you need to cover your nanny on your car insurance policy?

 

Having a nanny can be a huge benefit to you and your kids. But, as an employer, you should consider a few things - especially as related to car insurance. If your nanny is using your vehicle to run errands or drive your children around, this may affect your car insurance policy. Let’s explore when you do and do not need to add your nanny to your car insurance policy.


When to add your nanny to your insurance policy

 

While it may vary by insurance company, most insurance companies will want anyone who uses the vehicle often to be added to your policy. This is because of the way insurance companies are wired to operate. They’re in the business of predicting risk and thus want any potential risk factors to be known to them - which means insuring all eligible drivers.

If you have a full-time nanny who uses your vehicle, it’s a good idea to talk to your insurance company about adding him or her to your insurance policy. Even if your nanny doesn’t reside with you, some companies will list him or her as a “non-resident driver.”

It’s always best to be safe rather than at the mercy of your insurance company. While we can’t guarantee your insurance company wouldn’t pay out a claim because you didn’t add your nanny to your policy, that’s the risk you take.

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When don't you need to add your nanny to your insurance policy?

 

In the insurance world, there’s a term called “permissive user.” This refers to someone who isn’t listed on your insurance policy and is given consent to use the vehicle infrequently. “Infrequently” can vary but can refer to someone who uses the vehicle less than 12 times per year. In the event of an accident when a permissive user was driving, coverage would apply.

If your nanny uses your vehicle rarely, you might not need to add him or her to the car insurance policy.


Can your nanny use their own auto insurance while driving your car?

 

In short, no. Car insurance does not follow the driver of the vehicle, but the vehicle itself. So, if someone were to borrow your car for the day and get into an accident, your car insurance would cover the claim - not the driver’s insurance. Your nanny's own car insurance policy would be irrelevant in this case.

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Nanny car insurance: alternatives

 

When you add someone to your insurance policy, no matter how pristine their driving record, your insurance premium will inevitably increase. If your nanny has claims, tickets, or other negative rating factors on his or her driving record, it may trigger a larger increase. And if your nanny needs to be able to use some form of transportation often, the permissive user clause might not apply to you.

If this is the case, you might be better off having your nanny use their own vehicle and simply reimbursing them for the miles. Other options include public transportation, Lyft, and Uber. If your nanny uses your car often but you don’t want to add him or her to your car insurance policy, you’re out of insurance options. You could run the risk of letting them use the vehicle anyway, but again you might find yourself having a claim denied. If your nanny damages another vehicle or harms a person while driving your vehicle, it could cost you tens of thousands of dollars.

In some situations, it may make the most sense to have the nanny use their own vehicle and then reimburse them for the miles.


Getting your nanny insured

 

If you’re interested in adding your nanny to your car insurance policy, make sure to specify the exact details of your situation to your insurance agent. Moreover, in order to get the most accurate quote for your nanny, you will need the following:

  • Full name
  • Date of Birth
  • Address
  • Driver's License Number

The rest of the information should already be available to them from the original car insurance policy. Your nanny’s driver’s license number will be used to search for their driving history to help determine the premium. Once you get your nanny insured, if you discover your premium has drastically changed, consider it an opportunity to shop around. You’re not locked into a contract with your insurance company like you might be with other providers. You’re free to cancel your current coverage at any time if you find a better rate elsewhere. The Zebra allows you to shop hundreds of companies at once to see which has the cheapest premium for you and your drivers. Get started now.

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RECENT QUESTIONS

Someone borrowed my car and wrecked it

Although it was not you driving the vehicle, it will still be on your insurance policy and thus affect your rates. For South Carolina, an at-fault accident raised rates an average of $594 per year.
Aug 6, 2018 Bluffton, SC

Risk of assets for separate car insurance policy

Although you have separate car insurance policies, your mutual assets would still be at risk because you are married. Your husband's car insurance would be the one to pay for the damages but if the damages exceed his policy limits for liability then your husband would be responsible for the remaining damages.
Jul 27, 2018 Austin, TX

Is my friend covered if they borrow my vehicle?

Generally speaking, a person who you give permission to drive your vehicle should be covered by the policy on the vehicle. It's called "permissive use" and is normally allowed with most companies.
Nov 23, 2017 Austin, TX

Do I need to get a non-owners policy if I'm borrowing my mom's vehicle?

Hello, If you live with your parents and drive their vehicle more than once a month, they will need to add you to their policy. If you do not live with them and/or you do not drive the vehicle more than once a month, you would be covered under what's known as permissive use (provided you have your parent's permission to drive their car).
Jun 21, 2019 Mission, TX

Ava Lynch photo
Ava LynchSenior Analyst

Ava joined The Zebra as a writer and licensed insurance agent in 2016. She now works as a senior analyst, providing insights and data analysis as one of The Zebra's property and casualty insurance experts.

Ava’s insurance career began as an agent with Farmers Insurance. Over the years, she has become an authority in all things property and casualty insurance, helping her to write informative guides for shoppers.

Ava’s work has been cited in publications such as InvestopediaThe BalanceMoney.comLiberty Mutual, U.S. News & World Report, GasBuddy, Car and Driver and Yahoo! Finance.

About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
  • The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.
  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.