Pete and Ashley Wentz Looking at Higher Auto Insurance for Nanny

By: Shannon Brown, Car Insurance Analyst
CheaperCarInsurance.com

No parent wants to hear that their child has been in a car accident, but that was the news celebrity parents Ashlee and Pete Wentz got on Tuesday. Fortunately their son was unscathed, as was the nanny who was driving. However, for the couple, this will mean higher auto insurance payments.

One and a half year old Bronx Wentz was picked up by his worried parents after the fender bender. The nanny’s vehicle has a badly banged up fender, but no one was injured. It’s not yet known if the nanny was at fault or not. Investigations are ongoing and details haven’t been released as to whether other vehicles were involved or not.

Third Party Auto Insurance Woes

Most parents who hire nannies will pay for the extra car insurance, particularly if they provide the vehicle. That means, in cases like this, the car insurance for the family will go up. A claim has been made and the fact that it was the nanny driving makes no difference.

There are many reasons to do things this way. It may be that the family has a vehicle just for those they hire, or they might not trust the vehicle that is being used by the nanny or other help. By providing a vehicle, they know exactly what miles are on it and what has gone wrong or been fixed and updated. That’s a great peace of mind.

Workers’ vehicles shouldn’t be used for many reasons:

• Wear and tear on the vehicle
• Uncertain maintenance and safety schedule
• Car seats will have to be installed and reinstalled

Most nannies will not want to use their own vehicles for the above reasons, as well. They may not be willing to use their own cars, so check this before hiring.

How to Protect Against Higher 3rd Party Auto Insurance

There are several ways to ensure that your child will be safe when with a nanny or other hired help that is driving. It’s very important that any employer check into their options if someone else will be driving the family vehicle. These tips will also help keep auto insurance premiums to a minimum.

• Check the person’s driving records before hiring
• Set specific rules, such as how far the nanny can drive children
• Prohibit texting while driving
• Take a test drive with the person who will be driving your children

It may also be a good idea to look only for those who have several solid years of driving behind them. Since many families opt for younger nannies, they may not have the same amount of driving experience and could be more of a driving risk.

When hired help crash a vehicle under your third party insurance, you’ll be the one with the higher premiums. Auto insurance rates can jump drastically with an accident, so it’s important to consider this decision carefully. If you decide not to go with paying the insurance for the third party, be sure to check that he or she has the coverage required.

Posted: May 24, 2010