Can an employer ask for proof of auto insurance?

If you’re driving for work purposes, your employer may want to verify your liability coverage in case of an accident. Can an employer ask for proof of auto insurance? We’ll answer this question and more below.

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Can an employer ask for proof of auto insurance?

Yes, your employer may ask for proof of auto insurance. They may want to check to make sure it is up-to-date and meets your state’s insurance requirements.

For example, if you only occasionally make trips using your personal vehicle for work purposes, your employer may want your insurance information in the event you are in an accident during work activities.

In this case, your employer may also be liable, but they may attempt to get your insurance to cover any damages or injuries first.

Can an employer require proof of auto insurance? Maybe, but maybe not.

This may fall under the simple issue of them wanting to verify safe transportation and liability issues, but some lawyers may also argue that it could be subtle discrimination if they take action against you for not having a specific type of insurance or coverage amount.

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When do employers ask for proof of auto insurance?

Employers most often ask for proof of insurance if you are asked to make work-related trips. They may be hoping your personal auto insurance would cover you in the event of an accident during work hours.

Unfortunately for them, most personal auto insurance policies do not offer business-use coverage (or at least very limited coverage) unless you pay an additional fee.

Also, it may be risky for you, since your personal insurer could decide to cancel your coverage or deny claims, especially if they were not aware that you drive your vehicle for business purposes.

You may want to ask your employer in return if you can take a look at their commercial auto insurance or other business liability. They may add you as an insured driver on their policy to make sure you are covered.

You can also ask your personal auto insurance company if they offer business-use add-ons or commercial auto insurance that you can purchase for yourself. This is especially for those who drive often for work.

What counts as proof of auto insurance?

Since employers can and may ask for proof of auto insurance, make sure you’re covered. Here’s some information about the average car insurance rates:

Proof of auto insurance is some form of verification of an up-to-date policy that meets your state’s insurance requirements. Your employer may be trying to verify:

• The names of the insured
• Your vehicle information
• Your policy number
• Your policy effective and expiration dates
• Coverage amounts and limits

This information may be found on your insurance ID cards or declarations page. You may also be able to print a copy of your policy using your online account. Some companies also have an app where you can find digital proof of insurance.

Summing It Up

An employer may ask you for proof of auto insurance, most likely in case you are in an accident during work trips, and they want to attempt to get your insurer to pay for any damages or injuries.

However, it may be a safer option for you to be put on your employer’s insurance or purchase your own business-use add-on or commercial insurance to make sure you are covered.

If you need help finding the right auto insurance company for you, enter your ZIP code into the free quote comparison tool below and search for the best auto insurance rates.