Automobile Insurance

"Cars for Hire" Exclusion

A Pennsylvania mother who was injured when a pizza delivery employee backed into her and her infant daughter was frustrated to learn that the pizza driver's insurance company could deny coverage for the accident.

Pennsylvania automobile insurance policies include an exclusion commonly called the "cars for hire" exclusion. When a driver is using his or her car to transport people or property for a fee, the personal insurance policy on the car does not cover the driver for any negligence. If you use your car to deliver products or materials for your employer, or if you accept money from others to drive them to their destination, your insurance company can refuse to pay the damages that may result from your unintended careless driving.

Be sure that your employer has complete coverage for you and your vehicle before you use your own car to make work-related deliveries. Do not operate a private taxi service with your car--doing so not only violates the terms of your insurance policy but violates Pennsylvania's laws that govern taxi services. If a friend occasionally needs a ride, do not accept any money for the favor. Any time you are paid to drive someone, you put your insurance coverage at serious risk, and using your car regularly to transport people for pay is a summary crime if you are not licensed to operate a taxi service.

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