Taking on a caregiving role often means managing transportation for elderly parents or other family members. This can affect your auto insurance in several ways.
Common Scenarios
Driving Your Car for Caregiving
If you're using your own vehicle to transport someone you care for, your existing insurance generally covers this. Just ensure your:
- Coverage is adequate for medical payments
- Mileage is accurately reported (caregiving may increase driving)
- Liability limits protect you sufficiently
Adding an Elderly Parent as a Driver
If a parent moves in and will drive your car, you must add them to your policy. Consider:
- Their driving record and any health conditions affecting driving
- Rate impact—older drivers may increase premiums
- Whether they should continue driving at all
Driving Their Car
If you regularly drive a parent's vehicle:
- Their insurance covers you as a permissive driver
- Consider being added to their policy for regular use
- Your own policy may provide excess coverage
Adding a Parent to Your Policy
When It's Required
If an elderly parent lives with you and has access to your vehicle, most insurers require listing them—even if they rarely drive.
Exclusion Option
If they won't be driving your car at all, you may be able to formally exclude them from coverage. This prevents any coverage if they drive, but avoids premium impact.
Caution
If an excluded driver causes an accident in your car, there is no coverage. Only exclude if you're certain they will never drive.
Managing Their Insurance
If you're helping manage a parent's insurance:
Keep Them Adequately Insured
Don't reduce coverage just to save money if they're still driving. Liability exposure is real.
Report Mileage Changes
If they're driving much less, updating annual mileage can reduce premiums.
Consider Driving Courses
Mature driver courses can provide discounts and refresh skills.
When to Stop Driving
If health issues make driving unsafe:
- Have honest conversations about stopping
- Consult their doctor if needed
- Cancel their policy once they stop (saves money)
- Consider non-owner insurance if they occasionally need to drive rentals
Paid Caregivers
If you hire caregivers who transport your family member:
- Ask about their insurance coverage
- Ensure they're covered when driving your vehicle
- Consider listing regular drivers on your policy
- Check if their agency provides coverage
Caregiving creates complex situations, but with proper planning, you can ensure everyone is protected while managing costs.