Can an employer ask for proof of auto insurance?

Can an employer ask for proof of insurance? The short answer is yes. And if your job involves driving, you can almost guarantee your boss will ask for — and maybe even require — proof of auto insurance. If you’re curious about the situations in which your boss might ask for or require proof of auto insurance, we’ve got you covered. 

This article will explain why an employer might ask for proof of auto insurance. We’ll discuss how you can protect yourself while driving for work, and we’ll explore alternate forms of protection you can employ to keep yourself safe. 

Can your employer ask for proof of auto insurance?

Yes, your employer can ask for proof of auto insurance, and they may do so if you frequently drive a personal vehicle for work. 

If you drive a company-owned vehicle for work, the chances are that your employer has already added you to a commercial insurance policy. However, if you must drive a personal car as part of your job, your boss will want to ensure that you possess your own insurance policy. 

Can your employer require proof of insurance? Maybe, however, some lawyers argue that this edges close to subtle discrimination, and it may not always be enforceable. 

Why would your employer ask for proof of auto insurance?

Employers are primarily concerned with protecting themselves and their profits. Your boss might ask you for proof of insurance to ensure that they won’t be held responsible for losses you experience while performing your job duties. 

Your employer will want to confirm that your insurance is up-to-date and meets your state’s minimum standards. They do this to reduce their share of financial responsibility if you are in an accident.

Further, employers are often subject to strict vicarious liability laws. This means that your boss can be held liable for negligent acts you commit while on the clock.

Many employers may hope that your insurance will pay for these damages if you are involved in an accident. 

Finally, according to OSHA, 39% of workplace fatalities occur due to traffic accidents. Because of this, your employer might be particularly concerned with protecting themselves from financial liability. This is especially important if employees must drive their personal vehicles for work.

The best way for bosses to protect themselves is to ensure that employees have adequate levels of auto insurance. 

What counts as proof of insurance?

If your employer asks for proof of insurance, you’ll need to provide them with the proper documents. Proof of insurance is documentation — physical or electronic — that proves your insurance coverage is up-to-date and meets the state’s minimum requirements.

What is your employer trying to verify by looking at your proof of insurance? Bosses are generally interested in confirming the following details:

• The names of the insured parties. Your employer will want to verify your name and the names of anyone else covered by your active policy. 
• Vehicle information. This includes the make and model of your car and the VIN.
• Your policy number. This is a nine-digit number that serves as identification for your individual policy.
• Policy effective and expiration dates. This information shows the dates your plan begins and ends.
• Coverage amounts and limits. Your employer will want to know how much coverage you possess in case of an accident.

You can locate this information on your insurance card or declarations page. You can even print this information off of your insurance company’s website. 

Further, your insurance company may also provide access to a mobile app. In this case, you might be able to view your insurance policy details and provide digital proof of insurance from your cellphone. 

How much insurance coverage do you need?

Most states require drivers to possess a minimum amount of liability coverage. Your boss will probably want to confirm that you have adequate liability protection if you’re driving for work. 

If you’re driving for work, you’ll need to have at least some form of liability auto insurance. Liability coverage pays for the damages you cause others in an accident where you are legally at fault. It is required in most states. 

Full coverage generally includes protections for physical damage to your vehicle caused by both collision and non-collision events. Full coverage also typically provides coverage for medical expenses and other accident-related losses. 

Let’s take a look at the average annual rates for minimum liability coverage and full coverage by state. 

Car Insurance Rates by State (Liability and Full Coverage)

While full coverage is not required, it may be beneficial if you drive a newer or more expensive car. If you frequently drive for work, you might want to consider purchasing a full-coverage plan to protect yourself and your vehicle. 

Commercial Auto Insurance

Commercial auto insurance is an excellent way to protect yourself if you drive your personal car for work. 

Often, if your insurer is not aware that you drive your vehicle for work, they will deny your claims. 

However, many insurance companies provide you with the option to add commercial coverage to your primary policy. If you’re driving for work, you can ask your insurance agent about these add-ons and special forms of protection. 

Further, you might already be eligible for coverage under your employer’s commercial auto insurance policy. 

The great thing about commercial insurance plans is that many of them provide coverage for non-owned vehicles. This means that your boss’s plan might extend to your personal car when used for work purposes. In this case, if you’re involved in a work-related accident, your employer’s commercial plan will protect you. 

If your employer has a commercial auto insurance plan, speak to them about adding you as an insured driver. 

Employers Asking for Proof of Auto Insurance: What’s the bottom line?

Can an employer ask for proof of auto insurance? Yes, and they are likely to do so if your job involves driving a personal vehicle.

Because employers are subject to vicarious liability law, they can be held liable for any acts of negligence you commit while on the clock. They may also be held responsible for paying the difference between what your insurance policy covers and your remaining accident-related losses. 

If your employer allows or forces you to drive for work without insurance coverage, they open themselves up to considerable risks. 

The best way for your employer to protect themself is to ensure that you possess the proper level of insurance coverage. 

Your primary auto insurance plan may not always cover you if you drive your personal car for work. You can further protect yourself and your vehicle by obtaining commercial auto insurance or asking your boss to add you to their plan. Many insurance companies will offer options to add this protection to your primary policy. 

The bottom line is yes, your employer can ask for proof of auto insurance. They may even be able to require it in some situations. You can ensure that you’re protected by always keeping your policy up-to-date and carrying the proper proof of insurance.