Many people who have their own business will have to invest in a vehicle for themselves or their employees or associates for their work.
For example, if you are selling a new product, you might have to deliver your product yourself because you can’t afford to pay a shipping company to do it for you. In this case, you will definitely need to buy at least one company car to make it happen.
photo credit: Elena Sazosova / Pexels
You might also hire an employee to do the driving, but financial constraints can make this iffy. You will probably turn to anyone in your team who is willing to deliver the goods. But what if they aren’t vetted properly and you learn that they are unlicensed when they get into a fender bender?
Fortunately, auto insurance for unlicensed drivers is a real thing, and it is your duty as a boss to buy auto insurance for all vehicles that will be in use during business hours for company-related tasks.
We’ll cover all the ways you can get insurance as an unlicensed driver. We’ll also look into whether having unlicensed drivers on your payroll can lead to problems when they take out company cars.
Should you Employ Unlicensed Drivers?
Monitoring employees and asking them personal questions can seem like a step too far in the hiring process. Privacy is a big deal to people, especially when they are going to join a smaller company or startup that they expect to behave differently than the big conglomerates.
It’s not asking them for their sexual orientation, but driving is still a personal choice that shouldn’t be judged by the folks you are working with.
The other side of the coin is that driving could be a necessity in your business activities, and if it is, you should definitely only consider candidates that have a license.
If the interviewee is a fantastic candidate and their only drawback is that they are not licensed, you could forbid them from driving during their job. But if they need to take an occasional drive, how can you protect your brand from a possible ticket while they are in a company car?
Are Unlicensed Drivers Allowed to Get Auto Insurance?
It doesn’t seem to add up when you consider it at first glance, but even unlicensed drivers should buy some auto insurance if they plan to drive. Yes, that sounds contradictory. What are you protecting if you shouldn’t be doing an activity at all?
A lot, actually. If you get into a car accident without a license, you will be ticketed and fined heavily for driving illegally. You could also be in financial downfall if you add the fees for fixing an uninsured car and paying the ticket for driving without insurance, another illegal act.
Having auto insurance will protect you from at least one of these problems. If the person is driving a company car when they crash, you won’t have to pay out of pocket for the expenses that will ensue after the wreck. Always insure company cars, no matter the licensing status of the driver behind the wheel.
Will you Get in Trouble If your Worker Doesn’t Have a Driver’s License?
You will not be liable for your worker’s licensing status because getting a driver’s license is a choice that every individual makes on their own. Your reputation may be harmed, though, if a driver doesn’t have a license and they are caught driving a car or truck with logos of your company on the vehicle.
A great tip for every business is to verify that all of your employees have the proper credentials to do the job that the description asks of them. As discussed earlier, don’t get too personal, but go far enough that due diligence is being done.
Insurance and licensing aren’t tied, so make sure that any car you own that is going to be driven has delivery driver insurance regardless of the legality of the driver’s license.
If an uninsured car is crashed by an unlicensed driver, it’s a double whammy of trouble for the company and the employee who is using the vehicle. As a boss, take control of your business practices by ensuring the vehicle and leaving the licensing to your employee.
Shawn Laib writes and researches for the auto insurance comparison site, 4AutoInsuranceQuote.com. He wants to give people the resources they need to make intelligent insurance decisions for their vehicles.