Home >> Car insurance for rural carriers for usps?
Car insurance for rural carriers for usps?
Doen anybody know if your car insurance rates go up if you are a rural carrier for usps ? I have state farm insurance and have been a little nervous my rates would go way up.
Your personal auto policy won't cover you, AT ALL, if you're using your personal auto for delivering mail. Not the damage you do to someone else, not the damage to your car. Period. It's not something you can endorse onto the policy and pay an extra rate for. So, NONE.
USPS is a governmental entity - and they "self insure" their fleet of vehicles. You're going to have to check with the local risk manager for your USPS office, to see how they handle employees using their own vehicles for company purposes. If it WASN'T a governmental entity, I'd say, the commercial policy probably will cover your LIABILITY while you're driving for business, but likely NOT your car itself.
You do NOT want to have to buy a commercial policy, with a delivery rating.
**Thanks, Ernesto, I did NOT know about that endorsement!!**
You have to ensure that the vehicle is properly rated for the way you are using the vehicle. If you are using your vehicle for delivering mail, then your policy has to be rated for business/delivery use. Unfortunately this means your premiums will increase since this type of risk is higher (vehicle is on the road more therefore greater chance of being in an accident) than a strict pleasure use or commuting to/from work. If you fail to inform your insurer of the new use their are a few scenarios that can happen: Best case: Insurer pays your claim, rerates your policy backdating to the time you first started using the vehicle in that way and bills you; Second worst case: Insurer denies your claim (which case you would be responsible for everyones damages if accident is your fault) since you failed to notify them in the change of use, rerates your policy and bills you for the new use; Worst case: Insurer denies your claim and then cancels or voids your policy for non-disclosure.
Bottom line: Inform your insurer of the change and stop playing Russian Roulette with your fianancial future.
First, USPS probably has insurance requirements you must meet to be a contract carrier. And you need to inform your insurance company that you are using your vehicle for work and provide appropriate information. If you have an accident while working and haven't updated the vehicle use with your insurer, they might deny coverage for your losses.
Actually, there is a special ISO endorsement for rural postal carriers (ISO PP 03 01) 'federal employees using auto in Government business'.
This endorsement protects insurers from having to defend the US Gov. while you're delivering the mail. My understanding is the USPS will insure you for liability while you're delivering.
Call your agent and ask for the endorsement. If your vehicle is rated for pleasure use, you may have to re-rate it based on whatever usage your insurer says it should be (daily driver/commuter should do it, not business use; you're being insured to drive to and from your postal center). They may also have an issue insuring you for physical damage; liability only shouldn't be a problem.
It may vary by state, but State Farm does offer an endorsement for federal employees - which actually works out to DISCOUNT your liability and property damage premiums!!! The vehicle has to be classified correctly (as business use) and then the endorsement applied discounts the BI PD. If your car is incorrectly classified, it may go up a little with the correct classification, but then the endorsement may make it a wash. Talk to your agent - they can run quotes for you. Keep in mind though, that by not telling the company and being improperly classified, an accident that you may have while working, may not be fully covered!
Rural carriers for usps can go up anytime.
I use this site to compare what's available:
Auto Car Plus Insurance Transfer Site
http://www.acats.net
All the best,
Noel