6 auto insurance potholes

Can you live with the livery exclusion?
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Livery is a creaky old Shakespearean term for the carriage trade or the voluntary transfer of people or property from one place to another, as in delivery.

The problem with using your personal vehicle on a regular basis for livery is that it multiplies the risk to your auto insurer. That's why most personal auto policies exclude all coverage -- liability, medical and collision -- if you routinely use your vehicle to transport people or property.

"It doesn't even have to be a business; if you donate your time, coverage still would not apply," Wilson says.

The livery exclusion doesn't apply to your commute, nor is it intended to punish car pools or the office worker who makes the occasional office lunch run. But if you're living the livery life on a regular basis, it's best to buy a commercial auto policy designed to carry that extra risk load.

"How your vehicle is used defines the kind of policy you require," says McChristian.




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