Myth of the Contract Driver
We have been to the auction, seen and talked to these Contract Drivers. They wait outside the auction for the paying opportunity to drive a vehicle you purchased at auction back to the dealership. They will use the terms…
“I have a Contract Driver Insurance Policy”
or
“Your policy will allow me to drive your vehicle from the auction to the dealership”
In our 20+ years we have NEVER seen or heard of a policy called Contract Driver Insurance Policy. This policy is a unicorn, in other words it does not exist. Furthermore, your policy only covers you for people listed on the policy.
Over the years we’ve had many claims caused by the Contract Driver. Usually the policy will pay for the damage done and then at renewal the insurance carrier will drop you for an Undisclosed Driver.
When trying to obtain a new policy the agent will ask you for your Loss Runs. The Loss Runs will indicate that there is a claim and two things will happen. One, you will get charged a higher rate for the insurance because you had a claim. Two, the insurance company will deny you from getting a quote.
Stick to the professional transportation vehicles that have cargo insurance to cover your vehicle in the event of an accident. Or use your employees that are listed on the policy to transport the vehicle from auction to the dealership.
