INSURANCE | You may need extra coverage if CARPOOLING KIDS is part of your routine.

IF YOUR MINIVAN is constantly filled with other people's kids--on car-pool duty to school, soccer games, band practice and Girl Scouts--make sure your auto insurance provides the right protection.

In most cases, your liability coverage will protect you if you cause an accident while driving the car pool. But in rare instances, car-pool driving isn't covered by your regular insurance policy. Instead, it's considered business use of your car--especially if you receive gas money or a small fee for the service. In that case, you may need extra coverage, says Madelyn Flannagan, vice-president of research and education for the Independent Insurance Agents of America. The rules vary by company and may depend on where you live; ask your agent or company if you're okay.

Even if your policy covers car pooling, you may want to beef up the medical-payments coverage. This coverage, which pays for injuries to you and your passengers no matter who is at fault, can speed up payments in a situation in which there is a dispute over accident liability. Donald Beery, an independent insurance agent in New Orleans, recommends that parents who carpool frequently boost their coverage from the standard $2,000 to $5,000 per person. That typically adds $20 to $50 to an annual premium. This coverage would also kick in if someone were injured getting into or out of your car.

If you're carpooling children as part of a home-based day-care business, or if you lend your van for team outings and somebody else drives, be sure to tell your company or agent. And make sure that you have an adequate number of child seats and seat belts to protect the children--and protect yourself against liability.

COPYRIGHT 2001 The Kiplinger Washington Editors, Inc.
COPYRIGHT 2001 Gale Group