Nanny Driving: How to Avoid Common Blind Spots in Safety, Insurance, and Employer Policies

Driving children is a significant responsibility, and when it’s part of a nanny’s role, it deserves careful planning and clear communication. Whether a nanny is using their own vehicle or the family’s, it’s important to establish safety standards, insurance coverage, and reimbursement policies that reflect mutual respect and professionalism. This guide walks you through how to do just that.

Decide Which Car the Nanny Will Drive

Start by clarifying whether the nanny will use their own car or a family vehicle. This decision impacts everything else — from insurance and safety checks to reimbursement and maintenance.

• Family Car: Add the nanny to your insurance policy and ensure the vehicle is properly maintained and safe.
• Nanny’s Car: Confirm the vehicle is inspected, safe for child car seats, and covered by an adequate insurance policy.

This foundational decision helps define responsibilities and simplifies expectations from the beginning.

Verify Driving History and Insurance Coverage

Once the vehicle arrangement is clear, focus on ensuring everyone is protected:

• Request a copy of the nanny’s driver’s license and verify their driving history with a Motor Vehicle Report (MVR). This report shows any past accidents, violations, or suspensions. If the nanny will be driving the family’s care, consider asking your insurance company to pull a driving record — many will do this at no cost if you're adding them to your policy.
• If driving is part of the job from the start, check references specifically for feedback on safe driving habits.
• Confirm that the nanny carries active insurance with sufficient liability coverage if they will be using their own car to transport the children.
• Agree on how deductibles will be handled in the event of an accident and memorialize this in your work agreement

Establish Clear Driving Rules

In the nanny’s work agreement, clearly outline your expectations regarding transportation. These rules protect everyone involved and ensure that transportation responsibilities are managed professionally.

You may want to include:

• Adhering to NHTSA car seat recommendations, all traffic laws, and speed limits
• No texting or hand-held phone use while driving
• If the nanny will be asked to transport children from other households (playdates, carpool, etc.)
• Permission for destinations outside agreed-upon routines

Reviewing these expectations together promotes clarity and reinforces mutual accountability.

Reimburse Driving Costs Fairly

If the nanny is driving as part of their job, they shouldn’t be expected to absorb the cost. How you handle reimbursement depends on which vehicle is being used:

• Family Car: Reimburse for gas, parking, and tolls if the nanny pays out-of-pocket.
• Nanny’s Car: Reimburse mileage using the IRS standard mileage rate, which accounts for gas, wear and tear, and depreciation. Also, reimburse for parking and tolls that the nanny pays out-of-pocket.

Mileage reimbursement is non-taxable, provided it’s not above the IRS mileage rate and properly documented, making this a simple and fair solution for both parties.

Carry Workers’ Compensation Coverage

If the nanny is injured in an accident while driving for work, workers’ compensation insurance can cover medical expenses and lost wages — regardless of who owns the vehicle.

Workers’ comp is required for household employers in many states and recommended in all, especially when job responsibilities include driving. It protects both the nanny and your household from unexpected financial risks and potential liability.

Learn whether workers' comp is required in your state here.

Final Thoughts

A nanny who drives as part of their role is taking on additional responsibility, and deserves thoughtful support. By clarifying which car will be used, checking insurance and driving history, setting clear expectations, and handling reimbursements and insurance properly, you create a safe, respectful, and professional working relationship.

At HomeWork Solutions, we help families manage every aspect of household employment — from taxes and payroll to driving reimbursements, compliance, and workers' comp. Let us help your family streamline household employment responsibilities. Contact us today for a free consultation.