When Your Nanny Needs to Provide Transportation for Your Children

Many families have their nanny provide basic transportation for the children as part of their regular job duties. Whether it’s drop off and pick up from school, transportation to and from sports practice and music lessons, or other scheduled activities, there are some important considerations to keep in mind.

First, you and your employee must agree on what vehicle will be used: their car or one provided by the family.

If you decide to use your family’s car, it is imperative that you list your nanny on your automobile insurance policy as an additional insured driver. A simple call to your insurance carrier will allow you to determine what they need in the way of information, so you can add them to your policy.

If you plan on asking your nanny to use their personal vehicle, there are a few important things to do ahead of time.

• Talk to your nanny to make sure they feel comfortable using their car to transport your children.
• Run a background check on your nanny’s driving history, to ensure you are comfortable with them transporting your children.
• Review the insurance coverage the nanny carries on the vehicle to determine if the limits adequately cover your family.
• Discuss how the automobile deductible will be covered if there is an accident while the nanny is transporting your children. For example, will you be fully responsible, or will you require your nanny to be partially responsible for the payment of any deductible?
• Review the physical condition of the vehicle, and the installation of car seats, or have a professional do this, at the family’s expense.

If the nanny agrees to use their personal car, families should provide mileage reimbursement at the IRS mileage reimbursement rate. Nanny mileage reimbursement is tax free if it doesn’t exceed the IRS rate. Families should also pay for any additional insurance cost if coverage must be increase or any riders must be added to the policy.

You should do your best to minimize the wear and tear on the nanny’s vehicle. For example, let the nanny set the rules for things like children eating and drinking in the vehicle. Consider offering to have the nanny’s car detailed periodically to say thank you for using their personal vehicle for work purposes.