Do I need to add the babysitter to my auto insurance policy?

Are you planning to leave a car for the babysitter to shuttle the kids around in while you head out of town for the weekend, or to take them to and from camp while you're at work this summer? If so, you may be wondering if you need to add him or her to your auto insurance policy.

Unless the babysitter will be the exclusive driver of the vehicle for an extended period of time the answer is no. Auto insurance coverage is designed to follow the car, and will protect whoever is driving your vehicle. That said, in order to be fully covered by your policy in the event of an accident, your babysitter must have permission (verbal or written) to drive your insured vehicle.

So there's no question if an accident were to happen, it's a good idea to provide your sitter with a written document stating that he or she is authorized to drive your vehicle. You'll also want to provide the sitter with a copy of your insurance card. Recommend that these documents be kept in the glove box so they will be handy if needed.

If your sitter has permission to drive, and gets into an accident while behind the wheel of your vehicle, your car insurance will be considered the primary coverage in any accident-related claim that's made. Your sitter's insurance coverage, if she has any of her own, will be considered a secondary coverage, and will only activate if damage claims exceed the limits of your own policy.

As for babysitting rates, according to www.care.com, if the sitter will be driving your kids around, it's common to offer an extra dollar or two per hour in compensation. And don't forget to provide gas money just in case the tank needs filling too.

Courtesy of ARAcontent