Although most employers provide a car for their nanny to use during work hours, others ask their nanny to use her own car for work-related duties.
Before you choose this option, make sure you consider all the implications of relying on your nanny to provide transportation for your children. Does she drive a car that is safe? Does she perform the regular maintenance needed to keep the car in good working order? Does she carry adequate insurance? Is she able to financially cover any major expenses that may come up? If not, are you willing to pay for the repairs in order to secure continued transportation for your children? Is she financially preparing for the purchase of a new(er) car when needed? If not, what will happen when she is no longer able to provide safe, reliable transportation? All these issues should be discussed before hire and outlined in your nanny / family work agreement.
Nanny’s Compensation for Use of Her Car
Insurance Deductible
Professional Car Insurance
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Nanny’s Compensation for Use of Her Car
A nanny should be compensated for gas used, regular wear and tear (depreciation), and any additional insurance she must carry to cover her increased liability. You can compensate your nanny for the use of her car in one of two ways. First, you can pay your nanny a straight amount per mile. This amounts includes ALL costs associated with the use of her car. The current IRS amount is 48.5 cents per mile.
Second, you can pay your nanny for the individual costs associated with using her own car for work. These costs can include gas reimbursement, mileage allowance for depreciation, and contribution towards maintenance and repairs.
Insurance Deductible
Even if a nanny is using her own car, an employer is generally responsible for the deductible if the nanny is involved in an accident during working hours. If she is involved in an accident on her personal time, she is responsible for the deductible.
Professional Car Insurance
Often, the personal insurance policy that a nanny carries on her vehicle WILL NOT cover the use of her car for work purposes. If she is involved in an accident, her insurance carrier can refuse to cover the accident and in some states you, the employer, may be liable. If your nanny’s policy does not cover business driving, professional coverage can be purchased as a rider to the existing policy. Generally, the employer pays for the additional cost.
