legalities of designated driver service

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pxdetroit

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My jurisdiction is: Michigan, USA

Hello and thanks in advance for your advice.

In my area there seems to be a market for a designated driver service. I would like to start a small service where the bars (or people) could call me and I would have a partner drop me off at the bar (house) to drive the drunk person home IN THEIR CAR. My partner would follow us to the person's house to take me away afterwards.

- The customer would never get into our vehicle, I would drive their car.
- I am a legal, licenced commercial driver (former truck and taxicab driver).
- I would require to see proof of insurance before driving their vehicle.
- I would not accept a destination of another bar, must be a residence/hotel.

Does anyone know if there are any legal requirements or pitfalls I should watch out for?

-What if the guy says later that I damaged his car or yard? (I wouldn't, though!)
-What if the guy trips on the sidewalk and breaks his neck, or cracks his head on the car when getting in?
-What if the insurance was no good and there was an "incident?"
-What if the guy is beligerant and I'm driving HIS car? (In taxicabs we just throw 'em out of our cab, here I figure I'll be just stuck with it.)
-Is there any other kind of liability I should look for?

BTW, I know I'd be liable for speeding tickets (etc), not that I expect any.

THANK YOU AGAIN for your advice!
 
What you propose to do isn't, as far as I know, illegal, and know of other people offering the same service so I guess it can be done. It sounds like you already have a decent idea of what sort of legal liabilities you could face. To my mind, this is less a legal issue than a "make sure you have damn good insurance" issue. I would suggest you talk to people already in the business - some of them might not mind sharing their insight.
 
Thanks for the reply. You mentioned insurance. That's actually my biggest question also.

As I understand, Michigan requires "uninsured motorist" coverage--if you let someone drive your car they are covered under your insurance. I would see their proof of ins before I drive their car. That is my due dilligence, right?

I don't see any other need for insurance. Do you? Those points I originally listed -seemed- to show no liability on my part, unless of course I'm neglegent somehow. And being a professional cab and truck driver, I already know the ropes very well.

Here is the (pathetic) bottom line: I am unemployed and broke in Michigan, a former taxicab and truck driver with an idea (and a degree in business), looking to avoid impending homelessness.

I couldn't afford insurance if I wanted to. So if my own insurance is required, I guess I'm stuck and have to put this idea on hold with the two other business plans I have already on hold for lack of capital.

I know my own business insurance would be "optimal" but I'm just a single person with a friend who has a car, and all I offer is my service of driving a drunk's car home---same as any designated driver (friend) that you'd repay for the favor. So I hope that falls under "uninsured motorist." My fear is that it won't apply because actual money is changing hands.

I hope the insurance question doesn't squash my last hope for keeping my house.

Do you know if my own insurance is a requirement or a suggestion?
 
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I don't know whether it's a legal requirement - I'm not familiar with Michigan business law. From my perspective, it's a strong suggestion. The potential liabilities of driving other people's vehicles for hire and dealing with intoxicated customers are too scary to do this as a commercial venture without personal liability insurance.
 
Sorry to keep pestering about this...

But can you suggest what govt department to ask, at the state level, about whether my own insurance is required? (I could find it if I knew which dept name.)

If it's not a requirement then I'd like to start without it and get it ASAP afterward.

Small risk I'll take, but I'm definitely not trying to break any laws.

THANKS!
 
Sorry, I don't know much about your location. I'd check with your local city hall or state business licensing department. If they don't know, they might be able to point you in the right direction.
 
What did you end up doing?

Hey pxdetroit what did you find out? Im looking at trying to start a designated driving business in California and have the same questions!
 
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