Are you looking to become a delivery driver for Uber Eats, Grub Hub, or some other service? Here are your options for making sure you’re insured while you’re working.
Personal Car Insurance
You probably already have personal car insurance since it’s the law, but it probably won’t help you with delivery driving. In most apps, you’re an independent contractor. That means you’re your own separate business. Personal car insurance almost always excludes business activities. While you’re engaged in business, it usually turns off as if you had no insurance at all and only turns back on when you’re doing your usual commuting and shopping.
Delivery drivers who are employers also usually aren’t covered by personal insurance. Even though you’re employed by someone else, you’re still using your car for business purposes. Some policies will allow occasional use, such as getting lunch for your entire office, but regular business use is rarely covered.
Some car insurance companies will let you add commercial coverage on top of a personal car insurance policy. These are usually special policies designed for side gigs. For an additional monthly premium, you can also be covered while engaged in a side gig that’s covered by the add-on.
These policies are convenient because you only have one premium to pay, and the same insurance company handles any claims, so there’s no back and forth over which policy should apply at the time of the accident. However, they may have limits on what you can do or how much you can drive for business, so be sure to read the policy carefully.
Separate Commercial Coverage
You can also buy a separate commercial car insurance policy. This is just like buying a personal car insurance policy with options for liability, collision coverage, etc. These policies are often more expensive than personal coverage especially when most of your business time consists of driving around. Depending on the terms of your policy, you may also need to maintain personal coverage for the time you use your vehicle for personal purposes.
Hired and Non-Owned Insurance
Hired and non-owned insurance is a policy that your employer may purchase. This gives you protection without having to buy additional insurance.
In most cases, you will receive coverage for liability for property damage or physical injuries you cause to others. Your employer may also add property damage coverage in case you are transporting their assets. However, the policy usually won’t include physical damage to your vehicle. That’s because your employer is really buying the policy to protect themself from lawsuits, and any protection to you is only a fringe benefit. You will likely need to get separate collision coverage if you want your car to be covered.
Supplemental coverage adds on coverage to your primary insurance policy and is purchased by an employer. It may give you additional liability protection or cover you during times your personal insurance doesn’t apply.
The downside is that supplemental coverage may not apply at all times; your car insurance doesn’t. For example, it may only turn on when you have a delivery in your car, but your insurance may not apply when you’re driving back to a restaurant.
Talk to Your Insurance Agent
To make sure you’re fully covered and don’t have any gaps between policies, talk to your insurance agent. Billy Brown Insurance is always available to help. Contact us now for a quote or to get more information.