With much of the country practicing social distancing and self-quarantines due to the coronavirus pandemic, many companies are looking for delivery drivers to get groceries, takeout meals and other items to customers.
If you’re looking to pick up some extra cash as a delivery driver and using your own car, be aware of possible auto insurance consequences.
Do You Need a Commercial Auto Insurance Policy to Deliver Food?
You may need a commercial auto policy if you’re a delivery driver. That’s because food delivery is business use of the vehicle, not personal use.
Car insurance companies see business use as a higher risk than personal use, and charge higher rates accordingly. Delivery drivers are more likely to get into accidents and file car insurance claims. Commercial auto insurance policies aren’t only for food delivery, but also any type of work could fall under business use, like delivering packages and driving customers.
If you start driving as a job (whether full-time or as a side hustle) and don’t tell your auto insurance company, you could face a claim denial in the future if you cause an accident.
Some auto insurance companies are responding to the COVID-19 pandemic by extending coverage to customers who are using their personal vehicles to make deliveries.
If you start working as a delivery driver and use your own car, speak with your insurance agent and ask if your insurer has made any changes for delivery drivers during the COVID-19 outbreak.
Is There a Coverage Gap Between My Personal Auto Insurance and Insurance Through My Employer?
This is where things can get tricky. Depending on your car insurance company and your employer’s insurance, there may be a gap between both insurance policies. For example, you might have coverage through your employer while driving a takeout order to a customer, but not while driving to the restaurant to pick up the order.
If you’re in a car accident during a gap in coverage, your personal car insurance company could deny coverage, meaning you could be stuck with property damage and medical bills.
The best strategy: Call your car insurance company before using your car for work. If you don’t have the right car insurance for your delivery work, you could get stuck paying big auto accident bills yourself.
Call us with any questions you may have on your auto policy (330) 758-3339