If you’re looking for a way to make some money on the side in the Scottsdale area, food delivery or driving for a rideshare company is likely appealing. Don’t just sign up for these services. Your personal car insurance will not cover you. Personal car insurance, in general, doesn’t cover any type of work-related driving. Even if you only drive a few times a week, getting paid for the miles qualifies you for commercial insurance. Get the right insurance for delivering food by talking to your insurance agent.
When you take a standard delivery job for a restaurant or shop, your employer is likely responsible for your auto insurance. Depending on the state, they may have to reimburse you for a commercial policy or cover you themselves. An employer can start a Hired & Non-Owned policy that covers vehicles driven by employees for the business. If you get a job that involves deliveries, make sure you understand what insurance coverage comes with it. Your personal insurance will still cover your vehicle while you drive to and from work.
Uber and UberEats, PostMates, and similar services all tend to provide some amount of insurance to drivers working for them. However, this is not an employer-employee relationship. This means that the service in many states can leave you completely responsible for all insurance. The supplemental insurance offered for free by these companies tends only to cover liability. If your vehicle is damaged because of someone else’s actions, you’re still stuck paying out-of-pocket for repairs. Personal insurance doesn’t cover driving for these services. Even if you’re waiting to pick up an available order, you still need commercial insurance to protect you and your vehicle.
Gaps or Conflicts in Coverage
Insurance from your employer or app may only protect you so much. Gaps in coverage leave you at risk when you’re waiting for a delivery or returning to the store. Supplemental insurance from Uber only kicks in while you’re traveling to pick up or drop off a rider. The rest of the time you spend waiting for fares qualifies as work, but your supplemental insurance won’t cover it. Most delivery or rideshare drivers will need a commercial insurance policy to fill in these gaps. Coverage that kicks in any time your personal or work-supplied insurance drops is essential. Only your insurance agent can help you determine exactly what you need.
Notifying Your Personal Car Insurance Provider
Read your personal insurance contract carefully. It may mention cancellation terms if you begin driving for hire without notifying the company. Even if you get other insurance policies yourself or from your employer, you may need to provide proof. In general, personal insurance companies will let you keep your coverage after you prove you have commercial protection too. However, you may still be at risk for cancellation. Check with your current insurance providers before starting any new delivery jobs. You don’t want to find out your insurance provider is unwilling to work with you after getting a cancellation notice in the mail. Your insurance agent can help you find a provider that doesn’t mind handling both personal and commercial auto insurance for the same client.
Need help getting into food delivery or ridesharing? Call or visit us here at Vanyo Insurance to get the coverage you need. We’ll work with you to find insurance options that fit your budget.