Food delivery is a growing trend. It used to be just pizza places that would deliver. Today, many restaurants, sandwich shops and even grocery stores offer delivery.
If you use your car for any type of delivery service, you need the right insurance.
Standard personal auto insurance policies won't cover you if you use your vehicle to deliver items such as food, newspapers, packages or medical supplies. Insurers know delivery drivers are riskier because they are constantly on the road.
If you get into an accident while doing delivery runs, your personal car insurance claim will likely be denied because you've violated the terms of your policy.
Delivery app companies sometimes provide coverage for drivers
Companies like Uber Eats, DoorDash and Amazon Flex are constantly looking for new delivery workers. Many of them provide insurance coverage for their drivers.
For example, Uber Eats, currently provides commercial auto liability coverage of $1,000,000 per incident. Drivers are insured from the time a delivery request is accepted through the completion of the delivery. The company also provides coverage between deliveries for drivers who lack applicable coverage.
Because your personal auto insurance won’t cover you for business use of your car, you will need your own coverage if the company you’re driving for does not provide it.
Your insurance professional can help you determine whether you need a commercial car insurance policy or supplemental coverage as an add-on to your personal policy.
Do not be tempted to skip insurance! Accidents can be costly if you don’t have the proper coverage.
Business use or commercial auto insurance
In the recent past, delivery drivers had to purchase a commercial auto policy to be covered for auto damages and liability. These policies provide comprehensive protection, including:
- Liability coverage
- Physical damage coverage (comprehensive and collision)
- Coverage for medical bills, if you or your passengers need treatment
- Coverage for damages if the person responsible for the accident is uninsured or underinsured
Nowadays, it’s sometimes possible to get a business-use policy if you use your vehicle for deliveries only some of the time. But if you’re a full-time delivery driver, you may not qualify for this coverage.
Make sure you have adequate coverage
If you have a valid driver’s license and reliable transportation, working as a delivery driver could be a flexible career option.
Just don’t set off without the right insurance. Before you hit the road, check with the company you drive for to see whether they extend coverage to their drivers.
Then, talk to your insurance professional to ensure you’re properly protected. Even if your company provides some coverage, there may be gaps you need to fill at your end.