Did you know that food delivery sales are projected to rise from $35 billion annually worldwide to $365 billion by 2030? With the demand for fast food delivery and rideshare trips across the greater Green Bay area growing, it makes sense that residents are about to see a lot more delivery vehicles on the roadways as well. If you’ve ever thought about making some side money from food delivery or rideshare services, you may have also wondered how this type of job will affect your auto insurance coverage as well. Since you’re driving a personal vehicle, does your regular car insurance policy cover you in the event of an accident? Keep reading to learn more.
How Does Auto Insurance Work for Delivery Drivers?
Since freelance delivery drivers use their personal cars each day, you may think that their current auto insurance policy will work to protect them if they’re involved in an accident. But most personal auto insurance policies have a list of exclusions that include any time you may use your vehicle in a “driving for hire” situation. This type of use typically includes making food deliveries and rideshare services as well. So, if you were to hit another car while making a food delivery, this accident likely not be covered.
In some cases, rideshare and third-party delivery apps may offer some basic liability coverage for their drivers. However, this type of coverage is usually only available when the application is on and you are in the process of making a delivery. For example, if you hit another vehicle while dropping off a rider and the fare was being tracked on your app, you’d likely be covered. But if you are simply waiting between pickups and are in an accident, it likely won’t be covered under your employer’s policy.
What is Hired and Non-Owned Auto Insurance?
It may be possible to bridge the gap between your insurance policies by investing in hired and non-owned auto insurance. These special insurance types work to provide liability coverage for property damage and bodily injuries that you cause while operating your personal car for work-related duties. This type of coverage will extend to cover any vehicle that you “hire,” like a rental car. Typically, this coverage option can be added as an endorsement to your general liability insurance.
Finally, it’s important to remember that hired, and non-owner car insurance doesn’t pay for collision damage. You will need to invest in a separate add-on policy to pay for potential damages to your vehicle if you are involved in an accident while completing work-related tasks. It’s best to speak directly with one of our experienced independent agents before making any changes to your current auto insurance policy.
Do I Need a Special Driver’s License?
Depending on the company you drive for, and where you live, you may need to invest in a commercial driver’s license to become a rideshare or delivery driver. Even if you’ve invested in the right insurance policy to protect yourself while making deliveries, you are required to hold a special license. If you don’t have one, you could be subject to prosecution.
Contact Pagel and Associates Insurance Today
Are you seriously considering a side job as a delivery driver or ride-hailing company? Don’t get caught without proper insurance protection when you need it the most! Be sure you understand how this new position will affect your auto insurance coverage and discuss potential policy changes with our knowledgeable agents first. Call (920) 544-0687 or contact us today for more information and be sure to request a free quote.