Did you know that online food ordering and delivery services have grown 300 percent faster than traditional dine-in ordering since 2014? With so many people taking advantage of convenient third-party delivery and rideshare apps, it makes sense that there are a lot more delivery drivers on the road than ever before. And since so many people are ordering food delivery in the greater Hartford area, the need for new drivers is increasing as well. Working as a delivery driver can be a great way to make some extra holiday cash, but it can also affect how your auto insurance works.
For those who use a personal car to make food deliveries or rideshare drop-offs, auto insurance can become very complicated. Before you sign-up with a third-party delivery application, make sure you have the right insurance policy in place. Keep reading to learn more about how work-related deliveries can affect your coverage and the different options that may be available to you.
Becoming a Delivery Driver: How Will My Current Auto Insurance Policy Be Affected?
When you use your car to complete work-related tasks like food deliveries, your auto insurance policy may not protect you after an accident. Most personal car insurance policies have specific exclusions that do not extend coverage for situations where you are “driving for hire.” And if your current policy has this type of exclusion, you could be left to pay for damages out of your pocket following an accident.
Luckily, many third-party delivery companies are aware of this issue and are doing what they can to offer some supplemental liability coverage for their drivers. It’s possible to be offered an employer insurance policy that will cover any delivery-related damages you incur in an auto accident. However, most of these policies will only provide coverage if you have the application open and are in the process of completing a delivery. If you have the application open and are simply waiting for your next order or rider pickup, you may not be covered. In this case, you would be without any personal auto insurance protection or employer liability coverage and held responsible for any damages to your vehicle or anyone else involved in the accident.
Are There Any Other Insurance Options for Delivery Drivers?
Although understanding your insurance coverage can be confusing for new delivery drivers, with the help of an experienced independent agent, you should hopefully be able to avoid any gaps in coverage. Even if you have a comprehensive personal auto insurance policy and are comfortable with the coverage offered by your employer, it’s important not just to assume you’re always covered. Some other insurance options that may work for delivery and rideshare drivers include:
Hired and Non-Owned Auto Insurance
This type of policy provides liability insurance coverage for bodily injury and property damage if you are involved in a work-related accident. But it’s important to remember that it will not extend to provide drivers with collision coverage.
Commercial Auto Insurance
Since you are technically considered to be an independent contractor when working with a third-party delivery company, you may be eligible for commercial auto coverage that provides comprehensive liability coverage.
If you only work as a delivery driver part-time, you are essentially using your vehicle for limited business use. Therefore, this could be a good coverage option to help prevent gaps in coverage.
Contact Frangquist Insurance Agency Today
Interested in learning more about auto insurance options for delivery drivers in Wisconsin? Call (262) 673-9000 or contact our friendly agents today for more information, and be sure to request a free quote.