Did you know that since 2014, food delivery orders have grown 300 percent faster than dine-in traffic in the US? That’s why so many of your favorite restaurants in the greater Mauston area and beyond have turned to third-party delivery companies to help keep their customers satisfied. With this huge influx of delivery orders to fulfill, drivers are in high demand. And working as a food delivery or rideshare driver can be a lucrative side-gig for those looking to make some fast cash. However, before you start driving for Uber or Postmates, it’s important to consider what this new job might mean for your current car insurance policy. Keep reading to learn more about food delivery and personal auto insurance coverage.
Does Personal Car Insurance Protect Delivery Drivers?
You’ve taken the time to go over all of your insurance options with your local independent agent, invested in the ideal policy to suit your needs, and went above the state minimum requirements when needed—so you should be protected if you get into an accident while delivering food from your favorite burger joint, right? Unfortunately, the chances are that your personal car insurance policy does not cover accidents when you are “driving for hire.” In fact, your current auto insurance policy likely has an exclusion for just this type of situation, meaning that if you are in an accident while performing work duties and don’t have supplemental coverage, you’ll be left to pay for all associated damages on your own.
What About Coverage from My Employer?
Many of the larger third-party food delivery and rideshare apps have recognized that there is a potential for their drivers to get caught with a gap in coverage while working for them, so they’ve offered minimal liability coverage for their independent contractors. Some provide very basic liability coverage if you’ve got the application open and are waiting for your next delivery, but some offer no coverage at all in this scenario. If you’ve got some basic employer insurance protection while waiting, the coverage will likely increase once you’ve accepted a new delivery or rider, and go up further still once you actually have a passenger in your vehicle.
Are There Other Options Out There?
Yes! If you don’t like the idea of relying on zero to minimal liability coverage from your employer, you can invest in a couple of different add-on options for your personal policy or invest in a separate business policy altogether. These options include:
Rideshare Coverage
This is typically offered as part of a hybrid insurance policy or as an add-on to your current coverage. While this option can be great for avoiding gaps in your coverage, it is not available in all markets or from all major national providers.
Business-Use Policy
Only plan on using your vehicle to make deliveries part-time? You may qualify for a special business-use policy that provides adequate liability protection. However, if you deliver food full-time, you’ll likely need to look elsewhere.
Hired and Non-Owned Auto Insurance
Since you’re technically an independent contractor while working for a third-party delivery company, you may want to consider hired and non-owned auto insurance. With this policy, you’ll have liability coverage for bodily injuries and property damage but no collision coverage.
Contact River City Insurance Agency Today
Unsure which insurance solution is best for your needs? We’re here to help make sure you aren’t delivering food without proper auto insurance coverage. Call (608) 847-3633 or contact our knowledgeable independent agents today for more information, and be sure to request a free quote.
