Think back over the last month, how many times have you ordered food for take-out or delivery? There’s a good chance you’ve ordered at least once or twice. Did you know that 60 percent of American consumers order take-out or delivery at least once per week? With the popularity of online ordering on the rise, more delivery vehicles are on the road as well. This can be a great way to make some extra cash for the holidays, but making food deliveries in the greater Brownsburg area is easier said than done when it comes to your auto insurance coverage. Keep reading to learn more.
Becoming a Food Delivery Driver: How Will This Change Affect My Car Insurance Policy?
Whether you’re interested in delivering food for Postmates, UberEats, GrubHub, or one of the many other popular third-party delivery companies, you’re typically required to carry at least the state minimum liability insurance requirements before you can be approved as a driver. However, even if you’ve invested in a comprehensive car insurance policy, there’s a very good chance that you would not be protected under your current policy while making deliveries. This is because most car insurance policies have several exclusions attached to them, including anytime that you use your vehicle “for hire.”
Whether you’re making a food delivery, picking up a rideshare fare, or transporting a bank deposit for your office job— if you are involved in an accident while using your vehicle to complete work-related duties, your policy will likely determine the accident as an excluded event.
What Are My Coverage Options?
If your personal auto insurance policy doesn’t cover the time that you spend making deliveries, you’ll have a gap in coverage. To avoid this, you have several options for coverage. These include:
Most of the major third-party delivery and rideshare companies have at least some employer coverage provided for their drivers. This supplemental insurance option typically provides a low level of liability coverage when you have the app turned on and are awaiting your next job. Once you’ve accepted a food delivery or rider, a higher level of coverage will typically be activated. For those who are rideshare drivers, the liability coverage will also likely get boosted even higher once you have your rider in the vehicle. But keep in mind that the coverage offered by these companies doesn’t usually include damage to your vehicle.
Commercial Auto Insurance
This can be a good option for someone who plans on delivering food full-time and wants to invest in the highest possible level of coverage for their delivery services. With this type of policy, you can invest in as much coverage as you feel is necessary to protect yourself, your cargo, your vehicle, and any other drivers who are involved in an accident that takes place while you’re making deliveries.
Hired and Non-Owned Auto Insurance
For delivery drivers who are mainly concerned with liability coverage for bodily injuries and property damage, hired and non-owned auto insurance may be another good option. Since you are technically an independent contractor while working for many third-party delivery companies, you may qualify for this coverage whenever you use your car for work.
Contact Tolbert Tower Insurance Today
While there are several insurance options available for food delivery and rideshare drivers, it’s important to discuss your coverage options with an experienced independent agent before hitting the road. Interested in learning more about the benefits of investing in comprehensive auto insurance coverage? Call (317) 852-3370 or contact our knowledgeable agents in Brownsburg today to learn more and be sure to request a free quote.