Does Your Auto Insurance Cover Delivery Driving?

Written By Charlotte Insurance on July 13, 2021. It has 0 comments.

a delivery driving in their truck smiling because he knows he has the right delivery driver coverage on his auto insurance policy

You signed up for a delivery service app to make a little extra cash. It seems easy enough: drive around, make deliveries, get paid.

But what happens if you get into an accident? Will your auto insurance cover you? Will the delivery service take care of the claim?

Here’s what you need to know before you start making deliveries.

How Delivery Driving Impacts Your Auto Insurance

Most standard auto insurance policies don’t offer coverage for anything deemed “business purposes” – that is, any driving that you do on behalf of an employer or driving that earns you money. This includes delivery driving. Your personal auto insurance coverage is just that — personal.

Some policies may simply not cover accidents that occur while working. Some insurers may drop your coverage completely once they find out you use your vehicle for business purposes without appropriate coverage. So not only can you not depend on your auto insurance to cover the accident, you could lose protection for any and all driving.

Auto Insurance Options

All is not lost, though. You do have options, as long as you talk to an independent insurance agency likes ours before you start making deliveries.

Rideshare gap coverage: Because of the prevalence of delivery app services, some auto insurers now offer rideshare coverage to close the gap between “business” use of your vehicle and your personal auto insurance. Depending on the level of coverage you purchase and how often you make deliveries, your premiums may be more affordable than you think.

Commercial auto insurance: Another option, especially if your auto insurance company doesn’t offer rideshare coverage, is a commercial auto insurance policy. While this is most common for businesses with company cars, delivery drivers can purchase this policy, too. A commercial policy will cover you during deliveries, and your personal auto insurance will cover you the rest of the time.

Don’t Rely on the Delivery App’s Insurance Coverage

Yes, the delivery app you work with offers some coverage, but it’s a lot more limited than you realize. In general, most apps only cover you in three phases:

  1. Waiting to accept a delivery pick-up while logged into the app
  2. Driving to the pick-up location after accepting the delivery
  3. While driving with the order in your vehicle

So none of the driving you do before you log in or after you log out will count — even if the only reason you’re in your vehicle is to make deliveries. Plus, if you take a break and don’t stay logged in, you won’t be covered then, either.

With the right auto insurance of your own, that might not be a big deal. But if you plan to rely on the app to cover you, think again. It’s better to be safe than sorry so make sure your own auto insurance will protect you no matter what.

Getting ready to make deliveries and don’t know what kind of coverage you’ve got? Contact Charlotte Insurance today! We can explain your current policy, offer options, and make sure that you have the protection you need!

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