Reminder: Your Personal Auto Insurance Policy Doesn’t Cover Your Side Hustle

Written By Charlotte Insurance on February 19, 2021. It has 0 comments.

a man delivering groceries as a side hustle

You started your side hustle delivery job to make some extra cash to pay off some debt and save money. Don’t put it all at risk by relying on your personal auto insurance to cover you on your deliveries.

Here’s what you need to know.

You Need a Commercial Auto Policy

As a delivery driver, your personal auto insurance isn’t designed to cover you if you get into an accident while “on the job.” Driving for business purposes (like delivering food or picking up people) carries higher risks. You’re on the road more often, and you’re often under pressure to arrive within a certain amount of time (though you should never speed or break the law to do so). That means you’re at higher risk of getting into and, potentially, causing an auto accident.

Commercial auto insurance policies are built with these risks in mind. Personal insurance isn’t. During the pandemic some auto insurance providers offered limited temporary coverage for delivery drivers through personal auto insurance. The key words are limited and temporary. It won’t last forever. This side hustle of yours needs commercial auto insurance.

Don’t Rely on Your Employer

If you work for a local business as a delivery driver, they should cover you under their own commercial insurance. If not, talk to them about it. And if they still won’t get a policy, buy your own. But for those who work for the big delivery apps, don’t rely on them to cover you.

  • DoorDash provides $1 million in excess coverage as long as you’re in an active delivery. That means they don’t pay until after your insurance covers you and only while you have the order with you.
  • Postmates offers excess coverage, too, but they require you to have your own policy.
  • Grubhub and Instacart don’t provide the excess coverage. They simply require you to be insured if you want to drive for them.
  • Uber Eats is the one exception, covering you under their policy from the time you accept a delivery until you make the delivery. There’s a $1,000 deductible and some coverage requires you to also have your own auto insurance policy first.

Why Commercial Auto Insurance is Important

The most important reason to buy a commercial auto insurance policy is so you don’t go broke after an accident. You’re working the side hustle to make money, not lose it. If you get into an accident while on the job, and you’re at fault, your personal insurance might not cover you. If it does, it might not cover the full amount of the accident. Either way, that’s money you’re going to have to pay out of pocket.

Considering one accident can cost $10,000 in property damage and up to $80,000 for a non-fatal injury, you’re going to need more side hustles to cover the costs if your insurance won’t pay. It’s better to have a commercial policy that can handle an accident like this.

As a part-time delivery driver, a commercial auto policy won’t cost you the same as it costs a big business. Contact Charlotte Insurance so we can tell you what your options are. The added expense of a policy will be worth it if you get into an accident.

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