The Gig Economy and Your Auto Insurance

Written By Charlotte Insurance on August 12, 2019. It has 0 comments.

a gig worker in need of the right auto insurance policy

By 2020, it’s estimated that 40 percent of Americans will have a side hustle. Whether you’re delivering food for Postmates, driving for Uber, or delivering groceries on the side, the gig economy is shaking things up for businesses and for the people who work those jobs. 

One question that comes up over and over again is what you’re supposed to do for auto insurance when your gig involves driving around in your personal vehicle.

Your Personal Auto Insurance Won’t Cover Your Gig 

The most important thing to realize is that you and your vehicle aren’t covered by your personal auto insurance when you’re on the job. Many insurers consider delivery work an ineligible risk. There’s no wiggle room on this one — your personal policy doesn’t cover an accident.

In a perfect world, you’d be covered under the commercial auto insurance policy of the company you work for. And for W2 employees, this is usually true. But if you’re an independent contractor, you’re likely out of luck. You’re going to need a policy of your own.

Not Admitting to the Delivery Job is Insurance Fraud

If you’re in an accident while making deliveries, you might be tempted to pretend you weren’t working. It might seem easy, especially if you hadn’t picked up a delivery yet and there’s nothing on your vehicle indicating who you work for. Don’t go this route because it won’t end well for you.

Insurance adjusters will investigate the accident. They can find out if you work with a delivery service. Once they figure out you were using the app during that accident, not only will your auto policy not cover you, you could be accused of insurance fraud. That’s an expensive legal problem to have over a few undelivered tacos. 

Find Out Your Auto Insurance Options

Most of the biggest companies only offer one-size-fits-most policies. They’re often no help at all in a situation like this. But an independent insurance agency has access to dozens of insurers, some of whom offer creative solutions for people just like you. Yes, you may still need a commercial auto policy, but you don’t have to be stuck with the same policy sold to a large company with lots of money, either. 

You should also investigate the insurance policy of the company you’re driving for. Their insurance is typically for the other vehicle and driver in an accident and primarily offers only liability coverage. But when paired with the right commercial auto policy for your unique needs, it could provide the coverage you’re looking for.

If you’re a delivery driver who’s confused about auto insurance or worried that you can’t afford a commercial policy, contact Charlotte Insurance today for a free quote. We’ll help you find the insurance coverage that keeps you protected on the road.

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