With the growing popularity of side gigs and delivery services like Amazon Flex, Uber, Lyft, GrubHub, and DoorDash, many people are finding new ways to supplement their income. While these opportunities can be exciting and financially rewarding, they also come with responsibilities—like ensuring your vehicle is properly insured for business use.
If you’re using your personal vehicle for work-related tasks, whether it’s delivering packages or driving passengers, it’s important to understand how this impacts your auto insurance coverage. Waiting until an accident happens to learn your claim is denied can lead to significant financial trouble.
Personal Auto Insurance May Not Cover Business Use
Most personal auto insurance policies are designed for personal use, such as commuting to and from work, running errands, or taking road trips. However, if you’re using your car for business purposes, especially delivery or ridesharing, your personal policy may not cover:
- Accidents that occur while you’re delivering goods.
- Incidents while transporting passengers for hire.
- Damages sustained while engaging in business activities, including liability to others.
Why Business Use Changes Coverage
Insurance companies assess risk differently for personal use versus business use. Delivery drivers and rideshare drivers spend more time on the road, often in high-traffic areas, increasing their likelihood of being involved in an accident. This added risk means a higher chance of claims, which isn’t accounted for in standard personal auto policies.
Rideshare Insurance: A Must-Have for Uber and Lyft Drivers
If you’re driving for Uber or Lyft, you may think the company’s insurance will cover you. While these companies offer limited liability coverage during certain parts of a ride, there are often coverage gaps—such as when you’re waiting for a ride request or driving to pick up a passenger. Many insurers offer rideshare insurance to fill these gaps, ensuring you’re fully protected at all times.
Delivery Drivers: Commercial Coverage May Be Required
Using your car for deliveries—whether for Amazon, GrubHub, or another service—may require a commercial auto policy. A commercial policy is specifically designed to cover the risks associated with using your vehicle for delivery, including liability and physical damage coverage.
Don’t Risk It—Talk to an Agent Today
The last thing you want is to discover your insurance doesn’t apply after an accident occurs. Whether you need to add an endorsement to your personal policy or upgrade to a commercial auto policy, Risman Insurance Agencies is here to help.
Our experienced team can guide you through your options, explain the coverage you need, and ensure you’re protected while working.
Call us today to discuss your policy or click below to request a quote. Don’t wait until it’s too late—get the coverage you need for peace of mind on the road!
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