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How to Handle Insurance as a Delivery or Transportation Driver in a Personal Vehicle

By December 8, 2021December 17th, 2021Insurance

It’s a new age, and with that, comes creative new ways to generate income! Companies like Uber and Doordash have grown exponentially, and the use of programs like food and grocery delivery has skyrocketed. As if it wasn’t already popular, the 2020 quarantines completely pushed it over the edge.

What do so many of these companies and programs have in common? And what does this have to do with insurance?

Delivery and transportation has taken a turn in the last several years—most of these programs now require the use of the personal vehicles of their drivers. For example, when you begin driving for Lyft, you slap the sticker on your own car and start picking people up. Grocery delivery
 for stores like Aldi is the same way.

 Delivery driver or uber driver

What many people fail to consider when they begin this kind of work are the changes now required on their insurance policies. Let’s talk about it: 

Your Personal Insurance Policy Will NOT Cover You as a Personal Vehicle Delivery or Transportation Driver

This is something you absolutely MUST know and consider before you start driving for one of these delivery or transportation programs. We have found at our agency that many people go into this line of work unaware that they need additional coverage in order to be fully covered in the instance of “work driving” of this kind.

If You File a Claim for an Incident That Occurred While You Were “Working” in Your Personal Vehicle, It Will Likely Be Denied

It’s sad, but it’s true. If you have an unfortunate incident while you are driving on behalf of a company or program, as described, insurance companies will deny your claim, even though you were in your personal vehicle. Why? Because your personal auto policy covers you, but it does not cover the company for whom you were driving. In their eyes, it was not your accident, it was the company’s.

Being a Delivery Driver or Transportation Driver Under a Personal Auto Policy is a Violation of Your Insurance Contract

We know it is easy to breeze through those initial insurance applications and miss some details, but you may recall that, in that application, you had to confirm that you were NOT using your personal vehicle for use with a program or company like those previously mentioned (Uber, Doordash, grocery delivery, etc.). Therefore, doing so is a violation of your insurance contract, unless the proper adjustments are made.

You Must Have a Special Endorsement

We’ve highlighted the problem… What’s the solution? So glad you asked. As a delivery driver or transportation driver using your own vehicle, you must add a special endorsement to your policy in order to have proper coverage during your on-the-clock driving hours. Only certain insurance companies offer this endorsement, so your best bet, as always, is to contact your insurance agent and find the solution together. If you make the decision to start this kind of work, contact your insurance agent BEFORE you begin to get everything set up!

Never Make Assumptions!

Assumptions are so dangerous, friends. If you are not sure, ASK! We would much rather you be overly cautious and covered than careless and ineligible for a claim. Wouldn’t you? Don’t stress: it is doable, and when you adjust your insurance accordingly, you will be ready to get on the road and make the cha-ching! Just don’t compromise yourself by doing it without the necessary coverage.

If you are using your personal vehicle in North Carolina or Virginia for any of the programs we’ve been discussing, feel free to reach out to us at Simmons Insurance Agency with any questions you have. We would be happy to discuss it with you and clear up any confusion!

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