Delivery Service & Your Personal Auto Policy

If you take a job as a delivery driver, it is important to understand how your auto insurance policy works. If you do not take extra steps to get your delivery job approved, you may lose your insurance coverage or not be covered for an accident. Here is what you need to know.

Personal Insurance Doesn’t Cover Business Activities

A personal auto insurance policy does not cover a business activity. You are covered when you drive to and from your day job because that is your personal commute. You are not actually doing business at that time. You could walk, bike, or drive based on your personal choice.

When you are working for a delivery service, you are actively engaged in business. Your vehicle is your mechanism for doing the job, not just your chosen method of getting there. Personal auto insurance policies almost always have language pointing out that they won’t cover a business activity.

What Will Your Auto Insurance Company Do if You Get into an Accident While Doing Deliveries?

If you get into an accident while doing deliveries, your auto insurance company will typically deny your claim. This will be for engaging in a business activity that your policy excludes. It does not matter whose fault the accident was.

Some insurance companies also proactively check to see if you were doing deliveries even if you do not tell them. They may make you give a sworn statement under penalties of perjury. They also get information from delivery companies about who works for them. If there is a question about whether you were working at the time of the accident, the insurance company can request records from the delivery service.

Will Your Auto Insurance Company Drop You for Doing Deliveries?

Some auto insurance companies drop or non-renew customers who are doing deliveries. This applies even if they don’t get into an accident. The insurance companies don’t want to take the risk of you getting into an accident and them having to litigate over whether they have to cover your accident.

Can You Get Insurance for Doing Deliveries?

With the rise of delivery gigs, ride-sharing services, and similar work, insurance companies are offering more options to drivers. Traditionally, you would have needed to purchase a commercial auto insurance policy, which is still an option.

However, many personal auto insurance companies now offer add-on coverages that cover gig work like deliveries. You will need to state what kind of work you’re doing, and there may be limits on how much you can work. This will become part of your personal auto insurance policy, so it may be more cost-effective than buying a separate commercial auto insurance policy.

What if the Delivery Service Offers Drivers Insurance?

If your delivery service company offers you insurance, it’s important to understand any potential gaps or limits before you decide to rely on their coverage. For example, the delivery service may only cover you when you have an order in your car, while your personal insurance may not cover you when you’re delivering or in-between deliveries. Their company coverage may not offer you personal auto liability or physical damage coverage to your vehicle and/or their offered limits may be lower than what you need or would have selected on your own.

To learn more about how to get the right coverage for your delivery job, talk to Integrity Midwest Insurance today.