When using your car as a vehicle for delivery like Grub Hub or Uber Eats, or maybe for rideshare services like Lyft, the company is not obligated to cover the vehicle with insurance. In fact, you may have to acquire your car insurance for a food delivery policy. Knowing what you have and what you need will become clearer once you speak to an insurance agent. Continue reading to learn more.
What Are My Coverage Considerations?
There are a number of coverage options available:
- Employer (restaurants) – Imagine working for a pizza restaurant as their delivery driver. The restaurant may cover you with Hired & Non-Owned insurance. This type of policy will cover you, the vehicle and any other injuries or property damage incurred while driving for that restaurant. It will be added as an endorsement to their policy. The only caveat to this type of policy is that it only applies to liability dealing with accidents and does not pay for collision damage.
- Employer (rideshare) – This policy will provide supplemental insurance such as liability and property damage coverage but does not include physical damage coverage. One thing to note about this type of policy is that it only operates while providing rides. When the vehicle is not in operation, it may not be covered. That means there are gaps in this type of coverage that could affect you if you are waiting on a ride and someone hits you.
- Gaps in coverage – There are times when the coverage from the employer is not in force, such as when waiting for a pickup. During this time, your personal coverage is also in lapse because you’re using your car for business. It’s important to know and understand when your car is covered so you can speak to your agent about providing for those gaps in coverage.
- Carpooling – When carpooling, your coverage should be enforceable, but it’s always important to understand what your policy coverage and limits are, as every situation is different.
How Does Rideshare Affect My Policy?
Although rideshare services are popular, some implications affect your policy. In fact, your policy could be null and void if you are involved in an accident. There are a lot of what-ifs involved because these types of services are consistently updating their policies to avoid lawsuits. Depending on what state you are providing services, you may automatically have some insurance coverage by the company. Additionally, depending on the type of rideshare service being provided, you may have to obtain a commercial driver’s license. In most cases, this is only required if you drive as your only, full-time occupation.
Make Sure You Have The Right Information
Having the right information is the first line of defense when using your vehicle to drive for commercial companies or restaurants. It’s always better to be safe and covered than sorry and faced with extensive damage to your vehicle that isn’t. For more information on car insurance for food delivery policies, contact an agent at Erica Boll Insurance today.