You’re delivering food for a restaurant or may serve as a driver for Door Dash or Grub Hub. What happens if you have a fender bender? While you may be covered, there’s also a chance your insurance company won’t cover those costs. While it may sound a little strange, auto insurance is tricky. Are you driving for Lyft or Uber? You may be in the same predicament. If you’re using your car as a delivery or rideshare service, you may want to look into getting car insurance for food delivery. Never heard of it? You’re not alone. Continue reading to find out more.
What Types of Coverage Can I Get?
The coverage options for this type of insurance varies. Here are a few suggestions:
Employer Coverage for Restaurant Drivers
The employer may take the fact that you’re driving for them into account and offer Hired & Non-Owned insurance. You’re covered while driving for the restaurant, but the policy only applies to liability from accidents. Have collision damage? You’re on your own. In most cases, they add it as an endorsement to their policy, but the moment you start driving home or to run personal errands, the policy no longer covers you.
Employer Coverage for Rideshare Drivers
This policy is a lot like the employer coverage for the restaurant driver’s policy. Because this is rideshare, the policy does not cover physical damage, or while you are not operating the vehicle. That means while you’re sitting around waiting on the next ride to deliver, you’re not covered. Sounds crazy? The dilemma is making sure you’re covered at all times.
Coverage Gaps
Talk to your insurance agent to ensure your policy covers you when you lapse under the employer policy. Although it may be a hassle, it is worth it to be covered under a personal policy to guarantee you will have some protection in place in the event of an accident. In most cases, this is called gap insurance, but getting the right information from your agent will point you in the right direction, and get any discounts that may be coming.
Can I Carpool?
You should be covered under your policy when carpooling unless it’s for one of the employer covered options. As each insurance policy is different, your agent will be able to let you know what you have and their recommendations for the future.
Is My Personal Policy at Risk with Rideshare?
If your personal policy does not have a provision for you to operate as a commercial driver, your policy could be null and void if something happens while driving on the job. Although some rideshare companies provide the small supplemental insurance policy, there are no guarantees unless you follow up. Your priority should always be to protect your personal policy and keep you and your passengers safe. Additionally, depending on what state you reside in, you may have to obtain a commercial license if driving on a full-time basis. It’s always best to check with your insurance agent to ensure your policy provides all the coverage you need.
Information is Key
Getting the right information from your insurance agent will put the control back into your hands as you’re behind the wheel. It’s no fun knowing you may not be covered if driving for work at a commercial establishment. Don’t take the chance of putting yourself in that position. Get with an insurance agent at Burstad Insurance today!
