7Newswire
20 Nov 2021, 02:12 GMT+10
Food delivery services are booming and forecast to grow by 12 percent through 2023. Whether working a delivery job as a side hustle or a full-time job, it's important to understand that you must have the right coverage when using your personal vehicle for business purposes. Delivery companies like Uber Eats, Grubhub, Doordash, and Postmates employ hundreds of thousands of delivery drivers. Your personal auto insurance policy will not provide coverage when you are driving your own vehicle for business purposes. It's important to shop for commercial auto insurance coverage to avoid any coverage gap while on the clock.
Is there special insurance for delivery drivers?
A personal auto insurance policy only covers social use and basic commuting, not when you use your own car for business use. Personal coverage isn't enough coverage if your business use is less than 100 miles a day or three times a month. It's a legal requirement to disclose with an insurance carrier if you intend to use your own vehicle for food delivery. Failure to disclose this information could result in your insurance carrier canceling your policy.
Food delivery drivers should invest in a business coverage policy to serve as a food delivery auto insurance coverage. Business coverage for food delivery gives you peace of mind when traveling to various job sites, transporting tools or equipment, delivering food and other goods, making sales, and transporting people.
What types of policies are there for delivery drivers?
There are different types of coverage that delivery drivers can choose from. A commercial auto insurance policy provides coverage in the event of an accident while working a delivery job. The premium is based on the type of car, your driving record, and your demographics. You need to protect your personal vehicle with a business-use policy if you make food deliveries, travel long-distance to job sites, transport work tools or equipment, provide rideshare services, or make sales. You'll still need a personal auto insurance policy to meet the required state minimums. Most personal policies don't cover any accident or property damage that occurs during business use.
According to autoinsurance.org, delivery driver insurance cost is determined by your ZIP code, driving record, credit score, type of policy, and more. Delivery driver insurance policies have varying deductibles and coverage limits that affect your premium. The best way to ensure you get the right coverage for the best price is to compare insurance policy quotes from different insurance companies. Be sure to determine the level of coverage you need and have your vehicle information available. You'll need to provide information about your car including the make, model, and VIN to request accurate food delivery insurance quotes.
Adding extra coverage to your personal policy means paying extra money. You'll see your premiums rise the more your insurer considers your risk and liability. Using your personal vehicle for intensive business use puts you at a higher risk of getting into an accident and needing to make an insurance claim.
Do delivery services provide coverage for drivers?
Rideshare companies and on-demand food delivery companies aren't legally required to provide insurance for their drivers. Certain rideshare companies offer full or partial coverage for their drivers, but that doesn't mean there aren't gaps in coverage. Uber provides delivery drivers supplemental liability coverage and additional comprehensive coverage and collision coverage if you already have this type of coverage on your personal policy. Uber auto insurance coverage provides Uber drivers up to $1 million in liability coverage and up to $100,000 in collision coverage per accident. It's important to note that delivery insurance is only applicable when delivery drivers are actively logged in and using the app.
The best way to ensure you have enough coverage as a delivery driver is to add extra coverage to your personal auto policy.
Get a daily dose of Illinois Intelligencer news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Illinois Intelligencer.
More InformationOTTAWA, Canada: With Canada Post struggling to maintain operations amid labour unrest, rivals like FedEx and UPS are stepping in to...
New Delhi [India], July 12 (ANI): A preliminary investigation into the Air India flight AI171 crash has revealed that just seconds...
Hyderabad (Telangana) [India], July 12 (ANI): Telangana Chief Minister Revanth Reddy has said that the spirit of Telangana is similar...
The Pentagon abruptly suspended the shipments in early July, citing a need to audit remaining stockpiles Ukrainian President Vladimir...
Tel Aviv [Israel], July 12 (ANI): Gaza has become the graveyard of children and starving people, UNRWA chief Philippe Lazzarini said,...
Secretary of State Marco Rubio linked the new restrictions to the 2021 unrest in Havana ...
ATLANTA, Georgia: The United States is facing its worst measles outbreak in more than three decades, with 1,288 confirmed cases so...
In the past month alone, 23 Israeli soldiers have been killed in Gaza—three more than the number of remaining living hostages held...
LONDON, U.K.: At least 13 people are believed to have taken their own lives as a result of the U.K.'s Post Office scandal, in which...
WASHINGTON, D.C.: Travelers at U.S. airports will no longer need to remove their shoes during security screenings, Department of Homeland...
WASHINGTON, D.C.: An elaborate impersonation scheme involving artificial intelligence targeted senior U.S. and foreign officials in...
SLUBICE, Poland: Poland reinstated border controls with Germany and Lithuania on July 7, following Germany's earlier reintroduction...