Does Your Auto Insurance Policy Cover Delivery Driving?

Does Your Auto Insurance Policy Cover Delivery Driving?

Any vehicle parked or driven on public highways is required to carry the state’s minimum auto insurance coverage. If a driver chooses to drive without the proper vehicle insurance, they risk having their license suspended or getting ticketed. If you work as a delivery driver, you will have to use public roads, which puts you in danger of liability. After a traffic accident, delivery driver’s insurance might help shield you from financial liability.

Options Available for Delivery Driver Insurance

Business and commercial auto insurance coverage may protect you if you deliver meals or perform other commercial tasks. Working as an independent contractor delivering food exposes you to some specific dangers that some insurance companies would not cover under a personal automobile insurance policy. The appropriate coverage for you is determined by who owns the vehicles in question: your company or your employees. The options include:

  • Commercial Policy: A commercial car insurance policy is typically more expensive than your personal policy. A business policy’s cost is determined by several criteria, including your personal information and the vehicle being insured. You’ll have peace of mind knowing that any incident is covered with this form of insurance.

Commercial policy coverage includes box trucks, small delivery vehicles, and vans, along with any other vehicle owned and used by the company. This policy applies to motorists who use their personal vehicles for business purposes. If you work full-time for a ride-sharing firm, you might not be eligible for this coverage.

  • Business Auto Policy (BAP): If your company owns one or more vehicles, you can acquire a Business Auto Policy (BAP). Liability coverage, bodily damage coverage, medical payments, and uninsured or underinsured motorist coverage are all included in BAP insurance.
  • Personal Insurance Policy: If you don’t tell your insurance company that you’re doing delivery, you risk being held liable, having your policy canceled, and having claims denied. You should notify your insurance company if you are doing deliveries part-time or full-time. That’s because if you are working for dedicated delivery apps, a standard auto insurance policy cannot offer adequate coverage if you use their personal vehicles for work purposes.

However, under certain conditions, drivers may not need to purchase additional auto insurance coverage:

  • If they use a personal vehicle for employer deliveries temporarily
  • If they use an employer-owned vehicle for deliveries

Does Commercial Car Insurance cover Me If I Drive a Company Vehicle?

Using your own vehicle has grown in popularity over time as new choices, such as ride-sharing, have been available. Your delivery excursions may fall outside of your personal automobile insurance coverage if you use your own vehicle to convey items. You risk having your claims refused if you drive your own car without getting supplementary coverage.

App-based transportation network companies generally offer complimentary coverage for bodily injury and property damage for their drivers in case of an incident occurring during delivery. However, these apps also mandate that drivers have adequate personal auto insurance coverage for their delivery vehicles. Most states typically have compulsory minimum liability coverage and current car registration. However, you can also opt for a comprehensive car insurance policy if your car is new or are still paying a loan for its purchase.

The lack of coverage options can be aggravating, especially as more businesses provide applications that let users order takeout, groceries, or other products and have them delivered to their homes within hours. If you can’t obtain commercial car insurance for your delivery drivers, it exposes your business to significant out-of-pocket expenses and major financial losses when a driver gets into an accident.

We understand this issue, and therefore, we always strive to find the best insurance solutions that provide adequate coverage for delivery drivers for our clients. Contact our team of auto insurance experts at Gee Schussler Insurance Agency today to get started.