Now that we are forced to stay home more than ever, thanks to the pandemic, delivery jobs have taken off. There has been an increase in ordering of take-out food and online products from all types of retailers, not just Amazon.
With lots of new drivers, this type of work is helping to fill a gap in employment for many people. If you are a delivery or rideshare driver, it’s important to understand how car insurance works when you are driving. Afterall, you don’t want to put yourself and your finances in a risky position as you work hard for your money.
Let’s review how delivery and rideshare car insurance works.
What insurance is provided by rideshare and delivery companies?With the increase in workers at companies like UberEats, DoorDash, and Amazon Flex, companies are constantly tweaking their policies to keep up with the rapidly evolving sharing economy and the insurance issues that can arise.
Generally, the companies provide a minimum level of liability coverage for third-party damages when you have the app turned on, but you do not yet have a delivery or rider. Once you get a delivery or rider, the liability coverage increases. To get contingent coverage, which provides further protections, you will need to be sure you are carrying this coverage on your own personal auto policy. Therefore, if you only have the state minimums on your car (without collision and comprehensive) you won’t be able to use the contingent coverage provided by the rideshare and delivery companies.
Rideshare and delivery insurance coverage does not cover everything
So, while some level of car insurance coverage is available while you are using the app, there are still lots of loopholes that could lead to financial hardship should something happen.
Even if you are a safe driver, accidents happen. Other drivers on the road may not be as careful and should you be the victim of a hit-and-run accident you may be left out in the cold. Be sure to check the fine print of the insurance coverage from your delivery company to understand if you are covered.
In addition, if you have a hefty loan or lease on your vehicle you will want to make sure you understand what will happen if your car is severely damaged or even totaled. Will you be covered for the financed amount? Or will you only get cash value for your vehicle? Will this put you in the position of paying a loan for a car you no longer have? Be sure to ask these questions so you don’t find yourself worse off by working.
It’s still worth it
If you need work during this time, delivery and rideshare are great options. Just be sure that you understand the interplay between the coverage provided by the company and your own personal auto insurance.
The best thing to do to make sure you are getting the best deal, and the best coverage, for your personal auto insurance is to shop around. The InsuranceWins form makes it fast and simple to get quotes from the insurance companies you know and trust. Give it a try today and make sure you are protected, even while delivering.
