Did you know that 60 percent of American consumers order delivery or take-out meals at least once per week? With such a high demand for this convenient meal option, it’s no wonder that more delivery drivers are on the roadways throughout Missouri than ever before. As these drivers hurry to make their deliveries on time, the chances of being involved in an accident with one of these vehicles are likely to increase as well. If you’ve ever thought about becoming a delivery driver for popular apps like UberEats or rideshare apps like Lyft, you should first consider how the new position may affect your auto insurance coverage. Keep reading to learn more.
Delivery Drivers for Hire: Will Your Current Auto Insurance Policy Be Enough?
Since many of the drivers using these new apps use their personal vehicles to complete their deliveries and drop-offs, you may think that their current auto insurance policies will work to cover any damages in the event of an accident. But unfortunately, most personal car insurance policies have a list of exclusions that include using your vehicle for deliveries or “driving for hire.” This type of exclusion means that it is very likely your personal coverage will not extend to cover any accidents that you’re involved in while making deliveries or picking up riders.
What About Employer Insurance Options
Some rideshare companies and food delivery companies may offer their drivers some supplemental auto coverage when they are on the job. For example, if your delivery app is on and you are driving to pick up a food order from a restaurant or delivering it to a customer, you may be covered in an accident. However, if the app is off or you are in a collision while waiting for your next delivery, you may be out of luck. If this type of situation were to arise, you might find that you are without any auto insurance coverage and be left to pay for damages on your own.
Hired and Non-Owned Auto Insurance
Depending on your needs and how often you plan on using your vehicle for work, you may want to ask our insurance agents about the possibility of hired and non-owned auto insurance coverage. This special insurance option can typically be added as an endorsement to your general liability insurance and work to cover liability coverage for bodily injuries and property damage. However, it is important to keep in mind that this type of coverage will not pay for collision damages. This type of coverage may also be a good fit for anyone who regularly uses rental vehicles to complete job duties or if you often use your vehicle to run errands for your employer like traveling to the bank or visiting the post office.
Contact Mid-Rivers Insurance Group Today
Navigating the world of auto insurance can be difficult when considering whether to become a delivery driver. But with so many people using these popular food delivery apps, it’s hard not to be tempted by the idea of easy income. Before you take on the new role of a delivery driver, you must speak with one of our knowledgeable local agents to discuss your insurance options. Don’t get caught without the proper level of car insurance coverage when you need it the most. Give us a call today at (636) 442-4040 or fill out our contact form and be sure to request a free quote.