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With more people seeking delivery services during the Coronavirus pandemic, many companies are looking for drivers to shuttle meals, medicine, groceries, and other items to people at home. Before you think about making some extra cash as a delivery driver using your own vehicle, you need to be aware of the insurance pitfalls.

You might think the company you work for will cover the costs of an accident while you’re on duty. Right? Wrong. If you’re in an accident while making (or returning from) a delivery in your own car, you may be personally on the hook for the car repairs and medical bills — both for yourself and anybody else involved in the accident. Many delivery companies, ride sharing services, and restaurants don’t cover those costs.

You might also think your car insurance covers you. Right? Wrong again. Most auto insurance policies do not cover the business use of your own personal vehicle. That means you might have to pay for medical care and car repairs out of your own pocket.

Before you become a delivery employee or gig worker, here are some things to consider:

  • Ask the delivery company or restaurant if they have insurance that covers you. Get a copy of the policy. Some delivery companies give you no coverage. Others might pay for your personal insurance deductible or claims over a certain amount. Or, they may cover only damages caused while you’re on the way to make a delivery, but not while you’re coming back or waiting for your next delivery.
  • Ask your auto insurance company if your policy covers driving for work. Some insurance companies are responding to the Coronavirus pandemic by extending coverage to customers who are using their personal vehicles to make deliveries.
  • If your personal auto insurance policy doesn’t cover business use, you may need a commercial auto policy. Commercial policies cover business uses, like delivering food, packages, or driving for a rideshare company.

Earning money is hard enough. You don’t want a surprise accident to cost you money while you’re hustling to make it.

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August 19, 2020
good to know delivery drivers arent covered by the company your delivering for
FTC Staff
August 20, 2020

In reply to by Pokey

Some delivery companies give no coverage, but others might pay for drivers' personal insurance deductible or claims over a certain amount. Or, they may cover only damages caused while a driver is on the way to make a delivery, but not while he or is coming back, or waiting for their next delivery.

August 20, 2020
My Husband did over 1000 trips working for a ride share company! He wanted to also work for another ride share company for additional hours! The new company asked for his Car insurance info before he would be hired! Well he called our insurance company for a copy of the new insurance Card since we renewed our plan the day before! The insurance company canceled our insurance under the Suspicion that they thought he was using his car for ride share trips without even asking him first! They just charged us $189.00 for insurance renewal but cancelled the policy the next day! It was right when CA closed down in March! And he didn’t even get the job to use the insurance card! Well because he no longer had insurance plus no job and quarantined our tags got suspended and registration! This was all because the insurance company jumped the gun! The insurance company never paid us the full amount of money back to get a new policy they sent a check for $48.00 four weeks later! So our car is sitting with no tags or registration plus no insurance and we still haven’t received his unemployment because CA is on some real life greed going on! This has been our downfall since March!! We’re about to lose everything!! But I did find out that Ride Share drivers have to have a different insurance that costs over $350.00 per month! And like the writer stated drivers will not be covered if any accidents occur on either side! Thanks for letting me Vent!
August 30, 2020
Thanks for.this important information. A lot of.hidden issues that people fall victims unknowingly. Thank you
October 23, 2020
Question can the insurance companies change their price once you sign up and next month you have to 100.00 extra added to policy when we agreed it would be way cheaper like 60.00 monthly then it’s 260.00 monthly is this legal .Another company take your money and then cancel you is this legal?.