Apps like Uber, Lyft, DoorDash, and Grubhub have expanded the flexible job market. Flexible hours and independence, all from the comfort of your own car is a desirable part-time or full-time employment option for people of all ages. However, the rise of carpooling and food delivery jobs is also creating a surplus of unsuitable insured vehicles on the road. Many of the drivers who are doing this are at risk of being uninsured for themselves and other drivers on the road.
Before you or a family member sign up for a carpool or food delivery job, make sure your vehicle is properly insured for the upcoming job.
Here are three things to know before using your personal vehicle at work.
1. Don’t assume your personal auto insurance will cover your vehicle.
Almost all personal car insurance policies hav`e a standard exclusion for using your vehicle for paid delivery and rental driving. If you don’t tell the insurance carrier that you’re using your vehicle for work and end up filing a claim, your insurance probably won’t cover the incident.
2. Company coverage will not cover your entire vehicle.
Uber and Lyft offer varying degrees of vehicle coverage depending on the status of the ride: if you have the app on and are waiting for a customer to send you a signal, if you’re on your way to pick up a passenger, or There are customers in the car. Food delivery apps tend to have less coverage. Deductibles with company coverage can also be as high as $1,000 – 2,500. A full understanding of when a company’s insurance begins, the limits of liability on their coverage, and the amount of deductibles will help you determine if the job is worth the risk. and what kind of coverage you will need to fill the gap in coverage.
3. An endorsement or additional policy is required to fully cover your vehicle.
If you’re working with a carpooling or food delivery company, you’ll need to add a carpool or delivery confirmation to your existing personal car contract, change carriers or purchase a separate commercial insurance policy. Your options will likely depend on your carrier’s available endorsements, your driving record, the state you live in, and the company you want to work for.
Navigating risk and options with carpooling and food delivery isn’t easy. Talking to an agent is the first step in helping you know your options, understand the risks, and choose the best carrier and coverage for your individual situation. Without professional experience on your part, the job may not be worth the headache and expense when things go wrong.