Have you ever wondered what happens if you’re delivering food or driving someone around for Uber or Lyft and an accident occurs? If you’re a driver for a restaurant or service like Grub Hub, it’s important to check and see whether you’re covered by the company or carry the full responsibility. Are the wheels in your head turning now? There is such a thing as car insurance for food delivery. If it’s not in your contract and you have proof of insurance to carry by the company, chances are you may not be covered. If you are not covered, everything will fall on your insurance policy, which is not good. Want to know more? Read on to learn more.
What’s Different About Employer Coverage?
Employer coverage will handle some or all of the costs associated with accidents while performing duties for them. Here are some examples:
Coverage for Restaurant Drivers
This is when the employer provides limited coverage under Hired & Non-Owned insurance. There are some stipulations to be aware of – while driving for the establishment, the vehicle is covered by liability, but will not be covered if there is any collision damage. In many instances, this insurance is added as an endorsement, but only applies when you are operating in a capacity for the company.
Coverage for Rideshare Drivers
This type of policy is similar to a restaurant driver policy. Rideshare policies do vary slightly, but the base is primarily the same. Liability is covered, but no physical collision damage. Additionally, the coverage only applies when the vehicle is moving and you have someone in there, but if you are waiting for a service call, you are not covered.
Questionable Gaps in Coverage
With these types of policies, it is important to make sure you have adequate coverage for instances where your vehicle is not in operation while on the job. Although you may feel as if your car should be covered the entire time you are working, these provisions may not be available to you. The gray area is in understanding when you should have coverage under your personal policy even when working for the other organization. Your insurance agent should be able to help figure it out.
Is Carpooling Treated the Same?
Carpooling is a different and should be covered by your personal insurance policy. If you are carpooling on behalf of the company, it is important to inquire whether you will be covered under their policy.
How Does Rideshare Infringe on My Personal Policy?
As a rideshare driver, you should be covered under some insurance from the company. It’s always better to be safe than sorry and ensure your vehicle will always be covered. Working with your insurance agent should give you the information needed to protect your vehicle at all times. Depending on what state you live in, driving people around full-time may require you to have a commercial license. Getting the right policy to make sure your rideshare drivers aren’t compromised is important. Make sure you have what you need when you need it to deliver the best service.
Getting the Insurance you Need
Your insurance agent can help you decide the type of policy you need, stipulations that may occur as a result of working for a commercial establishment, and whether you will be required to obtain a commercial license based on the state you live in. There are many types of policies that will ensure your car is covered. For more information on obtaining a policy that will work for you, call Giuffre Insurance.