Making Extra Money in Your Car? Make Sure You're Protected

If you are like thousands of other Americans, you are taking advantage of the increased demand for delivery services and have been using your car as a way to make either extra money as a side hustle or to earn your living overall. Stats show that when compared to 2019, there was a 20% increase in food delivery revenue alone. This showcases the immense growth in the delivery industry, whether it be for food, groceries or home goods. Of course, while using your car to drive Uber, Doordash, Instacart, Amazon or others, you must ensure your car is protected in the event something should happen while you are on the clock as failure to do so could be problematic.

Here’s What You Need to Know

If you are currently using your vehicle to make extra money, you need to know where your employer's coverage ends and where your personal coverage begins. If there is a gap in between what the employer’s policy will cover and your own policy, this can be a big problem should something happen while working. In some cases, employers won’t even provide coverage for you as a driver, it depends on the company and their individual benefits. 

Why Having Protection is Important

Driving your own vehicle as your livelihood or even as a side gig means you should question both your own insurance company and your either current or prospective employer’s insurance company as well. The majority of insurance companies will not issue policies that cover delivery drivers under personal policies, since delivery driving will instantly increase your chances of having an accident.

With the heightened risk involved, you must ensure you are protected if your personal policy refuses to cover your vehicle while you are delivering, due to the worst-case-scenario occurring on the clock. The last thing you want to hear from your insurance company is that the damage isn't covered. If you lose your car and there is no coverage, you could be out of your means of making a living.

What About Ride-Share Drivers?

Another popular gig in today’s economy is ride-share services. Companies like Lyft and Uber are perhaps the most well-known. Did you know that many ride-sharing companies will require their drivers to have personal insurance coverage on their vehicles? However, they will provide liability coverage for drivers while they are on the clock. This presents a potential problem, though, as there is a gap in the personal policy coverage the second the app for Uber or Lyft is turned on by the driver, indicating they are working.

On the other hand, Lyft and Uber policies will only cover damage done to a car while there is a paying passenger in the car. Therefore, that leaves a potential gap when a driver is on the way to pick up said passenger that coverage could be denied by both personal and professional coverage. Consequently, it’s wise to invest in a personal auto policy to fill this gap. 

Know What Coverage Employers Off Their Employees

Above all, you need to consider what type of coverage you can get through your employer. What do they pay for? What don’t they cover? Make sure you know all these details before beginning to work, so you know if you need additional coverage on your end to protect your livelihood. The following are some of the most common driving gig companies and what they cover:

Amazon Flex: Features Amazon Commercial Auto Insurance Policy. This protects you when driving your delivery route and doesn’t cover any passengers. Amazon requires all drivers to maintain a personal auto policy. 

GrubHub: They do not provide any commercial insurance coverage to employees and do require you to keep your own personal auto insurance. 

Ubereats: You have up to $1 million in liability converge from accepting the delivery through the completion of said delivery. 

DoorDash: They have a commercial policy that covers up to $1 million in cases of an accident while in possession of a takeout order. 

Postmates: You can purchase an insurance policy of up to $1 million for liability coverage. You must carry your own personal insurance as well. 

Bottom Line: Know Your Coverage Limitations

There is no clear-cut, one-size-fits-all solution for insurance when it comes to gig work involving delivery driving. The only sure way is to cover your car for both damages and liability by purchasing a commercial driving policy. These policies are more expensive than personal policies, but they will provide you the much-needed protection you need. Our team of experts would be glad to discuss your best options when it comes to this more complex type of coverage.

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