Here at Homewood Insurance Agency, we’ve noticed that driving for food delivery systems has grown more popular. It’s easy to understand the attraction of having a flexible way to earn extra income. That’s particularly true in a college town like Madison. Many students and recent graduates need a way to earn extra money.
We need to caution people to make certain that they’ve protected their vehicle and finances before they accept their first delivery order. Without the right car insurance, making food deliveries can turn into a risky financial decision.
How Car Insurance Covers Food Delivery Drivers
Are you thinking about working for a food delivery company? First, you should take a look at your existing coverage. Many policies specifically exclude hiring out your car, even if you’re driving it. You should not assume that typical personal auto policies extend to any business use. If your car insurance policy excludes use for work, you won’t have coverage while you’re making deliveries.
Other policies may cover some business use, but they strictly limit it in a way that may not prove useful for delivery drivers. State laws require minimum liability insurance too. Not only are you left unprotected, but you might also even be breaking Wisconsin’s regulations for lacking minimum required coverage. If you still owe money on your auto loan, you’re also breaking your agreement with your lender to keep your car covered. If you plan to earn extra money delivering food, make sure you’re not risking the money and valuable property that you already have by driving without proper coverage.
Do Food Delivery Companies Provide Their Drivers With Coverage?
These days, many of the larger delivery services offer their liability coverage for working drivers. Typically, they’re in force as long as the driver keeps their app on and is handling tasks directly associated with the business.
Note that these company-provided car insurance policies usually only provide liability insurance. That means that they won’t pay for any repairs to your car, regardless of who was at fault or what caused the damage. Your insurance will help cover your liability to another driver’s vehicle, but it won’t pay for any damages to your car.
How to Make Sure You’re Car Is Covered During Food Deliveries
If you intend to use your vehicle to work as a delivery driver, you have a couple of things to consider:
- First, you should make sure that you have adequate liability insurance to conform to state laws and protect yourself against lawsuits.
- Second, you need to consider how badly damage to your vehicle would hurt you. To make sure an insurer will help repair or replace your car, you may also need collision and comprehensive coverage.
To cover yourself, you might choose to buy commercial car insurance. Insurers tailor these policies specifically to people who use their cars for work. In some cases, you can also upgrade your current policy to include business use.
How to Make Sure You’ve Covered Your Food Delivery Driving the Right Way
How can you make sure you’re adequately covered for food delivery driving? Here at Homewood Insurance Agency in Madison, we’d be happy to help Wisconsin drivers review their current policy and any coverage the food delivery service offers. To get started, call or send us an email today. As independent insurance agents, we will also help compare insurance companies to ensure our clients buy the right policy at a competitive price.