Using your car for a ride hailing app or delivering food has become more popular than ever! Unlike driving a company car, you are driving your own… so that means your personal car insurance should be enough, right? It is not. We’ll go over the necessary commercial auto insurance for side jobs to set your mind at ease.
Big Differences in Risk Assessment
When you drive your car to deliver something or someone, you are often in a bigger hurry than just driving for yourself. The pressure of dependency weighs heavily, so you might speed or take more risks. You are also driving your car more often. The rate of risk that you’ll be in an accident goes way up. It’s no wonder that car insurance providers will view “business use” more as more of a liability. Coverage will be different in those regards.
Why Even Report It If My Rates Will Go Up?
You might think, “If my insurance is going to go up, I just won’t report a claim as business use”. This is problematic for many reasons. If you ever have to file a claim and you were driving for business reasons, lying and stating it was for personal use could be considered insurance fraud. Most popular gig apps for driving share data with insurance companies. They will probably find out.
Another reason you should get it is for your benefit in coverage. A study by the Worker Institute of Cornell University found 49% of app-based delivery drivers reported having been in an accident. Out of those 49%, 75% reported having to pay out of pocket for medical care since they aren’t entitled to worker’s compensation. This could have been avoided if they had the right coverage.
What About Insurance offered by the Gig App?
It’s great if your gig app can offer insurance for side jobs. There are some things you will want to make sure of though…
- Coverage Limits – Do the limits meet your needs? A lot of these insurance policies are centered on protecting the customer primarily, instead of the driver. Give that portion a good look!
- Check in with Your Personal Coverage First – To avoid disputes over gig driving, some insurance agencies will cancel a policy when they see you have taken this gig work. Check in with your car insurance agent and ask what their stance is.
- Coverage Times – Make sure you check when the coverage is included. Some gig policies will only cover you when you have an order or customer in the vehicle.
Should I get Commercial Auto Insurance?
If app companies do not provide insurance or there are extreme gaps, consider getting commercial auto insurance for side jobs. Since the driving gig economy is so strong, a lot of insurance companies offer special add-on coverage for comprehensive protection while you are using your vehicle for business. This is usually the more affordable route. Otherwise, ask about getting a separate commercial auto policy that has similar coverage as your personal, but covers business use of the car.
Bottom Line for Commercial Auto Insurance for Side Jobs
Side gigs can really make a difference in cash flow for a household. Just make sure you weigh out the cost of being covered correctly. You also should think about the wear the extra use will put on your car, along with fuel costs. It might be worth it, but it might be worth considering an “at-home” side gig instead. Whichever you choose, make sure your business side is protected!
Whether you drive an Uber or own a full fleet of box trucks, you need the right commercial auto coverage. We have a staff of highly trained loss prevention experts who can guide you through safety programs and provide supporting materials designed to help educate you. Let’s get together soon to review your coverage options!
