Are Rideshare and Delivery Excluded from Insurance?

In the sharing economy, rideshare and delivery transportation services allow people to make extra money by driving their own cars while providing a service to others for a fee. All you need to go into business for yourself driving for Uber, DoorDash, or Amazon Flex is a smartphone, an app, and a reliable vehicle. What’s usually overlooked? Making sure you have the right car insurance coverage. If you are using your car for commercial activities, you need to ensure you have the proper insurance coverage when driving your car for commercial activities. 

Car Insurance for Rideshare and Delivery Services

This would mean proper insurance coverage if you drive for rideshare companies such as Uber or Lyft, which operate as a taxicab-like service that connects drivers with passengers needing transportation from point A to point B on short notice. You may have opted to drive for delivery services like DoorDash or Amazon Flex, which connect drivers to customers and businesses needing food, groceries, or products delivered from a restaurant, store, warehouse, or shop to a residence, office, or site throughout the day. 

Though these transportation services offer a wealth of opportunities for entrepreneurial-minded folks looking for a side hustle, when driving your car for ‘business use,’ it’s more than likely that your insurance provider will require some commercial auto insurance coverage for your vehicle. As these transportation services have grown in popularity, insurance companies have taken note and added exclusion clauses to policies for drivers who use their own cars for commercial activities.

What Does Your Auto Insurance Already Cover?

It’s important to find out the extent of your auto insurance coverage when using your car for business use before you have an accident. One common misconception about coverage is that between your personal car insurance policy and the commercial insurance coverage provided by the companies drivers contract with is sufficient. It is not. Suppose you are a rideshare driver or delivery driver, in all likelihood. In that case, you will need supplemental insurance coverage from a private insurance company or an endorsement added to your car insurance by your provider. 

What About the Commercial Insurance Provided By the Delivery?

Uber or DoorDash’s insurance may have certain limitations in its coverage. For example, DoorDash’s commercial auto insurance policy covers drivers if they cause an accident while on an “active delivery,” which means the driver must have the takeout order, not on the way to pick it up. There’s more. DoorDash coverage is an “excess” insurance policy that only applies after your personal auto insurance coverage is exhausted. Also, excess insurance policies do not pay for injuries you may suffer or damage to your own car. Unless your auto insurance policy fully covers this, you must pay any medical bills and repairs out-of-pocket. 

In other words, if you are a rideshare or delivery driver, the commercial insurance coverage you are provided by the rideshare or delivery company you drive for is likely limited with certain restrictions, as is your car insurance policy when using your car for commercial activities. In the event of an accident, to ensure an insurance claim is not denied and to protect yourself financially, you should contact your insurance provider to add a rideshare endorsement to your car insurance policy. 

Get Everything In Writing

Rideshare insurance is the generic name given for coverage when using your personal car for business use. Whether you are out on the road driving for Uber or Amazon Flex, rideshare insurance is a specific type of commercial car insurance you should elect to carry on your policy to cover the gray areas between commercial activities and the personal use of your car. Don’t wait until it is too late to speak with your insurance provider about rideshare insurance coverage. There are no gray areas for insurance companies. If it is not in writing, you are not covered.

If you are a rideshare driver who’s been in an accident and getting nowhere with your insurance claim, you should contact Hardy, Wolf & Downing to get started with an initial free consultation to speak with one of our car accident lawyers about your situation. Call us today to find out how we can help you receive the compensation you deserve.

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