The Effects of Ridesharing and Delivery Jobs on Personal Auto Insurance 

What if you did not have protection on the road when you needed it the most? 

All smart drivers protect their personal vehicles with good car insurance. Unfortunately, that coverage is not always sufficient for those who use their vehicles for employment with rideshare services such as Uber or Lyft. And that means someone driving for these companies may be a single accident away from very expensive and even life-changing debt. 

Fortunately, it is possible to protect yourself with reliable rideshare insurance. What kind of coverage do you need? What is and is not covered, and how can you best protect yourself when you are on the clock? Keep reading to discover the answers. 

Steering Through the Basics of Rideshare and Delivery Jobs 

Before you learn all about delivery driver insurance, it is important to examine how delivery and rideshare gigs work. Rideshares are typically app-based, allowing users to summon a vehicle from Uber, Lyft, or another company to use as a taxi. Delivery services may be app or web-based (assuming someone is not delivering directly for a restaurant, as in a pizza delivery person), but they boil down to users ordering food from local restaurants and having it delivered to them. 

As for the employees, both delivery and rideshare jobs involve the use of a personal vehicle for commercial purposes. Their personal policy may not cover accidents, though they may obtain some level of Uber car insurance or Lyft car insurance directly from the employer. That is the major reason rideshare drivers need a commercial automobile policy. 

Decoding Ride-Sharing and Delivery Job Trends 

The emergence of rideshare and delivery services has been very beneficial for consumers. Travelers can now leave their cars parked at hotels in new cities and summon rides to local tourist attractions at the press of a button. Hungry people who are traveling or simply at home can have their favorite food brought to them without ever leaving the house. 

However, these emerging trends in travel, mobility, and food delivery have posed a unique conundrum to carriers and consumers alike. Carriers are now finding ways to offer customized protections even as drivers explore the best coverage options for their needs. By finding the right carrier, drivers can enjoy robust protection while performing one of the most demanding of modern jobs. 

Why Personal Auto Insurance May Not Be Enough 

For drivers, one of the most persistent questions is, “Does my auto insurance cover my rideshare?” In most cases, the answer is “no” because personal policies are designed to protect vehicles during personal use. Once someone is using their vehicle to deliver food or as a taxi service, then it is being used for commercial purposes and subsequently requires a different auto insurance policy. 

Some drivers may have a difficult time finding the policy and coverage required for their exact needs. That is because the companies they work for may include a policy for drivers, but that policy is far more limited than most people expect. Unfortunately, policies such as Uber car insurance and Lyft car insurance are more limited than most employees realize, which incentivizes drivers to take out additional coverage, such as a rideshare endorsement. 

The Insurance Roadmap for Ride-Sharing Drivers (Uber, Lyft, Etc.) 

For employees, the good news is that rideshare insurance is usually offered directly through the employer. However, such coverage usually comes with particular limitations. As an example, they each offer liability coverage when drivers are simply available (as in, waiting to be connected to their next fare or delivery order). Once a driver is en route to a customer or restaurant or dropping food or people off, the company provides collision coverage. 

Unfortunately, this can create a coverage gap wherein they get into an accident on duty before even accepting a request. At this point, the delivery driver insurance only provides liability coverage and personal policies may not apply. That means a driver could be stuck with a major out-of-pocket bill in the event of an accident. 

Delivering Peace of Mind: Insurance for Delivery Jobs (DoorDash, UberEats, Etc.) 

When you started reading this article, you likely had questions such as “Do I need specific car insurance to deliver food?” and “Does my auto insurance cover my rideshare?” Now you know that due to the truth — because the rideshare policy offered by food delivery companies like DoorDash and UberEats is very limited, and your work is likely not covered by a personal policy — you need your own separate coverage. 

That coverage represents an extra cost to drivers (more on this below). However, it also offers drivers the chance to enjoy genuine peace of mind when they are on the job by buying a rideshare endorsement or commercial auto insurance from their carrier. Nobody has to be a single accident away from major debt while they work, and that peace of mind is genuinely priceless. 

Calculating the Cost: Insurance Premiums in the Gig Economy 

While separate rideshare insurance is a great investment, it is one that many drivers do not want to make. Their reasoning is simple: because personal coverage is already expensive, they worry about additional costs eating into the profits they were hoping to make through their side hustle. 

However, it is worth remembering that you can switch carriers at any time. If your automotive policy is too expensive, you can switch to a carrier offering better rates on both your primary coverage and any actual endorsements. That way, you can save money while still enjoying the peace of mind you deserve. 

Drive for Work with Confidence – Get the Right Auto Coverage 

Now you know more about rideshare insurance. This includes what it does and does not cover, why it is worth it, and how expensive it can be to go without it. But ask yourself: do you know where to find a carrier that offers the coverage you need for both private and professional driving? 

At InsureOne, we specialize in keeping rideshare drivers safe from the beginning of their shift all the way to their return home. When you are ready to discover the best in protection, price, and peace of mind, come get a quote online. You can also pick up the phone and give us a quick call at 800-836-2240. Finally, we would love to see you — all you have to do is find an InsureOne office near you.