Demand for delivery services has skyrocketed in the wake of the coronavirus pandemic. Transportation companies such as Lyft and Uber are hiring drivers, and delivery services such as Instacart are thriving. Some delivery firms and services provide company vehicles, but many others do not. If you decide to make deliveries for cash and plan to use your own vehicle, you may need specialty coverage.
Those who use personal vehicles to earn money, including delivery drivers, may be required by their insurance companies to add business-use policies to their existing vehicle coverage. While some states may not require additional coverage for delivery drivers, they should still consider purchasing special policies, according to industry experts. So what is on-demand delivery insurance?
Simply put, this is commercial auto insurance that covers the higher risks delivery drivers pose to insurance companies. The more deliveries you make, the longer you are out driving, which translates into more chances for you have to have a road accident.
If you use your personal vehicle to earn money by delivering orders without checking with your insurance company first, they might deny your claim and cancel your policy if you are in an accident. Check with your insurance carrier as well as the company for which you work before making any deliveries.
Determining whether you need to purchase delivery insurance is mature and responsible. Ensuring you have the right coverage before hitting the road safeguards the finances of other drivers as well as your own.