It seems like it could be common sense that your insurance company is going to cover your personal vehicle no matter what you are using it for; whether it's delivering pizzas, using it as a work truck for your painting business, driving for Uber, or any other type of job related function.
Unfortunately, this is a very common and frustrating misconception for many insured's on the road. The group of insured's we will focus on in this post, is delivery drivers using their personal vehicles for the deliveries. Many delivery drivers assume that while they are out driving for their company, their company has insurance that will protect them if they get in an accident while working, however, this is generally not the case.
Most companies that use delivery drivers who use their personal vehicles don't have the proper commercial auto insurance to cover both the liability for the driver and the physical damage to the driver's car in the event of the accident. Policies that provide this coverage are very costly and most companies want to save some cost and avoid obtaining the policy. So without coverage on the companies' side, that leaves the driver's personal auto policy to cover any damage while they are working.
The problem with using their personal auto policy for delivery is that most delivery drivers don't let their insurance company know they are using their vehicles for delivery. The majority of carriers will cover delivery drivers, however, they will put an additional fee on the policy to have coverage while they are out delivering goods. If a driver doesn't let their insurance company know they are doing delivery and they get in an accident while working, more than likely their carrier will not cover the cost of damages. Which leaves a delivery driver with a damaged vehicle and injuries and no one to cover their car.
The most important things delivery drivers can take away from this information is this:
- Let your insurance company know you're delivering! There may be an extra cost but it's worth it to have coverage to fix your vehicle
- Make sure your limits are more than state minimum. You will need that extra coverage in the event of an accident while working
The most important things company owners can take away from this information is:
- Purchase a supplementary commercial auto policy that will provide liability and physical damage to your drivers using their personal vehicles
- If you refuse to purchase the coverage then educate your drivers about that fact you don't have coverage for them while driving and it is their duty to let their insurance company know they are doing delivery and obtain proper coverage
While it would be an easy to solution to have all companies purchase the proper supplementary coverage, we know that is more than likely not going to happen. So the next best thing is to encourage proper communication between business owners and delivery drivers until the right solution can be developed.