The Delivery Driver’s Guide to Accident Insurance | In 2019, Americans spent an estimated $11 billion on pizza delivery alone. Delivery rates have continued to go up over the last year and have expanded from traditional pizza to meals, groceries, and other shopping. Americans have also been able to enjoy the convenience of having non-essential goods delivered straight to their door. 42% of businesses have begun to offer delivery. As many as 52% of consumers say they will continue to utilize delivery services even after it is safe to go back into stores or restaurants. Many of these drivers use their own personal cars to deliver these goods or food.
If A Delivery Driver Is Driving Their Own Car
It is very important for the driver to know what their own personal insurance covers while they are working, and what their employer covers instead. If there is a gap, then the driver can be denied coverage if a car accident occurs doing a routine part of the delivery. Leaving the driver with the cost of medical bills and any property damage. The driver may need to get commercial auto insurance as food delivery is not considered personal use, but business use instead. The rates are higher as car insurance companies see business use as a higher risk.
What Responsibility Does The Business Owner Have?
An owner can be found liable if one of their employees gets into an accident while on the job. It is important for business owners to know what policies will get them the best coverage for their business needs. Business owners might consider the option of having non-owner car liability insurance, which can cover the driver while they are working. This insurance often only applies to employees who only occasionally use their personal car for work. If the driver is using their own vehicle on a consistent basis, he or she should look into the commercial auto insurance mentioned above as the business owner may not have to provide coverage.
What If The Driver Is Contracted Through An Online Platform?
As more and more businesses move to offer delivery, they may not be able to hire a full-time employee to handle all their delivery needs. Instead, they may be pairing up with online platforms to use those drivers to deliver food orders or goods to customers. Some of the more popular platforms used for delivery include:
- Grubhub
- Doordash
- Ubereats
- Instacart
- Postmates
There are also many smaller platforms available for an independent contractor or consumer. For drivers operating their own personal vehicle, especially one that is working through a platform, researching what insurance is offered for drivers before working can save them money in the long run. After finding out what insurance is offered by the employer, drivers can contact their insurance agent to adjust their policy accordingly.
How Some Companies Have Covered Their Drivers
Larger companies may include coverage for their delivery drivers, but usually only while the driver is on delivery. This coverage does not extend to any passengers that may accompanying the driver and may not include the time prior to picking up the order. Companies may only provide coverage after the driver’s own insurance is exhausted and if the driver isn’t covered they will not cover the accident at all. Many pizza and fast-food chains are actually local franchises, which may rely on driver’s insurance. No delivery driver wants a car crash claim to be denied due to lack of coverage, but also many cannot afford to not use their own cars for work. It is important for drivers to understand what accident insurance is available to avoid any future liabilities.
