It’s become common for people to drive for a rideshare or deliver food as a way to bring in extra money. Criminal Defense Attorney Tyler Chriscoe explains if you are covered by your personal auto insurance.
Working for a rideshare app or other app-based delivery services is relatively new and it has been difficult for insurance companies to keep up. Some of these app-based companies will provide coverage for their drivers.
- Uber will provide full coverage, both liability, and collision, while their driver is en route to pick someone up, and while they are driving them to their destination. Uber will provide lesser coverage when the app is on but nobody is in their car. Finally, they provide no coverage when a person has the app off and is not driving for them. At that point, the driver’s personal auto policy would be in effect. Lyft has a similar policy.
- Instacart‘s user agreement tells its drivers that they will not provide any coverage and that drivers should call their personal auto insurance companies to make sure they have the right policy. Grubhub has a similar policy.
- Turo, an app that allows a vehicle’s owner to rent their personal vehicle out to third parties, provides standard liability coverage to the third-party driver. The app allows the owner to choose collision and comprehensive coverage with different plans that are priced differently. This applies to other familiar activities like pizza delivery drivers. So, if you are driving for Domino’s or Papa John’s you are going to run into the same situation.
Bottom Line
If you’re using your personal vehicle for business use or if you’re driving for an app based company, it’s important that you do a few things.
- Read very carefully the user agreement that is provided to you. The insurance details should be stated in that agreement.
- Call your insurance agent or company and ask them if you are covered.
Your claim can be denied if your insurance company finds out you were using your personal vehicle for work. And if that happens, several things might happen as well.
- You may have to pay out of pocket for damages that you cause in an accident.
- It’s far less likely that a D.A. will dismiss charges if you don’t have an active insurance policy.
- The DMV could indefinitely suspend your driving privileges for what’s called “failure to deposit security“.