Everybody enjoyed the convenience of having their goods delivered right at their doorstep. It is easy, quick, and safe, especially during the lockdown. Many car owners engaged in using their personal car for deliveries to earn some extra cash. However, it can directly affect your car insurance policy in doing so.

There are two types of vehicle insurance: personal and commercial auto insurance policies. Although the diversity of its coverage is minimal, it is vital for every policyholder to know and understand it.

As for the basic notion of personal car insurance, once your vehicle is used to earn money, then, it is no longer considered an item for personal use. Thus, it is ideal for informing your insurance provider.

Personal Car Insurance VS Commercial Car Insurance

Personal vehicle insurance policy is intended for personal use such as commuting, doing errands, and other personal travel activities. Commercial auto insurance policy, on the other hand, covers deliveries, ridesharing, or other freight transactions. Hence, using your car under a personal car insurance policy for deliveries can directly affect your record and your coverage.

In that note, it is best to inform your agent or policy provider that you are using your car for business, regardless of whoever is driving or using it. If you fail to do so, your insurance company can deny your claim or render null or void insurance.

Common Questions Asked by Insurers

• How often is the car used for delivery?
• How many miles do you drive the car for business in a week or a month?
• Who is driving the car for business or deliveries?
• What is the company you are under?
• What kind of goods are you delivering and how much is the value of the goods?
• Are you paid for the delivery tasks?

Ridesharing VS Delivery

Rideshare and delivery driving have different insurance coverages, although they share almost the same concept. Ridesharing policy is typically not covered in the personal car insurance policy, and not all insurance providers have this coverage. Ridesharing is a coverage that can be added on top of your existing policy; thus, it applies additional charges. In contrast, delivery driving is also not covered in personal insurance policies, but instead, commercial insurance policy is required.

Vehicles used for delivery and rideshare driving project more risk than vehicles used for personal errands. Thus, additional charges will be rendered. They also require significantly more maintenance. “Parts are wearing out or break with time regardless of the brand and model, and we see a lot of newer vehicles in our workshop” says Nathan from Ultralube a Car Repair Shop in Midland, WA . This is why if you are using your car for business purposes you should consider additional insurance for towing and mechanical faults.

Delivery Employer Insurance Coverage

It is essential for employers to have an insurance policy for employees coverage when delivering goods using their own cars. This kind of policy is called non-owner car insurance. However, this policy is intended to protect the business owner in cases of legal issues, but it does not directly protect you.

Non-owner car insurance policy does not cover your personal car. In other words, if you encounter an accident while on the job, your employer is not expected to cover for your damages or repairs. Therefore, if you embark on using your personal car for deliveries, it is ideal for you to acquire a commercial car insurance policy for collision or comprehensive coverage.

Delivery Car Insurance Coverage Cost

The factors considered in giving a quote for delivery insurance is almost the same as the factors considered in personal car insurance. The type of your car, age, and driving skills are accounted for by insurance providers. Additional considerations are the consistency of your deliveries and the distance you travel during the job. Hence, the cost will vary depending on your unique driver’s profile.

The type of your car, age, and driving skills are accounted for by insurance providers. Additional considerations are the consistency of your deliveries and the distance you travel during the job. Hence, the cost will vary depending on your unique driver’s profile. Using your personal car for business requires you to acquire a different policy to protect you and your car. The uncertainty of driving is a major cause that can alter your rate and safety. Thus, make sure that you are covered.