Insurance Curator 
Do you need special auto insurance for ride-sharing or delivery driving?
The gig economy has taken the world by storm, and with it, the rise of ride-sharing and delivery driving. Companies like Uber, Lyft, and DoorDash have become household names, and many people have turned to these platforms as a way to make extra cash. But before you hit the road, there’s one important question you need to ask yourself: do you need special auto insurance for ride-sharing or delivery driving?
The answer is yes, and here’s why.
Personal Auto Insurance May Not Cover You
When you’re driving for a ride-sharing or delivery company, you’re using your personal vehicle for commercial purposes. And that’s where things can get tricky. Most personal auto insurance policies don’t cover accidents that occur while you’re using your car for business. So if you get into an accident while you’re on the clock, you could be left footing the bill.
Take Sarah, for example. She started driving for Uber to make some extra money on the weekends. One Saturday night, she got into a fender bender while she was on her way to pick up a passenger. Her personal auto insurance denied her claim because she was using her car for commercial purposes. Sarah was left with a damaged car and no way to pay for the repairs.
Ride-Sharing Companies Offer Some Coverage
The good news is that most ride-sharing companies offer some level of insurance coverage for their drivers. Uber and Lyft, for example, provide liability coverage when you’re on your way to pick up a passenger and during the trip. But there are gaps in this coverage. For instance, if you’re waiting for a ride request and get into an accident, you may not be covered.
And what about delivery driving? Companies like DoorDash and Grubhub also offer some insurance coverage, but it’s often limited to liability only. That means if you get into an accident while you’re on a delivery, your personal auto insurance would have to cover the damages to your car.
You Need Special Auto Insurance
To fully protect yourself while you’re driving for a ride-sharing or delivery company, you need special auto insurance. This type of insurance is called ride-sharing or delivery driving insurance, and it’s designed to fill the gaps in coverage that your personal auto insurance and the company’s insurance leave behind.
Ride-sharing insurance typically provides coverage when you’re waiting for a ride request, on your way to pick up a passenger, and during the trip. Delivery driving insurance, on the other hand, provides coverage when you’re on a delivery.
The Cost of Special Auto Insurance
The cost of ride-sharing or delivery driving insurance varies depending on a number of factors, including your driving record, the type of car you drive, and where you live. But on average, you can expect to pay an additional $15 to $20 per month for this type of insurance.
While that may seem like a lot, it’s a small price to pay for peace of mind. Just ask John, who was hit by another driver while he was on his way to pick up a DoorDash order. Because he had delivery driving insurance, his insurance company covered the damages to his car and he was able to get back on the road quickly.
The Future of Ride-Sharing and Delivery Driving Insurance
As the gig economy continues to grow, so too does the need for specialized auto insurance. Insurance companies are starting to recognize this and are offering more options for ride-sharing and delivery drivers.
In the future, we may see even more specialized insurance products that cater to the unique needs of gig workers. And as technology continues to evolve, we may see new ways of providing coverage that are more affordable and accessible.
In Conclusion
If you’re thinking about driving for a ride-sharing or delivery company, make sure you have the right insurance coverage. Personal auto insurance may not be enough to protect you in the event of an accident, and while the company’s insurance may provide some coverage, it’s often not enough.
Investing in ride-sharing or delivery driving insurance is the best way to ensure that you’re fully protected while you’re on the clock. It may cost a little extra each month, but it’s worth it for the peace of mind it provides.
So before you hit the road, make sure you’re covered. It could save you a lot of headaches (and money) down the line.