Am I Still Covered if I Drive for Uber or Deliver Pizza?

Many of us may know someone, or perhaps you have yourself, performed a side job to earn a little extra income. You have probably never considered what the insurance implications are if you were involved in a motor vehicle accident while driving for Uber or delivering pizza. But what many people do not know is that their side job could cost them more in the end if they are not properly insured.

Am I covered by my personal insurance policy?

There is a standard clause in most personal automobile insurance policies that most people are not aware of. Personal auto insurance policies provide coverage for one’s personal needs only. Generally, personal automobile policies exclude coverage if the automobile is being used for commercial purposes, such as carrying property or persons in exchange for a fee or compensation. This would include using your personal vehicle for the following services:

• Uber/Lyft;
• UberEats;
• Pizza delivery;
• Limousine or shuttle driver;
• UPS and Fedex delivery; and
• Any other type of employment which requires the transportation of property or persons, excluding farming and ranching.

The same may apply if the car was borrowed and used for commercial purposes. If you are a parent that allows your child to borrow the family car for delivering pizza, you should review your policy.

Am I covered if I carpool with co-workers?

If you participate in a shared-expense car pool, one in which everyone in the car pool proportionately contributes to cover the actual travel expenses, you should still be able to insure your vehicle under a personal auto policy rather than a commercial auto policy.

What should I do if I’m not covered?

Check with your employer if coverage is available through them. You should also call your insurance company to see if they could provide supplemental coverage or they may advise/assist you in switching to a commercial policy.

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