Generally, personal insurance policies do not like the chance of business liability. If you drive for Uber/Lyft, delivering pizza, etc. you very likely aren’t covered by your auto insurance! We’ve had personal injury clients at our Tampa, FL law firm who were amazed to find out that their insurance wouldn’t cover them.
Driving for Uber/Lyft to make some extra cash is actually much riskier than you think! Your personal car insurance policy is full of exclusions for using your vehicle for business purposes. This means – no liability coverage to protect you if you hit someone. No coverage for medical payments. No physical damage coverage to your car. And, no coverage if an uninsured motorist hits you!
But Uber/Lyft is just my side gig?
Like I said at the beginning, you will need commercial auto insurance if your vehicle is being used for business purposes. This includes transporting commercial goods, delivering items for compensation, and providing transportation for compensation.
Who is riding in my vehicle?
Do you provide transportation for money? Are you giving car rides to people you don’t know? Are you delivering pizza or food for Uber Eats? If the answer to these questions is “Yes”, your vehicle is operating as a business and you are most likely NOT covered by your personal auto insurance policy in the case of an accident. Ouch.
Is Commercial Auto Insurance really necessary?
I’m glad you asked! Without the proper insurance, you will be held liable in the case of an accident. For example, if you are delivering pizzas with your personal vehicle and you get into a car accident, your personal auto insurance will likely not cover you.
If you are using your car for deliveries, you are driving it more often; therefore, the possibility of an accident increases. In other words, the risk for loss is greater. Commercial auto insurance policies are created with that increased risk in mind and to address the circumstances that can surface in commercial use of a vehicle.
Ultimately, this is for your protection. The purpose of insurance is to provide financial support when you most need it. Failure to notify your insurance provider about your business and the lack of commercial auto insurance will most likely result in denial of coverage. This means that in the case of an accident, you will have to foot the bill.
If you or someone you know are applying for a job for which you will be using your personal vehicle, be sure to ask the employer what they offer in terms of commercial auto insurance policies. Business car insurance is one of the easiest risk management decisions you can make. Before you get behind the wheel for your side hustle, make sure you have the correct coverage in place by speaking with your local insurance agent!
Injured while driving for Uber/Lyft or delivering food?
Our Tampa personal injury attorneys can help! Contact Anton Castro Law today for your free consultation with an experienced accident lawyer.