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Posted on April 15, 2020
Using your car to make deliveries? Make sure you have the proper coverage

As cities across the world respond to COVID-19, more people are staying home, and many restaurants are switching to delivery-only.

For now, restaurants can only serve the public with delivery and takeaway, with some companies and restaurants planning to hire thousands of workers to meet the delivery demand. 

If you’re looking to pick up some extra cash as a delivery driver and using your own car, be aware of possible auto insurance consequences.

“Anytime you’re using your vehicle for a business purpose, anytime you’re turning your car from a private passenger vehicle into a commercial, money-making enterprise … that user needs to be noted by your insurance company so they are aware of your changing risk, it doesn’t matter if the delivery is parcels or food.” Pete Karageorgos, director of consumer and industry relations at Insurance Bureau of Canada, told Canadian Underwriter.

If I'm going to become a delivery driver, does this mean I’ll likely see a rate increase?

You may be commuting less due to COVID-19, however, if you are now using your vehicle for business and delivery – and you’re on the road more because of this – then yes, that would translate to a higher risk, and a higher risk typically translates into a higher insurance premium.

If you start driving as a job (whether full-time or as a side hustle) and don’t inform your insurance broker, you could face a claim denial in the future if you cause an accident.

Some insurance companies are responding to the COVID-19 pandemic by extending coverage to customers using their personal vehicles to make deliveries. Personal vehicles being used to deliver food and medical supplies during this time may be covered under your personal auto policy and there may be no impact on coverage or changes to premiums, whether or not you are volunteering or a paid employee. Always check with your broker before you begin to make deliveries.

If you do start working as a delivery driver and are using your own personal vehicle, make sure you speak with your broker immediately and ask about commerical coverage or possible extended personal coverage for delivery drivers during the COVID-19 outbreak.

What if I own a small business and now rely on more delivery drivers?

If you own a small business, like a restaurant or store, and are now relying on employees to deliver goods in their personal vehicles, both you and your employees may need certain types of commercial insurance.

When delivering goods, your employees generally need a commercial auto insurance policy if they are using personal vehicles. As a business owner, you could be held liable if one of your employees causes an accident and doesn’t have the proper insurance in place.

The best strategy: Contact Insurance Jack before using your car for work. If you don’t have the right car insurance for your delivery work, you could get stuck paying big auto accident bills yourself.

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