Delivery drivers will need to make sure their personal auto insurance has this feature to avoid coverage gaps if an accident happens. A recent report by New Auto Nigeria noted that delivery services are a growing way to make extra money in your free time by delivering meals, groceries, merchandise and passengers.
And its popularity has surged since the start of the pandemic. It advised delivery drivers that “before making your next delivery with your own car, it’s vital to have affordable auto insurance coverage that covers delivery gigs.
Your personal auto insurance policy may not cover every incident when making a delivery.” It advised that while most delivery driver jobs provide drivers with some insurance coverage, it may also be necessary to purchase special rideshare coverage or a commercial car insurance policy.
The car insurance gap
The report disclosed that most app-based transportation network companies in the country provide drivers with complimentary coverage for bodily injury and property damage if an incident happens while on a delivery gig. “However, these apps also require drivers to carry a personal car insurance policy for their delivery vehicles.
The governmentrequired minimum liability coverage and current car registration are necessary and you may also choose comprehensive car insurance if you have a newer vehicle or a loan payment. “Where you are in the delivery process when an accident happens determines which party you file an insurance claim with. Having inadequate car insurance can result in an auto claim coverage gap resulting in substantial out-of-pocket expenses,” it said.
According to the report, you may be able to file a claim when actively delivering an order from the restaurant to the customer but not while you’re driving to the pickup site.
It added that drivers may also have to pay a cash deductible before the delivery service begins paying for damages to your car. It also said the your car insurance company likely covers incidents when you’re using your car just for personal use. Incidents that occur when using your personal vehicle for appbased delivery services or an employer may not qualify.
Meanwhile, there are two situations when drivers may not have to purchase additional coverage: Using a personal vehicle for employer deliveries on a temporary basis. Delivering with an employer- owned vehicle. But if you work part-time for a dedicated delivery app, a standard auto insurance. policy won’t provide full coverage when using your car for business purposes.
What delivery drivers should know
Delivery drivers will need to add a rideshare gap coverage to their personal auto insurance to avoid coverage gaps and to have more extensive coverage when the employer’s car insurance service doesn’t cover the full claim amount. Adding this policy increases the monthly premium but the increase can be as small as N2000 per month. The declarations page lists the coverage limits for the various steps of the delivery process. This additional coverage isn’t necessary when using an employer-owned vehicle. However, most delivery gigs require using a personal vehicle. Depending on the car insurance provider, the driver may need to purchase commercial auto insurance.
This coverage only covers using your car for business purposes, not personal use. It’s also important for drivers to review the delivery service auto coverage policy to know what’s covered. Knowing potential gaps can also make it easier to compare car insurance rates.
The delivery partner may only cover incidents during these phases: Phase 1: Waiting to accept a pickup when logged into the app Phase 2: Driving to the pickup location after accepting an assignment Phase 3: Driving with the order or passenger in your vehicle The delivery service is less likely to cover incidents occurring during the first phase.
Also, the app won’t cover incidents when drivers are not logged into the app or actively working. Personal rideshare insurance extends auto coverage to all delivery phases to prevent gaps.
It can be easy for delivery drivers to believe that the delivery service provides full auto coverage for injuries and damages when driving for business purposes. Unfortunately, coverage gaps can be more common than many realize.
Reviewing the business and personal car insurance service policies can prevent incurring a lapse of coverage unexpectedly