These days, many people need to make extra money or get a side hustle for extra income, or maybe these types of jobs are their main income. One of the most common side hustles that is easy to get into and usually requires very little, but a decent car, is through rideshare jobs or delivery driving jobs. However, do you know the ins and outs of insurance when it comes to protecting yourself, your vehicle, and your potential payouts? Take a look below to go over the vital details you need to know!
What is classified as gig work?
Let’s start with the basics of what is considered gig work within the auto insurance industry. This would apply to all of the car-related side hustles you’ve already heard of, including:
- Lyft
- Uber
- UberEats
- DoorDash
- Amazon deliveries
- Instacart
- GrubHub
If you work for any of these, or similar gig jobs, then you would be technically using your own personal vehicle for commercial use.
Do you need special insurance for gig work?
What many people don’t know is that you can’t put in a claim for a personal auto insurance policy if you damaged your vehicle, etc., while on a commercial errand. Your personal policy does not cover claims for gig work.
This leaves you responsible and liable, entirely out of your own pocket, for anything that might pop up.
Do gig jobs offer insurance?
The easy solution would be if the job provider offers insurance, right? Uber, for example, offers commercial insurance in most states. Postmates also offers extra insurance above and beyond your existing insurance. However, Instacart doesn’t offer anything for insurance.
It’s a good idea to understand what you can or can not qualify for when looking at jobs and how commercial policies work when using your car for personal and/or commercial use.
What is the solution for gig work insurance?
Due to the popularity of rideshare and delivery jobs, many auto insurance providers are creating a hybrid approach to auto insurance. These sorts of plans offer commercial-grade insurance for the times when you are actively logging time/gigs for your job. Then, when not using your vehicle for your side hustle, it would just be a traditional personal insurance company.
Is hybrid insurance a good idea?
Since these policies are still relatively new, many gig delivery drivers are concerned about them. You will need to think about a few essential details when considering one.
For example, when does the commercial policy protection kick in? Do you have full coverage (including comprehensive), or is it just the basic insurance? Does the premium change depending on how many hours you work commercially? Do you have the right coverage for your specific region commercially?
How do I know what is right for me?
If you’re feeling overwhelmed with the ins, outs, exceptions, and requirements for rideshare and delivery driver insurance, you are not alone! Your best solution is to contact your local agent, like Harbour Insurance Services and have an open discussion with them to figure out what is going to work best for you. They can work with your existing policy to see if it might be something that can be added.
Gig workers don’t need to be exposed to confusion by insurance. It just takes the right professional collaboration to help smooth out all of the details! Contact Harbour Insurance Services at (281) 520-4090 today.