With the increase in businesses that have added delivery service to their offerings over the past few years, I have heard about more and more people (typically teenagers) working as delivery drivers for companies such as Door Dash, Uber Eats and others. Within hours or even minutes, you or your child can be on your way to working as much or as little as you would like; and earning very good money! But what would happen if you are involved in an auto accident? The repercussions could be devastating!
Most, if not all, auto insurance policies clearly exclude coverage for operating as a delivery driver in a personal vehicle. For example, in my personal policy with Citizens Insurance, collision, liability coverage and medical payments coverage are all excluded if your auto is being used as a “public or livery conveyance.” The definition of “livery conveyance” refers to “the transporting of people or goods for hire.” What does that mean for you?
If you or a family member are involved in a car accident while “dashing,” regardless of fault, you will not have coverage for the damage to your vehicle! Whether you are driving an older model vehicle worth $5,000 or a shiny new $60,000 BMW which you leased, you will be responsible for the repairs. If you own the car, the scrapped metal is yours to keep. If you financed or leased the vehicle, you are responsible for paying off the full value of the vehicle. That could be tens of thousands of dollars!
If you are injured in the accident, you will not have any medical coverage. No payment of medical bills, no wage loss reimbursement, no assistance with your household chores. And if you or your family member is at fault in the accident, you have no liability coverage. Door Dash or similar companies may have limited amounts of insurance to cover their interests, but this could put your family into a substantial financial crisis.
I know it can be fun, and a great way to make some money. But please check with your insurance agent before signing up and dashing. Of course, you are always welcome to give me a call to discuss your situation. I will review your policy with you and make my recommendations!
Finally, in case your policy is up for renewal, let me issue this important reminder to please elect to keep the unlimited, lifetime medical coverage on your policy when your renewal is up!