Having a side hustle is a way of life for many people, and numerous part-time gigs require the use of a car. From ridesharing to grocery delivery to restaurant order delivery, you need to have a set amount of auto insurance — typically your state minimum as a minimum — to register as a driver. However, this amount of coverage is not always adequate for protecting your potential liability in a wreck, and in some instances, your insurance policy may not cover the accident. Contact Pizano Insurance serving Wayzata, MN to discuss your car insurance needs in detail and review policy options.
Personal auto insurance
Carrying out a side hustle on your personal auto insurance is a bad idea. When you sign up for a policy, insurance companies ask questions about how the car is used. As your usage changes and you start to deliver riders or food, your needs change. Contact your insurer to review additional policy options. Many insurers offer ridesharing insurance for a minimal bump in monthly premiums while others may require the purchase of a commercial policy.
Insurance provided by ridesharing companies like Uber and Lyft is a form of protection, but the coverage levels vary based on whether you are carrying a passenger or connected to a ride when a wreck occurs. This coverage also does not protect you from the harsh reality of losing your personal auto insurance policy if you are in a wreck and not having your losses covered.
Food delivery insurance
The same basic rules apply to insurance for delivery driving, whether it’s pizza, groceries or fast food. Most personal policies exclude delivery. This means you need to discuss add-ons or commercial policy with your insurer. Some delivery services do offer drivers a certain amount of liability protection, but the policies do not typically cover your car. You could also lose your policy for driving for the delivery without reporting the business use of your vehicle. The risk is not worth it in the long run.
Due to the complexity of auto insurance, it is always best to speak to a professional when changing the ways you use your car. Agents at Pizano Insurance serving Wayzata, MN are ready to discuss your car insurance needs in detail and review policy options.