Using your car to make deliveries or offer someone a ride can be a great side hustle. If you’ve made a little extra cash doing either, you’re not alone. As of 2021, in the United States, 3.5 million people drive for Uber, 2 million drive for Lyft, and 2 million are drivers for DoorDash. If you’re using your personal car for these jobs, it’s probably worth considering what kind of insurance you have. To be sure you’re covered no matter your particular circumstances, talk to Westwood. We can help you find the right option for you at the best price.

Personal vs. commercial auto insurance

When it comes to auto insurance, coverages differ depending on how you’re using your car. Most insurance companies don’t cover commercial activity under a personal auto policy, so you won’t be covered if you’re driving for business reasons and haven’t disclosed that fact to your insurance company.

Business reasons could include driving someone or something from one location to another to earn money. Even the time you spend waiting for a delivery or a requested ride can be considered time on the clock, which means you can use your car for commercial reasons without actually taking a fare or delivery. The nuance can get a little tricky and may vary by location, but Westwood is here to help you understand the terms of your policy and the insurance company providing the coverage.

Coverage through the rideshare company

In many places, rideshare companies must have insurance covering their drivers. That means if you’re driving for an established company, you may be covered. However, you should still check with your company and its policy. There may be limitations for specific locations, and you should also check any other policy limits that might affect your needed coverage.

Some rideshare companies carry policies that do not cover you while you’re waiting for a passenger. During this time, the vehicle is open for business use, but because there is no engaged passenger, the company you drive for may have an exclusion in its policy for this period of time. The same applies to delivery services. While the app is open waiting for orders, your car is “open for business,” but you may only be covered by the insurance of the company that contracts your services when you have an active order.

If you’re in an accident during this time, your personal insurance may not cover you, either. In fact, your personal insurance may cancel your policy if you were using your car for commercial purposes and didn’t disclose it to the company. You’ll need some kind of insurance to fill in the gap while the vehicle is “on the clock” but doesn’t have an active client.

Protect you and your side hustle

Fortunately, many insurance companies are catching up to the times and offer rideshare/delivery service insurance. These policies will cover you by providing commercial coverage for your vehicle while your app is on but you’re waiting for a delivery or a fare.

Talk to Westwood. We can help you understand the nuance of your own auto insurance coverage and the policy offered by the company you drive for. Then we can help you find any available options that can fill in the gaps in coverage to be sure you’ve got the right coverage no matter what part of the journey you’re on. Your independent agent can help you find the right insurance for your side hustle.

Please Note: This article is for general informational and educational purposes only. It does not represent any specific insurance policy and does not modify any provisions, limitations, or exclusions of any current policy.