Do you use your car to deliver pizza? Personal vs Commercial Auto Insurance


I recently was at an Oceanside Chamber of Commerce meeting and was talking to another insurance professional in the life insurance field and we began discussing the difference between Commercial & Personal Auto Insurance –  specifically discussing pizza delivery and the new ride share programs that are popping

Let me just say that Personal auto Insurance is just that, PERSONAL! Pizza delivery is not considered personal unless, of course, you are picking up your own pizza and bringing it home to eat. Other than that, you are delivering pizza for a company and should be on their commercial policy or if you are considered a 1099 contractor then you need your own commercial policy.

The new ride share programs that are out there, (Uber, Lyft, Roadmap, etc) just to name a few which are challenging the laws and insurance rules. California requires these companies to have commercial policies that cover the driver once they open the app to start receiving fares. These companies have their own policies but from what I have seen the requirements to be a driver for these companies is that you must have personal auto insurance, your vehicle has to be inspected (at least pictures sent for them to see), and some do background checks for criminal offenses. I can tell you that there have been law suits, due to accidents and state laws are changing as the new businesses are arriving on the scene.

I have 2 points to share from this conversation I had with my insurance friend:

  1. If you are going to take a position with a company where you will be driving your car for the company, even if it is as an assistant and you drive to get supplies for the office, ask them about their insurance and if you are covered. Protect yourself!
  2. If you are going to use one of these ride-share programs and the vehicle gets there and you don’t feel good about it, you can ask to see their proof of insurance, if you still have reservations then don’t take the ride! Plain and simple. Protect yourself!

If you have any question or are unsure feel free to contact Policy Point Insurance Services and we will be glad to help answer your questions.