Freelance driving jobs can be an excellent way to make extra money with a flexible schedule that works for you. Services like Uber, Turo, Lyft, DoorDash, etc. enable drivers to use their personal vehicles to make deliveries or transport passengers as a means to make income. Uber or Lyft uses smartphone app technology to connect passengers and drivers via a “car-for-hire” method. Turo is a peer-to-peer car-sharing company that allows car owners to make extra cash by renting out their vehicles. Slightly different from these, DoorDash and other similar services offer on-demand delivery or pickup services from local restaurants, grocery and convenience stores, and more. Customers make their requests through an app or website, and drivers pick up and deliver the products.
For all of these services, the process can work well for drivers and riders as long as nothing unpredictable happens. However, what happens if you get into an accident while on the job?
First and foremost, it is essential to contact your personal insurance company for information on the insurance coverage required before using your vehicle for these services. Here are a few scenarios to consider, especially when your car is financed and you are still making payments:
- A personal vehicle is rented with an online app and totaled in an accident while the renter is driving. Does your insurance cover this type of activity?
- A driver using their vehicle to deliver groceries gets into an accident on their way to drop off an order. Does your insurance cover this type of activity?
- While transporting a passenger to their destination, you rear-end another vehicle. Does your insurance cover this type of activity?
Before taking on this activity, please to check with your insurance carrier to see if they offer coverage while using your personal vehicle for such activities. You should also check with the company you are considering working for to see if they offer any insurance coverage while you are on the job.
In the case of the scenarios above, if your insurance does not cover an accident while on the job, you could end up without a vehicle. Without insurance to cover the loss, you are still responsible for the remainder owed on the vehicle. It’s always better to be informed and prepared!
