Pizza delivery drivers are the unsung heroes for many people. They are a requirement for any pizza restaurant that wants to be able to compete effectively. Most pizza businesses require pizza delivery drivers to have their own car insurance coverage. They ask for an insurance card as proof of your coverage before you start working. But there are some things that these employers don’t tell you about car insurance and the actual requirements for delivering pizza in your own vehicle.
Personal Car Insurance Isn’t Enough
Personal car insurance is the type of coverage that most Americans have. It is based on personal use of your vehicle and the average person’s use of that vehicle. Car insurance companies have very different rules and procedures for commercial policies than personal use policies. If you use your vehicle for business use at all, you will need more than just a personal car insurance policy.
What Kind of Policy You Need
As a pizza delivery driver, you will need to have a commercial car insurance policy. Even though you are an employee and not the owner of a business, your vehicle is being used for business purposes. Pizza delivery drivers are on the road much more frequently than personal use drivers, and as such the risk is greater. You will pay more for a commercial use policy, but you will be covered in the event that you have an accident.
There are different types of coverage available for commercial use policies, and not all of them will apply to you. You do not need a full commercial use insurance package to deliver pizza. You will, however, need to have specific commercial use liability coverage that covers you in an accident while you are on the clock. Getting rates for such policies can be difficult without talking directly to an agent.
What Will Happen with Personal Use Policy
If you just have a personal use car insurance policy and you get into an accident while delivering pizza, several things might happen. First, your car insurance claim could be denied because you were using your vehicle for commercial use. Even if your car insurance company decides to pay the claim, they are likely to cancel your policy either immediately or after the current policy term has ended.
Your car insurance company can and might both deny your claim and drop you as a customer immediately. If you did not disclose that you were using your car for commercial deliveries, the car insurance company can claim misrepresentation. Misrepresentation is a form of insurance fraud, and not only leads to denied claims and cancelled policies, but in extreme cases may even result in criminal charges if you are not honest about the use of your vehicle when you file the claim.
If your car insurance company denies your claim, you may have additional consequences. You could face traffic violations for not having appropriate car insurance coverage. You can also face penalties from the state or your local DMV for not having coverage. You will also be responsible for paying for the damages and injuries of the other driver out of your own pocket, and you could wind up in a courtroom with a lawsuit against you if you are unable or unwilling to pay.
Getting the Right Coverage
If you are a pizza delivery driver looking for new car insurance coverage, it is a good idea to call around and talk to insurance agents to get the best rates. Getting online quotes may not be sufficient, unless the online quote system for that company offers you the ability to opt for commercial use of your vehicle. If you are unsure what car insurance coverage you need, talking to an agent is your best bet.
You may not need a standard commercial car insurance policy. If you are not self-employed, you will not need certain types of commercial coverage. It is a good idea to talk to an agent and discuss what the vehicle will be used for, and what coverage options are necessary to get claims paid in case of an accident.
Not all car insurance companies offer coverage for pizza delivery drivers. You will want to contact the car insurance companies and ask them specifically about this type of coverage and whether or not they offer it, and at what cost. Shopping around for car insurance rates can be difficult for the average driver, but for pizza delivery drivers you must use further diligence to make sure you are getting the right coverage at the best price.