Understanding Car Insurance – Volume 2: Driver for Hire

How well do you understand the car insurance you rely on to protect you and your family? This is the second in a series of articles aimed at helping you to determine if you’re really protected by your insurance policy.

Getting food delivered to your home or workplace has never been more convenient.

In fact, the competition for your delivery dollar is fierce, stretching well beyond local pizza shops and national pizza chains. Digital apps such as Doordash and Grubhub give people the flexibility to order their favorite food from a wide variety of restaurants.

What happens if you get into a car accident with a delivery driver who is on the job, and it’s the delivery driver’s fault?

Whose insurance covers the accident?

Turns out you may still be liable for the deductible through your own auto insurance carrier following an accident, even if the delivery guy was in the wrong.

Under the law, an individual that uses his own personal vehicle to deliver something for an employer is considered a “driver for hire.” As soon as the driver clocks in and begins using his car for compensation, his personal auto insurance may not cover him if he gets into an accident. Those policies often have exclusions for someone working for a delivery service.

If you’re a delivery driver, here’s what to do:

  • Review your own auto insurance policy for potential coverage.
  • Determine if there is an exclusion for when you are a “driver for hire.”
  • Check with your employer to see if their insurance policy covers you if you get into an accident while on the job.
  • If your employer doesn’t cover you, check with your carrier to see what options are available so you have some safety net should you get into an accident while on the job.

If you’ve been injured in an accident caused by a delivery driver who is uninsured, here’s what to do:

  • Do NOT accept any settlement from an insurance company.
  • Gather all details related to the accident, including any documentation on medical treatment, photos of the accident or any related paperwork.
  • Contact a lawyer.

Jack Goodrich and Associates offers a no-cost initial personal consultation concerning your case and will advise you on how we might be able to secure a fair settlement for you. 

Call us at 412-261-GOOD (412-261-4663).

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