Delivery Driver Insurance Confusion

[truebluexx]

I deliver pizza in Indiana using my own car.

My employers have commercial insurance.
It is a hired and not-owned auto policy.

They also have a workers compensation policy.

Now, i am confused because my personal insurance company says that my policy doesnt cover deliveries, but my work has commercial insurance. Am i allowed to deliver these pizzas or not?

Also, my employers auto policy does not cover damage to drivers cars. If i get in an accident, will my employers have to pay for my car out of pocket?

Finally, i am supposed to tell my insurance company that i deliver pizza, but how do i go about doing this without them forcing me to buy my own commercial insurance policy? I checked and it would be $2800/year for me to get a commercial policy.

I am so confused and i dont want to waste money.

 

[INSUREGEEK]

It sounds to me like you understand it pretty well, but I'll line it up for you, I hope:

1) Your employer's Hired & Non-Owned Auto (HNOA) coverage protects them against auto liability claims made against them as a result of their employees using their personal cars for company business - be it delivering pizzas, or making the nightly bank deposit. Liability claims against you are on you..

2) That HNOA coverage does not cover any damage to your car. That is on you too.

3) #1 & 2 above are sometimes available coverage options for an employer, but I can see why many employers would decline to essentially pay for your insurance.

4) Most personal auto policies exclude "business use" of a vehicle. Some offer an endorsement/rider for this. Some do not. For some it depends on WHAT that business use is. Call an independent agent (or 2 or 3) in your area and ask them if they can help you via a personal lines policy.

5) It may very well be that a commercial policy is the best (or only) option for you.

Good Luck!

 

[truebluexx]

Thanks, i found that helpful.

At what point am i liable as a delivery driver? If i am delivering food to someone and i skid on the ice and bump into the person in front of me, wouldnt my employers still be liable since they assigned me to drive there in the first place?

Also, does my personal insurance protect me when i am not at work, or is it completely useless to me as a delivery driver?

This seems dumb on many levels because none of my coworkers purchase personal commercial insurance.

 

[INSUREGEEK]

Well, if you're in an auto accident while 'on the clock' or not, you can and will be held personally responsible for any bodily injury and property damage you cause.

If you were to skid on ice and and hit another car.....the driver and passengers in that other car will go after you AND your employer for damages. Their HNOA protects them. You need a policy to protect you while you're using your car for business.

Your personal policy, unless modified to add the delivery coverage, will not protect you while you are 'on the clock' so to speak.

If your coworkers are not buying proper coverage - commercial, or personal with business use - they are seriously open to a lifetime of court ordered wage garnishments and other payments should they cause an accident while working.

Hope this clarifies it a little. I'm sure some others will be along shortly to add their comments, which may make more sense. I teach insurance to agents....so they'll know how to say it better to a consumer and maybe have advice on some options for you. Stay tuned.

 

[thomasm]

It sounds to me like you understand it pretty well, but I'll line it up for you, I hope:

1) Your employer's Hired & Non-Owned Auto (HNOA) coverage protects them against auto liability claims made against them as a result of their employees using their personal cars for company business - be it delivering pizzas, or making the nightly bank deposit. Liability claims against you are on you..

2) That HNOA coverage does not cover any damage to your car. That is on you too.

3) #1 & 2 above are sometimes available coverage options for an employer, but I can see why many employers would decline to essentially pay for your insurance.

4) Most personal auto policies exclude "business use" of a vehicle. Some offer an endorsement/rider for this. Some do not. For some it depends on WHAT that business use is. Call an independent agent (or 2 or 3) in your area and ask them if they can help you via a personal lines policy.

5) It may very well be that a commercial policy is the best (or only) option for you.

Good Luck!

It may be the best or only option but, how many $10 per hour pizza delivery drivers you think are actually rolling around with commercial insurance?

Most barley have state minimums or are on thier parents insurance.

Your best option may be to get a better job!

 

[truebluexx]

My quote from progressive for full coverage commercial auto insurance was $2800/year. I noticed it didnt include discounts such as continuous coverage or multiple cars, claim free, or accident free. Would these discounts apply? If so, and if i could get that price down to 2000/year or $2200/year, i would be fine with that. The extra $50/month is what kills me.

Ive tried getting quotes from other providers, but the quote process is so confusing.

Who offers full coverage commercial insurance with $500-$1000 deductibles for less than $200/month???

 

[BlockO]

how many $10 per hour pizza delivery drivers you think are actually rolling around with commercial insurance?

part of that ignorance stems from the employer.


I cringe when I see a want ad looking for a delivery driver ...... "must have proof of auto insurance" ..... it never says "must have proof of commercial auto insurance".

truebluexx, which company did you quote a commercial policy with? did you try shopping around with more than one company? unless your personal auto policy on the same vehicle is close to that same figure, you should be able to beat 2800/yr.

 

[truebluexx]

part of that ignorance stems from the employer.


I cringe when I see a want ad looking for a delivery driver ...... "must have proof of auto insurance" ..... it never says "must have proof of commercial auto insurance".

truebluexx, which company did you quote a commercial policy with? did you try shopping around with more than one company? unless your personal auto policy on the same vehicle is close to that same figure, you should be able to beat 2800/yr.

2800 was from progressive. It didnt include any discounts i currently have other than a paid in full of $2400

I tried getting a quote from geico and other companies and they ask tough questions like the business owner's name and address. Its a corporate store, and it isnt owned by an individual.

My current insurance is progressive's personal business insurance and the quote is around $900 for 6 months.

 

[BlockO]

they ask tough questions like the business owner's name and address.

you've worked there how long? and you still don't know your boss's name and the address you work at?

I'm only kidding!

Give me a day or two. I have friends in the pizza biz that probably know exactly which companies have that appetite (no pun intended).

I'll get back to you after I ask them.