Do I need commercial auto insurance in Washington State when delivering for food delivery services?

Do you perform gig work for Amazon, Uber, Lift, Grubhub, Shipt, Instacart or Doordash or another rideshare or personal delivery service? If you do, you more than likely need commercial car insurance in Washington state.

The Limitations of Personal Car Insurance

Most drivers know that they must have a personal car insurance policy with a minimum amount of coverage in order to legally drive in Washington. Personal car insurance helps financially protect you if your involved in a car accident while running errands, like taking the kids to school, getting groceries and driving to and from your favorite activities or hobbies.

Personal car insurance does not cover you when you’re driving for business, and driving your car to do gig jobs is considered business. Talk with your agent to understand what your policy covers, your personal car insurance does not cover the other person via your liability coverage if you get into a car accident while logged in or not logged into the gig app and are waiting for a job. The moment you accept the job, the rideshare or gig work platform covers you under their commercial coverage. Once you deliver the item or drop off the rider, you’re back to limited coverage with your personal insurance carrier, if you don’t have a commercial policy or a rideshare policy.

Commercial Car Insurance Policies for Gig Workers

If you’re a gig worker, even if you use an app, you should have a commercial car insurance policy because it provides you with more protection than your personal car insurance policy. In fact, did you know that if you’re dropping a client off in your personal car as part of your job, you may not be covered by your personal car insurance policy if you get into an accident?

What Commercial Car Insurance Covers in Washington

Commercial car insurance typically includes liability, property damage, medical payments, uninsured and under-insured motorist, hired vehicle and non-owned coverage.

  • Liability Coverage – the liability coverage of your commercial car insurance policy typically includes coverage for the other vehicle if you get into an accident and that accident was determined to be your fault. It also covers the costs associated with any injuries that occur to the other driver or their passengers.
  • Driver Coverage – Driver coverage is specifically designed to pay for any damages to the driver of the vehicle and their passengers if they are involved in an accident. This section of the coverage typically includes medical payments, personal injury protection, uninsured motorist and pet coverage.
  • Property Damage – Pays for the repair or replacement of any property that is damaged during the accident. This coverage applied to the other driver and their vehicle and passengers.
  • Medical Payments – this coverage pays for any medical care that is needed as a result of the accident. This covers the driver and their passengers.
  • Uninsured Coverage – This coverage pays for any damages and injuries if the accident was caused by a driver who doesn’t have car insurance.
  • Under-insurance Coverage – This coverage pays the excess monetary amounts if the at-fault driver doesn’t have enough coverage to pay for all the accident-related expenses.
  • Collision Insurance – This coverage pays for the repair or replacement of the driver’s vehicle, regardless of who was at fault.
  • Comprehensive Insurance – If you’re a gig worker, there’s a good chance that your personal insurance policy would cover you if your car is parked at your house and a tree branch falls on it or it’s stolen or damaged by vandalism. However, if you park your car outside a restaurant in order to pick up an order for a customer, you would need a commercial auto policy to financially protect you if the car were stolen in the lot or vandalized while you were picking up the order.
  • Hired Vehicle – If you rent a vehicle to perform job duties, the hired vehicle coverage helps pay for any accident-related expenses.

Understanding Rideshare Insurance

Gig workers who use rideshare apps, like Uber and Lyft, may need a special type of insurance called Rideshare Insurance. This insurance is designed for gig workers who specifically work on rideshare apps. This type of insurance covers the gaps between when the gig worker logs into the app, and they pick up their first paying rider. It also covers the gap from when the gig worker drops off the rider to the time when they pick up their next customer.

Commercial Car Insurance with Boyd Insurance Brokerage Inc. in Spokane, Washington

Boyd Insurance Brokerage Inc. can help you find the right insurance coverage for your business and vehicle if you perform gig work, like delivering groceries or packages or driving people around town. Our agents can listen to your insurance needs and the type of business driving you do in order to find the best policies for your needs, whether that’s a regular commercial car insurance policy or a rideshare policy.

To learn more about how we can help you make sure you’re fully covered and to get a quote for commercial car insurance, call us today at 509-340-2693.


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