Every carrier is different, but the easy answer is probably not 100% of the time!!
If you have a standard personal auto policy, most exclude coverage for delivery whether it be passengers, or the retail pick up or delivery of goods (i.e. home health care, pizza, mail, flowers). Some policies even exclude coverage for realtors, insurance agents, contractors, home-based sales (think Mary Kay, 31, Scentsy, etc.) or professionals that require travel to hospitals, job sites, or clients’ homes. If you would fall under this type of usage, you more than likely need to be rated as business use.
Another scenario that has gotten more popular lately is with Uber, Lyft and Doordash drivers. Currently under your regular auto policy you are more than likely covered when your app is off. The company you work for provides coverage when a passenger is in your vehicle. But…. What about coverage when your app is on but there is no passenger??? That is typically a gap in coverage. That is why it is so important to tell your insurance agent that you drive for a transportation network company. Most insurance carriers now have an endorsement they can add to your current policy (for a small fee of course) that closes this coverage gap for you.
To close, here is my suggestion… Be honest and transparent on how you use your vehicle:
- Delivery of goods (pizza, mail, flowers) – may require a commercial policy.
- Some jobs that require travel – may require you register as business use on a personal policy.
- Delivery of passengers (Uber, Lyft, etc.) – may require an endorsement or a change in personal lines carrier to close the coverage gaps.
Talk to your insurance agent and make sure that you have coverage for all scenarios you may find yourself in. The last thing you or your agent want is to file a claim and be told you are denied because there is no coverage!!