Do I Need Additional Car Insurance Coverage if I Use my Car to Deliver Items?
Reader’s Question:
I just got a job as a pizza delivery boy in South Dakota and I am wondering if would need to buy an additional insurance coverage while driving on the job? If so, why?
Mark
Sioux Falls, SD
Most insurance carriers’ normal private passenger car policies do not provide coverage if the covered car is being used to deliver property, i.e. for a fee (tips, salary, etc). Coverage can therefore be denied if an accident happens while the personal car is being used to deliver items such as pizza.
According to the South Dakota Department of Insurance most personal car policies will exclude coverage for the car while it is being used for “business purposes” like pizza delivery. Many insurance policies in fact have exclusion for using your vehicle for delivery purposes like your job.
You can speak with your current insurance company if your personal car insurance policy will cover you as a pizza delivery boy, however it will likely not. Your employer may already have liability protection for this type of job to cover the restaurant’s exposure. But, this may not protect you if an accident happens. Your employer will typically require additional insurance to protect themselves if you are negligent.
