Auto insurance rates for pizza delivery drivers are dependent on a number of factors. But more often than not, auto insurance rates will be higher for these drivers because pizza delivery is covered by commercial rather than personal policies. Rates go up because of the increased risk due to more time spent on the road, the usage of a personal vehicle for business purposes, and the lack of employer-provided coverage.
Commercial vs. Personal Coverage
For most drivers, pizza delivery won’t be covered by their personal auto insurance policies because they’ll be paid for delivering pizzas, which isn’t considered personal use by most insurers. Drivers who want to be covered would have to switch to a commercial vehicle policy, which typically has higher rates. Commercial auto insurance tends to cost more due to higher liability limits and additional protection against legal challenges that may be filed against the employer or driver.
While pizza delivery may not seem like a dangerous job, statistics show delivery-related jobs have substantial risks, which can lead to higher auto insurance rates for drivers. In 2018, a study conducted by the United States Bureau of Labor Statistics showed delivery jobs are the fifth most dangerous occupations in America. Most insurers are aware of this fact and understand the higher risk of accidents stems from the increased amount of time spent on the road. This increased risk leads to additional costs for the insurer and higher rates for drivers.
Commercial vs. Personal Vehicle
If a company vehicle is provided for delivering pizzas, the employer will be held liable if an accident occurs, but if a personal vehicle is being used, the driver will most likely not be covered by his or her existing personal insurance policy. As with many delivery services, the usage of a personal vehicle for business purposes won’t be covered unless the driver has commercial insurance. Even though certain policies may offer coverage for pizza delivery if the job is part-time, most insurance policies won’t offer any coverage.
Many pizzerias are underinsured, which means the delivery driver won’t be covered, but several franchise-based and independent restaurants may provide hired and non-owned vehicle liability insurance. This type of policy protects the company in case of an accident caused by the driver, but it doesn’t offer liability protection for the driver. Other employers may have auto insurance policies that cover liability, but this type of insurance doesn’t cover vehicular damage or any medical bills. Switching to a commercial driver policy is the only sure way to cover both damages and liability.
If you use your car for business and aren’t sure whether you’re required to purchase commercial auto insurance, it’s a great idea to contact a knowledgeable insurance agent for information. The experienced agents at Altra Insurance Services can help you with a wide variety of insurance options, including motorcycle, homeowners, and commercial insurance. San Diego residents should call one of our friendly representatives today at 619-474-6666.