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Want To Work A Driving-Based Gig Job? 3 Things To Know About Car Insurance

If you are thinking about taking up a driving-based gig job to earn some extra money this holiday season, you need to make sure you are covered from an insurance perspective. With any job where you have to drive your car, regardless of if you are using it to deliver goods or transport people, you need to reevaluate your insurance coverage.

Thing #1: Your Personal Car Insurance Isn't Enough

If you are working a gig economy job where you have to drive your vehicle for the job, you are working as an independent contractor. If you are working as an independent contractor, you are doing business work.

Your personal auto insurance policy is designed to protect you when you are driving your vehicle for personal usage. If you are using your vehicle to deliver goods or people, you are not driving your car anymore for personal usage. If you get into an accident, your personal auto insurance will not cover it.

Thing #2: Don't Think About lying

If you get into a car accident and drive for work, don't say that you were driving for personal reasons. If you were driving to pick up an order, even if you didn't have the order yet, you shouldn't try to hide this fact.

An insurance adjuster is going to investigate your accidents. If they find out that you were doing work with your vehicle, and you lied about it, you could face accusations of insurance fraud, which comes with legal consequences.

Thing #3: You Need a Commercial Auto Insurance Policy

If you want to take on a gig-based job that requires you to use your vehicle, you will want to purchase a commercial auto insurance policy. A commercial auto insurance policy can provide you with liability, collision, and comprehensive coverage for your vehicle. 

With a vehicle that you use for personal and professional usage, your personal policy will apply when you drive your car for personal usages, such as going to the grocery store or visiting friends. Your commercial policy will apply whenever you drive for your job, such as when you are driving to pick up an order or when you have an order in your vehicle and are dropping it off.

Be sure to budget for the expense of commercial auto insurance if you want to take on a gig-driving delivery job. Remember, your commercial auto insurance is a business expense that you can write off on your taxes, so be sure to document this expense for tax purposes. If you want to read more about car insurance coverage, consider searching through reputable sites.