Drive for Skip the Dishes? Don’t Skip the Insurance

Written by on 2018-02-12 10:25 AM . It has 0 Comments.

There are so many new tech businesses popping up and most of them are linked to mobile device usage. They offer convenience, efficiency and a certain amount of accountability in that everything is tracked and can be rated or scored. Delivery services are becoming popular with the new sharing economy. Uber and Lyft deliver people to their destinations. And now, Skip the Dishes and Uber eats deliver food from restaurants.

All of these options rely on regular people using their regular cars to deliver people or goods. Most of these drivers rely on their regular car insurance and that can lead to disaster.

Personal Insurance for Personal Usage

Most people drive their cars to and from work, and then for pleasure. Those lucky enough to be retired have no commute on their auto insurance. Some business people use their cars for visiting clients and customers and will have their car insurance rated for that kind of usage.

Want a second opinion on your personal car insurance needs? Visit here.

When a person accepts goods to deliver in their own car they are using their vehicle for commercial purposes. And if they only have insurance for personal use, such as commuting and pleasure (ie driving to shops, restaurants, movies, or visiting family and friends) they will likely see one or more of the following problems.

Your Car Insurance Policy is Simply Voided

If an insurance company finds out a person is delivering pizzas and only has personal use coverage that person could find themselves without a policy. An insurance company can get off risk with either a 15 day registered letter notice or a 5 day hand delivered notice.

Your Car Insurance Policy is Cancelled for Material Misrepresentation

If the difference of what you say you do with the car and what you actually do is severe enough the insurance company could cancel the policy for material misrepresentation (a fancy phrase to indicate that what you use the vehicle for does not match the description of what you told the insurance company). This means your insurance costs will be surcharged by all Insurance companies for years after the offence because a Material Misrepresentation stays on your insurance record for years.

Your Accident Coverage is Denied

Imagine you’re driving your car, speeding along to get a restaurant order delivered. Out of nowhere another car turns in front of you and you slam into the back of it. The damage to your car is extensive and you must get it towed. If you have the proper car insurance policy and the proper coverage in place there are no issues. Accidents happen. But, if you don’t have the proper commercial car insurance policy the insurance company will deny your claim. That means you have to pay for the repairs to your vehicle out of your own pocket.

Even worse, if someone is injured in an accident where you are deemed at fault and you don’t have the correct car insurance you could find yourself on the wrong end of lawsuit with no defence help from the insurance company.

Get the Right Coverage Right Away

Getting the right insurance coverage for how you use your vehicle is important. It does provide peace of mind because you know if the worst case happens you have the protection of your insurance policy.

Want a second opinion on your commercial car insurance needs? Visit here.

Have a comment? We’d love to read it below.

Thanks for reading.

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