Protecting your financial stability is essential when using your car for ride-sharing or food delivery services. Commercial auto insurance may be necessary to cover any incidents or accidents that occur while providing these services. This policy can help protect you from legal liabilities and property loss, depending on your coverage.
Why Do You Need Commercial Auto Insurance?
If your business utilizes vehicles as part of your everyday operations, you must carry commercial auto liability coverage with minimum coverage. Your Arizona-compliant commercial auto insurance liability policy is essential and includes the following:
- Third-party bodily injury coverage can aid in paying for other people’s injuries if you are responsible for an accident.
- Third-party property damage liability can help pay for replacing or repairing other people’s property if you are responsible for an accident.
- Uninsured motorist coverage can assist in paying to repair or replace your property if you are the victim of a hit-and-run accident or if the driver at fault does not have liability insurance coverage.
Proper insurance coverage can help you avoid much of the financial stress associated with being at fault for an accident. Your agent may suggest adding additional coverage options to your commercial auto insurance policy. These may include the following:
- Collision insurance can help pay for damages to your vehicle after a collision with another vehicle or object.
- Comprehensive insurance can help pay for nonaccident-related damages such as fire, vandalism, weather damage or theft.
- Medical payments coverage can help pay for medical bills if you or your passenger is injured in an accident.
- Umbrella insurance can cover legal liability if a claim exceeds the limits of your other liability policies.
Does My Personal Auto Insurance Cover Business Use?
In the event of an accident while working for a ride-share or food delivery company, your personal auto insurance policy may not provide coverage. Although Lyft and Uber offer access to certain auto insurance benefits, consult with your agent at J.S.Edwards & Sherlock Insurance Agency to ensure that your commercial auto liability policy provides adequate coverage and safeguards your finances from potential gaps in coverage.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.