Commercial Car Insurance for Couriers and Delivery Drivers

Car insurance can be a tricky thing for those who work as delivery drivers or couriers. Many people don't even question it until something happens and all too often, find out they are not covered like they thought they were. If you are going to work as a courier or deliver driver, then commercial car insurance is something you will want to investigate. Of course, the situation is different for those who drive company cars versus those who drive their own vehicle. Read on to learn more about what you can do to protect yourself in either case.

Large companies that put out their own fleet of vehicles, such as Fedex or UPS, will have commercial car insurance on their vehicles as a matter of course. Because these are large name companies, they are usually going to have the best coverage for their drivers as well as on their vehicles. They know that if the driver gets in an accident, it's the company that will be sued for the big bucks. These types of companies will almost always have comprehensive coverage for both liability and collision to protect their assets as well as cover them with public damages.

Smaller, lesser known companies, however, are not always so careful. If you plan to work as a driver for a company, you would be wise to ask about commercial car insurance before accepting the job. Since commercial car insurance is obviously going to be more costly than individual car insurance, some companies will try to keep costs down by limiting the coverage they purchase. Make sure that you are fully covered should anything happen while driving a company vehicle.

In some cases, such as many fast food delivery driver jobs, the worker drives their own vehicle and must take care of their own car insurance. Unfortunately, most of these workers do not bother to get commercial car insurance and could be in for a nasty surprise should they get in an accident. Standard auto insurance coverage does not include using a vehicle for business purposes.

But doesn't the law require the company to pay for commercial car insurance? Yes and no. The law requires businesses that hire delivery drivers using their own vehicles to provide a certain amount of coverage. This is known as an HNO (Hired & Non-Owned Auto). The problem is that this type of coverage consists of liability only. That means that your vehicle is not covered at all and neither are you. Only the damages your vehicle inflicts on someone else, their vehicle or property will be covered and often that isn't a high amount, either.

If you are going to use your own vehicle as a courier or delivery driver, make sure to talk to your own car insurance company. Usually, you can purchase a commercial car insurance policy to cover but it will be more expensive than your ordinary insurance coverage. However, if you or your teenage child will be doing this line of work, you certainly are better off with the commercial car insurance and the peace of mind that comes with it.