Last year, Mike started delivering groceries on the weekends to make extra money. Instacart runs here and there. A few hours on Sunday. Nothing major. Until one rainy afternoon, when he slid through an intersection and rear-ended a car.
No big deal, he thought. That’s what insurance is for, right? Wrong. His claim was denied. Why? Because Mike was on an active delivery, and his personal auto policy didn’t cover business use.
The Business of Using Your Own Car
Whether it’s Uber, DoorDash, Instacart, Amazon Flex, or even dropping off baked goods from your home business—if you’re using your personal vehicle for profit, your standard insurance likely won’t cover you.
Why? Because insurance companies classify this as commercial use, and unless your policy is specifically endorsed or written to allow it, you’re exposed.
What Could Happen?
– Denied claims
– Policy cancellation
– No coverage if someone gets hurt
– Out-of-pocket repairs or legal costs
What Should You Do?
If you’re using your car to make money, talk to your independent insurance agent. We’ll try and help you:
– Review your current coverage
– Check your carrier’s delivery or rideshare policy stance
– Add the right endorsements or suggest a separate commercial policy if needed
Better Safe Than Sorry
We get it, side hustles are part of life now. But they shouldn’t put your whole financial world at risk. Let us help try to make sure you’re protected, so your “extra cash” doesn’t turn into a massive loss.