GRAND RAPIDS, Mich — The requirements for car insurance for delivery drivers in Michigan are complicated. But as more and more people are picking up side-hustles as Shipt Shoppers or Uber Eats drivers it’s important to know what they are.
Attorney Brandon Hewitt from Michigan Auto Law explained that delivery drivers must have auto No-Fault insurance, which includes liability coverage, but to be properly covered for a car accident, they must also have commercial auto insurance or make sure there is no business-use exclusion that would void coverage.
Hewitt said the “business-use exclusion” is a buried, but common provision in most personal auto insurance policies we all buy. He said, the terms of the exclusion allow the insurance company to refuse to defend and pay damages to protect the policyholder/insured if he or she causes a car accident while using a personal vehicle on the job.
Hewitt advises people who work for a company delivering food, products, newspapers, or anything else, and who are using their own vehicle to do so, to take two important steps:
- If you are an employee of the company (and not just an independent contractor), ask the company if they are providing their own insurance to cover you and anyone else who might get in a crash while you are in the course and scope of your work.
- If you are a gig worker and considered an independent contractor – NOT an employee – contact your insurance company or insurance agent and advise them that you use your vehicle for commercial purposes and need your policy modified to include coverage while you are working. You might see a slight raise in your premiums, but the increase cost will pale in comparison to the cost of medical bills and pain and suffering damages you might be responsible for if you are involved in a crash.
For more information or to consult with an attorney, contact Michigan Auto Law at www.michiganautolaw.com.
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