With the rise of the gig economy, more and more people are turning to side hustles like delivering for Amazon to supplement their income. While these opportunities can be lucrative, they have unique risks and challenges. One of the most important considerations for anyone engaging in an Amazon side hustle is whether their car insurance coverage is sufficient to protect them in the event of an accident or other incident. Knowing the ins and outs of car insurance coverage for Amazon side hustles can help you make informed decisions about your coverage needs.
Getting the Right Coverage
Standard personal car insurance policies typically do not cover vehicles used for commercial purposes, such as delivering for Amazon. This is because the risks associated with commercial use differ from those related to personal use and therefore require different types of coverage. If you are using your personal vehicle for an Amazon side hustle, you may be operating in a coverage gap that could leave you financially vulnerable in the event of an accident or other incident.
The potential coverage gaps can be significant. For example, personal car insurance policies typically exclude coverage for accidents that occur while a vehicle is being used for hire, which could include delivering for Amazon. In addition, personal policies may not cover damage to the car that occurs while it is being used for commercial purposes or injuries to passengers or third parties resulting from the vehicle’s commercial use. Without the right coverage, you could be personally liable for any damage or injuries that may occur.
How to Ensure Your Vehicle is Covered
Ensuring you’re covered when using your car for side work is essential to protect your finances and livelihood. You should review your car insurance policy to ensure it covers the activities you plan to do while working on the side.
The most important thing to check is that your insurer covers business use, which usually includes Amazon. Business use coverage means you are insured when driving customers or delivering goods. Make sure to check with your insurer what exactly is covered under their business use coverage.
Consider adding optional extras to your policy. Collision Damage Waiver (CDW) is an extra cost which covers the cost of repairs to your vehicle in the event of an accident. Comprehensive Coverage helps cover damage to your car from non-collision causes such as theft, vandalism, and fire. Finally, additional liability insurance offers protection in case of an accident caused by you while using the vehicle for commercial purposes. If you’re delivering for Amazon in Canada with your personal vehicle, it’s essential to understand your car insurance coverage to protect yourself and your passengers. While standard personal car insurance policies typically do not cover commercial use, options may be available to ensure you’re adequately covered. It’s important to review your car insurance policy and speak with your insurance provider to determine your coverage needs and explore options for additional coverage, such as commercial car insurance policies.
Understanding your coverage needs and having the right insurance can provide valuable peace of mind as you pursue your side hustle. Don’t risk being caught without sufficient coverage – ensure you have the protection you need to drive or deliver confidently. Contact Keller Insurance to discuss your insurance options.
