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delivery crashes
Savvy Tips & Helpful Hints

When a Third Party’s Insurance Covers Your Crash

More and more Americans are enjoying the benefits of delivery services, for more than just food. In fact, 60% of US consumers order takeout or use another delivery service at least once a week. As more drivers start to participate in these services, it’s important for the driver to keep in mind what insurance is best for him or her to use. Accidents happen even to the most experienced drivers and can be very costly due to both medical expenses and property damage.

What is Third Party Insurance, and Who Does It Cover?

When a driver is purchasing insurance to cover his or her needs, there are multiple parties to keep in mind when looking at policies. The driver of the car is considered the first party and the insurance company is the second party. This leaves the third party as a potential vehicle that has been damaged when the first party is at fault. The driver’s insurance will only cover the damage to the third party if it is in the policy. Because of this, delivery drivers should look into getting a business use policy in addition to personal coverage. This may be more expensive as insurance companies are sometimes reluctant to cover delivery drivers due to higher accident risk.

How Some Businesses Have Been Covering Their Drivers

Since delivery services have been in higher demand, more businesses have opted to use service apps to deliver goods. This presents the opportunity for more drivers to add gig work as part of their resume both for food and rideshare services. However, not all of these services provide insurance coverage at all times for their drivers. When comparing coverage, drivers should inspect the following elements of the company policy for when car accidents occur:

·   Liability for a third party if the driver’s personal insurance does not cover the accident

·   Coverage of property damage up to a specified amount

·   Whether the company offers contingent comprehensive and collision insurance in addition to driver insurance

·   Stipulations regarding when the driver is solely responsible for coverage, such as prior to picking up a rider, or a delivery

·   Whether the driver is covered under a company policy on the chance he or she does not have personal insurance

These are all factors that a potential driver needs to take into consideration when searching for the right company. Delivery driver accidents can be expensive if the driver finds he or she is not adequately covered.

Why It is Important for Gig Workers to be Informed

Whether the driver is employed directly by the store, such as a pizza delivery driver, or a gig worker employed through an app, it’s important for him or her to know how coverage works while on the clock. If the driver does not have the proper coverage, he or she could be left having to pay for medical expenses and property damage. This may leave the driver having to find a personal injury lawyer to try to recover expenses. A rider might have to consult a rideshare accident lawyer if he or she is injured and uncovered by third-party insurance.

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