As driving for rideshare companies and delivery services has become more popular, it is important to assess how using your personal vehicle for employment can affect your auto insurance. Generally, most insurers do not allow you to use your personal auto insurance for business purposes. It is important to know the risks before partaking in employment through driver services. In this blog, we will go over what your auto insurance covers and what precautions you should take to avoid out-of-pocket expenses. 

What Does Auto Insurance Cover? 

In all states (except for New Hampshire), there are minimum insurance requirements put into place. In Massachusetts, there are four separate kinds of auto insurances you are required to have if you want to register and drive a vehicle. Because this is personal auto insurance, it does not provide coverage for rideshare and delivery services. 

• Bodily Injury Liability Insurance: Covers the driver from legal liability if someone is harmed by the vehicle. 

• Personal Injury Protection: Covers medical expenses and up to 75% of lost wages due to injury. Massachusetts is a “no fault” state, meaning expenses will be paid for whoever is operating your vehicle, even if they do not own the vehicle. 

• Uninsured Motorist Coverage: Defends you against losses caused by both an uninsured or unidentified driver’s vehicle. 

• Property Damage Liability Insurance: Covers the damage caused by the driver when someone’s personal property is damaged. 

Learn more in our blog, including minimums in Massachusetts, What MA’s Minimum Requirements for Car Insurance Don’t Cover. 

Does Auto Insurance Cover Rideshare and Delivery Accidents? 

Because auto insurance only applies to personal use, it does not provide coverage for accidents that occur during business services such as rideshare and delivery. It is important to let your insurer know if you plan on being a driver for hire because there are many possible liabilities. Your personal use of insurance transfers to commercial use once you are available for hire on the app, and liability increases once you start your ride.  

Rideshare Insurance Requirements 

Services, such as Uber, can provide you with separate insurance to cover you during an accident. This is only in effect when you are actively on a ride and is only accepted when you have comprehensive and collision coverage on your own personal insurance policy. You can also extend your coverage to include rideshare insurance.  

• Comprehensive Coverage: Optional coverage that protects your vehicle against non-collision events that are outside of human control, such as theft and weather damage. Most get this coverage if they have a higher-cost vehicle or know they cannot afford these repairs out of pocket.  

• Collision Coverage: Optional coverage that protects you against collisions with another vehicle, an object, or a rollover.  

What Insurance You Should Look For 

If you are operating your vehicle as part of a business (rideshare, delivery, or some other commercial), you’ll need commercial car insurance. This will give you extra protection that standard auto insurance doesn’t provide. 

• Commercial Auto Insurance: Commercial insurance provides coverage for injury and damage to others. The minimums are similar to what is required for personal car insurance, but trucks may need additional coverage to comply with MA regulations. Check with an agent if any of your current vehicles need coverage. 

At Safeside Insurance, we are here to answer all your questions to keep you safe on the road. With over 30 years of experience, we are here to tailor a plan that works for your individual needs. We provide Homeowners Insurance, Umbrella Insurance, Auto Insurance, and more. If you are interested in starting services with us, you can call us at (508) 753-8862 or jump right in with a quote.