Many people are signing up to drive for Uber Eats because it seems like an easy way to make extra money.
But before you sign up, there is something that you should know: driving for Uber Eats could raise your insurance rates.
In this blog post, we will discuss how driving for Uber Eats can affect your auto insurance rates and what steps you can take to protect yourself from any rate hikes!
What is Uber Eats?
Uber Eats is a food delivery service that was founded in 2014. The company works with restaurants to provide consumers with their favorite meals and offers drivers an opportunity to make extra money by delivering the orders.
Do I need insurance for Uber Eats?
Uber Eats delivery partners should take out a personal auto insurance policy that covers commercial use of a car.
Not purchasing a commercial policy could leave you without food delivery insurance. A driver’s car engages in commercial use when they deliver food for pay.
If a customer gets into an accident while delivering food for Uber, any claim on a standard auto policy won’t be approved. Insurance rates for business use will still be higher than ones for personal use. The average person might not be familiar with insurance rules or what defines ‘commercial use” of a vehicle. Any time a vehicle is used for business 100% or a car owned in the. name of a business requires a. commercial policy.
Does Uber Eats provide auto insurance coverage?
Uber Eats offers car insurance, but it’s only applicable when you’re signed up as a driver for Uber Eats. Insurance doesn’t apply if you’re just driving on your own time or waiting around for orders.
The amount of insurance varies across states for Uber Eats, but it should be at least $50K in bodily injury coverage per person, $100K in bodily injury coverage per accident and $25K in property damage.
Do I need to tell my insurer I drive for Uber Eats?
The answer is yes, if you don’t notify them and end up having the wrong insurance it can cost you a lot of money.
You may have to go as far as changing your insurance company, because some don’t support people who do Uber Eats and claim that it’s to much liability.
##Does Uber Eats Insurance Automatically Provide Insurance To Their Drivers?
If Uber Eats reviews your car insurance and approves you , they will work with your insurance company to provide coverage for drivers.
However, the Uber Eats driver should always verify that their personal auto policy covers commercial use of a vehicle before operating a car for delivery purposes.
Uber Eats doesn’t offer any additional protection if you don’t have commercial coverage on your personal insurance.
These are some things you should consider when thinking about doing Uber Eats.
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