Auto Insurance for Rideshare and Delivery Drivers
Are you a rideshare or delivery driver? If you make your living by driving other people around town, take a look at what you need to know about auto insurance and your coverage options.
Do Rideshare and Delivery Drivers Need Auto Insurance in Illinois?
Yes. Auto insurance that meets the specific minimum standards is a requirement in every state. Like the other states, Illinois has laws that spell out what the state minimum requirements are for motor vehicle owners and operators.
Every Illinois resident who owns or operates a vehicle must purchase a policy that includes $25,000 per person in an accident and $50,000 total for bodily injury coverage, $20,000 for property damage coverage, $25,000 for a person and $50,000 for an accident uninsured motorist coverage, and underinsured motorist coverage—whether they work as a rideshare or delivery driver or not.
With many rideshare companies in the United States, drivers need to carry their own insurance policies that meet the state's minimum coverage requirements. If you drive in Illinois without the minimum coverage, you could face fines and a vehicle registration suspension.
Not only are the penalties for driving without insurance costly, but they could put you out of work. A vehicle registration suspension means you can't legally drive your car. For a rideshare driver or delivery driver, this equals time without pay.
There are some circumstances when the company's insurance can cover the driver. But this does not mean the driver will not need to have their own policy. While the specifics of coverage vary by company, most rideshare companies have third-party liability insurance that only kicks in when the driver has the app on. Outside of this time, the driver must use their own insurance policy.
If you are a delivery driver and not a rideshare driver, you may have full company coverage. Drivers who use company vehicles are often covered under the employer's commercial policy. In some cases, drivers may need their own commercial use policy. The type of insurance you need depends on where you work, your employer's existing policy, whether you drive their car or your car, and your existing insurance coverage.
Do You Next Extra or Special Insurance To Work as a Rideshare or Delivery Driver?
No. But you may not want to only choose the state minimum coverage in Illinois. Even though the protection you get through the liability (bodily injury and property damage), uninsured motorist, and underinsured motorist coverages can significantly offset the costs of an on-the-job accident or incident, you may want to choose a policy that goes beyond the state minimum coverage.
Extra coverage or a higher dollar amount type of coverage can protect you, your automobile, and your livelihood. You may also need to cover gaps that your insurance and your employer's insurance leave behind. Additional coverage can reduce your financial risks and help you to protect professional assets, such as your car.
Where Can Rideshare and Delivery Drivers Get Insurance in Illinois?
If you are not sure what type of insurance you need or what the best coverage for your job is, or have other questions, contact a licensed, qualified insurance agent. An Illinois auto insurance agent should have the knowledge and experience to help you choose a policy. Make sure that the company or agent provides insurance to rideshare and delivery drivers—especially if you need or want to buy extra coverage.
Do you need a new auto insurance policy right now? Contact Clover Insurance Agency for more information. We will be happy to go over any questions or concerns you may have. We look forward to helping you!
