Personal policy may not be enough when out on delivery

LITTLE ROCK – Arkansas Insurance Commissioner Allen Kerr today released the following statement encouraging Arkansans using personal vehicles to deliver food and other products to check to see if they have the right kind of insurance coverage:

“From Millennials to Baby Boomers, many Arkansans are participating in the gig economy—delivering food and other products using their personal vehicles to conduct business.  While these jobs can bring in extra money, it is important to know that—without the proper insurance—an accident can lead to you losing more money than you brought in.”

Kerr reminds Arkansans that using their vehicle to deliver food means the vehicle is being used for commerce and engaging in commerce increases risk, which leads to higher insurance premiums.

Kerr offers these tips to Arkansans to make sure they are protected:

• Most personal automobile policies won’t pay on losses incurred when using the vehicle for commerce.
• The moment you start using your personal vehicle for commerce, make sure to inform your insurance agent or company.
• Review all forms the delivery service requires you to sign.
• While a delivery driver generally has to show proof of a personal auto policy to be hired, it is the responsibility of the driver to add commercial insurance coverage right away.
• Shop around to find the best commercial auto policy rates.  Get multiple quotes for the best type of coverage and price.

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