One of the most creative ways to earn money in the 21st century involves gig work. For many of these workers, their daily paycheck requires the use of a motor vehicle. It’s important for gig workers to make sure that they update their auto insurance to adequately cover their car during work hours.
Commercial auto insurance
The first step in making sure you remain protected during car accidents involves getting a commercial auto policy, which are used to cover a vehicle during working hours. Auto insurance companies require commercial insurance for gig workers because they believe that these positions pose a higher risk of accidents than drivers would otherwise experience.
Gig workers need to carry commercial auto insurance if their employment involves any of the following:
- Delivering goods
- Delivering services
- Transporting people
- Carrying tools or equipment
- Driving back and forth between businesses
Employer insurance
Some gig workers may have employers who provide auto insurance, and this policy should cover all aspects of their daily tasks. In some instances, you may need to buy a policy to cover gaps in your employers’ coverage. An employer should make you aware of this when you are hired or if a policy changes.
Personal car insurance
Gig workers also need a personal car insurance policy. If you become injured during an accident outside of your daily work tasks, you still need personal auto insurance to cover you and your property. In some cases, you may purchase one policy that covers both your personal and commercial driving time. In other cases, you may need to purchase two separate policies. Every auto insurance company has different rules about what is covered by commercial versus personal policies.
Maintaining a separate car insurance policy for your gig work may seem like a hassle. However, the risks involved in not obtaining the right insurance far outweigh any inconveniences involved in purchasing it.
