If you are considering a job as a delivery driver, such as a pizza delivery person or courier, you probably aren’t going to be getting rich from your salary – but you at least expect to get by, right? In some cases, a delivery job could end up costing you much more than you make.
Delivery jobs are inherently dangerous. You spend a lot of time on the road battling traffic, avoiding pedestrians, and navigating unfamiliar terrain. There are other risks too, like getting mugged, but we won’t get into those now. Because delivery jobs are so dangerous, most car insurance companies will not cover you while you are on the job.
The amount of coverage you have as a delivery driver depends on numerous factors. If you are going to drive a car which is owned by the company, then the company will have its own car insurance policy and take care of premiums and accident fees. However, if you have any violation while on the job, the points will still go towards your record and can impair your car insurance rates on your current policy or future policies. Since you are much more likely to be in an accident or get a violation when you are constantly driving, you will have to be cautious even in the company vehicle.
If you are driving your own vehicle during the deliveries, then you will have to consult with your car insurance company about how the job affects your premiums and what coverage you will have. Most car insurance companies will not cover you while you are working.
In the event of an on-the-job accident and you do not have coverage, then you can expect a lawsuit. It is more likely that your employer is going to get sued than you as the driver. However, the victim of an accident can file a claim against anyone involved, even if pizza delivery drivers making minimum wage plus tips. If the delivery driver is a minor, then the teen’s parents could be held responsible for the damages.
People who do not drive their cars regularly can usually get away with choosing minimal coverage car insurance. But, if you are getting a job as a delivery driver, you better make sure you are covered. In the event of an accident, you could find yourself with damages against you in the tens or hundreds of thousands. Even a simple fender bender can set you back over $15,000. Talk to your employer about what coverage is available for the driver. You should be at least covered for up to $100,000 for bodily injury and at least $300,000 per accident. If you are expected to get your own car insurance for the job, then it may be wise to trade in your current vehicle for a model which has lower premiums. Teens will likely want to set up their own car insurance to avoid liability on the part of the parents.