Do Uber or Lyft drivers need commercial auto insurance? What about UberEats or other food delivery drivers?

Personal auto insurance will typically cover individuals while they commute to and from home but that is pretty much where work-related coverage ends. If you use your personal vehicle, or even have a separate vehicle, for transporting goods or people for work, then you need to have commercial auto insurance. Your personal coverage will not cover any damage or liability that results from an accident while your car is being used for commercial means.

Why is there a separate commercial auto insurance policy?

Businesses or those using their vehicle for commercial reasons (such as ridesharing services) have larger liability concerns than those using their personal vehicle for personal reasons.

What types of vehicles does commercial auto insurance cover?

Commercial auto insurance also has a broader definition of what constitutes as a vehicle. There are your “traditional” vehicles such as cars, trucks, vans, and SUVs but commercial auto insurance also provides coverage for:

  • Large trucks such as semi-trucks, tow trucks, dump trucks, box trucks, refrigerated trucks, bucket trucks, flatbed trucks, etc.
  • Vehicles that are equipped with specialty equipment or machinery
  • Limousines and other hired vehicles
  • Taxicabs
  • Rental cars or leased vehicles
  • Vehicles owned by a business or corporation

What types of coverage is available under commercial auto insurance?

Generally speaking, commercial auto insurance provides the same types of coverage as personal auto insurance but usually with coverage higher limits. Commercial auto insurance also accounts for multiple employee access to the vehicles, equipment used for loading/unloading or other business purposes, and the business’s liability in the event of an accident. In addition, commercial drivers must also have at least the state minimum insurance requirements.