Typically, if you are using your vehicle to make money, it is considered a business or commercial use of your vehicle. In order to file a claim for an accident that occurs while behind the wheel and making money would require commercial auto insurance.
Commercial and personal auto insurance policies are kept separate because personal use of a vehicle is rated as a lower risk of use than commercial—and rates are heavily influenced by risk factors such as these. Should you get into an accident while using your vehicle for commercial purposes and not have a commercial policy, you may have your claim denied and be solely responsible for liability and related damages.
Having an official business entity is not required for obtaining a commercial policy. Working as a delivery driver, personal shopper, or ride share provider can all qualify as commercial use. Not all companies that contract drivers for delivery services or taxing services may provide commercial auto coverage as part of the compensation package. You can read up here about some companies that offer coverage for their drivers.
Before applying to any of these types of roles, be sure to verify whether you will be required to get your own commercial car insurance policy. Even if the company you deliver or drive under has a commercial policy, review the coverage limits and discuss them with your insurance agent to ensure you won’t ever be without adequate coverage.
Due to the rise in delivery and driver services during COVID-19, some carriers are enabling clients to extend their current policy to include coverage while the vehicle is used for select commercial services.