What you should know before using your car for work
Many people, mistakenly, consider that, by having their private car insured, this policy also covers them when they carry out any commercial activity with the said vehicle, such as transport, delivery, or courier.
However, this is not the case. The personal auto insurance policy was created to cover damage to third parties, theft, or civil liability of a driver when using the vehicle in his private life. Therefore, personal coverage is invalidated if the driver uses his vehicle for commercial operations without the proper policy. To work as a delivery person for a company, transport materials or people, you must have commercial insurance.
Something important to know is that a driver who suffers damage in an accident while doing commercial work and has commercial insurance would automatically be covered by the workers’ compensation insurance of the company he works for.
But if you do not have this, your private insurance could deny you coverage for using your personal car in activities not contemplated in the contract. Then, said the driver would have to bear the medical expenses, material damages, and possible legal fees related to the accident. And furthermore, it may not be covered by each company’s mandatory workers’ compensation insurance.
Although the commercial insurance policy is generally more expensive, it allows having different drivers of a company under it.
On the other hand, as commercial vehicles are generally more exposed and more likely to be involved in accidents, liability protection coverage is superior to personal policies.
Commercial auto insurance usually covers medical payments, towing, repair labor, replacement vehicle rental reimbursement, theft, and vandalism.