If you deliver pizzas full or part time, or you are thinking about taking a job as a pizza delivery driver, you may think that your personal auto insurance policy will protect you while you are on the job. However, in reality a personal auto policy is designed to cover personal use and commuting from home to one job site. It typically does not cover delivery activities that involve driving to multiple sites.
Commercial Vehicle Policy
A commercial vehicle policy is designed to protect you against bodily injury and property damage you cause to others while driving your vehicle to multiple sites during the course of fulfilling your job duties. The liability coverages provided under a commercial vehicle policy for pizza delivery are similar to those provided under a personal auto policy; however, the premiums you pay reflect the extra risk your insurance company assumes when insuring you for delivery activities.
Spending significant time on the road -- coupled with the pressure of required delivery times -- can increase your risk of being involved in a motor vehicle accident while delivering pizzas. Although you may be able to obtain a commercial policy with your state's minimum liability limits, this may not be sufficient to pay for property damage or injuries you cause to others. Consider carrying liability limits of at least $100,000 per person and $300,000 per accident to protect yourself from having to pay for damage and injuries to others out of your own pocket.
Physical Damage Coverage
Physical damage coverage, which includes comprehensive and collision coverage, pays for the repair or replacement of your vehicle if you are involved in an auto accident, or if your car is damaged by weather, theft, fire or vandalism. Although physical damage is an optional coverage, it is necessary if you deliver pizzas because your vehicle is essential for income. Without physical damage coverage, you would have to pay to repair or replace your car out of your own pocket.
Obtaining Commercial Vehicle Insurance
Most insurance companies that sell personal auto insurance also offer commercial vehicle insurance. You can shop online for quotes, or visit an agent or broker to obtain quotes from several different companies. In most states insurance companies are permitted to determine their own rates for commercial vehicle insurance. This means that if you choose a policy from the first company willing to accept you, you may not be getting the best coverage for your money.