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Many Delivery Workers Not Properly Insured

Many small businesses in the fast food industry employ young people to be their delivery drivers. One thing many of these young employees do not understand is that in many cases, they are not covered by any car insurance coverage when they work at their jobs.

Most car insurance companies require that these employees purchase commercial driving insurance coverage. This can be expensive to buy so many employees choose not to purchase it.

Many delivery drivers know that what they are doing is wrong but in today’s economy they know that finding another job is very hard so they say nothing. Many employers are trying to cut corners to save money so they look the other way as well. This works only until someone gets into a car accident. Many delivery workers travel fast when they are behind the wheel because they want to deliver the food quickly and make as much money in tips as they can.

Even though these workers own their own vehicles, they typically are not covered by any insurance. If an employee gets into an accident while delivering food then their car insurance company does not have to pay out any benefits for the insurance claims. This has left some delivery workers in hot water financially.

Most drivers who want to get commercial driving insurance will see their premium rates increase by approximately 50 percent. It is a good idea for young people to find restaurants that supply their drivers with a vehicle that is insured. This can be a financial lifesaver for them. Sometimes employers will decide to compensate their drivers for gas and mileage and then pay half of their insurance premiums. It really depends on the size of the business and what value they place on their employees.

If delivery workers have to pay out of pocket for their gas and insurance then their incomes will be very small. This can lead to a high turnover rate which is bad for small businesses. It is crucial for young people who want to be delivery workers to discuss the financial responsibilities of the insurance. This will allow them to know up front what expenses they will have so that they can decide on whether or not they want to take the job.

In today’s economy, young drivers should make sure to have not only the basic insurance coverage but additional coverage as well if they will be using their car at work or to get to work. A car is a financial investment and if a teen driver relies solely on it to get to work then having additional coverage such as collision or comprehensive because it can be a valuable asset if the car gets damaged or totaled.