Working as an independent contractor for companies like Shipt is becoming increasingly common. However, many people aren’t aware of what the requirements are when it comes to car insurance. Using your car for business does change some things about the process of obtaining insurance and the type of coverage you need, as insurance companies consider the risks to be different than those associated with personal use. The fact that standards for auto insurance coverage are typically set on a state-by-state basis in the U.S. can make it even more confusing to figure out what coverage requirements you have to satisfy to get on the road. If you’re considering driving for Shipt, read on to learn whether or not you need insurance coverage.
Do Shipt drivers need car insurance?
Many people are interested in driving for Shipt on either a full- or part-time basis, but you’ll need to familiarize yourself with the various rules for drivers. One question that often comes up is whether or not you need car insurance to work with Shipt. When it comes to purchasing car insurance for Shipt drivers, there aren’t any specific additional requirements for your coverage. That doesn’t mean you don’t need car insurance; it means that you’re only responsible for meeting your state’s minimum standards for auto insurance policies.
You’ll need to familiarize yourself with the differences between business and personal policies, as a personal car insurance policy won’t cover Shipt drivers. You’ll need coverage designed for a business-use vehicle, which usually means purchasing a commercial insurance policy. Though commercial rates are often higher, the gap isn’t exorbitant. Shipt will need to verify that you meet your state’s auto insurance requirements prior to driving for them, so you’ll want to have your car insurance in order before you apply.
What can you expect driving for Shipt?
The gig economy has made flexible jobs like personal shopping, driving for a ride share service, or delivering for Shipt popular with people of all ages. Working for companies like Shipt is appealing for a number of reasons. First, you can work as many or as few hours as you want. There are no minimum requirements for hours you must work in a given week to maintain employment. This makes it a viable option for anyone looking for a weekend job, though there are many Shipt drivers who work full-time.
Another reason drivers love Shipt is how easy it is. All you need to do is download their app, pick up packages, and deliver them in a timely manner. Drivers get paid for completed routes via direct deposit every Friday. Eventually, you may become eligible to receive on-demand payments. When paying for items, you’ll use a Shipt prepaid card to cover the cost. In the rare cases where the price is higher than projected, just save your receipt so Shipt can reimburse you.
It’s important to know that Shipt doesn’t guarantee that you’ll be able to drive for 40 hours every week. Some locations have a higher demand for shifts than others, and it’s possible for other drivers to claim shifts before you. If you’re wondering about benefits, Shipt doesn’t provide them for full- or part-time drivers, as you’ll be working as an independent contractor rather than as a full-time employee for the company.
Using a vehicle for business purposes requires a specific commercial insurance policy, rather than a standard personal insurance policy. The requirements for what this policy has to cover are still set by the state you work in, though Shipt will verify your coverage prior to allowing you to start driving. Becoming a Shipt shopper can be a great way to supplement your income or pursue flexible employment where you can set your own schedule. Just make sure you get your insurance policy in order before you apply to drive for Shipt.