Typically, Michigan personal auto insurance policies do not cover using your automobile for deliveries, such as Shipt or DoorDash, or ride-sharing services such as Uber or Lyft.
Within the fine print of most auto policies, you will find exclusions for both physical damage and liability coverage similar to the following:
“We do not provide coverage for a loss that occurs while your covered auto is in use as a public or livery conveyance.”
Public or livery conveyance essentially means the transporting of people or goods for hire.
An unfortunate reality is these activities have become commonplace. Many people incorrectly assume their auto insurance policy automatically covers them for these uses of their vehicle – when the likelihood is it does not.
Insurance companies consider deliveries and ride-sharing to be a higher-risk business use of a vehicle more likely to result in accidents and claims. Many insurers do not even offer coverage for these types of activities. Other insurance companies will only provide coverage with a specific rider added to an auto policy at an additional cost to account for the increased risk of loss.
A typical response is, “How would my insurance company even know I was driving for Shipt?” The reality is that if you do not inform your insurance agent or company that you are doing one of these activities, they won’t know unless and until a loss occurs.
Your insurance company not being aware you are engaging in an activity they don’t insure doesn’t mean there would be coverage. The purpose of exclusions is the insurance company is telling you, in advance, what your policy does and does not cover.
It’s your responsibility to review your policy, be aware there are coverage limitations, restrictions, and exclusions, and check with your insurance agent or company beforehand to ensure you are appropriately covered.