Drivers with side hustles selling goods on platforms like Facebook Marketplace and eBay in Wales are being cautioned about the potential risks they face when using their personal vehicles for deliveries. Car insurance experts are highlighting that regular delivery activities could invalidate standard car insurance policies, leaving drivers at risk of driving uninsured. It has been estimated that a significant portion of shoppers in Wales are actively using Facebook Marketplace for purchasing second-hand items, making the issue of insurance coverage even more pressing.
Alicia Hempsted, a car insurance expert at MoneySuperMarket, emphasised the importance of understanding the implications of using personal vehicles for delivery purposes. She explained that the ambiguity surrounding hobbyist delivery driving can lead to misunderstandings between drivers and insurers. In cases where delivery activities fall under HMRC’s definition of ‘trading’, standard car insurance policies may not provide coverage for accidents or damage that occur during these journeys. This lack of appropriate insurance coverage could leave drivers personally liable for any damages incurred while making deliveries.
To ensure adequate insurance coverage, drivers engaging in delivery activities that could be considered ‘trading’ are advised to update their car insurance policies to include ‘business use’. While HMRC’s definition of ‘trading’ can offer some guidance, individual insurers may have varying criteria for determining the need for business insurance. It is crucial for drivers to inform their insurers about any changes in vehicle use, especially if they are using their cars for commercial purposes such as regular deliveries.
In the event of an accident during a delivery that aligns with ‘trading’ activity, drivers who have not disclosed their commercial use of the vehicle to their insurer risk having their policies invalidated. Many insurance policies contain clauses requiring the disclosure of significant changes in vehicle use, and failure to do so could result in policy cancellation. Experts recommend reviewing current car insurance policies for exclusions related to business or commercial use, informing insurers about delivery intentions, exploring specialist insurance options for parcel delivery, and considering short-term courier insurance for occasional deliveries.
Overall, the message to drivers in Wales is clear – it is essential to understand the implications of using personal vehicles for deliveries and to ensure that appropriate insurance coverage is in place to avoid potential risks. By being proactive in updating insurance policies and seeking suitable coverage options, drivers can protect themselves from the financial consequences of uninsured delivery activities. Stay informed and stay covered to navigate the evolving landscape of delivery driving in Wales safely.