MoneySuperMarket warns that motorists making regular deliveries through platforms like eBay and Facebook Marketplace can unknowingly breach their car insurance terms. If these activities fall under HMRC's definition of 'trading,' standard car insurance may not cover accidents or damages incurred during deliveries. Alicia Hempsted emphasizes the importance of updating insurance policies to 'business use' for those engaged in such activities. Given the ambiguity in insurance terms, drivers might mistakenly think they are covered while indicating the need for clarity from insurers.
If your delivery driving falls into HMRC's definition of 'trading' it means standard car insurance won't cover any accidents or damage.
Hobbyist delivery driving falls into a grey area; many drivers may not realise that using their cars for regular deliveries could impact their insurance.
If you use your vehicle for delivery driving in a way that qualifies as 'trading,' you must update your car insurance policy to 'business use'.
Individual insurers may have varying criteria for determining whether a driver's activities require business insurance.
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