# Car insurance while driving for uber eats



## Ride on with me (Aug 28, 2020)

Has anyone had issues with car insurance being canceled when delivering with uber eats.
If I do uber eats & my car insurance provider finds out they will cancel my policy.


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## SHalester (Aug 25, 2019)

As a datapoint with State Farm they don't require a rider if one is just doing deliveries.

My moto is tell your insurance agent everything; no secrets.


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## Seamus (Jun 21, 2018)

SHalester said:


> As a datapoint with State Farm they don't require a rider if one is just doing deliveries.
> 
> My moto is tell your insurance agent everything; no secrets.


Whattt???? I’ve never heard of a personal auto policy that didn’t prohibit commercial activity. You sure?


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## Seamus (Jun 21, 2018)

Ride on with me said:


> Has anyone had issues with car insurance being canceled when delivering with uber eats.
> If I do uber eats & my car insurance provider finds out they will cancel my policy.


It’s the dirty secret no one talks about in food delivery. Most delivery drivers are “flying naked” hoping their insurance company doesn’t find out. Pizza tells no tales! If you get in an accident ditch the evidence! 👍🏻 However if you run over the customer at the drop off you have no alibi.✅


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## SHalester (Aug 25, 2019)

Seamus said:


> I’ve never heard of a personal auto policy that didn’t prohibit commercial activity. You sure?


100% sure. With the qualifications Calif and State Farm. How do I know, you ask? Wife unit began doing DD for reason I don't really get, but she's keep going online. After the first week hit me I might need to get a rider for her precious prius. Called agent, told them DD only no warm body pax & very PT do I need another rider for her vehicle. Answer: NO. 

There you have it. 

Now that I think about it, do riders go by vehicle or by insurance account? Nah, no way. Goes by vehicle for sure......


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## Seamus (Jun 21, 2018)

SHalester said:


> 100% sure. With the qualifications Calif and State Farm. How do I know, you ask? Wife unit began doing DD for reason I don't really get, but she's keep going online. After the first week hit me I might need to get a rider for her precious prius. Called agent, told them DD only no warm body pax & very PT do I need another rider for her vehicle. Answer: NO.
> 
> There you have it.
> 
> Now that I think about it, do riders go by vehicle or by insurance account? Nah, no way. Goes by vehicle for sure......


I know a guy who got the same answer from his insurance agent. When he dug deeper what he found out is he was only covered if he used the car for food delivery under a certain percentage of the total miles. I don’t remember what the % was. Something to dig a little deeper on for your own knowledge. I’m sure however that proving that % would be hard for them to do. His agent wasn’t even aware of the % restrictions.


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## SHalester (Aug 25, 2019)

Seamus said:


> under a certain percentage of the total miles.


Well, I did list PT in my post, however, didn't in the 'qualification' part of my post. My apologies.

State Farm it is by time, not miles. Full time, no rider of any sort, period. PT aok. Deliveries none needed, not told of any change in coverage. 

oh, and so nobody is confused Calif.


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## Seamus (Jun 21, 2018)

SHalester said:


> Well, I did list PT in my post, however, didn't in the 'qualification' part of my post. My apologies.
> 
> State Farm it is by time, not miles. Full time, no rider of any sort, period. PT aok. Deliveries none needed, not told of any change in coverage.
> 
> oh, and so nobody is confused Calif.


Believe it or not I have full Commercial coverage on the car I use for food delivery. On the surface that doesn’t make sense being part time. However, my car and insurance are free to me. How? I used to get a company car with my day job. In 2017 I re negotiated to get a car that I own and all in my name. I now get a car _allowance _that pays the cost of the car plus the full cost of Commercial insurance because I use the car to drive customers and prospective clients.(theoretically). Free car and free insurance! 😁. And yes, they know I use it for food delivery and don’t care. It’s a Unicorn for me. I think @ftupelo also uses a free company car. 🧠


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## SHalester (Aug 25, 2019)

Seamus said:


> I now get a car _allowance _that pays the cost of the car


and like a good citizen both your company and you report that as taxable income to the IRS. Good job!


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## Seamus (Jun 21, 2018)

SHalester said:


> and like a good citizen both your company and you report that as taxable income to the IRS. Good job!


Haha, there are more than one way to skin a cat. Please don’t be foolish enough to think I’m that stupid. I gave you more credit than that! Employee reimbursement expenses aren’t taxable. It’s technicall not an allowance but a reimbursement if I have to explain it. I pay it, they reimburse. Sheesh, you underestimate. Apparently you’ve never had a company car and don’t understand all the different ways it can work.


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## Older Chauffeur (Oct 16, 2014)

Also in CA, Auto Club of So Cal emphatically states multiple times in their policy that they do not cover any delivery of food, newspapers, etc or ride share. They will not issue a policy if you say in your application that you are engaging in such activities, and also state that failing to disclose commercial use in your application is fraud. They are serious.


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## SHalester (Aug 25, 2019)

Seamus said:


> Employee reimbursement expenses aren’t taxable.


Are you splitting hairs? A car allowance is NOT a reimbursement of 'expenses'. Go ahead, ask the IRS ask ANY CEO; it is clearly taxable income.

You submitting a request to get paid for mileage is a reimbursement. 

You surprise me. 

A fixed monthly *car allowance* is considered compensation, and therefore *taxable income* at both federal and state levels. Both employee and *employer* must also pay FICA/Medicare taxes on the *allowance*. A typical *car allowance* may be reduced by 30–40% after all these taxes.


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## Seamus (Jun 21, 2018)

SHalester said:


> Are you splitting hairs? A car allowance is NOT a reimbursement of 'expenses'. Go ahead, ask the IRS ask ANY CEO; it is clearly taxable income.
> 
> You submitting a request to get paid for mileage is a reimbursement.
> 
> ...


Now you're just being a dick.

Funny, the person who claims no tax knowledge and has stated numerous times he just drops his taxes off at his CPA's office rather than learn about taxes *now *cites tax law as an expert. Why? Just to be a total dick? Don't you worry, I appreciate your concern but our CFO, our company's CPA, and the owner who is an attorney are more than capable.

@Guido-TheKillerPimp, help! @SHalester is being a dick again! I now believe all those things you said about him.

Not for nothing, I was having a friendly conversation with you and you just randomly took it in a different direction. You must be a joy to live with. You and I are done. You are one of those rare individuals who are now on my "never have a conversation with" list. 🖕

Next up, a close analysis of what "retirement" actually means when someone "retires" before a rule of 85 corporate retirement or 401k or s.s. can kick in.


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## SHalester (Aug 25, 2019)

Seamus said:


> Now you're just being a dick.


nope. I posted facts, followed up with proof. If that causes you to lose your shyte and go to guns, well that is quite disappointing.

Try again? Google is your friend if you don't believe what was presented.

Name calling; that should be beneath you. Should. 🤷‍♂️


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## Seamus (Jun 21, 2018)

SHalester said:


> nope. I posted facts, followed up with proof. If that causes you to lose your shyte and go to guns, well that is quite disappointing.
> 
> Try again? Google is your friend if you don't believe what was presented.
> 
> Name calling; that should be beneath you. Should. 🤷‍♂️


🖕


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## Guido-TheKillerPimp (Jan 4, 2021)

Seamus said:


> Now you're just being a dick.
> 
> Funny, the person who claims no tax knowledge and has stated numerous times he just drops his taxes off at his CPA's office rather than learn about taxes *now *cites tax law as an expert. Why? Just to be a total dick? Don't you worry, I appreciate your concern but our CFO, our company's CPA, and the owner who is an attorney are more than capable.
> 
> ...


All I can do now, is pray to Jesus on behalf of @SHalester!


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## SHalester (Aug 25, 2019)

Guido-TheKillerPimp said:


> All I can do now, is pray to Jesus


I prefer to believe in aliens; but you do you.


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## Guido-TheKillerPimp (Jan 4, 2021)

SHalester said:


> I prefer to believe in aliens; but you do you.


That's ok. Jesus still loves you!


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## Seamus (Jun 21, 2018)

SHalester said:


> Wife unit began doing DD for reason I don't really get,


Top 3 reasons:

Gets her out of the house, less contact time with you.
She can be in a car without hearing your favorite song, (Copacabana by Barry Manilow) played on a continuous loop.
That Wendy’s $5 Biggie Bag smells more appealing than you.


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## SHalester (Aug 25, 2019)

Guido-TheKillerPimp said:


> Jesus still loves you!


oh, bless me.


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## Guido-TheKillerPimp (Jan 4, 2021)

SHalester said:


> oh, bless me.


Now you're pushing it! 😬


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## Older Chauffeur (Oct 16, 2014)

I don’t want to get in the middle of your fight, guys. However, what I see in IRS Pub 463 backs what @SHalester is saying- a car allowance is indeed considered taxable compensation. @Seamus, respectfully, how does one get around that rule?
On a side note, in 1971 when I started as a corporate chauffeur assigned to the CEO, both the car provided to him and my salary/benefits were considered imputed, taxable income to him. A couple of years later, that changed after I began regularly attending executive security driver training schools. As I understood at the time, executive security provided by the company wasn’t taxable to the recipient, although I think the car still was.


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## SHalester (Aug 25, 2019)

Older Chauffeur said:


> what I see in IRS Pub 463 backs what @SHalester is saying


amen. Of course what I posted was right. Not only 'off the top of my head' but to be sure googled to make sure the law didn't change.

Car allowance is considered compensation. Period.
House allowance is considered compensation. Period.
If they pay to 'help' you move, that is considered compensation.
and on and on.

IRS reportable by both parties AND taxable same percent as regular income. Seems some or maybe all stated it is taxable as well. My statement was IRS and didn't include states, tho the proof I posted mentioned states. 

the corporation I worked for 30+ years paid for a car allowance vs leasing the vehicle for the employee; it was considered compensation and taxed. FAILURE to report would be a costly mistake for any 'real' company to make. 

<sigh>


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## SHalester (Aug 25, 2019)

Guido-TheKillerPimp said:


> Now you're pushing it!


oh lord give me strength.


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## Seamus (Jun 21, 2018)

Older Chauffeur said:


> I don’t want to get in the middle of your fight, guys. However, what I see in IRS Pub 463 backs what @SHalester is saying- a car allowance is indeed considered taxable compensation. @Seamus, respectfully, how does one get around that rule?
> On a side note, in 1971 when I started as a corporate chauffeur assigned to the CEO, both the car provided to him and my salary/benefits were considered imputed, taxable income to him. A couple of years later, that changed after I began regularly attending executive security driver training schools. As I understood at the time, executive security provided by the company wasn’t taxable to the recipient, although I think the car still was.


I’ve already said several times it is not structured as a car allowance. I already said I misspoke because I wasn’t expecting to Justify the details of how it’s structured. Of course there’s a lot of different ways to skin a cat legally no doubt I’m not going into any more details here but of my stuff is all legal bottom line I don’t pay a dime for my car and I don’t pay a dime for insurance.

The stupidity of what he’s doing is quoting shit hour for Google from the IRS code and he him and you by the way I have no idea how it’s structured. So people make the tax laws work for them not against them.

I have no idea what the concern for my freaking taxes are just to be in a hole and trying to prove a pointless point when he doesn’t even know the basis of how my deal is structured


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## Older Chauffeur (Oct 16, 2014)

Sorry, I missed the part about it being structured as something other than a car allowance.


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