Can You Get Ticketed for No Business Insurance If You’re Driving for Work?

Can You Get Ticketed for No Business Insurance If You’re Driving for Work?

A food delivery driver recently shared their experience getting pulled over and ticketed for not having business insurance—even though they were on the clock, in uniform, and driving for a major national chain. Their employer claimed coverage was in place, but the insurance document they provided was outdated. Now the driver is the one responsible for the ticket.

Sound unfair? It is—but it happens all the time. And it’s not just food delivery. This is an issue for:

  • Mobile detailers
  • Rideshare drivers
  • Contractors and tradespeople
  • Any employee using a personal vehicle for business purposes

Let’s break down what went wrong, and what drivers and business owners in California need to understand about insurance responsibility.

Why This Matters in 2025

In early 2025, news broke that California regulators are cracking down on commercial auto compliance after a spike in delivery and contractor-related claims. Several large insurers have begun requiring more detailed vehicle use classifications, especially in gig-based and mobile businesses.

The result: drivers are getting pulled over, ticketed, and in some cases, dropped from personal auto policies because they didn’t disclose business use.

What Counts as "Business Use" of a Vehicle?

If you're using your vehicle to earn income—whether it's delivering food, detailing cars, or driving to job sites—that usually qualifies as business use.

And here’s the kicker: your personal auto policy doesn’t cover it. In most cases, the moment you start using your personal car for work, you need:

  • A commercial auto policy or
  • A rideshare/delivery endorsement (if offered by your insurer)

If you get into an accident during a business task and you only have personal coverage, your insurer can legally deny the claim.

So Who’s Responsible—You or Your Employer?

Here’s where most people get tripped up.

If you’re using your own car, you are responsible for making sure it’s properly insured—even if you’re on the clock.

If your employer tells you they have a policy in place:

  • Get a copy of it
  • Check the coverage dates and terms
  • Make sure it explicitly covers you during your shifts

Why? Because if you get pulled over or into an accident, it’s your name on the ticket, not your company’s.

What the Law Says in California

California Vehicle Code requires that all vehicles on the road carry valid liability insurance. It doesn’t make an exception just because your employer said you're covered.

If you’re found to be uninsured while operating a vehicle for work, you could face:

  • Fines and penalties
  • License points
  • Potential license suspension (especially for new drivers)
  • Policy cancellation or denial of future coverage

And yes—these can apply even if you’re technically an employee, not an independent contractor.

What If Your Employer Says You're Covered?

That’s great—but you still need proof. In the Reddit case, the driver was relying on an old certificate. It was expired. That alone gave the police grounds to issue a ticket.

You need:

  • A current insurance certificate (with accurate dates)
  • Proof of your employment or schedule
  • A clear understanding of what vehicles and drivers are included

Even if your company uses fleet insurance, you may not be automatically listed.

What This Means for Business Owners (Including Contractors)

If you own a business that has:

  • Delivery drivers
  • Mobile service providers
  • Employees using personal vehicles

...you need to be crystal clear about your insurance setup. That means:

  • Providing current documentation to employees
  • Keeping coverage up to date
  • Making sure policies list the right drivers and usage types

And if you're an artisan contractor with a team using their vehicles to carry tools or travel to job sites, they may need:

  • Commercial auto or hired/non-owned vehicle coverage
  • Business tools coverage
  • Workers comp, depending on employment status

What We Recommend as a California Insurance Agency

We help clients across Ontario and all of California avoid these exact issues. Whether you’re an individual delivery driver or a small business with a team, we recommend:

For Drivers:

  • Ask your employer for a current insurance certificate
  • Keep a printed copy in your vehicle
  • Get your own commercial policy if you’re using your personal vehicle regularly
  • Don’t rely on verbal assurances—you need proof

For Business Owners:

  • Review your insurance setup with a licensed agent
  • Separate personal vs. business vehicle use in your policy
  • Offer written confirmation to employees about what is and isn’t covered
  • Avoid vague or outdated coverage that puts your staff at risk

Don't Leave It to Chance

It might seem like a minor issue—until you're ticketed, fined, or denied coverage. The responsibility to carry valid business insurance often falls on the person behind the wheel, even if you're just following orders.

We see it all the time.

If you have any doubts about your coverage, or if you run a business and aren’t sure if your current policies are up to date, let’s talk. We’ll help you review your setup and make sure you’re protected.

We offer:

  • Business Auto Insurance
  • Workers Compensation
  • General Liability
  • Tool and Equipment Coverage
  • Home, Auto, Life, and Medicare Insurance

Serving clients across California from our office in Ontario.

Need help? Get a free business insurance quote today.

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