We’ve been seeing more and more people using their personal vehicles to earn extra income whether that’s delivering food, groceries, or driving for services like Uber or Lyft.

What many people don’t realize is this:

Your personal auto insurance typically does NOT cover your vehicle when it’s being used for delivery or to make money.

Most personal auto policies are designed for everyday driving, commuting, errands & family use.
But once you:

• Turn on a delivery or rideshare app
• Accept a job
• Transport people or goods for money

You may be operating outside of your policy’s coverage. 

The “standard public or livery conveyance exclusion” in auto insurance policies denies coverage (liability, medical, and physical damage) when a vehicle is used for commercial transportation like Ubers, delivery, or ridesharing. This means a claim can be denied if the accident happens while you are on the app, on the way to pick up, while you are waiting, carrying goods or carrying a passenger. 

This exclusion exists because personal auto insurance isn’t intended for the increased risks of commercial use. Drivers must understand this exclusion to avoid significant financial risk during an accident while operating commercially.

Learn More about this exclusion here:

https://legalclarity.org/what-is-a-livery-conveyance-in-auto-insurance

In some cases, claims can be partially covered—or denied altogether.

A Common Risk We’re Seeing:

Teen drivers using a family vehicle to deliver food or groceries. Many families may unknowingly have a serious coverage gap. Examples include insta-cart or door dash, delivering pizza. 

If an accident happens during a delivery:

• Coverage could be denied
• The policy could be canceled
• You could be responsible for major liability costs

What about insurance for delivery or rideshare?

Coverage does exist, but it’s different & can be costly:

• Although some rideshares or restaurants may offer insurance to their drivers, it may be the bare minimum. You should always inquire about what coverages they are offering. Many people unknowingly drive uninsured during these activities because they wrongly assume their Auto Policy covers them during these times. 

The Good News:

Our Agents at Bacon Insurance Group can:

• Identify if there’s a gap in your current policy
• Help secure the correct and enough coverage
• Make sure you and your family are protected

If you or anyone in your household is using a vehicle to earn income, even part-time, let’s take a quick look together. Make sure you check with the company you work for what/if any coverages they provide. Ask for a clear, detailed copy of what they are offering.

It’s a simple conversation that can prevent a major financial surprise.

Give us a call or email us anytime! 804-967-9717

Visit Our Blog For More Helpful Insurance Facts & Tips

Additional Resources:

https://www.dmv.virginia.gov/businesses/tnc/insurance

https://www.dmv.virginia.gov/businesses/tnc/faq

https://law.lis.virginia.gov/vacode/title46.2/chapter21/section46.2-2143.1

Follow Us On Social:

Facebook      Instagram     Bacon Bits Blog

You’ve probably noticed more electric bikes and scooters around your neighborhood lately and it’s not always clear what’s considered a bicycle versus a motor vehicle.For many families, that confusion isn’t just inconvenient, it can create real risks when it comes to safety, legal requirements, and insurance coverage.

Understanding e-bike laws in Virginia and how they impact your liability protection is more important than most parents realize.Here’s a simple breakdown to help you protect your child—and your finances.

What Is an E-Bike in Virginia?

An electric power-assisted bicycle (e-bike) is a bicycle equipped with a motor that assists with pedaling. Under Virginia e-bike laws, these are treated as bicycles—not motor vehicles.

Key E-Bike Rules in Virginia:

• Max speed: 20–28 mph
• No license, registration, or insurance required
• Allowed on roads, bike lanes, and many shared-use paths
• Helmet required for Class 3 riders
  

Because they are classified as bicycles, e-bikes are generally easier to operate and more accessible for younger riders.

Insurance Consideration:

Some homeowners insurance policies may extend liability coverage for e-bikes—but only if the bike meets the legal definition. (Check with us about your coverage)

What Is a Moped in Virginia?

Mopeds often look similar to e-bikes or scooters but legally, they are very different. Under Virginia law, mopeds are considered motor vehicles, which means additional rules apply.

Key Moped Laws in Virginia:

• Max speed: up to 35 mph
• Must be registered and titled
• Must have a license plate
• Rider must be at least 16 years old with valid ID
• Helmet required
• Must follow traffic laws

Even though a license isn’t required, mopeds carry more responsibility and more risk.

Insurance Consideration:

Most homeowners policies do NOT cover mopeds or motorized vehicle accidents, which can leave families exposed.

The Key Difference: Why 28 MPH Matters

Here’s where many parents get caught off guard: If it goes over 28 mph, it is NOT considered an e-bike in Virginia. Instead it may be classified as:

• A moped (up to 35 mph), or
• A motorcycle (over 35 mph or higher power)

This distinction matters because it changes:

• The laws that apply
• The level of risk
• Your potential insurance coverage

Hidden Risks Many Parents Overlook

Not All “E-Bikes” Are Actually E-Bikes

Many products marketed as e-bikes:

• Exceed legal speed limits
• Operate with throttle-only power
• Reach speeds over 30 mph
  

These may legally fall into moped or motorcycle categories

Insurance Gaps Can Be Costly

• E-bikes may be covered under homeowners liability (in some cases)
• Mopeds and motor vehicles typically are not

If your child causes an accident, you could be personally responsible for damages

Questions Every Parent Should Ask

Before you buy or ride, take a moment to ask:

• How fast does it actually go?
• Does it have a throttle?
• Is it classified as Class 1, 2, or 3?
• Should it be registered under Virginia law?
• Do we have the right liability insurance coverage?

Final Thoughts: Protecting Your Family

E-bikes and scooters can be a fun, convenient way for kids to get around but the line between a bicycle and a motor vehicle is thinner than most parents realize. Understanding the difference helps you keep your child safer, avoid unexpected legal issues and ensures your insurance actually protects your family.

Have Questions About Coverage?

If you’re unsure how your current policy applies to e-bikes, mopeds, or other motorized rides, you’re not alone. Bacon Insurance Group is here to help you review your coverage, identify potential gaps, and make sure your family is properly protected. Reach out today for a quick coverage review, we’re happy to help!

Helpful Resources

• Virginia Code § 46.2-904.1 – Electric Power-Assisted Bicycles
• Virginia Code § 46.2-100 – Definitions (including mopeds)
• Virginia DMV – Moped Registration & Safety Guidance
• Virginia House Bill 543 (E-bike legislation) 

Bundling multiple insurance policies such as home, auto, life, and umbrella insurance with a single carrier offers both financial savings and convenience for policy holders.
Here are the key benefits:

1. Multi-Policy Discounts
   Insurers often provide significant discounts when you bundle. In Virginia, these savings typically range from 10%–25%, depending on the combination of policies.
2. Reduced Administrative Costs
   Managing all your policies with one insurer lowers paperwork and administrative costs, which are often passed directly to you as lower premiums.
3. Simplified Billing & Payment
   Bundling means one point of contact, making it easier to stay organized and avoid missed payments or lapses in coverage.
4. Improved Coverage Coordination
   We can identify gaps or overlaps in your coverage, ensuring you’re fully protected without paying for unnecessary policies. Umbrella coverage, for example, can extend liability limits across your home and auto policies.
5. Loyalty & Long-Term Savings
   Bundled policyholders are often viewed as low-risk, long-term clients, which can lead to retention discounts and fewer rate increases over time.
6. Streamlined Claims Process
   If multiple claims occur, having all policies with one insurer simplifies the claims process and can result in faster resolutions, potentially lowering out-of-pocket costs.
7. Peace of Mind
   Beyond the savings, bundling provides convenience and financial predictability, helping you manage your insurance needs without surprises.

Call us today to bundle your policies and start saving while protecting everything that matters most!