Purchasing DoorDash insurance is crucial if you are a DoorDash driver. In most cases, your traditional personal auto insurance policy will not protect you if you are involved in an accident while on a delivery. Your personal auto policy was designed to protect you during the personal use of your vehicle, not business use.
If you are using your vehicle to make money, this is considered business use by your insurer and will require special coverage on your policy.
Coverages to Consider for DoorDash Drivers
Three types of coverage may be available from your insurer to provide you with the coverage you need if you are in an accident while on a delivery.
- Business-use Coverage: Business coverage can be added to most auto insurance policies and will typically only cost a few more dollars a month to protect you when the vehicle is being used for business.
- Commercial Coverage: According to The Zebra, under commercial coverage policies, businesses and vehicles used for those businesses would be covered. You may want to opt for this coverage if you use a vehicle solely for your DoorDash deliveries and not for personal use.
- Personal Coverage: While personal coverage alone does not offer protection for business cars, some companies will add notation to a personal policy stating that the vehicle is used for business purposes. This option may only be available if the vehicle is used infrequently for business purposes and might increase your premium.
Whatever you do, always tell your insurer that your vehicle is used for business purposes. Failure to do so may not only prevent you from being covered in an accident, but it can also get your policy canceled.
Basic Liability From DoorDash
DoorDash does provide basic liability car insurance to their drivers, unlike some food delivery services. This usually is limited to liability which protects the company from being sued if you drive for them and are at fault for an accident. It will cover the basic repairs for the other driver’s vehicle.
As mentioned on Insurance Panda, it is crucial to understand that even though DoorDash provides this coverage, there are some gaps in the policy, making it important to purchase your own business coverage. Also, the insurance form DoorDash will only cover you if you are on food delivery on behalf of the company and if there is food in the car.
This means you will not have coverage on your way to pick up the meal, even though your personal insurance will likely count that as a business trip and deny coverage as well. It is because of these situations that it is vital to have your own business policy.
What Does DoorDash Coverage Include?
The policy from DoorDash lists the following coverages for drivers in their employ.
- Bodily injury, damage to third-party property, and damage to other parties in an accident.
- Liability for accidents that occur when food is in your car for an active delivery.
DoorDash insurance will kick in once your policy’s coverage has been exhausted. DoorDash’s coverage is considered secondary coverage and will only apply to any excess costs.
DoorDash Driver Requirements
According to Insurify, to be covered under DoorDash insurance and be an official DoorDash driver/vehicle, there are certain requirements that a driver must meet.
- Drivers must be 18 years of age or older.
- Drivers must have at least the state minimum coverage for their personal auto insurance policy.
- The vehicle is in running condition.
Best Insurance Companies for DoorDash
Multiple companies offer policies and options for DoorDash drivers and other gig workers who use their own personal vehicles for work.
GEICO
GEICO offers personal auto insurance policies that cover you no matter why your vehicle is on the road, as stated by Investopedia. This coverage extends to business uses as well, so drivers will be covered if they get in an accident while making deliveries or using their vehicle for ride-sharing.
The policy is a hybrid policy instead of requiring an add-on to cover the vehicle during business tasks. GEICO doesn’t limit the coverage to one specific job either. The coverage will apply to multiple business operations which require the use of your car. The only drawback to this type of insurance is that it’s not available in every state.
Progressive
A popular company for insuring rideshare drivers, Progressive also offers good coverage for delivery drivers. They have one of the most flexible policies, which covers any on-demand delivery or driving service without requiring any commercial or business coverage.
To get the additional coverage, drivers will need to add the option to their current policy. They also offer deductible reimbursement in some states.
State Farm
State Farm has broad coverage that is available in almost every state. They offer a rideshare addition to their policies but will cover DoorDash drivers without the add-on. They consider the delivery of groceries and food as a “business use” designation on that vehicle, so they don’t require extra coverage.
Allstate
Allstate offers some unique additions to their rideshare coverage that other insurers do not. One addition is gap protection, which is an option in almost every state and can help pay the difference between the car’s value and the amount owed on your loan if your vehicle is totaled in an accident. They also offer a deductible gap coverage that will cover your deductible if your vehicle is totaled. What’s even better about this policy is that all of your protections from your personal auto policy stay in effect even if you’re using your vehicle for business.
Erie
One of the companies with the least expensive rideshare insurance is Erie. For many delivery drivers, all they need to do is note that their personal vehicle is used for business a portion of the time. For those who need more coverage, they also offer many different policy options. The only drawback with this insurance company is that it is available in a limited number of states and has to be purchased through an agent.
Ensuring that you have the proper coverage when working for DoorDash is imperative. Without it, you may be responsible for not only damage to your vehicle but others involved in the accident as well.
Check out this guide if you need additional information, resources, or guidance on car insurance.
Sources:
Car Insurance for Delivery Drivers
What Auto Insurance Do You Need for DoorDash?
Best Delivery Driver Insurance Companies
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