Paul Sanchez
If you're a driver for DoorDash, it's important to understand your insurance coverage and what to do in case of an accident. In most cases, you will need to purchase commercial insurance as a delivery driver. This is because many personal auto insurance policies won't cover accidents that occur while driving for business or commercial purposes, including food delivery. While DoorDash does provide some level of insurance coverage for drivers during the delivery service period, this may not be enough on its own and may vary depending on your state or country. Therefore, it's crucial to check with your insurance provider to ensure you have the appropriate coverage.
| Characteristics | Values |
|---|---|
| Is commercial insurance required for DoorDash? | Yes |
| DoorDash's insurance coverage | Third-party liability insurance during the delivery service period |
| DoorDash's insurance requirements | Varies by state |
| DoorDash's insurance coverage limit | $50,000 per person for bodily injury, up to $100,000 total per incident; Property damage coverage of up to $25,000 per incident; $50,000 in uninsured/underinsured motorist coverage; Up to $1 million in combined limits during the Delivery Service period |
| Personal insurance coverage for DoorDash | Depends on the insurance company and state; May require both commercial and personal insurance |
| Cost of commercial insurance | $10-30 per month |
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What You'll Learn
DoorDash's insurance requirements
If you are a DoorDash driver, it is important to understand your insurance coverage and what to do in case of an accident. While DoorDash does provide some level of insurance, you should also have your own auto insurance to ensure full protection. The insurance requirements for DoorDash drivers vary depending on the state in which you are driving and your current insurance company.
DoorDash offers third-party liability insurance in case you are involved in an accident during a delivery service period. This refers to the time between accepting a delivery request in the app and delivering the order (or it being canceled or unassigned). DoorDash's insurance covers bodily injury of up to $50,000 per person and $100,000 in total per incident, property damage of up to $25,000 per incident, $50,000 in uninsured/underinsured motorist coverage, and up to $1 million in combined limits during the Delivery Service period. However, this coverage does not apply to the Dasher or their vehicle but only to others involved in the accident. Additionally, DoorDash's insurance is contingent on the Dasher being found liable for the accident and having a valid and active primary insurance policy for their vehicle with state-minimum liability insurance or greater.
In most cases, your personal auto insurance policy will not cover accidents that occur while driving for business purposes, including food delivery. Many insurance companies require commercial insurance for DoorDash drivers, which can be purchased as a separate policy or coverage rider. This ensures that you and your vehicle are protected at all times, whether you are driving for work or for personal reasons. The cost of commercial insurance can vary, with some people reporting costs of around $10 to $30 per month for rideshare coverage, while others report costs of $40 to $50 per month for a commercial add-on.
It is important to note that the insurance requirements for DoorDash drivers can vary by state. Some states may require additional rideshare coverage on top of your personal auto insurance policy, while others may not. It is crucial to check with your insurance provider and understand the specific requirements and coverage options in your state.
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Personal insurance policies and exclusions
Personal auto insurance policies often have exclusions for business use, which can create coverage gaps for DoorDash drivers. This means that if you get into an accident while delivering food or other orders for customers, your personal auto insurance policy will not cover you. Your personal auto insurance policy covers you when you are driving for personal reasons or aren't logged into a rideshare or delivery app.
It is important to note that many apps and delivery platforms, including DoorDash, offer some level of coverage while you are a hired driver making a requested delivery. This means that you will be covered under the app's or platform's coverage if you are involved in an accident while on a delivery. However, this coverage only applies to specific points in the delivery process and often leaves a coverage gap between when your personal policy stops and the platform's coverage kicks in.
DoorDash's insurance coverage is subject to policy terms, conditions, limitations, and exclusions. It provides drivers with bodily injury coverage of $50,000 per person, up to $100,000 total per incident, and property damage coverage of up to $25,000 per incident. It also includes $50,000 in uninsured/underinsured motorist coverage and up to $1 million in combined limits during the Delivery Service period. However, DoorDash's insurance coverage leaves gaps in coverage, and it is important to understand the specific policy terms around delivery-related coverage.
To address the coverage gaps, drivers can consider adding an endorsement or rider to their policy specifically for business use. This additional coverage ensures that the driver is protected even when using their vehicle for deliveries. While adding an endorsement for business use can provide essential protection, it is important to review the limitations of the personal policy, as some personal policies may have lower limits for liability coverage or may not include comprehensive and collision coverage for business use.
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Commercial insurance costs
If you are a DoorDash driver, you may need to purchase commercial insurance, depending on your current insurance company and where you live. Many personal auto insurance policies won't cover accidents that occur while driving for business or commercial purposes, including food delivery.
DoorDash does provide some level of insurance coverage for its drivers. However, this coverage generally applies only when you are on an "active delivery", meaning you have accepted an order and are driving to or from the merchant to the customer with an order in your possession. The details of the coverage can vary by state, but it typically includes bodily injury coverage, property damage coverage, uninsured/underinsured motorist coverage, and combined limits during the Delivery Service period.
The cost of commercial insurance for DoorDash drivers can vary depending on several factors, including the insurance provider, location, driving history, and coverage limits. Some sources estimate that commercial insurance can cost anywhere from $10 to $50 per month as an add-on to an existing policy or a separate commercial policy. However, it's important to note that commercial insurance is generally more expensive than personal insurance or rideshare/DoorDash insurance.
It's crucial to check with your insurance provider to confirm whether your personal policy covers food delivery and to understand any specific requirements or exclusions. In some cases, you may need to switch insurance providers or add a business-use or rideshare endorsement to your existing policy to ensure adequate coverage for DoorDash deliveries.
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Third-party liability insurance
If you are a DoorDash driver, it is essential to understand your insurance coverage and what to do in case of an accident. While DoorDash does provide some level of insurance, it is not enough to cover all potential costs, and drivers should also have their own insurance.
DoorDash's third-party liability insurance provides coverage for damages or injuries to another party while on an active delivery. This means that if a delivery driver is found to be at fault for an accident that occurred while they were working, DoorDash's insurance may cover the costs of repairs or medical expenses for the other party. This insurance is subject to policy terms, conditions, limitations, and exclusions, and it is important for drivers to understand these details.
To be eligible for DoorDash's third-party liability insurance, drivers must have an active, up-to-date personal insurance policy. This means that the driver's personal insurance policy must meet the minimum requirements of the state in which they are operating. In some states, this may include commercial insurance, as many personal auto insurance policies do not cover accidents that occur while driving for business purposes, including food delivery.
If a delivery driver is in an accident while on a delivery and their personal insurance claim is denied due to the nature of their work, DoorDash's third-party liability insurance may provide coverage. However, it is important to note that DoorDash will not provide compensation for any damage to the driver's vehicle, and the driver is responsible for all damages incurred to their car.
To ensure full protection, it is recommended that DoorDash drivers have both personal and commercial car insurance that meets the requirements of the state in which they are operating. Additionally, drivers can consider purchasing rideshare insurance, which can be added to their existing auto insurance policy or purchased separately. This will provide additional coverage while driving for DoorDash and help fill any gaps in coverage.
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State-specific insurance requirements
In states like New Hampshire, auto insurance is not mandatory, while Michigan has some of the highest minimum requirements in the country. In New York City, for instance, Taxi and Limousine Commission (TLC) coverage mandates minimum specific liability coverage, vehicle standards, a background check, and special requirements for compliance. This includes basic driver's education, an additional driving exam, and laws and regulations regarding passenger assistance, wheelchair accessibility, and sex trafficking awareness.
Some states, like Ohio, classify ridesharing as transporting people from one location to another, excluding food delivery. In such cases, insurers may offer rideshare coverage, which is a specialized type of insurance that bridges the gap between a personal auto policy and the coverage provided by rideshare companies.
Additionally, DoorDash provides supplemental liability insurance for drivers on active delivery. This insurance applies if a driver's claim is refused by their own policy after an accident for which they are responsible. However, it is important to note that DoorDash does not list maximum coverage limits for bodily injuries or property damage, stating that policy terms and conditions follow local laws.
It is always recommended to consult with an insurance agent or provider to understand the specific requirements and options available in your state.
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Frequently asked questions
Yes, you will need commercial insurance as a delivery driver. Many personal auto insurance policies won't cover accidents that occur while driving for business purposes, including food delivery.
If you get into an accident while delivering food without commercial insurance, your personal insurance will not cover any damages to your car or any other parties' cars, leaving you open to huge liability.
The cost of commercial insurance varies, but a cheap commercial add-on is around $10-50 a month.
You can purchase commercial insurance from providers such as Geico, Progressive, State Farm, or Allstate.
