Jeffrey Wade
Instacart does not provide insurance for its drivers, and it is the driver's responsibility to ensure they have the appropriate insurance coverage. While Instacart mandates proof of insurance, commercial coverage is only required if your personal insurance policy does not extend to delivery services. Many insurance companies offer inexpensive policy add-ons that cover you while driving for a company like Instacart, such as rideshare coverage or a business use add-on. However, some insurance companies may require you to purchase a separate commercial policy if they do not cover business use of your car. It is important to note that lying to your insurer about whether you are driving for Instacart is considered insurance fraud and can result in legal consequences.
| Characteristics | Values |
|---|---|
| Commercial insurance required by Instacart | No, but Instacart mandates proof of insurance. Commercial coverage is only required if your personal insurance policy does not extend to include delivery services, as assessed by your insurance provider. |
| Instacart's insurance requirements | Instacart requires liability insurance that meets state minimums. |
| Instacart's insurance cover | Instacart's insurance cover only takes effect in specific circumstances, emphasizing the need for drivers to ensure their personal insurance policies cover Instacart-related driving activities. |
| Instacart's insurance cover for drivers | Instacart does not offer insurance for its drivers, which sets it apart from other delivery services that do provide auto insurance. |
| Commercial insurance cost | Commercial auto insurance can cost $1,200 to $2,400 or more per year. A cheaper alternative is rideshare insurance, which costs $10 to $350 per year, depending on your location and insurer. |
| Commercial insurance providers | Insurers such as State Farm, Allstate, and Mercury offer rideshare insurance endorsements that can be added to a personal car insurance policy. |
| Lying about commercial insurance | Lying about commercial insurance is considered insurance fraud and can result in your claim being denied, your policy being dropped, and even criminal charges being filed against you. |
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What You'll Learn
Instacart's insurance requirements
Instacart does not offer insurance for its drivers, which sets it apart from other delivery services that do provide auto insurance. Instacart's independent contractor agreement requires drivers to obtain their own car insurance, including any necessary commercial liability insurance. However, commercial insurance is only required if your personal insurance policy does not cover delivery services.
Many drivers are unaware that their personal auto insurance policies may not cover them when driving for a delivery service. This oversight can lead to serious consequences in the event of an accident. Therefore, it is recommended to consult with an insurance agent to determine if additional commercial insurance coverage is needed.
Several insurance companies offer inexpensive policy add-ons that cover driving for Instacart, such as rideshare coverage. For example, State Farm offers rideshare coverage for an additional 15-20% premium, while Mercury offers rideshare insurance for about $27 per month. GEICO, on the other hand, does not offer rideshare insurance, but customers can purchase a separate commercial policy or switch to a company that offers rideshare insurance.
It is important to note that lying to your insurer about driving for Instacart is considered insurance fraud and can result in serious consequences.
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Commercial insurance necessity
Instacart does not offer insurance for its drivers, which sets it apart from other delivery services that do provide auto insurance. Instacart's independent contractor agreement requires drivers to obtain their own car insurance, including commercial liability insurance if necessary. However, it is not explicitly stated that commercial insurance is mandatory.
Commercial insurance is necessary for Instacart drivers if their personal insurance policy does not cover delivery services. Many personal auto insurance policies do not cover the business use of a vehicle, so it is important to check with your insurance company. If your insurance company does not cover business use, you will need to purchase a commercial or rideshare auto insurance policy.
Several insurance companies offer inexpensive policy add-ons that cover driving for Instacart, such as rideshare coverage or a business use add-on. However, some companies may require you to buy a separate commercial policy. It is essential to be honest with your insurance company about your work as an Instacart driver, as lying about it is insurance fraud and can result in serious consequences.
In summary, while commercial insurance may not be mandatory for Instacart drivers, it is necessary if your personal insurance policy does not cover delivery services. It is important to check with your insurance company and be honest about your work to ensure you have the appropriate coverage.
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Personal insurance policy extensions
Instacart does not provide any insurance coverage for its delivery drivers. The company's independent contractor agreement requires drivers to obtain their own car insurance, including any necessary commercial liability insurance. This means that if you are an Instacart driver and get into an accident while making deliveries, you may not be covered by your personal car insurance policy.
Many personal insurance policies will reject claims for damage sustained while driving for a delivery company. However, some insurance companies offer inexpensive policy extensions or add-ons that cover you while driving for Instacart. For example, State Farm offers rideshare coverage for an additional 15%-20% on your premium, while Mercury offers similar coverage for $27 per month. Allstate also offers rideshare insurance as an optional add-on, although the cost is not disclosed. If your current insurance provider does not offer rideshare coverage, you may need to switch to a company that does, such as State Farm or Allstate.
It is important to note that lying to your insurer about working for Instacart is insurance fraud and can result in your claim being denied, your policy being dropped, and even criminal charges. Therefore, it is crucial to verify whether your automobile insurance covers the performance of delivery services and, if not, purchase the appropriate rideshare coverage or add-on.
In addition to the previously mentioned insurance providers, USAA offers specialized policies for Instacart delivery drivers with military backgrounds. Their policies address specific risks associated with food delivery and include enhanced vehicle replacement coverage, which is crucial for drivers who rely on their cars for income.
Overall, while Instacart does not provide insurance for its drivers, there are several options for extending personal insurance policies or purchasing rideshare coverage to ensure you are properly insured while making deliveries.
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Rideshare insurance
Instacart does not provide its drivers with insurance. According to Instacart's independent contractor agreement, drivers must obtain their own car insurance, including commercial liability insurance.
Several insurance companies offer rideshare insurance, including Mercury, Progressive, State Farm, and Allstate. Mercury's rideshare insurance is available in select states and covers Uber, Lyft, Uber Eats, and DoorDash. Progressive's rideshare insurance covers drivers who operate on delivery service platforms like Uber Eats and Door Dash in most states. State Farm and Allstate offer rideshare endorsements that can be added to a personal car insurance policy.
It is important to note that lying to your insurer about whether you are driving for a rideshare or delivery company is considered insurance fraud and can result in legal consequences. Therefore, it is crucial to clarify with your insurance company whether you drive for a rideshare company and purchase the necessary rideshare coverage or endorsement.
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Supplemental insurance
Instacart does not provide any insurance coverage for its shoppers, and most personal auto insurance policies will reject claims for damage sustained while driving for a delivery or rideshare company. Therefore, it is important for Instacart shoppers to purchase their own insurance coverage.
While some sources suggest that Instacart shoppers need to purchase commercial insurance, others claim that it is not necessary. However, it is clear that Instacart shoppers need to have some form of auto insurance coverage to meet the Instacart insurance requirements. Some companies may require shoppers to add rideshare coverage to their personal auto insurance, while others may insist on a separate commercial policy.
Several insurance companies offer inexpensive policy add-ons that cover Instacart shoppers while driving. For example, State Farm offers rideshare coverage for an additional 15%-20% on a customer's premium, while Mercury offers rideshare insurance for $27 per month. GEICO customers can also purchase a separate commercial policy, or switch to a company that offers rideshare insurance, like State Farm or Allstate.
Instacart shoppers can also benefit from supplemental insurance, such as the Shopper Injury Protection offered by Instacart. This insurance covers medical expenses of up to $1 million, along with disability payments and survivor's benefits for eligible dependents. Umbrella policies can also be bundled with auto insurance to provide Instacart shoppers with added coverage for unforeseen incidents.
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Frequently asked questions
Instacart does not require you to have commercial insurance. However, you do need to have valid car insurance that meets your state's minimum requirements. It is also important to note that many personal auto insurance policies do not cover the use of a vehicle for commercial activities, so you may need to purchase a commercial policy or add-on in addition to your personal policy.
If you get into an accident while driving for Instacart and you have not informed your insurance company, your claim may be denied and your policy may be dropped. In addition, you could be sued or face criminal charges for insurance fraud.
Some insurance companies that offer commercial or rideshare insurance include State Farm, Allstate, and Mercury. GEICO does not offer rideshare insurance, but it does offer insurance for rideshare drivers.
