Does Doordash Provide Auto Insurance? Understanding The Gaps In Coverage

If you're a DoorDash driver, you may need to purchase additional auto insurance to your standard policy. This is because, in most cases, your personal auto insurance policy will not protect you if you are involved in an accident while on a delivery. This is because your personal auto policy was designed to protect you during the personal use of your vehicle, not business use.

DoorDash does provide basic liability car insurance to their drivers, but it is important to note that there are some gaps in the policy. For example, DoorDash insurance will only cover you if there is food in the car, and only after you have filed a claim through your own auto insurance policy.

DoorDash's insurance requirements

DoorDash's Insurance Policy:

DoorDash provides an excess liability insurance policy for its drivers, which covers up to $1 million in the event of an accident during an active delivery. This policy is secondary and comes into effect only after your personal auto insurance policy has been exhausted. It's important to note that DoorDash's insurance only covers third-party damage and injuries, so you still need your own insurance to cover any damages to your vehicle.

Personal Auto Insurance:

Before signing up as a DoorDash driver, you must ensure you meet the state's minimum auto insurance requirements. While DoorDash doesn't require commercial coverage, your personal auto insurance policy should cover business or commercial use. This is because using your vehicle for deliveries is considered business use, and most standard policies won't cover you in the event of an accident during a delivery.

Additional Coverage:

Some insurance companies offer add-on coverages specifically for ridesharing or delivery services, which you may need to request. Others may simply require you to classify your vehicle as "business use." It's crucial to review the terms of your policy and contact your insurance provider to make any necessary adjustments.

Recommended Coverage Types:

In addition to liability insurance, DoorDash drivers should consider comprehensive coverage, collision coverage, and uninsured/underinsured motorist coverage. These additional coverage types can provide extra protection in various situations.

Best Insurance Companies for DoorDash Drivers:

State Farm, GEICO, and Progressive are often recommended as the best insurance companies for DoorDash drivers. These companies offer tailored coverage for delivery drivers and are known for their affordability and comprehensive policies.

Cost of DoorDash Insurance:

The cost of DoorDash insurance can vary depending on several factors, including the state you live in, the type of vehicle you drive, and how often you drive for work. However, rates can start as low as $6 per month for DoorDash insurance.

In summary, while DoorDash provides some insurance coverage for its drivers, it's important to have your own personal auto insurance policy that meets the state's minimum requirements and includes coverage for business or commercial use. This will ensure you're adequately protected in the event of an accident during a delivery.

DoorDash's insurance coverage

DoorDash provides auto insurance coverage for its drivers, known as "Dashers". This insurance is secondary to the driver's personal auto insurance policy and will only cover any excess costs. It is important to note that DoorDash's insurance does not cover the driver or their vehicle, only third-party damage and injuries. This means that Dashers must have their own personal auto insurance policy to be covered by DoorDash's insurance.

DoorDash's insurance only applies when a driver is on an active delivery. This means that the driver is covered from the moment they accept a delivery request until the order is delivered to the customer or cancelled. DoorDash's insurance does not cover drivers when they are on their way to pick up an order or driving back from dropping off an order.

DoorDash's insurance covers up to $1 million in liability, including bodily injury and property damage to third parties. It is important to note that this coverage is only applicable if the driver is at fault and if the accident occurs while they are actively delivering food with food in the car.

Additional Insurance for DoorDash Drivers

Some insurance companies offer additional coverage for rideshare or delivery drivers, which can be added to a standard policy or purchased as a separate commercial policy. This additional coverage can provide protection for the driver's vehicle and any injuries they may sustain in an accident. Companies that offer this type of coverage include Progressive, GEICO, State Farm, and Allstate.

Personal insurance and DoorDash

If you are a DoorDash driver, it is crucial to purchase DoorDash insurance. In most cases, your personal auto insurance policy will not protect you if you are involved in an accident while on a delivery. This is because personal auto policies are designed to protect you during the personal use of your vehicle, not business use. Therefore, if you are using your vehicle to make money, this is considered business use by your insurer and will require special coverage.

There are three types of coverage available from your insurer to provide you with the necessary coverage 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 protect you when the vehicle is being used for business. This typically only costs a few more dollars a month.
• Commercial Coverage: Commercial coverage policies cover businesses and vehicles used for those businesses. You may want to opt for this coverage if you use your vehicle solely for DoorDash deliveries and not for personal use.
• Personal Coverage: While personal coverage alone does not offer protection for business cars, some companies will add a 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 choose, always inform your insurer that your vehicle is being used for business purposes. Failure to do so may prevent you from being covered in an accident and could result in your policy being canceled.

DoorDash does provide basic liability car insurance to their drivers, which is not the case with some food delivery services. This usually covers liability to protect the company from being sued if you are at fault for an accident. It will also cover the basic repairs for the other driver's vehicle. However, there are some gaps in the policy, so it is important to purchase your own business coverage. The insurance from DoorDash will only cover you if you are on a food delivery on behalf of the company and if there is food in the car.

Therefore, it is vital to have your own business policy as well, as you will not have coverage on your way to pick up the meal, even though your personal insurance will likely deny coverage as well.

Companies that provide auto insurance for DoorDash drivers

If you are a DoorDash driver, it is important to have the right auto insurance coverage. While DoorDash does provide basic liability insurance of up to $1 million for bodily injury and property damage, this only applies to accidents that occur while on an active delivery. There are also certain requirements that must be met for DoorDash's insurance to cover you. Therefore, it is a good idea to purchase additional auto insurance to ensure you are covered in all situations.

Progressive

Progressive offers rideshare coverage for food delivery drivers. To be covered as a DoorDash driver, you will need to add rideshare coverage to your policy. Progressive has one of the most flexible policies, covering any on-demand delivery or driving service without requiring commercial or business coverage. They also offer deductible reimbursement in some states.

GEICO

GEICO includes rideshare coverage in its standard policy, which covers DoorDash drivers. Their hybrid policy covers you anytime you are in your car, whether for personal use or delivering food. GEICO also has low deductibles, no mileage restrictions, and affordable rates. However, their rideshare insurance is only available in certain states and has a lower consumer satisfaction rate than other carriers.

State Farm

State Farm offers rideshare coverage for DoorDash drivers. You can add a business-use notation to your personal policy if you are solely delivering food and do not have passengers. While State Farm has wide availability, their rideshare coverage can be expensive, adding 15-20% to your insurance premiums.

Allstate

Allstate offers rideshare coverage under the name "Ride for Hire", which is an add-on to your existing car insurance policy. This coverage applies to both delivery drivers and those with passengers. While Allstate allows your personal coverage to apply when you are on the job, their rideshare coverage can be expensive depending on your location and policy.

Erie

Erie was one of the first insurance carriers to offer ridesharing insurance coverage. Their coverage applies before, during, and after the drive, and includes rental cars and glass repair. However, Erie is only available in 12 states plus the District of Columbia, and you must purchase their policy through an agent.

USAA

USAA offers add-on coverage for rideshare and delivery services, making it easy to adapt from personal to business use. Their coverage applies to ridesharing with passengers and food delivery, but membership is limited to military members and their families.

Additional insurance for DoorDash drivers

If you are a DoorDash driver, it is crucial to purchase DoorDash insurance as 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.

There are three types of coverage available from your insurer to provide you with the coverage you need if you are in an accident while on a DoorDash 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

Under commercial coverage policies, businesses and vehicles used for those businesses are 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 a 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, which is limited to liability that protects the company from being sued if you are at fault for an accident. It will cover the basic repairs for the other driver's vehicle. However, it's important to note that there are gaps in the policy, and it will only cover you if there is food in the car. Therefore, it is important to purchase your own business coverage.

Frequently asked questions