Door-Dashing And Delivering: Does Driving For Doordash Affect Your Farmers Insurance Policy?

Driving for Doordash or any other delivery service means you're using your car for business purposes, which is not covered by most personal car insurance policies. This means that if you get into an accident while on a delivery, your insurance claim will likely be denied, leaving you responsible for any damages.

To avoid this, you can add a business-use or commercial add-on to your policy, though this will increase the cost of your insurance. Alternatively, you can switch to an insurance company that offers coverage for delivery drivers, such as Geico, Progressive, or State Farm.

Does Farmers Insurance cover driving for DoorDash?

If you are a DoorDash driver, it is important to have the right insurance coverage to prevent you from being stuck with a major bill in the event of an accident.

Farmers Insurance offers a business-use designation for personal vehicles used to deliver groceries, pharmacy deliveries, or food. This is an add-on to many auto policies and provides protection during business operations for a minor premium increase.

DoorDash Insurance Requirements

DoorDash requires drivers to have personal auto insurance. This is a mandate in the Independent Contractor Agreement. Outside of active deliveries, drivers are on their own. In other words, if a driver isn't in the process of fulfilling an order, as indicated in their app, they're not considered in "active delivery". During these times, DoorDash holds no responsibility. However, if a driver is actively delivering, DoorDash offers supplemental auto liability insurance.

DoorDash Insurance Coverage

DoorDash offers insurance when a driver is actively delivering and is at fault in an accident, especially if their personal insurance denies the claim. While DoorDash aids with damages and injuries to the other party and provides coverage up to $1 million for damages and bodily injury, the driver's personal insurance is accountable for damages to their vehicle.

Other Considerations

When you review the coverage conditions for your auto policy, check and see if you're covered while running your active deliveries. Business uses are a common exception to many personal auto policies. If your insurance doesn't cover delivery driving, you may need to add a business-use or commercial add-on to your policy. This increases the cost of your insurance but covers you in the event of an accident while running a delivery.

Does Farmers Insurance raise rates for driving for DoorDash?

Using your personal vehicle for food delivery services like DoorDash is considered "business use" rather than personal use. Most personal auto insurance policies do not cover business use, so it is important to check with your insurance provider and, if necessary, purchase additional coverage.

Farmers Insurance offers a business-use designation for personal vehicles used to deliver groceries, pharmacy items, or food. This is an add-on to your existing policy that will increase your premium. According to The Rideshare Guy, adding extra coverage for DoorDash has increased drivers' premiums by anywhere from 10% to 40%.

If you do not inform your insurance company that you are using your vehicle for business purposes and you get into an accident while working, your insurance claim will likely be denied, leaving you responsible for any damages. Therefore, it is essential to be transparent with your insurance provider about your work as a delivery driver to ensure you have the appropriate coverage.

What are the alternatives to Farmers Insurance for DoorDash drivers?

If you are a DoorDash driver, it is important to have the right insurance coverage to protect yourself on the road. While DoorDash offers its drivers liability insurance of up to $1 million for bodily injury and property damage, this only applies during active delivery and after your personal insurance coverage has been exhausted. Therefore, it is recommended that you purchase additional insurance coverage. Here are some alternatives to Farmers Insurance for DoorDash drivers:

GEICO

GEICO is one of the most comprehensive commercial auto insurance providers, offering a hybrid insurance policy that replaces your personal car insurance. This policy covers you 24/7, whether you are making food deliveries or driving for personal reasons. GEICO also has low deductibles starting at $250 and is available in over 40 states.

Progressive

Progressive offers rideshare insurance that can be added to your personal car insurance policy. This option is available to food delivery drivers, as well as rideshare drivers. Progressive's rideshare insurance includes benefits such as roadside assistance, rental car reimbursement, and deductible reimbursement. It is important to note that Progressive's coverage for DoorDash drivers would only kick in after DoorDash's liability insurance has been exhausted.

State Farm

State Farm offers rideshare coverage for passenger drivers and food delivery drivers. If you are a DoorDash driver, you can add a "business use" notation to your personal car insurance policy. This option is generally less expensive than rideshare insurance and provides coverage for both personal and business use.

Allstate

Allstate offers rideshare coverage under the name "Ride for Hire," which is an add-on to your existing car insurance policy. This policy is specifically designed for delivery and rideshare drivers and provides coverage for both personal and business use. However, it may be expensive depending on your location and insurance policy.

USAA

USAA offers add-on coverage for rideshare and delivery services, making it easy to adapt your personal car insurance policy for business use. This coverage is available for ridesharing with passengers and food delivery. However, USAA membership is limited to military members and their families.

It is important to note that the cost of delivery driver insurance can vary depending on the insurance company and your individual circumstances. It is recommended to compare quotes from multiple providers to find the best coverage for your needs.

Does DoorDash offer insurance to its drivers?

DoorDash does offer its drivers basic liability insurance of up to $1 million, but this only applies to accidents that occur while on an active food delivery. This means that if you are driving to pick up food, or are waiting for an order, DoorDash's insurance policy will not cover you.

DoorDash's insurance covers bodily injury, damage to third-party property, and damage to other parties in an accident. It is important to note that this is a basic liability insurance, meaning it only covers damage or injury to the other vehicle or party involved in an accident. The coverage provided by DoorDash is to protect them from being sued if a driver is at fault in an accident while driving for them.

DoorDash drivers are still required to maintain their own insurance that complies with local insurance laws. It is recommended that drivers purchase additional insurance coverage to fill the gap between their personal insurance and DoorDash's coverage. This additional coverage can be purchased as an add-on to a personal car insurance policy or as a separate commercial policy.

Insurance Options for DoorDash Drivers:

• Purchase rideshare coverage from your personal auto insurance company.
• Switch to an insurance company that offers rideshare coverage.
• Buy a commercial car insurance policy.
• Purchase business-use coverage as an add-on to your existing policy.
• Purchase commercial coverage if you use your vehicle solely for business purposes.

Best Insurance Companies for DoorDash Drivers:

• GEICO: GEICO offers a hybrid policy that includes coverage for rideshare driving, delivery driving, and personal use. GEICO also offers low deductibles and has no mileage restrictions.
• Progressive: Progressive offers add-on coverage for existing customers, with a unique policy that can be customized to account for seasonal driving.
• State Farm: State Farm offers a rideshare addition to their policies, which covers DoorDash drivers. They recommend a business-use add-on for while you’re using the DoorDash app.
• Allstate: Allstate offers rideshare coverage called Ride for Hire, which applies to delivery drivers and those with passengers. They also offer gap protection and deductible gap coverage.
• Erie: Erie is one of the least expensive options for rideshare insurance and offers coverage for rental cars and glass repair. However, it is only available in a limited number of states.

What are the insurance requirements for driving for DoorDash?

DoorDash requires drivers to have their own insurance coverage. This is a stipulation in the Independent Contractor Agreement and is a prudent safety measure for the driver's protection when they are not actively delivering.

DoorDash offers supplemental auto liability insurance during active deliveries, but this does not cover the driver's own vehicle. This coverage is considered secondary and will only apply to any excess costs. It is also only available if the driver already has their own insurance coverage.

Therefore, it is important to check with your insurance company to see if your current policy covers driving for business or commercial reasons. If not, you may need to purchase additional coverage or switch to a company that offers better coverage for food delivery drivers.

Some insurance companies offer an inexpensive policy add-on that will cover you while driving for a company like DoorDash. For example, State Farm offers rideshare coverage for an additional 15%-20% on your premium, while Allstate's coverage costs around $30-$120 annually.

It is also worth noting that if you do not inform your insurance company that you are driving for DoorDash, they may cancel your policy and deny your claims.

Frequently asked questions