Paul Sanchez
Instacart does not offer insurance for its drivers, unlike other delivery services. However, Instacart requires its drivers to have a personal liability car insurance policy and valid auto insurance. While Instacart does not specifically ask for commercial coverage, it is important to check with your car insurance company about what you should have as a delivery driver, as some companies will require you to buy a separate commercial policy.
| Characteristics | Values |
|---|---|
| Does Instacart check insurance? | Instacart will confirm you have a valid auto insurance policy during your background check. |
| Does Instacart offer insurance for its drivers? | Instacart does not offer insurance for its drivers. |
| Does Instacart require commercial insurance? | Instacart doesn't specifically ask for commercial coverage on your personal policy, but it's a good idea to check with your car insurance company about what you should have as a delivery driver. |
| What happens if I don't inform my insurance company about using my vehicle for work? | If you choose to not let your company know about you using your vehicle for work, you may have your insurance claims denied in the event of an accident. |
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What You'll Learn
Instacart requires proof of insurance
During the onboarding process, drivers are required to input their insurance and driver's license information. Instacart will then confirm that they have a valid auto insurance policy during a background check. It is important to note that Instacart's insurance should not be considered a substitute for personal auto insurance. It is primarily intended to provide coverage while drivers are actively working on the Instacart platform.
The specific vehicle requirements and restrictions may vary depending on the driver's location and the terms of their insurance policy. Some insurance companies may require drivers to purchase a commercial policy on top of their personal policy, as the business use of a vehicle is often considered a higher risk than personal use. In some cases, a rideshare add-on can be purchased to extend coverage to delivery driving.
It is important for drivers to clarify with their insurance provider whether their policy covers delivery driving. Failing to disclose this information to an insurance company can result in insurance fraud, with potential consequences such as denied claims, dropped policies, or even criminal charges. Additionally, getting into an accident while delivering for Instacart without the proper insurance coverage can result in significant financial burdens.
To assist with the complexities of insurance, Instacart has partnered with Stride Health. Stride provides support and resources for workers who handle insurance independently, helping them navigate the process of finding the right insurance plan for their needs. Stride offers access to a range of insurance plans, including dental, vision, life, and health insurance, with tools to help maximize savings and prepare for taxes.
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Instacart doesn't provide drivers with insurance
Instacart does not provide its drivers with insurance. This means that drivers are responsible for securing their own insurance coverage. While Instacart does not offer company insurance, it does require its drivers to provide proof of a personal auto insurance policy before they can start working. This policy must comply with the driver's state's regulations, and many top auto insurance providers mandate that their drivers have rideshare insurance.
Drivers should be aware that their personal car insurance may not cover accidents that occur when delivering for Instacart. In this case, they would need to purchase a separate policy, such as courier vehicle insurance, to ensure they are covered. Some companies offer rideshare insurance as an add-on to a personal car insurance policy, which can help fill the gaps in coverage between a customer's personal policy and the coverage provided by a transportation network company.
It is important to note that lying to your insurer about whether you are driving for Instacart is insurance fraud and can result in your claim being denied, your policy being dropped, and even criminal charges. Therefore, drivers should be sure to clarify that they drive for Instacart when shopping for coverage. Some companies may cover driving for Instacart with a rideshare add-on, while others may require a separate commercial policy.
There are a variety of insurance options available to Instacart drivers, including State Farm, which offers coverage options designed for Instacart drivers both on and off the job, and Geico, which offers affordable plans with basic coverage. It is important for drivers to evaluate their needs and compare plans from different insurers to find the best coverage for their specific situation.
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Insurers treat delivery driving differently
It is important to note that each insurer treats delivery driving differently. While some companies will cover driving for Instacart if you purchase a rideshare add-on, others will require you to buy a separate commercial policy.
Some delivery companies provide auto insurance for their drivers. For example, Amazon Flex provides drivers with an Amazon Commercial Auto Insurance Policy in all states except New York. However, the insurance provided by delivery companies may only cover drivers while they are making a delivery, leaving gaps in coverage during the waiting period.
If you are using your own vehicle for delivery, it is important to get the right car insurance. Personal car insurance does not cover delivery drivers when they are working, even when using a personal vehicle. If you do not have the proper insurance and get into an accident, you could be left with a large bill.
To avoid this, you can add a rideshare endorsement to your personal insurance policy. This will increase your premiums, but it will ensure that your liability coverage remains active while you are working as a delivery driver. Commercial insurance plans also include liability coverage and may be a better option if you are completing extra deliveries off the app.
It is important to be honest with your insurer about whether you are driving for Instacart, as lying can result in insurance fraud and have serious consequences.
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Not disclosing delivery driving to your insurer may result in denied claims
Instacart requires its drivers to carry a personal liability car insurance policy to drive for the platform. However, it's important to note that Instacart does not provide insurance for its drivers, and drivers are responsible for maintaining their own personal auto insurance coverage. While Instacart mandates proof of insurance, commercial coverage is only required if your personal insurance policy does not include delivery services.
Each insurer treats delivery driving differently, so it is essential to clarify that you drive for Instacart when shopping for coverage. Some companies will cover driving for Instacart with a rideshare add-on, while others may require a separate commercial policy.
Furthermore, lying to your insurer about whether you are driving for Instacart is considered insurance fraud and can have serious consequences, including claim denial, policy cancellation, and even criminal charges. Therefore, it is crucial to be transparent with your insurer about your delivery driving activities to ensure proper coverage and avoid potential legal issues.
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Commercial insurance may be required
Instacart requires its drivers to carry a personal liability car insurance policy to drive for the platform. However, commercial insurance may be required if your personal insurance policy does not cover the use of your vehicle for delivery services.
Instacart's independent contractor agreement states that drivers must obtain their own car insurance, including any required commercial liability insurance. The company does not provide any insurance coverage for its drivers. Therefore, it is the driver's responsibility to verify whether their automobile insurance covers the performance of delivery services.
While Instacart does not specifically ask for commercial coverage, it is a good idea to check with your car insurance company about the requirements for delivery drivers. Many insurance companies consider the business use of a vehicle to be a higher risk than personal use, and thus, a commercial policy may be necessary.
Additionally, it is important to note that lying to your insurer about whether you are driving for Instacart is insurance fraud and can result in denied claims, dropped policies, and even criminal charges. Therefore, it is crucial to be transparent with your insurance provider about your usage of the vehicle for delivery services to ensure proper coverage.
In summary, while Instacart does not explicitly require commercial insurance, it may be necessary depending on your personal insurance policy and the requirements of your insurance provider. It is essential to clarify the specifics of your policy and ensure that you have the necessary coverage before beginning deliveries for Instacart.
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Frequently asked questions
Yes, Instacart will confirm that you have a valid auto insurance policy during your background check. However, Instacart does not offer insurance for its drivers.
Instacart does not specifically ask for commercial coverage on your personal policy. However, it is a good idea to check with your car insurance company about what you should have as a delivery driver. Many car insurance companies consider the business use of a vehicle to be a higher risk than personal use.
If you choose not to let your company know that you're using your vehicle for work, your insurance claims may be denied in the event of an accident.
