Jeffrey Wade
Instacart is an app that lets people order groceries from local stores. Individuals can sign up to become shoppers or drivers to gather and deliver orders. While Instacart does not provide its drivers with auto insurance, drivers are required to carry auto insurance. This has led to concerns about whether Instacart makes insurance premiums go up. Instacart does not specifically ask for commercial coverage on personal policies, but insurance companies may require it, leading to higher costs. Many companies offer commercial policies for Instacart drivers, with rates varying depending on the company and location. Some insurers treat ridesharing and delivery driving differently, with some covering Instacart if a rideshare add-on is purchased, while others require a separate commercial policy.
| Characteristics | Values |
|---|---|
| Instacart providing insurance to drivers | No |
| Instacart requiring insurance from drivers | Yes |
| Instacart requiring commercial insurance | No |
| Instacart requiring proof of insurance | Yes |
| Companies offering insurance for Instacart drivers | State Farm, Geico, Allstate, USAA, Travelers, Progressive |
| Companies covering Instacart without a commercial policy | Varies by insurer |
| Companies requiring a commercial policy for Instacart | Varies by insurer |
| Instacart insurance rates | Varies by insurer |
| Instacart insurance fraud | Possible if not disclosed to insurer |
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What You'll Learn
Instacart doesn't provide drivers with auto insurance
Instacart does not provide auto insurance for its drivers. Instacart's independent contractor agreement requires drivers to obtain their own car insurance, including any necessary no-fault automobile liability or commercial liability insurance. The company's contract explicitly states that Instacart does not provide any insurance and that drivers should verify whether their automobile insurance covers delivery services.
As a result, Instacart drivers must rely on their personal auto insurance policies or purchase additional coverage specifically for ridesharing or delivery services. Some insurance companies, such as State Farm and Allstate, offer rideshare insurance endorsements that can be added to a personal car insurance policy. These endorsements typically cost between 15% and 20% of the driver's personal premium, though Allstate does not disclose the exact cost of its rideshare insurance.
It is important to note that not all personal auto insurance policies will cover accidents that occur while driving for a delivery or rideshare company. Therefore, Instacart drivers should carefully review their insurance policies and consider purchasing additional coverage to ensure they are adequately protected in the event of an accident.
Additionally, some insurance companies may require Instacart 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. Commercial auto insurance can be significantly more expensive than a personal policy, so drivers should consult with their insurance company to determine if it is necessary for their specific situation.
Overall, while Instacart does not provide auto insurance for its drivers, there are several options available for drivers to ensure they have the necessary coverage, including rideshare insurance endorsements and commercial policies. By carefully reviewing their insurance options, Instacart drivers can make informed decisions to protect themselves financially in the event of an accident.
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Some insurance providers don't cover food deliveries
Instacart does not provide insurance for its drivers. As such, it is the responsibility of Instacart drivers to obtain their own car insurance. However, some insurance providers do not cover food deliveries, and some drivers have reported being denied coverage by their insurance companies after informing them that they were shopping for Instacart.
Some insurance companies, such as Allstate, State Farm, and Geico, offer rideshare insurance, which covers food delivery services like UberEATS, DoorDash, and GrubHub. However, it is important to note that not all insurance policies cover food delivery services, and it is the driver's responsibility to verify whether their automobile insurance covers performance while delivering food.
Food delivery can be considered “business use” of a vehicle, which may require a separate commercial insurance policy on top of a personal policy. This is because many insurance companies consider the business use of a vehicle to be a higher risk than personal use. As such, it is essential for drivers to contact their insurance providers to determine if they need additional coverage for food delivery services.
Some insurance companies, like AAA, Allstate, Farmers, Liberty Mutual, Nationwide, and Progressive, offer commercial policies specifically for delivery drivers. These policies can provide coverage for drivers who use their vehicles to deliver food, groceries, or medicine. Additionally, some delivery companies, like Amazon and Caviar, provide their drivers with additional coverage on top of their personal policies.
It is important to note that not having proper insurance as a delivery driver could result in severe liability for the individual and their employer. Therefore, it is crucial for drivers to ensure they have the appropriate coverage before starting food delivery services.
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Commercial insurance is not always required
Instacart does not provide any insurance coverage for its delivery drivers. The company's independent contractor agreement states that drivers must obtain their own car insurance and verify whether their automobile insurance covers delivery services.
Some insurance companies offer inexpensive policy add-ons or endorsements 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 rideshare insurance for around $27 per month. If your insurance company does not offer rideshare coverage, you may need to switch to a company that does, or purchase a separate commercial policy.
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 your claim being denied, your policy being dropped, and even criminal charges.
Instacart has partnered with Stride to offer its shoppers affordable insurance plans. These include accident insurance plans that can help cover out-of-pocket expenses from any covered injury, whether received while shopping or not. Stride also offers dental, vision, and health insurance plans that shoppers can continue even if they stop working with Instacart.
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Some companies offer rideshare add-ons
Instacart does not provide its drivers with auto insurance. The company requires drivers to obtain their own car insurance and proof of insurance. However, Instacart does not specify whether commercial coverage is necessary on top of a personal policy.
Some insurance companies treat rideshare and delivery driving differently, so it's important to clarify that you drive for Instacart when shopping for coverage. Certain companies will cover driving for Instacart if you purchase a rideshare add-on, while others will require a separate commercial policy.
For example, Geico and Progressive are known for offering affordable Instacart auto insurance policies. Geico's rates start at $44 per month, while Progressive offers a range of discounts.
USAA is another option, with rates as low as $86 per month for Instacart delivery drivers.
State Farm is also an option for Instacart drivers, with rates starting at $44 per month. It's worth noting that State Farm's coverage may depend on the state, with some states requiring an additional endorsement for rideshare services.
It is essential to understand the insurance requirements for delivery drivers in your specific location and to carefully review the terms of any insurance policy before purchasing.
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Lying about driving for Instacart is insurance fraud
Instacart does not provide insurance for its drivers. This means that drivers are responsible for obtaining their own insurance. However, some insurance companies do not cover accidents that occur when delivering for Instacart. As a result, some Instacart drivers choose not to disclose to their insurance company that they are driving for Instacart.
Insurance companies may find out about a policyholder's Instacart driving through various means. For example, if a policyholder gets into an accident while delivering for Instacart and mentions it to the police or insurance company, the insurance company may learn about the policyholder's Instacart driving. Additionally, if a policyholder discusses their Instacart driving online or with others, this information could reach the insurance company.
It is important to note that even if an insurance company does not specifically ask about driving for Instacart, lying about it is still considered fraud. Policyholders have a responsibility to disclose all relevant information accurately. Therefore, it is crucial to be honest with your insurance company about your driving activities to avoid any legal or financial repercussions.
To avoid insurance fraud, Instacart drivers should be honest with their insurance companies and carefully review their policies to ensure they have the necessary coverage. Some insurance companies offer rideshare or delivery driver insurance plans that can provide the required protection for Instacart drivers. Comparing quotes and speaking with insurance agents can help drivers find the right coverage for their needs.
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Frequently asked questions
Instacart does not provide its drivers with auto insurance. Therefore, drivers are encouraged to obtain their own car insurance. This may result in higher insurance premiums, as many car insurance companies consider the business use of a vehicle to be a higher risk than personal use.
It is considered insurance fraud to lie to your insurance company about using your vehicle for Instacart. If you are caught, your claim may be denied, your policy may be dropped, and you may even face criminal charges.
Some insurance companies that offer auto insurance for Instacart drivers include State Farm, Geico, and Allstate.
Commercial insurance is not specifically required by Instacart, but it is a good idea to check with your insurance company about what type of insurance you need as a delivery driver.
To get the best rate, it is recommended to compare quotes from multiple companies. By shopping around, you can find an affordable plan that suits your needs and driving style.
