Understanding Door Dash Insurance: Making Changes To Suit Your Needs

If you're a DoorDash driver, you may need to add extra insurance to your standard policy. 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. If you're using your vehicle to make money, this is considered business use by your insurer and will require special coverage on your policy.

DoorDash's basic liability insurance

DoorDash provides basic liability insurance of up to $1 million for Dashers, but it only covers accidents that happen while on an active delivery. This means that the coverage only applies when you accept a delivery request until the time the order has been delivered. If a customer or business cancels the order or the order is unassigned, the coverage will drop off.

Additionally, DoorDash's insurance policy is considered secondary coverage, meaning it only applies to any excess costs. In other words, your personal auto insurance policy must pay out first, and DoorDash's insurance will only cover costs that exceed your policy limits.

It is also worth mentioning that DoorDash's insurance does not cover you while you are on your way to pick up an order or driving back after dropping off an order. Therefore, it is crucial to have your own insurance policy that covers you during these periods.

To summarise, while DoorDash's basic liability insurance provides some protection, it is important to have additional coverage to fill in the gaps and ensure you are fully protected while working as a DoorDash driver.

Personal auto insurance

If you are a DoorDash driver, your personal auto insurance policy will not cover you while you are on the job. In most cases, your traditional 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. If you are using your vehicle to make money, this is considered business use by your insurer and will require special coverage on your policy.

Therefore, you might need to add additional insurance to your standard policy. With some carriers, normal coverage won’t cover you while using your car for food delivery. You should ensure your policy covers you when working as a DoorDash driver — some don’t.

Some insurance companies require you to add additional coverage to your policy, some need to change your car’s classification to “business use,” and some cover you on your standard insurance policy.

Business-use 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. However, this might raise your premium slightly because it lets your insurance company know you use your vehicle more frequently than someone who only drives their car for personal errands.

Commercial coverage may be another option. Under commercial coverage policies, businesses and vehicles used for those businesses would be 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 alone does not offer protection for business cars, but 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.

DoorDash does provide basic liability car insurance to their drivers, but it is crucial to understand that even though DoorDash provides this coverage, there are some gaps in the policy. For example, the insurance from DoorDash will only cover you if you are on food delivery on behalf of the company and if there is food in the car. This means you will not have coverage on your way to pick up the meal, even though your personal insurance will likely count that as a business trip and deny coverage as well. It is because of these situations that it is vital to have your own business policy.

Business-use coverage

If you are a DoorDash driver, you will need to consider purchasing additional 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.

However, it is important to note that business-use coverage will only cover you while you are working. If you have a vehicle that you use for both deliveries and personal use, business-use coverage may not be the best option. In this case, you may want to consider a commercial policy, which covers both personal and business use. Commercial policies are generally more expensive than business-use coverage, but they offer more comprehensive protection.

When choosing an insurance policy, it is important to read the fine print and understand the exclusions. For example, DoorDash's insurance policy only covers you while you are on an active delivery. It does not cover you while you are on your way to pick up an order or driving back from dropping off an order. Additionally, DoorDash's insurance only covers third-party damage and injuries, so you will still need your own insurance to cover any damages to your vehicle.

Commercial coverage

• Requirement for Commercial Coverage: Commercial coverage is typically required for DoorDash drivers who use their vehicles solely for delivery purposes and not for personal use. If you only use your vehicle occasionally for DoorDash deliveries, you may be able to add a business-use endorsement to your personal insurance policy instead of purchasing a separate commercial policy.
• Cost of Commercial Coverage: The cost of commercial coverage can vary depending on your location, insurance provider, and vehicle. Some insurance companies offer commercial policies specifically designed for delivery drivers, which can be more affordable. For example, Allstate's commercial coverage costs around $30-$120 annually.
• Benefits of Commercial Coverage: Commercial coverage ensures that you are protected in the event of an accident while on a delivery. Without commercial coverage or a similar endorsement, your personal insurance policy may not cover damages to your vehicle or others' vehicles and property.
• Insurance Companies Offering Commercial Coverage: Several insurance companies offer commercial coverage or similar options specifically for delivery drivers. These include State Farm, Allstate, Progressive, and Geico. These companies have different requirements for their commercial policies, so it is important to review their terms carefully.
• Considerations for Switching Insurance: When considering switching to a commercial policy or adding an endorsement for delivery driving, it is essential to review the terms of your current insurance policy. Some personal insurance policies may already cover business use to some extent, so it is worth checking with your provider before making any changes. Additionally, be mindful that switching insurance policies or adding endorsements may result in changes to your premiums.
• Importance of Disclosure: It is crucial to disclose to your insurance company if you are using your vehicle for delivery driving. Failure to do so could result in your policy being cancelled or claims being denied.

In summary, commercial coverage or a similar endorsement is essential for DoorDash drivers to ensure they have adequate protection while on deliveries. It is important to review the terms of your current insurance policy and carefully consider the options offered by different insurance providers to find the best coverage for your needs.

Personal coverage

If you are a DoorDash driver, it is important to understand the different types of insurance coverage available to you. While DoorDash provides basic liability insurance to its drivers, this may not be sufficient for all situations.

Personal auto insurance policies are designed for personal use, not business use. This means that if you are in an accident while on a delivery, your personal auto insurance policy will likely not protect you. As such, it is important to consider purchasing additional insurance or adding a notation to your personal policy to cover business use.

Some insurance companies offer personal coverage that can be extended to include business use. This option may only be available if the vehicle is used infrequently for business purposes and may result in a higher premium. It is important to disclose to your insurer that your vehicle is used for business purposes, as failure to do so could result in your policy being cancelled.

GEICO, for example, offers personal auto insurance policies that cover both personal and business use. Their policy covers DoorDash drivers and applies to multiple business operations that require the use of your car. However, this type of insurance may not be available in every state.

Another option for personal coverage is to add a 'ride-share' add-on to your existing policy. This can provide coverage for DoorDash driving at a relatively low cost. Some insurance companies, such as Progressive, offer this type of add-on to cover on-demand delivery or driving services.

In summary, while personal coverage alone may not be sufficient for DoorDash driving, there are options available to extend your personal policy to include business use. It is important to review the terms of your policy and contact your insurance company to make any necessary adjustments to ensure you are properly covered.

Frequently asked questions