Doordash Drivers: Commercial Auto Insurance Costs Explained

If you're a DoorDash driver, you need to be aware of the company's auto insurance policies and requirements. While DoorDash does provide some insurance coverage for its drivers, it's important to understand the limitations and fill any gaps with additional insurance.

DoorDash offers commercial auto insurance to its drivers, known as Dashers, which covers up to up to $1 million in bodily injury and property damage during an active delivery period. However, this coverage is secondary, meaning it only kicks in after your personal auto insurance policy has been exhausted. As such, it's crucial for Dashers to maintain their own auto insurance that meets their state's minimum requirements.

The primary requirement for DoorDash car insurance is that your personal insurance provider must always be the first to cover any accidents or claims. DoorDash's commercial coverage will only come into effect if your personal insurance claim is denied or doesn't cover the total amount. Additionally, DoorDash's coverage only applies when you are actively delivering items and have food in your vehicle.

To ensure adequate protection, many Dashers opt for additional rideshare or commercial auto insurance. This provides higher liability protection, increased coverage for property damage and personal injuries, and potential coverage for legal fees. It's important to note that using your vehicle for business purposes without the appropriate insurance could result in claim denials or policy cancellations.

When choosing an insurance provider, consider factors such as coverage options beyond liability, cost, discounts for delivery drivers, and the company's reputation for customer service and claims handling. Some recommended insurance companies for Dashers include State Farm, Geico, and Progressive, which offer tailored coverage for delivery drivers at affordable rates.

Commercial auto insurance for DoorDash drivers: what you need to know

If you're a DoorDash driver, it's important to understand the ins and outs of commercial auto insurance to ensure you're properly protected in the event of an accident. Here's a comprehensive guide to help you navigate this topic.

As a DoorDash driver, it's crucial to recognize that your personal auto insurance policy typically will not cover you when delivering for DoorDash or other food delivery services. This is because delivering food is considered a "business use" of your vehicle, which falls outside the scope of personal auto insurance. Therefore, it's essential to have the appropriate commercial coverage in place.

Understanding the Coverage Gap

There is often a gap between your personal auto insurance and the coverage provided by DoorDash. While DoorDash offers a commercial auto insurance policy, it only applies during the "delivery service" period, which begins when you accept a delivery request and ends when the order is delivered, unassigned, or canceled. This means that if you're driving to pick up an order or waiting for a request, you may not be covered by DoorDash's insurance.

Options for Commercial Auto Insurance

To fill the coverage gap, you have a few options:

• Business-use coverage: You can add this option to your existing personal auto insurance policy. Contact your insurer and inform them that you drive for DoorDash. For a few extra dollars per month, they can extend your coverage to include business use of your vehicle.
• Commercial coverage: If you use your vehicle exclusively for DoorDash or similar services, commercial coverage may be a better fit. This type of policy is designed to cover businesses and their vehicles.

Understanding DoorDash's Basic Liability Coverage

DoorDash provides basic liability coverage to drivers when they have food in their vehicles. This means that if you cause an accident while on an active delivery, DoorDash's insurance should protect you from third-party property damage and bodily injury claims. However, it's important to note that DoorDash's coverage is secondary, meaning it only kicks in after your own insurance policy has been exhausted.

The Importance of Disclosure

It is crucial to be honest with your insurance company about your work as a delivery driver. Failing to disclose this information could result in denied claims or even insurance fraud charges. Insurance companies have ways to verify whether you were engaged in delivery activity at the time of an accident, so it's always best to be upfront and ensure you have the appropriate coverage in place.

Shopping for Commercial Auto Insurance

When shopping for commercial auto insurance as a DoorDash driver, you have several options:

• Contact your current insurance company and inquire about adding food delivery coverage, rideshare insurance, or business-use coverage. Most major insurance companies offer these options.
• Shop around and compare quotes from different insurance providers. Some companies may be more accommodating to DoorDash delivery drivers than others.

As a DoorDash driver, it's essential to understand the specifics of commercial auto insurance to ensure you have the proper coverage. By disclosing your delivery activities to your insurer and obtaining the necessary coverage, you can rest assured that you're protected in the event of an accident. Remember, it's always better to be safe than sorry when it comes to insurance!

How much does commercial auto insurance for DoorDash drivers cost?

Commercial auto insurance for DoorDash drivers can vary in cost depending on several factors. Firstly, it is important to note that DoorDash does provide its drivers, known as "Dashers", with commercial auto insurance coverage of up to $1 million in bodily injury or property damage while they are on "active delivery" time. However, this coverage only comes into effect if the driver's personal insurance policy denies a claim.

As a Dasher, your personal auto insurance policy will not cover you when delivering for DoorDash, as it is considered business use of your vehicle. Therefore, it is recommended to add business-use coverage or commercial coverage to your existing policy. The cost of this additional coverage can vary depending on your insurance provider, but it typically only adds a few extra dollars to your monthly premium. For example, State Farm estimates that adding rideshare coverage will increase your premium by 15-20%, while USAA's rideshare gap coverage can be as low as $6 per month.

Additionally, the cost of commercial auto insurance can depend on factors such as the type of vehicle you drive, your location, and how often you drive for work. It is worth noting that commercial policies can be slightly more expensive than personal policies, but the price will ultimately depend on your personal attributes and your vehicle.

To get the best DoorDash car insurance coverage, it is recommended to contact your current insurance company and inquire about food delivery coverage, rideshare insurance, or business-use coverage. Shopping around with other insurance providers is also an option, as some companies may offer more competitive rates for DoorDash delivery drivers.

The best commercial auto insurance companies for DoorDash drivers

If you're a DoorDash driver, you'll need to get a commercial auto insurance policy as you'll be using your vehicle for a commercial purpose. While you can get free liability auto insurance coverage from DoorDash, it only covers you during active deliveries and has specific requirements.

State Farm

State Farm is one of the largest insurance companies in the US, offering affordable rates, a wide variety of discounts, and high levels of customer satisfaction. Their rates start at around $44/month for food delivery drivers. However, they have high rates for drivers with poor credit scores and do not offer gap insurance, new vehicle replacement, or vanishing deductible options.

Geico

Geico provides affordable rates for safe drivers, with a user-friendly mobile app and website. They also have a government employee discount. However, they have higher rates for drivers with a DUI and limited local agents for in-person service.

Progressive

Progressive offers flexible policies with affordable rates, even for high-risk drivers. Their Snapshot program can help low-mileage, safe drivers save money. However, they have expensive rates for teen drivers, and their customer service ratings are not as good as their competitors.

Allstate

Allstate provides excellent customer service and a wide range of coverage options and add-ons, including gap, rental car, and rideshare insurance. They also have a reward program and a claim satisfaction guarantee. However, they have expensive rates for senior drivers and those with poor credit scores.

USAA

USAA is known for its top-rated customer service and competitive rates, with numerous discounts available. However, their eligibility is limited to military members, veterans, and their families, and they do not offer gap coverage.

Farmers

Farmers Insurance offers customizable policies with various coverage options and add-ons, including rideshare coverage. They have high satisfaction rates for claims handling and customer service. However, their rates are higher than the national average, and customers are less likely to renew.

Liberty Mutual

Liberty Mutual provides comprehensive coverage options and add-ons, with discounts for bundling policies. They also have a RightTrack Program that can save you up to 30% on your auto insurance. However, they have mixed reviews for claims processing and customer service.

Nationwide

Nationwide has superior financial stability and good customer service, with an easy-to-use website and mobile app. They offer coverage options like gap, medical payment, rental car, and bodily injury coverage. However, their availability is limited, and some discounts are not offered in every state.

Mercury

Mercury offers competitive rates and various discounts, including multi-policy and good driver discounts. They have easy-to-use digital tools and strong financial stability. However, they have limited coverage options compared to other providers and mixed customer reviews.

Travelers

Travelers provide extensive coverage options and strong financial stability, with discounts available for various policies. However, they have higher premiums and mixed reviews for customer service and claims processing.

How to get the best commercial auto insurance rates for DoorDash

Commercial auto insurance is required for DoorDash drivers as the act of delivering goods may fall outside the scope of a personal auto insurance policy. While DoorDash provides commercial auto insurance for its drivers, it is recommended that drivers also purchase additional coverage to ensure they are adequately protected. Here are some tips to help you get the best commercial auto insurance rates for DoorDash:

• Shop around and compare quotes from multiple insurance companies. Rates for commercial auto insurance can vary significantly between insurers, so it's important to get quotes from at least three companies to find the best rate.
• Consider the financial stability of the insurance company. Check the financial health of the insurer by referring to ratings from companies like AM Best and Standard & Poor's. This will help ensure that the company will be able to pay out claims if needed.
• Ask about discounts. Many insurance companies offer discounts for various reasons, such as having a good driving record, bundling policies, or having safety features in your vehicle. Don't be afraid to inquire about any potential discounts you may be eligible for.
• Increase your deductible. By opting for a higher deductible, you can lower your premium. Just make sure you have enough money set aside to cover the deductible in case of an accident.
• Review your coverage needs. Assess your situation and determine if you need all the coverage options offered. If there are any coverages that you don't need, consider removing them to lower your premium.
• Bundle your policies. If you have other types of insurance, such as homeowners or renters insurance, consider bundling them with your auto insurance. Many companies offer discounts for multiple policies.
• Maintain a good credit record. Insurance companies often use credit information to determine insurance rates. By establishing a solid credit history and maintaining a good credit score, you may be able to get a lower premium.
• Take advantage of low mileage discounts. If you drive fewer miles than the average person, you may be eligible for a discount. This is especially relevant for DoorDash drivers who only work part-time.
• Monitor your driving behaviour. Some insurance companies offer usage-based insurance, where they track your driving behaviour through an app or a device plugged into your car. If you demonstrate safe driving habits, you may be able to qualify for a discount.
• Choose a safe and secure vehicle. Insurance companies consider the type of vehicle you drive when determining your premium. Cars that are cheaper to insure tend to have better security features, lower emissions, and lower repair costs.

The risks of not having commercial auto insurance for DoorDash

Firstly, it is important to understand that using your vehicle for DoorDash deliveries constitutes business use, not personal use. Standard personal auto insurance policies typically do not cover business use, leaving you unprotected in the event of an accident. If you cause an accident while delivering for DoorDash without commercial coverage, your insurer will likely deny your claim, leaving you personally responsible for all damages and medical bills. This can result in significant out-of-pocket expenses that could have been avoided with proper insurance.

Secondly, there is a gap in coverage provided by DoorDash itself. While DoorDash provides basic liability coverage when there is food in your vehicle during an active delivery, this coverage is limited. When you are simply available for delivery or driving to pick up food, DoorDash's insurance does not apply, and your personal insurance will not cover business use. This gap in coverage leaves you vulnerable and underscores the necessity of commercial or business-use insurance.

Thirdly, attempting to hide your DoorDash activity during an accident claim is ill-advised and may result in insurance fraud charges. Insurers can and will investigate your claim, including checking your status with DoorDash and reviewing police reports that may mention a food delivery bag in your vehicle. Being dishonest about your activities at the time of the accident is a huge risk and can lead to serious legal consequences.

Finally, failing to disclose your occupation as a delivery driver to your insurance company is also risky. Your coverage may be canceled or future claims denied if your insurer discovers that you have been using your vehicle for business purposes without the appropriate coverage. Honesty is always the best policy, and it is crucial to speak directly with an insurance agent to ensure you have the correct coverage for your activities.

In conclusion, not having commercial auto insurance for DoorDash can lead to denied claims, out-of-pocket expenses, and potential legal troubles. It is essential to understand the limitations of personal and DoorDash insurance policies and to proactively address these gaps with commercial or business-use coverage to ensure you are protected in all situations.

Frequently asked questions