Navigating Insurance Options: Understanding Doordash's Insurance Policy For Dashers

If you are a DoorDash driver, you will need to change your insurance to a business or commercial policy. This is because your personal auto insurance policy will not protect you when delivering for DoorDash. This is considered business use of your vehicle, and personal auto insurance policies only cover personal use. You can add business-use coverage to your existing auto insurance policy for a few extra dollars per month. Commercial coverage is another option if you exclusively use your vehicle for DoorDash.

Personal auto insurance policies do not cover business use

If you're using your vehicle for work, it's important to understand that your personal auto insurance policy will not cover you. This is because personal auto insurance policies are designed for personal use only, such as running errands or commuting to work. When you start using your vehicle for business purposes, such as delivering food for DoorDash, you need to make sure you have the right insurance coverage in place.

Personal auto insurance policies typically exclude business use, which means that if you get into an accident while driving for work, your insurance company will likely reject your claim. This is because insurance companies view business drivers as a higher risk than personal drivers. The reason for this is that people who drive for work are generally on the road more often and, therefore, have a greater chance of getting into an accident.

So, what happens if you get into an accident while delivering food for DoorDash and you only have personal auto insurance? In this case, you may be responsible for paying for all the damages and repairs out of your own pocket. Not only that, but you could also be sued by the other party involved in the accident, leaving you with even more costs to cover.

To avoid this situation, it's crucial to purchase additional insurance that covers business use. You have a few options for this:

• Business-use coverage: You can add this type of coverage to your existing auto insurance policy. It typically only costs a few extra dollars per month and will protect you when using your vehicle for business purposes.
• Commercial coverage: This type of coverage is suitable if you use your vehicle solely for business purposes, such as if you drive for DoorDash full-time. It covers businesses and their vehicles.
• Hired and non-owned auto insurance (HNOA): This type of policy is useful if you use your personal vehicle for work errands. It provides liability coverage if you get into an accident while driving your vehicle for work purposes.

DoorDash provides basic liability coverage to drivers

If you are a DoorDash driver, you will need to purchase special auto insurance. Your personal auto insurance will not cover you when delivering for DoorDash. This is because your personal auto insurance policy was designed to protect you during the personal use of your vehicle, not business use.

DoorDash does provide basic liability insurance of up to $1 million for its drivers. However, this only covers accidents that happen while on an active delivery. This means that you are only covered when you accept a delivery request until your customer receives their order or the order is canceled. This basic liability coverage includes:

• Bodily injury
• Damage to third-party property
• Damage to other parties in an accident
• Liability for accidents that occur when food is in your car for an active delivery

It is important to note that DoorDash's basic liability coverage is limited and does not cover all situations. For example, it does not cover you when you are on your way to pick up an order or driving back from dropping off an order. Additionally, it only covers damage or injury to the other vehicle or party involved in an accident, not the DoorDash driver or their vehicle. Therefore, it is recommended that DoorDash drivers purchase additional insurance coverage to fill in any gaps.

Business-use coverage can be added to most auto insurance policies

If you are a DoorDash driver, you will need to add extra insurance to your standard policy as your personal auto insurance policy will not protect you when delivering for DoorDash. This is because personal auto insurance policies cover personal use of a vehicle, not business use. When you are delivering for DoorDash, you are using your vehicle for business purposes and, therefore, require business-use coverage.

Business-use coverage is distinct from commercial coverage. Commercial coverage is suitable for those who use their vehicle solely for DoorDash deliveries and not for personal use. If you use your vehicle for both personal and business purposes, you will need to take this into account when purchasing business-use coverage.

It is also important to note that DoorDash provides basic liability coverage to drivers when they are actively making a delivery. However, this only covers third-party damage and injuries, and only when there is food in the vehicle. Therefore, it is crucial to have your own business-use coverage to ensure you are protected at all times when working as a DoorDash driver.

Commercial coverage is for vehicles used solely for business

Commercial auto insurance is a necessity for businesses that rely on transportation for their operations, such as delivery services, contractors, and companies with fleets. It is also required by law in some states, such as California and Michigan. Even if it is not mandated, your business could be in legal and financial jeopardy without it. If one of your business vehicles is at fault in an accident, you could face an expensive lawsuit or settlement, including damage to the other vehicle or property, medical costs, lost wages, pain and suffering, and other related costs.

Commercial auto insurance covers a range of vehicles, including cars, trucks, vans, and specialty vehicles used for business. It is important to note that personal auto insurance policies typically do not cover vehicles used for business purposes. Therefore, if vehicles are necessary for your work, it is essential to obtain commercial auto insurance to protect them.

Commercial auto insurance provides liability and physical damage protection for vehicles used for business. It typically covers bodily injury liability and property damage liability to third parties, personal injury to you, your employed drivers, or passengers (including medical expenses and lost wages), collision coverage for accidents regardless of fault, and comprehensive coverage for damage other than collision.

The cost of commercial auto insurance depends on various factors, including the company, the size of your business, the types of vehicles used, the number of vehicles insured, your business's risks, and the amount of coverage needed. It is generally more expensive than personal auto insurance due to the higher risks associated with commercial vehicles.

If you are a DoorDash driver, it is crucial to purchase DoorDash insurance or add business-use coverage to your existing auto insurance policy. While DoorDash provides basic liability coverage to its drivers, it only applies during active deliveries with food in the vehicle, leaving significant gaps in coverage. Without business-use or commercial coverage, you may be responsible for damages to your vehicle and others involved in an accident.

You may need to change your vehicle usage to 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.

Business-Use Coverage

Business 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.

Some insurance companies cover you while making DoorDash deliveries under a standard insurance policy if you classify the vehicle as a Business Use vehicle. 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.

There are three types of use classifications:

• Personal Use: Drives very limited miles to run errands or for personal matters only.
• Work Use: Drives daily to and from work in addition to driving their car for personal reasons.
• Business Use: Drivers use their vehicles for deliveries, rideshare, or to drive to and from meetings.

When you do any delivery work, insurers typically want you to add additional coverage to your car insurance or change your car’s usage classification to “business use” to indicate you drive more than the average miles. These changes can increase your car insurance premiums, but when they do, it’s typically not a huge difference.

Some carriers, like GEICO, already factor in higher mileage. These carriers don’t require any adjustments to your policy when you become a DoorDash driver. The best way to determine how driving for DoorDash will affect your car insurance policy is to read the terms or contact your insurance company.

Commercial Coverage

Commercial coverage covers businesses and their vehicles. You may want to opt for this coverage if you use a vehicle solely for your DoorDash deliveries and not for personal use.

Frequently asked questions