Doordash Excess Auto Insurance: What Dashers Need To Know

If you're a DoorDash driver, it's important to understand the company's auto insurance policy and how it might impact you. Standard personal auto insurance policies typically don't cover business use, which includes delivering food for DoorDash. This means that if you get into an accident while on a delivery, your personal insurance may not cover the costs. To ensure you're protected, it's crucial to consider purchasing additional insurance. Let's take a closer look at what DoorDash's excess auto insurance entails and how it fits into the broader insurance landscape for delivery drivers.

DoorDash's excess insurance policy

DoorDash provides an excess liability insurance policy for its drivers. This means that the company's insurance will only cover the driver after their personal car insurance policy's limits have been exhausted. DoorDash's insurance will cover the driver for up to $1 million if they get into an accident while on an active food delivery. However, it is important to note that this policy only comes into effect when the driver is on an active delivery and only covers third-party damage and injuries.

Gaps in Coverage

There are some gaps in DoorDash's insurance policy. Firstly, it does not cover the driver while they are on their way to pick up an order or driving back from dropping off an order. Secondly, it does not cover any damages to the driver's vehicle or any injuries they may sustain. Therefore, it is crucial for DoorDash drivers to have their own personal car insurance policy that covers business or commercial use.

Basic Liability from DoorDash

DoorDash provides basic liability car insurance to its drivers, which is not offered by some food delivery services. This covers the company from being sued if a driver is at fault for an accident. It will also cover the basic repairs for the other driver's vehicle. However, it is important to note that this insurance only applies if there is food in the car for an active delivery.

Requirements for DoorDash Insurance Coverage

For DoorDash's insurance policy to apply, certain requirements must be met. Firstly, the driver must have at least the state minimum coverage for their personal auto insurance policy. Secondly, the accident or damage must have been caused while the driver was actively making a delivery. If these requirements are not met, DoorDash's insurance will not provide coverage.

Additional Insurance Options for DoorDash Drivers

DoorDash drivers may need to purchase additional insurance to ensure they are fully covered. Some insurance companies offer rideshare coverage, which can be added to a personal auto insurance policy. Other companies may require drivers to purchase a separate commercial policy. It is important for DoorDash drivers to review their insurance policy and contact their insurance provider to ensure they have the necessary coverage.

Personal auto insurance policy gaps

Personal auto insurance policies typically do not cover business use of a vehicle, and using your car for DoorDash deliveries is considered a business use. This means that if you are a DoorDash driver, your personal auto insurance policy will likely not protect you in the event of an accident while on a delivery.

To address this gap in coverage, you may need to add additional insurance to your standard policy. There are several options for doing this:

• Business-use coverage: This type of coverage can be added to most auto insurance policies and will protect you when the vehicle is being used for business purposes. It typically only costs a few extra dollars per month.
• Commercial coverage: This type of policy covers businesses and vehicles used for those businesses. This may be a good option if you use your vehicle solely for DoorDash deliveries and not for personal use.
• Personal coverage: While personal coverage alone does not offer protection for business use, 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 may increase your premium.
• Ride-share coverage: Some insurance companies offer an inexpensive 'ride-share' add-on to your existing policy that covers you if you drive for DoorDash.

It is important to note that failing to disclose to your insurer that your vehicle is used for business purposes may result in the denial of coverage in the event of an accident and could even lead to the cancellation of your policy. Therefore, it is crucial to review your policy terms and contact your insurance company to make any necessary adjustments.

Third-party damage and injuries

If you're a DoorDash driver, you need to be aware of the company's insurance policies and how they might affect you. Standard personal auto insurance policies typically do not protect you if you are involved in an accident while on a delivery. This is because your personal auto policy is designed to protect you during the personal use of your vehicle, not business use.

DoorDash provides an excess liability insurance policy for its drivers, which covers up to $1 million in damages if you get into an accident while on an active delivery. However, it's important to note that this coverage only applies after you've filed a claim through your own auto insurance policy. In other words, if you don't have your own insurance, DoorDash's policy won't cover anything.

One of the key things to understand about DoorDash's insurance is that it only covers third-party damage and injuries. This means that if you are in an accident while on a delivery, DoorDash's insurance will cover any injury to a third party or damage to their vehicle, but you will still need your own insurance to cover any damages to your vehicle.

Here's what you need to know about third-party damage and injuries in relation to DoorDash's excess auto insurance:

Understanding Third-Party Damage and Injuries

DoorDash's Coverage for Third-Party Damage and Injuries

DoorDash's excess liability insurance policy specifically covers third-party damage and injuries. This means that if you are at fault for an accident while on an active delivery, DoorDash's insurance will cover the medical costs and repairs for the other party involved. This can include bodily injury, as well as damage to the third party's vehicle or property.

Limitations and Requirements

It's important to note that DoorDash's coverage for third-party damage and injuries is subject to certain limitations and requirements:

• Your own insurance must pay out first: DoorDash's insurance will only cover medical costs and damages to a third party once the limits on your personal insurance policy have been exceeded.
• You must be at fault: If the accident was caused by a third party, their insurance will be responsible for paying damages and medical bills.
• The accident must occur during an active delivery: DoorDash's insurance only covers accidents that happen while you are actively making a delivery. It does not cover accidents that occur while you are on your way to pick up an order or driving back after dropping off an order.

Additional Considerations

While DoorDash's excess auto insurance provides some coverage for third-party damage and injuries, it's important for drivers to have their own comprehensive insurance policy that covers both personal and business use. This will ensure that you are protected in a variety of situations, including accidents that occur while on a delivery or while using your vehicle for personal reasons.

Additionally, it's worth considering adding ride-share or business-use coverage to your personal insurance policy. This can provide you with the necessary protection while using your vehicle for business purposes, such as making deliveries for DoorDash.

Business-use coverage

If you are a DoorDash driver, it is crucial to purchase DoorDash insurance. 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. 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.

With a commercial policy, your car cannot be used for personal use. You are only covered when you are working. For most Dashers, commercial auto insurance wouldn't make sense because they are dashing part-time to augment their income or they have one vehicle that they use for both deliveries and personal use.

If you do have a vehicle that you will use exclusively for dashing, then commercial car insurance could be a good option. However, commercial coverage will almost always be more expensive than business-use coverage.

Commercial coverage

If you use your vehicle solely for DoorDash deliveries and not for personal use, you may want to opt for commercial coverage. Commercial coverage policies typically cover businesses and vehicles used for those businesses.

It's important to note that if you use your vehicle for business purposes, such as delivering for DoorDash, your personal auto insurance policy will likely not protect you in the event of an accident. Therefore, it is crucial to have the appropriate coverage, whether that be commercial or another type of policy that covers business use.

Some insurance companies offer personal auto insurance policies that cover both personal and business use, so it's worth checking with your provider to see if you're already covered for delivery driving. If not, you may need to add additional coverage or switch to a different type of policy.

Frequently asked questions