What Auto Insurance Do You Need for DoorDash?
Last Updated on October 3, 2020
As a DoorDash driver, you need special auto insurance. Your personal auto insurance policy will not protect you when delivering for DoorDash.
Fortunately, most insurance companies allow you to easily add business-use coverage or commercial coverage to your policy. For a few extra dollars per month, you can remain completely covered when driving for DoorDash.
DoorDash also extends basic liability coverage to drivers when drivers are actively making a delivery.
Confused about DoorDash car insurance requirements? Keep reading to find out everything you need to know about auto insurance and DoorDash.
You Need Special Insurance for DoorDash
Personal auto insurance policies cover personal use of a vehicle – not business use. When you’re driving for DoorDash, you’re using your vehicle for business purposes. You’re using your vehicle to make money. Personal auto insurance policies do not cover you when delivering food for DoorDash.
Instead, you need business-use coverage or commercial car insurance coverage:
Business-Use Coverage: You can add business-use coverage to your existing auto insurance policy. Contact your insurer and explain you drive for DoorDash. For a few extra dollars per month, your auto insurance policy should cover the business use of your vehicle during normal situations.
Commercial Coverage: Commercial coverage covers businesses and their vehicles. If you exclusively use your vehicle for DoorDash, then commercial coverage may be the right choice. Otherwise, business-use coverage is the right option.
You May Not Be Covered for DoorDash Accidents
If you have a personal car insurance policy and cause an accident while driving for DoorDash, then your insurer will deny your claim.
Let’s say you collide with another vehicle while rushing to pick up an order for DoorDash. You cause $50,000 of damage to the other person’s vehicle, and the other driver requires $15,000 of medical bills.
If you were not driving for DoorDash at the time of the accident, then your car insurance would cover these costs under your normal policy.
However, because you were driving for DoorDash at the time of your accident, your insurer will deny your claim. If you don’t have business-use coverage or commercial car insurance coverage, then you must cover damages out of pocket.
That’s why having business-use coverage or commercial coverage is crucial.
DoorDash Provides Basic Liability Coverage When There’s Food in your Vehicle
DoorDash extends car insurance to all drivers when they have food in their vehicles.
Some food delivery services provide basic car insurance coverage, while others do not. Even though DoorDash provides basic coverage, there are still significant gaps in coverage.
If you have food in your vehicle and cause an accident, then DoorDash’s liability insurance should protect you.
However, DoorDash does not cover you during all other times. When you activate the DoorDash app and make yourself available for delivery, for example, you’re considered to be driving for business reasons.
Similarly, if you’re driving to pick up a meal from a restaurant, then this is considered a business trip.
In this situation, personal auto insurance will not protect you because you were driving for business reasons, and DoorDash car insurance will not protect you because there was no food in your vehicle.
To cover these gaps, most DoorDash drivers get business-use coverage or commercial car insurance coverage.
DoorDash’s car insurance coverage is worse than most other food delivery services. Uber provides liability coverage to drivers when they’re picking up food and making a delivery for Uber Eats, for example. Postmates covers you from the moment you accept an order to the moment you deliver it.
Grubhub is the only major food delivery service with worse car insurance than DoorDash: Grubhub provides no car insurance to drivers whatsoever, which means Grubhub drivers are wholly responsible for their own insurance.
How Car Insurance Works with DoorDash
If you are delivering food for DoorDash, then you are considered to be using your vehicle for business purposes. Yes, DoorDash provides basic liability coverage when there’s food in your vehicle – but this still leaves a gap in coverage.
The moment you activate the DoorDash app and make yourself available for deliveries, you are driving your vehicle for business purposes.
When you accept an order and drive to the restaurant to pick it up, you are also considered to be using your vehicle for business purposes.
If you get into an accident after activating the app or while driving to pick up food, then DoorDash’s car insurance will not cover you. Remember: DoorDash only covers you when there’s food in your vehicle.
In other words, you have a gap in coverage. If you only have personal auto insurance and DoorDash’s built-in car insurance, then you are not covered during all situations. This leaves you with a gap in coverage.
What Does DoorDash Car Insurance Cover?
DoorDash provides excess auto insurance for Dashers, although it only covers the following:
- Damage you cause to other parties, including third-party property damage and bodily injuries.
- Accidents while on an active delivery when there’s food in your vehicle.
Furthermore, DoorDash only covers these claims after you go through your own insurance policy. DoorDash is not primary coverage: it’s secondary coverage for any excess damage after an accident.
In fact, if you don’t have your own car insurance policy or business-use coverage, then DoorDash may refuse your claim, forcing you to pay thousands of dollars out of pocket.
How Do Insurers Know You’re Delivering Food?
Let’s say you sign up for DoorDash and begin making deliveries. You’re a good driver so you don’t think you need extra insurance coverage.
Then, you cause an accident. You have car insurance, but it doesn’t cover business or commercial use.
You come up with a plan: you hide the DoorDash delivery bag. You disable the DoorDash app. You claim you were simply picking up food for yourself.
Drivers for DoorDash and other food delivery services try this trick regularly, and some of them get away with it.
However, it’s a huge risk. Your insurer investigates your claim. They might check with DoorDash to see if you were active at the time of the accident. The police report might mention that a food delivery bag was found in the vehicle.
If you are caught lying about your DoorDash delivery at the time of the accident, then you could face insurance fraud charges – not just a denied claim.
How to Get the Best DoorDash Car Insurance
For most drivers, the best way to get DoorDash car insurance is to contact your current insurance company and explain the situation. Ask about food delivery coverage, rideshare insurance, or business-use coverage.
All major insurance companies offer some type of food delivery insurance. Some call it business-use coverage. Others bundle it under commercial coverage.
However, you should be able to easily add DoorDash coverage to your policy with minimal hassle. For a few extra dollars per month, you can ensure complete coverage from the moment you turn on the DoorDash app to the moment you turn it off.
Alternatively, shop around with other car insurance providers. Some car insurance companies welcome DoorDash delivery drivers, while others would prefer to not provide insurance.
Check with your insurance company or compare quotes online today to obtain the best possible DoorDash insurance coverage.
Final Word on DoorDash Car Insurance
DoorDash, like other food delivery services, provides limited car insurance to drivers. As a Dasher, you need your own car insurance policy with business-use or commercial coverage.
If you don’t have business-use or commercial coverage on your policy, then you’re unprotected against accidents. DoorDash provides liability protection when there’s food in your vehicle, although drivers still have a gap when they’re available for delivery or driving to pick up food.
Contact your insurance company and ask about business-use coverage for DoorDash.