What Auto Insurance Do You Need for Grubhub?

Last Updated on November 29, 2021

If you drive for food delivery service Grubhub, then you may need special car insurance.

Ordinary car insurance may not cover you while working for Grubhub. Car insurance covers personal use of a vehicle – not business use. If you’re driving for Grubhub and cause an accident, then you could be liable for any damages.

What Auto Insurance Do You Need for Grubhub?Today, we’re explaining what auto insurance drivers need for Grubhub, including the cheapest Grubhub auto insurance and Grubhub car insurance requirements by state.

Table of Contents:

You Need Commercial Auto Insurance When Driving for Grubhub

Grubhub does not extend car insurance to drivers. You cannot buy car insurance through Grubhub, nor can you make a car insurance claim through Grubhub.

Instead, you need to buy car insurance through your ordinary car insurance company.

Your personal car insurance policy will not cover you while driving for Grubhub. Instead, you need to buy on-demand delivery insurance, also known as business-use car insurance or commercial car insurance coverage.

All car insurance companies have special insurance plans for delivery drivers. If you work for Grubhub or any other food delivery service, then you are considered a delivery driver for insurance purposes.

Contact your insurance company and tell them you work for Grubhub. All major insurance companies have special delivery driver car insurance.

Typically, you can add business-use coverage or commercial coverage to your existing policy for a few extra dollars per month, ensuring you stay covered at all times when driving for Grubhub.

Grubhub May Verify your Car Insurance Requirements

Before working for Grubhub, you may need to provide proof of insurance to a Grubhub representative.

Grubhub may need to see a copy of your commercial coverage policy to verify you meet the minimum insurance requirements for your state.

If you cannot provide Grubhub with a copy of your policy, then Grubhub will assume you cannot legally drive, and Grubhub could deny your application.

Personal Policies Exclude Delivery Work

It doesn’t matter if you work for Grubhub, Uber Eats, DoorDash, Amazon, Instacart, Seamless, or any other delivery service. If you have a personal car insurance policy, that policy will not cover delivery work.

Personal car insurance policies exclude delivery work. Whenever you are driving for Grubhub, you are engaged in a commercial activity.

This can be a serious problem, and many delivery drivers don’t notice the issue until it’s too late. If you cause an accident while driving for Grubhub, for example, then you could pay thousands of dollars out of pocket. Typically, car insurance would cover these costs – but because you were driving for Grubhub at the time of the accident, your insurer will deny your claim.

Insurance companies aren’t discriminating against Grubhub: all personal policies exclude delivery work. In fact, even driving products from one office to another could count as delivery work, and your insurer could deny your claim.

How Commercial Auto Insurance Works for Grubhub

When you login to Grubhub and set yourself as available for delivery, you are considered to be driving for commercial purposes.

As long as you are listed as available for delivery on Grubhub, your personal auto insurance policy no longer applies.

Even if you have not picked up food or are not actively delivering a meal, your personal auto insurance policy will not cover you whenever you make yourself available via the Grubhub app.

When you buy commercial auto insurance, you get liability coverage and other protections throughout your delivery.

If you cause an accident and collide with another driver, then your commercial car insurance covers any damage to the other driver via bodily injury or property damage liability coverage:

Bodily Injury Liability Coverage: Bodily injury liability coverage covers medical bills, lost wages, and similar expenses after an accident. If you injure a pedestrian, cyclist, or another driver during an accident while driving for Grubhub, for example, then that person can make a claim through your bodily injury liability coverage.

Property Damage Liability Coverage: Property damage liability coverage covers damage to another person’s property – like a vehicle or fence. If you damage someone else’s property while driving for Grubhub, then your property damage liability coverage could cover these costs.

Your commercial car insurance policy has a specific limit. You might have a $1 million limit on your policy, for example, which means your insurance will pay up to $1 million after an accident. This may sound like a lot of coverage, but in a serious accident, vehicle damage and medical bills can quickly add up. Most insurance experts recommend maintaining at least $1 million of liability coverage if you have assets worth protecting.

Grubhub Provides No Insurance Whatsoever

Most food delivery services provide basic car insurance to drivers. Grubhub, however, is the only major food delivery service that provides zero car insurance to drivers.

Uber Eats covers drivers during most deliveries, as Uber extends commercial liability coverage when drivers are picking up or making a delivery.

Similarly, Doordash provides liability coverage whenever you have food in your vehicle.

Postmates offers the best insurance coverage for delivery drivers. Postmates provides liability coverage from the moment you accept an order.

However, all delivery services have serious gaps in coverage. Most delivery services do not cover you when you’re actively waiting for a pickup, for example. Uber only covers you when driving to pick up a meal or driving to deliver a meal – they don’t cover the time you spend waiting in between.

Similarly, most delivery services only provide liability coverage, which means you don’t get collision or comprehensive coverage. That means no protection for your own vehicle in an accident.

For all of these reasons, it’s crucial to get your own commercial car insurance coverage – especially if you’re driving for Grubhub, which provides no insurance whatsoever.

Best Car Insurance for Grubhub Drivers

All major car insurance companies offer commercial car insurance for Grubhub drivers.

In most cases, you can simply contact your insurance company and explain your situation. Tell your insurer you drive for Grubhub, then check their available commercial car insurance packages.

Alternatively, you can compare commercial car insurance quotes online simply by entering your ZIP code.

As a Grubhub driver, you should have two insurance options available, including:

Business-Use Coverage: This is an add-on option for a personal policy. It covers your personal vehicle for minimal business use. As a Grubhub driver, business-use coverage should be adequate.

Commercial Policy: Commercial car insurance policies are designed to cover businesses and their vehicles. Generally, commercial policies are excessive for Grubhub drivers, although they may be the right choice based on your situation.

Most insurers let you add business-use coverage for a few extra dollars per month.

Final Word on Grubhub Insurance

Grubhub drivers need commercial car insurance. As a Grubhub driver, you are driving for commercial purposes. Your personal car insurance policy will not cover you. If you cause an accident while driving for Grubhub and you don’t have commercial insurance, then you could be forced to pay out of pocket.

Contact your insurance company and ask about on-demand delivery coverage or commercial car insurance. Generally, you can add basic commercial coverage to your policy for a small fee. Or, compare commercial car insurance policies online today to get the cheapest Grubhub car insurance.

James Shaffer
James Shaffer James Shaffer is a writer for InsurancePanda.com and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
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