What Auto Insurance Do You Need for Instacart?

Last Updated on November 29, 2021

If you drive for Instacart, then you may need to buy special auto insurance.

You may have personal auto insurance. However, that auto insurance will not cover you if you get into an accident when delivering food for Instacart. To maintain coverage, you need a commercial auto insurance policy or rideshare coverage that covers food delivery.Instacart auto insurance

What auto insurance do you need for Instacart? How does car insurance work for Instacart? Keep reading to discover everything you need to know about Instacart auto insurance and how it works.

Table of Contents:

How Car Insurance Works with Instacart

When you drive for Instacart, you are no longer driving your car for personal reasons: you’re driving your car for commercial purposes. You are using your car to earn money by delivering food to people. Understandably, your car insurance needs to change.

A personal auto insurance policy (which most drivers have) will not cover you during Instacart deliveries.

Your auto insurance only covers you during Instacart deliveries if you have a business-use or commercial policy. These policies cover you when driving for businesses purposes.

If you do not tell your insurer that you are driving for Instacart, then they could cancel your coverage. Or, if you get into an accident while driving with Instacart, then your insurance could deny your claim.

To make sure you’re covered, contact your insurer and ask about business-use policies or commercial insurance policies. Many car insurance companies now offer rideshare insurance that covers you when driving for Uber, Lyft, Instacart, and similar services.

Instacart Does Not Provide Insurance Coverage

Uber, Lyft, and other companies provide basic insurance coverage to drivers. Instacart, however, provides no insurance to drivers whatsoever.

If you drive for Instacart, then you need a commercial policy, a business use policy, or rideshare insurance to remain covered. If you get into an accident when driving for Instacart, then Instacart will not cover you – and your ordinary insurer will deny your claim.

Companies that are similar to Instacart, like DoorDash, GrubHub, Uber Eats, Seamless, and Postmates, give drivers the option to purchase auto insurance through the company. If you want to legally drive for DoorDash, for example, then you can buy auto insurance through DoorDash. Instacart, however, has no such option.

You Need Special Insurance When Driving for Instacart

There’s no way around it: you need to buy special insurance when driving for Instacart.

You have two main options for Instacart insurance, including:

  • Purchase rideshare coverage from your personal auto insurance company
  • Buy a commercial car insurance policy (also known as a business-use policy)

If your current insurer does not offer rideshare insurance, then consider making the switch. Many insurers now offer rideshare insurance for Uber, Lyft, and Instacart drivers. This rideshare coverage protects you when driving for many app-based services. You can easily add the coverage to your existing policy to stay protected. Most rideshare policies are cheaper than business-use or commercial policies.

Contact your Insurer to Add Rideshare or Commercial Coverage

The rideshare industry is relatively new. Insurers are still figuring out the best way to cover rideshare drivers. Contact your insurer to make sure your rideshare insurance offers the coverage you need for Instacart.

Rideshare insurance policies are primarily designed for Uber, Lyft, and similar rideshare companies.

When you work for Instacart, you could perform several roles. You could be shopping for groceries or delivering them – or both. Contact your insurer to make sure your policy covers you regardless of how you’re currently working for Instacart.

Insurers Will Deny Instacart Insurance Claims Without Adequate Coverage

You cannot drive for Instacart with your personal insurance policy. If your insurer discovers you were driving for Instacart during the accident, then your insurer will deny the claim.

Insurers research each claim. They may contact Instacart to see if you are a member, for example. They can see what times you were using the app and what you were doing at the time of the accident.

If you were delivering groceries or food to someone with Instacart at the time of the accident, and you don’t have appropriate coverage, then your insurer will deny your claim. You were using your car for commercial purposes without a commercial policy. Your insurer will deny your claim, which means you need to pay for any damages out of pocket.

What Happens If I Don’t Add Instacart Auto Insurance?

If you don’t add rideshare coverage or buy a commercial insurance policy, then you could face serious consequences.

At this point, you are considered to be driving without insurance. That means:

  • You pay for all accident expenses out of pocket, including injuries you cause to other drivers and damage you cause to other cars and property
  • You are considered to be driving without insurance, which is illegal in most states and could lead to license suspension, higher insurance premiums, and other penalties

For both of these reasons, you don’t want to drive without Instacart insurance. You need to contact your insurer to verify you’re covered to avoid potential penalties.

How Much Does Instacart Insurance Cost?

Instacart car insurance can cost anywhere from $20 to $200 per month, depending on your insurer and coverage.

The best option is to find an insurer with rideshare coverage. Many leading insurers offer rideshare coverage. This coverage may add $200 to $300 per year to your policy. However, it covers you when driving for Uber, Lyft, Instacart, and similar services.

If your insurer does not offer rideshare coverage, then you may need to buy a business-use or commercial policy. Typically, you cannot add this coverage to an existing policy. Instead, you need to buy a separate policy with business-use or commercial coverage. These policies may cost $100 to $200 per month, significantly increasing the cost of insurance.

State Farm, for example, offers rideshare insurance that adds about 15% to 20% to your annual insurance premiums. Allstate, however, offers rideshare coverage that costs as little as $30 to $130 per year.

Contact your insurer to ask about a business-use policy or rideshare coverage. Costs vary widely between insurers.

Final Word on Insurance for Instacart

If you drive for Instacart, then you need special auto insurance. Instacart does not provide insurance to drivers. Instead, drivers need to buy rideshare coverage, a business use policy, or a commercial policy to stay protected.

However, not all rideshare policies cover Instacart. You may need to buy a commercial or business-use insurance policy to stay protected when driving for Instacart.

Contact your insurer to ask about rideshare coverage or commercial coverage policies. If you want to stay protected when driving for Instacart, then you need special insurance coverage.

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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