What Kind of Insurance is Needed for Uber Eats?
Last Updated on October 3, 2020
If you drive for Uber Eats, then you may need special car insurance. Uber provides limited car insurance to its drivers, although most drivers buy extra vehicle insurance.
Uber’s car insurance protects you from the moment you accept a delivery to the moment you drop it off. In between, your vehicle may not be covered by car insurance.
A standard car insurance policy does not cover driving for business purposes, and Uber Eats is considered a business purpose. That means you have car insurance when delivering an order, but you may have no car insurance while waiting for an order.
Uber Eats insurance can be complicated. Today, we’re explaining everything you need to know about what kind of insurance is needed for Uber Eats.
How Meal Delivery Service Insurance Works
All major meal delivery services, be it Uber Eats, DoorDash, Postmates, or Grubhub, provide some level of insurance to drivers. Uber Eats gives drivers car insurance when working, for example, as does Amazon Flex.
This insurance works similarly to ordinary Uber insurance. It covers you during certain Uber-related tasks.
Uber’s rideshare insurance, for example, is activated when you accept a pickup request from someone, and it remains activated until you drop that person off and end the ride. Uber Eats insurance works in a similar way: it is activated when you accept a pickup request, and it remains activated until you drop off the meal.
Typically, drivers get this insurance automatically. You sign a contract when you start driving for the company, and this contract gives you certain insurance coverage when making a delivery.
How Uber Eats Car Insurance Works
When you signed up for Uber Eats, you signed a contract with Portier LLC, a subsidiary of Uber. This company handles delivery services for Uber. They also provide car insurance to Uber Eats drivers.
According to Uber, drivers have $1 million of commercial auto liability insurance per accident when picking up or dropping off a meal. Drivers also have certain insurance coverage between deliveries.
Here’s how Uber Eats car insurance works for all drivers who signed a contract with Portier, LLC:
- Uber Eats provides $1 million of commercial auto liability insurance per incident. Uber has a commercial auto insurance policy with $1 million of liability coverage per covered accident. This insurance is activated from the moment you accept a delivery request to the time the request is complete.
- If you have comprehensive and collision coverage on your personal auto insurance policy, then Uber Eats gives you extra coverage. Uber Eats will provide physical damage coverage for your vehicle up to its actual cash value, regardless of who is at fault. This coverage comes with a $1,000 deductible. If you do not have comprehensive and collision coverage (which is optional in every state), then Uber does not cover the value of your vehicle.
- Between deliveries, Uber Eats provides a $50,000/$100,000/$25,000 commercial auto liability insurance policy. This policy gives drivers $50,000 of bodily injury liability coverage per driver, $100,000 of bodily injury liability coverage per accident, and $25,000 of property damage liability coverage. This coverage only applies if you do not have applicable coverage (say, a personal auto insurance policy with business coverage).
Any Uber Eats driver who has signed a contract with Portier, LLC will receive this insurance coverage, except for Uber Eats drivers in New York.
Overall, this insurance provides adequate protection to drivers in most situations. Not all rideshare companies provide coverage between deliveries, for example.
Why You Need Extra Insurance
Most meal delivery service car insurance has one big loophole: it does not cover you between deliveries.
If you are driving around town waiting for a request, for example, then you might have no car insurance coverage. If you cause an accident during this time, then your insurer may deny your claim. In this situation, you were driving your car for business purposes – but you only have personal auto insurance coverage.
Uber has adjusted its insurance in recent years to be more driver-friendly. Uber Eats provides drivers with insurance between deliveries, for example, and drivers with full coverage car insurance can receive added protection through Uber.
However, there are still restrictions and loopholes to Uber Eats car insurance. Because of these restrictions, you may want to contact your insurer and ask about food delivery insurance coverage or business auto insurance.
Restrictions of Uber Eats car insurance include:
- If you do not have collision or comprehensive coverage, then you will not receive compensation for physical damage to your vehicle after an accident, theft, vandalism, storm damage, fire damage, and other incidents.
- Between deliveries, Uber’s policy covers up to $100,000 of bodily injury liability and $25,000 of property damage liability per accident. However, this may not be enough coverage. If you cause a serious accident, for example, or damage a high-end vehicle, then you could owe much more than these amounts.
- If Uber denies your claim, then your ordinary car insurance may not apply, forcing you to pay for damages out of pocket.
Does Standard Car Insurance Cover Food Deliveries?
Your ordinary car insurance may cover you when making food deliveries, or it might not.
Standard car insurance does not cover you when driving for business purposes. If you are making deliveries for a private company, then you are driving for business purposes. Uber Eats car insurance covers you, but your own car insurance may deny your claim.
Your car insurance policy may have specific documentation about rideshare or food delivery services. Your car insurance may specifically exclude you when working for Uber Eats or any other rideshare or delivery service.
Some car insurance policies are more lenient. If food delivery is less than 50% of total miles driven, for example, then your standard car insurance may cover you.
Rules vary by state and company. Contact your insurer to ask about food delivery coverage. You may need added coverage. Or, your standard insurance policy combined with Uber Eats insurance may be sufficient.
If you’re adding insurance for Uber Eats, then you can add delivery insurance, rideshare insurance, or business insurance:
Delivery Insurance for Uber Eats Drivers: Today, many insurance companies offer delivery insurance. You can add a food delivery insurance endorsement to your auto insurance policy, for example, to stay covered when driving for Uber Eats and other companies.
Rideshare Insurance for Uber Eats Drivers: Rideshare insurance covers you when driving for Uber, but some companies have added food delivery coverage to rideshare insurance. Insurance companies know the industry is evolving, and they update their policies frequently. GEICO’s rideshare insurance costs around $25 per month, for example, and covers all types of rides and deliveries.
Business Insurance: Some delivery drivers add a business insurance endorsement to their auto insurance policy. Business insurance covers you when driving for any business reasons – including Uber Eats deliveries.
Final Word on Uber Eats Insurance
Uber Eats provides drivers with a basic level of insurance coverage when making deliveries and between deliveries. You have $1 million of liability coverage during a delivery, for example, and a 25/50/100 policy between deliveries.
For some Uber Eats drivers, this is enough insurance coverage. Other drivers, however, may want to buy added rideshare insurance or food delivery insurance.
Check your insurance policy or contact your insurer to determine your current coverage. Some companies are generous with rideshare and food delivery insurance coverage, while others require you to buy extra rideshare insurance, food delivery insurance, or business insurance when driving for Uber Eats.