UPDATED: AUGUST 21, 2023 | 3 MIN READ
If you’re a DoorDash driver, you might need to add additional insurance to your standard policy. With some carriers, normal coverage won’t cover you while using your car for food delivery. Learn how Doordash driver car insurance works and how to decide if you need extra coverage.
Does DoorDash cover insurance for drivers?
DoorDash provides an excess liability insurance policy for all of its drivers. It covers you for up to 1 million dollars if you get into an accident while on an active delivery. DoorDash coverage is excess only.
One million dollars sounds like a lot of coverage. This means it must be a great insurance policy, right?
Eh, not so much.
In the small print, DoorDash coverage applies only after filing a claim through your auto insurance policy. If you don’t have your own insurance, DoorDash’s policy won’t cover anything.
You’re only covered while actively completing a delivery
DoorDash’s insurance policy only comes into effect when you’re on an active delivery. This means you are only covered when you accept a delivery request until your customer receives their order or the order is canceled.
DoorDash’s liability insurance doesn’t cover you while you’re going to pick up an order or driving back from dropping off an order. Your car insurance policy ensures you’re protected anytime you’re driving, regardless of your actions.
DoorDash insurance only covers third-party damage and injuries
DoorDash car insurance only covers injury to a third party or damage to a third party’s vehicle. That means you still need your insurance to cover any damages to your vehicle.
Also, you should ensure your policy covers you when working as a DoorDash driver — some don’t.
Companies that provide auto insurance for DoorDash drivers include:
- Progressive: Drivers need to add Rideshare coverage to their policy to be covered as delivery drivers.
- GEICO: Includes Rideshare coverage with its standard policy, which covers DoorDash drivers.
- State Farm: DoorDash drivers are covered with the standard policy but must change their vehicle usage to business use.
- Allstate: Its Ride for Hire program covers gig workers, including DoorDash drivers, but policyholders need to add it to their policy.
What type of car insurance policy do I need as a DoorDash Driver?
Car insurance companies see delivery and rideshare drivers at higher risk than people who only use their vehicles for leisure and commuting. People who drive for work will likely be on the road more often and, therefore, have more chance of getting into an accident.
Therefore, they tend to charge more for insurance premiums for business use.
DoorDash insurance policies
DoorDash has liability insurance to protect third parties while DoorDashers are completing deliveries. However, the insurance provided only pays claims if three requirements are met:
- Your car insurance must pay out first. DoorDash car insurance only covers medical costs and damages to a third party once the limits on your insurance are exceeded.
- You’ve been deemed at fault. If you’re in an accident with a third party and it was their fault, their insurance will pay damages and medical bills.
- The accident or damage was caused while you were actively making a delivery. While driving to pick up the food, you aren’t covered by DoorDash’s insurance, and once the food is delivered, the coverage stops.
Some insurance companies will offer an inexpensive ‘ride-share’ add-on to your existing policy that covers you if you drive for DoorDash.
Some insurance companies cover you while making DoorDash deliveries under a standard insurance policy if you classify the vehicle as a Business Use vehicle. This might raise your premium slightly because it lets your insurance company know you use your vehicle more frequently than someone who only drives their car for personal errands.
There are three types of use classifications:
- Personal Use: Drives very limited miles to run errands or for personal matters only.
- Work Use: Drives daily to and from work in addition to driving their car for personal reasons.
- Business Use: Drivers use their vehicles for deliveries, rideshare, or to drive to and from meetings.
Do DoorDash jobs affect my current car insurance?
When you do any delivery work, insurers typically want you to add additional coverage to your car insurance or change your car’s usage classification to “business use” to indicate you drive more than the average miles. These changes can increase your car insurance premiums, but when they do, it’s typically not a huge difference.
Some carriers, like GEICO, already factor in higher mileage. These carriers don’t require any adjustments to your policy when you become a DoorDash driver. The best way to determine how driving for DoorDash will affect your car insurance policy is to read the terms or contact your insurance company.
Does DoorDash require insurance?
Car insurance isn’t required to sign up to become a DoorDash driver. However, most state laws require you to maintain a minimum liability policy.
DoorDash has an excess liability policy that covers third parties while dashers are on active deliveries. But if you don’t maintain your own policy, DoorDash’s insurance won’t cover you.
Do I need special insurance for DoorDash jobs?
There is no specific insurance for DoorDash, but you’ll need to speak to your provider to ensure you’ll be covered. This may increase your premiums through the anticipated added annual miles or add-on coverage.
Do I need business insurance on my car for DoorDash?
You don’t need commercial car insurance to be a DoorDash driver. However, you need to review your car insurance policy terms to see if you’re covered while working a delivery-related job or side hustle.
Some insurance companies require you to add additional coverage to your policy or change your car classification with them to “business use.” Because the rules vary between companies, you should get quotes from multiple carriers to find the best car insurance for DoorDash drivers.
Do you need extra car insurance for DoorDash?
Whether or not you need extra insurance coverage while you deliver food for DoorDash depends on your insurance carrier. Some insurers require you to add additional coverage to your policy, some need to change your car’s classification to “business use,” and some coverage you on your standard insurance policy.
DoorDash has liability insurance of up to $1 million dollars for all its drivers. However, this insurance only pays claims if you were in an at-fault accident or caused damage while actively delivering food, meaning any time you’re driving with food in the car.
Also, it’s only an excess liability policy covering only what your personal insurance doesn’t. It also doesn’t cover anyone in your car or your vehicle.
Will personal car insurance cover food delivery?
Your personal car insurance might cover you during food delivery (it varies between insurance companies). Some companies offer add-on coverages for rideshare and delivery that you need to request to be covered. Others cover you as long as your car is categorized as “business use.”
To ensure you’re covered, review the terms of your policy and contact your insurance company to make any needed adjustments. If your current policy doesn’t cover you without adding an additional coverage, consider getting a few quotes from companies, like State Farm, that do.
What do I do if I’m in an accident while delivering food?
If you’re in an accident while delivering food, first of all, you should ensure everyone is safe. Next, contact your insurance company as you would in any accident situation. Let DoorDash know what has happened when you’re able.
What does DoorDash insurance include?
The policy provided by DoorDash includes up to $1 million dollars of liability coverage. It covers up to that amount in bodily injury and property damage. This only applies to third-party damage if the accident happened while you were active on a delivery.
Car insurance for DoorDash drivers
When you’re a DoorDash driver, you spend a lot of time in your car. Because of this, you must have proper insurance coverage. Companies like State Farm, Allstate, and Progressive all have policy coverage for drivers. Use our online quoting tool to see rates from multiple carriers in minutes.