What Kind of Insurance Do Food Delivery Drivers Need?
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Many food delivery companies provide liability insurance for their drivers while fulfilling an order but not while they are waiting to accept an order. A food delivery driver risks being without coverage while waiting since their personal insurance company will likely exclude coverage for any type of business activity.
If you want protection through every stage of the food delivery process, you will want to look into buying food delivery insurance as an add-on to your personal auto policy.
What Is Food Delivery Insurance?
Food delivery car insurance provides auto insurance coverage for a driver who works for a food delivery company such as UberEats or DoorDash. In many cases, these companies already provide liability coverage and sometimes physical damage coverage to the driver’s vehicle while completing an active order.
If the company does not provide coverage for its drivers, you will need to buy food delivery insurance via a policy add-on since most personal auto policies exclude coverage for commercial activity. This is often called a rider or endorsement to your policy.
What Does Food Delivery Insurance Cover?
Insurance for delivery drivers can provide the same type of coverage as a personal auto insurance policy:
- Bodily injury liability: If you’re responsible for causing a car accident while delivering food, this coverage will cover the medical bills of the other party if they were injured.
- Property damage liability: This coverage pays for the other party’s repair bills or replacement costs if their car or physical belongings were damaged.
- Collision and comprehensive: These coverages pay for repairs to your vehicle if they suffered type of physical damage. Collision insurance covers damages from striking another object like a car or guardrail, while comprehensive insurance pays for other physical losses, such as break-ins, fire and theft.
- Uninsured motorist: If you’re involved in a car accident where the other driver was at fault but uninsured, this coverage pays for your losses.
Do I Need Special Car Insurance as a Delivery Driver?
Whether you need special car insurance as a delivery driver will depend on which company you’re driving for. Most popular food delivery companies provide liability coverage during an active delivery — usually the time when a delivery request is accepted to when it is marked delivered or canceled.
However, the keyword is “most.” For example, GrubHub does not provide its drivers with any auto insurance coverage during active orders and you will need to buy an endorsement from your insurance company for protection.
In addition, if you’re online but haven’t taken on an order, you may not be covered by either the food delivery company or your personal auto policy. You will need special insurance to ensure you have adequate protection through every stage of the order. Otherwise, you will have to pay for costs out of pocket if you’re held liable for a car accident.
What About a Company Vehicle?
If you operate a more sophisticated business that also involves delivering food such as a catering business, then you will likely need a formal commercial auto insurance policy. Commercial auto insurance functions similarly to a personal auto policy except it can cover both commercial and personal use of your vehicle. A personal auto policy will cover only personal use but not commercial use.
Food Delivery Insurance Requirements
Whichever food delivery company you choose to work with, you are required to buy a personal auto insurance policy that meets your state’s minimum insurance requirements. If you’re unable to provide proof of insurance and a valid driver’s license, then the food delivery company may reject your application to become a delivery driver.
Do Delivery Companies Cover Accidents?
If the food delivery company provides liability insurance for its drivers, the driver will be covered while waiting for an order or fulfilling an order or both. However, liability insurance will cover only the other driver’s losses if you were responsible for causing a car accident. It will not cover your losses unless the food delivery company offers contingent collision or comprehensive coverage.
If you do, then you will be covered for damages to your car even if the other driver was at fault.
Which Food Delivery Companies Offer Insurance for Free?
Coverage While Waiting for Order
While Picking Up or Delivering an Order
DoorDash drivers receive $1 million bodily injury/property damage liability coverage while fulfilling an active order. No coverage is available while the app is on but you have not yet accepted an order.
In addition, all DoorDash drivers within the U.S. automatically receive occupational accident coverage, which will pay for the driver’s medical expenses in a covered accident, up to $1 million with no deductible or copay. You may also be entitled to 50% of your average weekly wage up to $500 per week if you’re unable to return to work.
UberEats is the only food delivery company on this list that covers drivers while they are online but still waiting to accept an order. Specifically, the driver is protected with the following liability limits:
- $50,000 bodily injury per person
- $100,000 bodily injury per accident
- $25,000 in property damage
While you are picking up or delivering an order, you have up to $1 million in third-party liability plus comprehensive and collision coverage if you have these coverages in your personal auto policy. Drivers in New York are exempt from this coverage.
California drivers also enjoy injury protection, which may cover medical expenses up to $1 million with no deductible and wage replacement up to $1,324 per week. Drivers may also buy optional injury protection at less than $0.03 per mile.
GrubHub does not provide any insurance for delivering food for its drivers. However, by law, GrubHub drivers in California will still receive occupational accident insurance free of cost. This coverage will pay for medical expenses resulting from a covered car accident during a delivery.
While Postmates was acquired by Uber in 2020, it still functions as a separate app. However, attempting to sign up as a Postmates delivery driver on the website will redirect you to the Uber website. Similar to UberEats, you will have $1 million in excess liability coverage during rides.
California drivers will have injury protection, which covers medical costs if they are injured in a covered accident, and possibly disability benefits.
Drivers with Amazon Flex will receive $1 million in liability coverage during active deliveries. As a bonus, drivers also enjoy uninsured motorist/underinsured motorist coverage — the only company on this list that offers it. You also gain comprehensive and collision coverage if your auto policy has these coverages. New York drivers are exempt from these free benefits and will need to obtain coverage elsewhere.
California drivers also enjoy medical and disability benefits with free occupational accident insurance.
How Much Does Food Delivery Insurance Cost?
You already have free liability coverage during active food delivery services if you drive for DoorDash, UberEats, Postmates or Amazon Flex. However, if you want coverage while you’re waiting to accept an order, you’ll want to look into buying a policy endorsement. Costs can vary by company but is relatively affordable, sometimes costing as little as $30 per month.
Keep in mind that the endorsement is sometimes called rideshare insurance, which is usually associated with drivers who ferry people. However, some car insurance companies extend this coverage to drivers who deliver food.
Can I Deliver Food Without Food Delivery Insurance?
It is possible to deliver food without buying a specific endorsement for food delivery coverage. In some cases, the driver may be fine with the free coverage provided by the food delivery company. However, be cautious if the food delivery company excludes insurance for food delivery drivers when you’re online but not on an active delivery, as losses that occur during this time will have to be paid out of pocket.
What To Do If You Get In an Accident While Delivering Food
If you get into a car accident while delivering food, you should always start with checking for any injuries and if there are, call the police. Next, you will want to contact whichever carrier is covering you during an active delivery, whether it’s your own insurance company or the food delivery company. Many companies allow you to file a claim through the mobile app.
If you’re driving for DoorDash, you will be required to file a car insurance claim with your personal insurance company first. If you’re denied, you will need to provide them with the denial letter before they will cover you.
Once you’re in contact with an insurance adjuster, they will walk you through the claims process. If you’re found responsible for the accident, the liability coverage will cover any losses suffered by the other party. If the insurer also covers damages to your vehicle, then your repair bills should also be covered.