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DoorDash Insurance: Ultimate Delivery Driver Guide

If you’re wondering what to do about insurance coverage when making a DoorDash delivery, you’re in the right place. You need more than personal car insurance for coverage because DoorDash deliveries are considered business use. So, what kind of insurance policy do you need? By the time you’re done reading this post, you’ll have the answer to that question and understand how coverage works for DoorDash deliveries.

DoorDash Insurance Coverage For Delivery Drivers

Making a DoorDash delivery is considered “business use” because you’re using your car to make money. If you don’t let your insurance company know that you use your car for business, you take a considerable risk. Your insurance policy will not cover you if you get into an accident while on delivery, and they might cancel your policy, meaning you would be responsible for vehicle damages and medical costs and become uninsured in an instant.

So, what should drivers do? You should get rideshare insurance. Although DoorDash claims they provide auto insurance for delivery drivers, this is a stretch. In reality, DoorDash coordinates compensation with your personal auto insurer. You could argue this is liability insurance, but that’s a stretch as well.

DoorDash never provides you with a certificate of insurance, meaning they technically do not provide insurance coverage. Compensation from DoorDash only pays for damages to a third party’s vehicle or their medical expenses. You are responsible for 100% of the damages your car incurs. If you suffer an injury during the accident, DoorDash has an Occupational Accident Policy, but that’s still not car insurance.

It is unlikely DoorDash will provide compensation at all since you have to go through your insurance, which could deny the claim because you were using the car for business use. If they deny the claim, DoorDash might cover you under certain circumstances. Requirements include:

  • The delivery driver has an active, up-to-date personal insurance policy
  • The delivery driver is liable for damages or injuries to another party while on an active, live DoorDash delivery
  • The delivery driver’s insurance policy denied their claim
  • There must be a DoorDash order in the vehicle

Key points to remember:

  • Your personal insurance might deny your claim if it’s during a DoorDash delivery
  • Compensation from DoorDash kicks in after making a claim with your insurance provider
  • DoorDash’s auto insurance policy leaves gaps in coverage
  • Rideshare insurance fills coverage gaps

How Does DoorDash Insurance Work?

Let’s use Cameron’s situation as an example. Cameron accepts a DoorDash delivery. He heads to the store to pick up the order. He is rushing to the customer’s location and suddenly gets into an accident. The other driver’s car has $5,000 worth of repairs and $2,000 worth of medical bills.

Cameron makes a claim with his car insurance, but it’s denied because he was making a delivery and doesn’t have rideshare insurance. After filing a claim with his insurance company, he emails DoorDash’s claims department. DoorDash might cover costs but might not since they have no legal obligation. Not only is Cameron at risk of paying $7,000 out of pocket, but his insurer might drop him as a client.

As you can see from the above example, coverage from DoorDash isn’t a stand-alone auto insurance policy or dependable. Since delivery drivers are contractors and not employees, DoorDash isn’t responsible for accident costs.

Some conditions need to be met before you receive compensation from DoorDash, including:

  • The delivery driver has an active, up-to-date personal insurance policy
  • The delivery driver is liable for damages or injuries to another party while on an active DoorDash delivery
  • The delivery driver’s personal auto policy denied their claim
  • There must be a DoorDash order in the vehicle

DoorDash Insurance vs. Personal, Commercial, And Business-Use Insurance

Coverage for DoorDash deliveries requires an endorsement called rideshare insurance. Personal car insurance doesn’t cover you when you activate the DoorDash app and become available for deliveries. You do have additional coverage options. Let’s see why rideshare insurance takes the cake when you need coverage during a DoorDash delivery.

Business-Use Coverage

This is an add-on to your personal insurance policy. For a few extra dollars a month, you’re covered for some business use for your vehicle. The coverage is strict, and not guaranteed. Your insurance company might not offer coverage without buying a separate commercial insurance policy.

Commercial Coverage

This is a stand-alone policy, and it is expensive. It is reserved for companies that use a car for business only. For the average person doing DoorDash, this is not the best choice for your bottom line – to be protected and make money.

Rideshare Coverage

This is the best and most economical insurance option for delivery drivers. It is budget-friendly and protects you when DoorDash and your personal insurance won’t.

FAQ

What Auto Insurance Policies Cover DoorDash Drivers?

Drivers need rideshare insurance. Rideshare insurance fills the gaps in coverage between your personal insurance and compensation from DoorDash. DoorDash themselves do not have a car insurance policy that covers you specifically.

Does DoorDash Provide Insurance For Drivers?

Not really. It is possible to receive compensation but unlikely. DoorDash will not give you a certificate of insurance. Therefore, they have no obligation to provide drivers coverage. Delivery drivers are contractors and not employees, which is another reason DoorDash has no obligation to provide you with compensation – even though they claim to provide insurance.

Compensation from DoorDash is not dependable and isn’t a replacement for standard car insurance. Doordash pays only if the dasher has an accident while on an active delivery. DoorDash says an active delivery is when you’ve accepted an order, are headed to the merchant, and headed from the merchant to the customer. DoorDash also says there has to be an order in your possession. It’s possible that if you have an accident without food in your car, you won’t get compensation. It isn’t very evident.

Once a delivery order is canceled, you are no longer entitled to compensation if you get into an accident. So, when you’re between DoorDash orders, you’re not covered.

Because you are using your personal vehicle or a commercial rental, you must have personal car insurance to qualify for compensation from DoorDash. Delivery drivers also have to go through their personal auto insurance first when they make a claim. Coverage from DoorDash kicks in under the following conditions:

  • The delivery driver has an active, up-to-date personal insurance policy
  • The delivery driver is liable for damages or injuries to another party while on an active delivery
  • The delivery driver’s personal auto policy denied their claim

Under no circumstances will DoorDash provide compensation for damage to your vehicle. You are responsible for all damages your car incur from an accident.

Will Personal Car Insurance Cover DoorDash Drivers?

It is unlikely. Your personal auto insurance covers you when you’re using the car for personal reasons. Personal use means errands, commuting, and social gatherings. Using the car to make a DoorDash delivery is considered business use because you’re using the car to make money.

Is Business Insurance The Same as DoorDash Insurance?

No. Business insurance and commercial coverage are more expensive than DoorDash insurance, also known as rideshare insurance.

How Much Does Insurance For DoorDash Deliveries Cost?

What Does DoorDash Insurance Cover?

Also known as rideshare insurance, it covers you when you activate the DoorDash app and become available for orders until you turn off the app. It’s comprehensive like your personal insurance, except it covers you while running deliveries for DoorDash.

Where Can I Get DoorDash Insurance?

Insurance Navy offers coverage for DoorDash drivers.

Reaching out to one of our expert representatives can save you money on your auto insurance in minutes. Call us at 888-949-6289 to get a free auto insurance quote. We also provide assistance both in-person and virtually via our website and mobile app. Spending a few minutes getting a quote can make a real difference.

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