Not all food delivery services offer car insurance, but DoorDash insurance is available for Dashers who are actively on delivery. However, additional coverage is critical because DoorDash insurance may create a gap in your coverage.
We’re going to break down what kind of coverage DoorDash offers, how it works, what else you need to know about insurance while side hustling for DoorDash, and the best add-on policies for drivers.
Does DoorDash Offer Insurance for Drivers?
The short answer is: yes, DoorDash provides basic liability insurance of up to $1 million for Dashers, but it only covers accidents that happen while on an active delivery. DoorDash drivers are still required to maintain their own insurance that complies with their local insurance laws.
The DoorDash insurance policy covers drivers in the following ways:
- Bodily injury, damage to third-party property, and damage to other parties in an accident.
- Liability for accidents that occur when food is in your car for an active delivery.
It’s very important to understand that this is basic liability insurance, meaning it only covers damage or injury to the other vehicle or party involved in an accident.
Essentially, the coverage DoorDash provides protects them from being sued if you’re at fault in an accident while driving for them. It covers repairs to the other driver’s vehicle and bodily injury.
This creates a gap in coverage for you as the driver because your personal insurance considers this driving for business and likely will not cover you while on delivery. So even if you have full-coverage insurance, it may deny a claim if an accident happens while you’re on a delivery.
DoorDash Driver Requirements
It’s worth going through the requirements to become a DoorDash driver because insurance is part of becoming a DoorDash driver. Here’s what you must fulfill to sign up and start delivering for DoorDash:
- Be at least 18 years old
- Have an iPhone or Android
- A valid driver’s license
- Insurance on your vehicle
- Social Security number
- Consent to DoorDash background check
Want to learn more about DoorDash? Check out:
- Best Times to DoorDash
- How Much Can You Make on DoorDash in A Day?
- DoorDash vs. Grubhub: Which is Better for Drivers?
How DoorDash Insurance Works
DoorDash insurance works for Dashers who are on an active delivery, which extends from the time they accept a delivery request until the time the order has been delivered. If a customer or business cancels the order or the order is unassigned, the coverage will drop off.
The other important things to know about how DoorDash insurance works is that for the coverage to apply, the following conditions must be met: the Dasher’s personal auto policy has denied the claim and the Dasher is considered the liable party for damages or injuries.
Here’s a breakdown of what that all means:
- You have to be on an active delivery for DoorDash insurance to kick in
- You, the active DoorDash driver, is considered the liable party
- Your personal insurance policy must have denied the claim
Again, this creates a gap that’s best filled by additional insurance coverage.
Additional DoorDash Insurance Coverage to Consider
Because DoorDash insurance only covers basic liability and only kicks in once your personal insurance company has denied the claims, many drivers opt for additional insurance coverage, including one of the following types of policies:
- Business-Use Coverage: This additional coverage labels your car as being used for business purposes, and most insurance policies will add this coverage for not much more a month.
- Commercial Coverage: This coverage is intended for those who use their vehicle solely for business purposes. This means you are only using your car to deliver for DoorDash and any other driving-related side hustles.
- Personal Coverage: It might be possible to make a note on your personal insurance policy that your car is used for DoorDash, but this will only work if it’s very, very infrequent use.
Any additional coverage will increase your premiums, and these add-ons aren’t part of your standard policy. However, it’s generally worth having additional DoorDash insurance if an incident happens while working.
Why Purchase Additional DoorDash Insurance
If DoorDash offers insurance, then why buy additional coverage? The DoorDash insurance policy, while better than what most food delivery services offer, still has limitations. Let’s break those down to understand the benefit in purchasing additional coverage:
- If there’s an accident, DoorDash insurance only covers damages to the other party.
- The coverage does not apply to times when you are waiting for orders or between orders.
- Your policy may not cover you if there’s an accident while you’re on delivery. Some of this varies by state, so be sure to check your state’s insurance laws.
What this means is that if you are in an accident while delivering for DoorDash, its policy will only cover the other party. Damages to you or your vehicle will not be covered by DoorDash’s policy, and they may not be covered by your personal policy.
Purchasing additional coverage can fill in any gaps that may occur if there’s an incident. And considering that most policies aren’t that expensive, it has the potential to save you a lot of money if you are involved in an accident.
Best Insurance Companies for DoorDash Drivers
Because of the popularity of on-demand food delivery services, like DoorDash, many of the biggest names in insurance are now offering comprehensive policies to cover food delivery and rideshare drivers.
GEICO’s is a hybrid policy that includes coverage for rideshare driving, delivery driving, and personal use. Most rideshare insurance companies only offer an add-on policy that covers the gap in your insurance.
If you have a GEICO policy already, the major perk is that this add-on simplifies your coverage. There’s one bill, and you file any claims with one company. GEICO also doesn’t have any mileage restrictions.
GEICO offers deductibles as low as $250, and you can contact them for a customizable quote.
Like other companies, GEICO generally won’t cover you if you’re driving a car you don’t own. It’s available in 40 states and covers you if you drive for multiple companies.
Progressive offers add-on coverage for existing customers, and it’s a unique policy that can be customized to account for on and off-season driving. For example, if you live in a touristy area and drive more during the summer months, you can use their policy for those specific periods.
The Progressive policy is meant to fill the gap between personal coverage and on-the-job driving. It’s not available in every state, though.
3. State Farm
State Farm’s policy is another one that fills the gaps between your personal insurance and DoorDash’s coverage. It’s meant to add coverage so you’re not stuck with liability insurance alone, and they recommend a business-use add-on for while you’re using the DoorDash app.
State Farm is upfront about how much your coverage may cost — they say it generally adds about 15% to 20% to your current auto insurance premium.
Cost of DoorDash Insurance
The policy DoorDash offers is available for all delivery drivers at no additional charge, but if you want an add-on policy, you can expect to pay about $15/month or more. It’s hard to get a more exact estimate of how much you’ll pay because it’s based on individual factors like the kind of car you drive and your driving history.
Most insurance companies aren’t super transparent about their fees. Although State Farm clearly says that it will cost around 15% to 20% of your premium.
You can write off this additional coverage on your DoorDash taxes.
The Final Word on DoorDash Insurance
Doordash offers basic liability coverage up to $1 million that covers Dashers who are actively driving and have food in the car, and the policy only covers third-party bodily injury or damage. Because this creates a gap in the coverage between the DoorDash policy and your personal policy, it’s recommended that you purchase an additional policy to cover the gap.
If you’re in an accident while DoorDashing, the claim will first be sent to your personal insurance company. Then before DoorDash insurance kicks in, your personal insurance company needs to decline the claim. DoorDash insurance then covers damage to the injured party and their vehicle; however, it does not cover the DoorDash driver and their vehicle.
DoorDash requires that drivers have a personal insurance policy before they can start delivering with their vehicle, and this is standard with other food delivery and rideshare companies as well.