Many businesses such as restaurants, grocery stores, etc. have delivery drivers who use their personal cars to deliver goods to their customers. The number of people becoming delivery drivers and businesses hiring them increased since COVID-19 hit the world.
Interesting fact
During the pandemic, according to Statista, a market and consumer data provider, Americans spent approximately 11 billion dollars on pizza delivery alone. Overall, food delivery e increased more than 20% in 2020 compared to 2019.
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What is DoorDash insurance?
DoorDash is an insurance policy designed for the delivery drivers, during the time they are working with their personal vehicles. Because a personal auto insurance policy will not cover any incident that occurred when the insured vehicle was used for commercial purposes.
What does DoorDash insurance is for?
DoorDash insurance is covers the gap between your personal vehicle insurance and your employer auto insurance. As mentioned, it is a strict law that no personal car insurance policy will cover the insured vehicle when the damage occurred when it was being used for commercial purposes. Which means there is a gap in your coverages that could get you stuck with property damage and medical bills.
The best thing you can do to avoid such situation is to call your car insurance company before using your vehicle for commercial purposes and get some advice of whether or not you have appropriate auto insurance coverage.
Is DoorDash insurance a requirement?
DoorDash insurance requirement is pretty straightforward. That is, you must maintain your own insurance and since your personal insurance will not be enough, you will need special car insurance. Therefore, you should carry a combination of DoorDash with personal- and business-use insurance.
You must know that the insurance form DoorDash will only cover you if you are on food delivery which means if there is food in the car. Therefore, you will not have coverage when you are on your way to pick up the meal. We already mentioned that your personal insurance will not cover if anything happens during a pick up because it counts as a business trip. That is mainly why we recommend you to also take out business car insurance policy, to be covered if anything occurs when you are going to pick up the food.
What are DoorDash drivers’ requirements?
According to the DoorDash insurance policy requirements, to be eligible to receive this coverage and be an official DoorDash driver, there are certain requirements that the driver must meet, which include:
- The vehicle is in running condition
- Drivers must be 18 years of age or older
- Drivers must have at least the state minimum coverage for their personal auto insurance policy.
What does basic DoorDash coverage include?
The DoorDash policy includes the following coverages for policyholders:
- 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.
Notice: The DoorDash coverage is considered as a secondary coverage and will only apply to any excess costs.
What coverages should you have as a DoorDash driver?
As we discussed, as a DoorDash driver, you must carry three types of coverage:
- Business-use Coverage:
A business-use coverage is only going to cost you a few more dollars a month, and in return you will be protect when you are using your vehicle for business purposes.
- Commercial Coverage:
Your commercial vehicle insurance coverage would be a DoorDash coverage which protect you and your property when you are delivering a meal or groceries.
- Personal Coverage:
As a vehicle owner, you are required by law to purchase and carry a personal coverage. But it is specifically stated in every personal auto insurance policy that the vehicle must not be used for business purposes, and if the policyholder violates this term of the policy, the car insurance company will not be held liable to pay for any claims.
Which are the best vehicle insurance companies for DoorDash
You can purchase both business and personal insurance policies from the listed insurance providers. It is notable that the following commercial and personal vehicle insurance providers are the best auto insurance providers across the country. You can just search any of these insurance companies name and see the reviews and their history of providing auto insurance for their customers and see for yourself!
- GEICO
- Progressive
- State Farm
- Allstate
- Erie
Note: We must mention that Erie insurance provider is only available in some states, therefore, check if their services is available in your state. Allstate offer the highest rates but it also holds the best customer satisfaction rates. GEICO offer the lowest rates.
