Do You Need Special Insurance to Deliver Food?

Do You Need Special Insurance to Deliver Food?

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Key Points:

Driving for a food delivery app comes with certain requirements, including the need for auto insurance. Unfortunately, your personal auto insurance may not be enough.

Many insurance providers consider delivering food a commercial activity. If you look at the fine print of your personal auto insurance policy, you may notice that you are not covered when using your vehicle for commercial purposes.

Your personal auto insurance may not protect you if you get in an accident while delivering food for Uber Eats or Door Dash. Here is a closer look at the insurance requirements for delivering food.

Table of Contents

What Car Insurance Do I Need for Food Delivery?

So, what insurance do you need for food delivery? The answer depends on where you live, which company you deliver food for, and the insurance company.

Most of the food delivery apps require drivers to hold personal car insurance. The type of coverage does not typically matter to the company that you drive for. Uber Eats and other food delivery companies require that you hold the minimum auto insurance required in your state to protect them against liabilities.

Yet, personal auto insurance may not protect you after a crash when delivering food. Personal insurance typically only offers coverage when driving your car for personal use. As driving for a company is a commercial activity, you may need to obtain commercial auto insurance. However, insurance policies vary from one provider to the next.

Some insurance companies allow you to use your vehicle for commercial use up to six days per month. Others completely restrict commercial activity with personal auto insurance.

You can also find personal insurance policies with optional add-on coverage for rideshare drivers and food delivery drivers.

Uber Eats Car Insurance Requirements

Uber Eats requires drivers to provide proof of a valid driver’s license and a suitable auto insurance policy. Uber states that drivers should at least have third-party property damage or comprehensive insurance.

Uber Eats has a commercial auto insurance policy that covers delivery partners. You receive $1,000,000 in commercial auto liability insurance. The coverage protects you in the event of an accident, whether you or another driver is at fault.

Yet, to qualify for commercial auto insurance, you need comprehensive and collision coverage on your personal auto insurance policy. If you are not fully covered through your personal insurance, the commercial insurance becomes invalid.

What does this mean for you? You need comprehensive and collision coverage to receive commercial coverage from Uber Eats. If your personal insurance covers the use of your vehicle for commercial activities, you may not need a commercial insurance policy.

Door Dash Car Insurance Requirements

Door Dash requires drivers to have a valid driver’s license, a clean driving record, and an auto insurance policy. As with Uber Eats, Door Dash provides commercial auto insurance to delivery drivers that meet the insurance requirements. However, the Door Dash commercial insurance only covers third-party liability. It does not cover your medical bills.

Your existing insurance policy may also fail to cover your expenses in the event of a crash. You need to check whether your personal insurance covers accidents that occur during commercial activities.

Skip the Dishes Insurance Requirements

Skip the Dishes requires drivers to have a valid driver’s license and insurance. However, Skip the Dishes does not have a commercial auto insurance policy.

As Skip the Dishes does not provide supplementary coverage, you need to cover yourself. A commercial auto insurance policy is likely needed unless your personal insurance includes add-on coverage for commercial use.

Deliveroo Insurance Requirements

In contrast, Deliveroo provides supplementary commercial insurance for cyclists and walkers. The coverage includes $1,000,000 in third-party liability protection and accident insurance.

Deliveroo does not offer commercial insurance for delivery people using cars or scooters. If you drive a vehicle for Deliveroo, you need to purchase insurance on your own.

How to Choose the Right Type of Car Insurance for Food Delivery

Uber Eats and Door Dash offer commercial insurance to drivers who hold valid personal auto insurance. However, commercial insurance offered by an employer may not cover your medical bills after an accident. Your personal auto insurance may also fail to cover your medical expenses when using your vehicle for commercial activities, such as delivering food.

The commercial insurance offered by Uber Eats and Door Dash must go through your insurance provider first. If you get into an accident while delivering food, you must inform your insurance company of your commercial activity. Not telling the truth may result in the termination of your policy, keeping you from getting any money.

If your policy does not cover accidents involving commercial activity, find out if your insurance provider offers add-ons for commercial use. If add-ons are not available, start comparing commercial auto insurance quotes to obtain the necessary coverage.

Will My Car Insurance Cover Me If I Deliver Pizza?

Restaurants that employ pizza delivery drivers typically need to maintain business and commercial auto insurance to cover their liabilities.

However, as with Uber Eats and Door Dash, the company’s insurance may not cover your bills. Domino’s and other major pizza shops recommend that drivers obtain commercial auto insurance to cover medical bills and vehicle repairs.

Conclusion

Every driver needs some type of auto insurance policy. The bare minimum personal auto insurance allows you to meet state requirements and drive for food delivery services but may not cover the costs related to an accident.

Most delivery services and pizza shops have commercial auto insurance policies. The policies extend the drivers’ coverage, but typically only cover third-party liabilities, which include expenses for other individuals affected by the accident.

Your existing insurance provider may also deny your claim if they find out that the accident occurred while you are completing a commercial activity.

Anyone that drives for a food delivery app or pizza shop should consider obtaining commercial auto insurance. While it is not required by the companies that you drive for, commercial auto insurance or a commercial add-on to your existing personal insurance policy ensures that you are covered.

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