Do I Need Special Insurance to Be a Delivery Driver?

Whether you’re doing deliveries as a side hustle or as a full-time job, do you know if you have the right insurance coverage in case of an accident?

Most restaurants, stores, or rideshare services rely on drivers who use their personal vehicles to do their job. While most companies require drivers to have state-minimum auto insurance coverage, it may not be enough. After an accident, some drivers may face issues such as their personal auto insurance will not cover business usage or gaps in company-provided insurance. If this is the case, a driver could be solely responsible for any out-of-pocket expense due to property damage or injury.

For example, DoorDash does provide basic liability insurance for Dashers. However, it only applies if the driver is on an active delivery at the time of the accident and only after the driver goes through their personal auto insurance policy. Say a driver only has personal auto insurance and gets into an accident after making a delivery; his or her insurance company could deny the claim AND DoorDash’s insurance may not cover the claim either because that person was not on an active delivery.

How to make sure you’re covered:

  1. Review your current insurance policy.
    • Your current policy may include specific clauses about business-use, ridesharing, or deliveries.
  2. Talk to your insurance company.
    • Tell them how often you are doing deliveries and see if you need additional coverage. In some policies, occasional business-use may be covered.
    • If you do not have adequate coverage, ask about Business-Use Coverage, Commercial Coverage, or Rideshare/TNC (Transportation Network Company) Coverage.
    • Consider Gap Insurance. If you owe more than your car is worth, gap insurance helps pay off your auto loan if it’s totaled.

Regardless of how often you’re doing deliveries, always make sure that you have the proper insurance coverage.  It’s better to spend a few extra bucks a month to be safe than to be stuck with expensive out-of-pocket costs from your accident.

M. Austin Jackson Attorney at Law specializes in helping victims and their families who have been injured in motor vehicle accidents. Since 2013, we have recovered millions for our personal injury clients. In the event of wrongful death, the family can seek compensation for the full value of the life that was lost, as well as damages to pay for funeral expenses, loss of companionship, and much more.