What are the DoorDash insurance requirements?
DoorDash requires drivers to possess insurance coverage that's at least equal to the minimum amount needed to legally drive in their state. In order to ensure they're covered while delivering food, DoorDash drivers may also need to purchase some sort of business coverage in addition to their personal policy. DoorDash does provide drivers on active deliveries with supplemental liability coverage, but this can only apply if the driver already has insurance coverage of their own.
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UPDATED: Mar 16, 2022
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- DoorDash requires drivers to obtain their own insurance that’s at least equal to their state’s minimum requirement
- For drivers on active delivery, DoorDash provides some supplemental liability insurance that applies if a driver’s claim is refused by their own policy after an accident where they’re responsible
- Depending on your insurance company, you may need some form of business coverage in addition to personal auto coverage to stay insured while driving for DoorDash
Whether you’re looking to make a bit of extra cash or want to turn food delivery into a steady stream of income, you may be wondering if you need to update or change your car insurance policy first. If you’re driving for DoorDash, the answer depends on your current insurance company and where you live.
DoorDash drivers are required to have car insurance coverage in order to work as independent contractors for the company. While DoorDash does have a commercial car insurance policy that applies while a driver is on “active delivery,” this isn’t enough coverage for a driver on its own. Depending on what your insurance company and state require, you may need to have both commercial and personal car insurance to meet the DoorDash insurance requirements.
With this guide, we’ll help you find out how much insurance you need to deliver food through DoorDash and how much purchasing this insurance will cost you. We’ll also answer some other common insurance questions related to driving for DoorDash, including if you need to tell your insurance company that you’re driving as part of a food delivery service.
How much insurance does DoorDash require for drivers?
DoorDash requires drivers to maintain their own insurance policy. While DoorDash doesn’t mention commercial car insurance specifically, many car insurance companies won’t honor a personal car insurance policy if you’re involved in an accident while driving for business purposes — such as delivering food with DoorDash.
Here are some common examples of driving that qualify as either personal or commercial use of a car:
- Personal use: Going to a grocery store to buy food for the week, commuting to an office, visiting friends or family
- Commercial use: Delivering food as an independent contractor (like DoorDash), driving passengers for cash, driving to a job site to perform a service (like landscaping or painting)
Basically, if you’re driving as part of a job, your personal car insurance may not cover you. To make sure you’re covered if you get into an accident while working for DoorDash, you should contact your insurance company and check if your current policy covers driving for business or commercial reasons. Your insurance company may even be able to help you adjust your policy with food delivery driving in mind. That said, you may need to purchase business/commercial car insurance that’s separate from your personal car insurance — or switch your car insurance coverage to a company that has better coverage for food delivery drivers.
According to the Insurance Information Institute, if you only occasionally use your vehicle for business purposes, your insurance company should be able to work with you to adjust your personal insurance policy. But if your vehicle is used primarily for business, your personal auto coverage likely won’t cover it at all.
How much does insurance for DoorDash cost?
Since DoorDash requires drivers to purchase their own insurance, the cost of insurance for a DoorDash driver can vary considerably based on their state, insurance company, and policy. Depending on your state, car insurance can cost anywhere from $1,500-$4,500 per year for the average driver. That said, as a DoorDash driver, you’ll probably need to purchase some form of business coverage, which will add to your annual rates.
To get the most out of your food delivery work, here are some options for saving on car insurance for DoorDash:
- Drive an affordable used car that’s cheaper to repair or replace than newer vehicles.
- Compare quotes from multiple car insurance companies in your area before making a decision.
- Ask your insurance company if you qualify for any discounts.
- Look for an insurance company that lets you bundle your car insurance with home or renters insurance.
- Select a policy with the highest deductible you can reasonably pay out of pocket (monthly rates for a plan with a $1,000 deductible will be lower than those for a $500 deductible plan, for example).
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Do you need commercial insurance to work with DoorDash?
Do you need commercial insurance for DoorDash? Depending on your current insurance company, you may or may not need to purchase commercial insurance — or add business coverage to your policy. Generally speaking, driving for DoorDash is considered using your car for business use, meaning some personal car insurance policies won’t cover you while you’re working (even if you don’t have food in your car). Contact your insurance company to see if your personal car insurance policy covers business use.
While GEICO doesn’t offer “DoorDash insurance,” the insurance company does offer personal policies in some states that will cover your vehicle no matter what it’s being used for, including business use. Check with a GEICO agent in your area to see if they offer a personal car insurance policy that covers food delivery.
With the rise of rideshare and food delivery services as a form of independent contract work, several insurance companies have added specific rideshare and food delivery coverage options. Drivers can add these to their policies for around $20-$50 a month in most cases. Progressive is one such company that offers rideshare insurance for DoorDash, Uber Eats, and Grubhub drivers.
Does DoorDash offer insurance coverage for drivers?
DoorDash drivers are responsible for their own car insurance coverage. DoorDash doesn’t have any official recommendations for car insurance, only requiring that drivers possess their state’s minimum amount of insurance.
DoorDash does provide supplemental car insurance that applies while drivers are on an active delivery (going to pick up or drop off food). This coverage functions as liability insurance, meaning it covers medical expenses or damages to someone else’s property if a DoorDash driver is responsible for an accident. That said, this couldn’t really be called “DoorDash employee insurance” as it only kicks in if a DoorDash driver’s own claim is denied by their insurance company. The insurance DoorDash provides also doesn’t cover claims for damages to the delivery driver’s vehicle that occurred as the result of an accident during delivery.
Do you need to tell your insurance company if you drive for DoorDash?
Even if you don’t think driving for DoorDash will result in any changes to your insurance coverage, it’s a good idea to contact your insurance company if you ever start driving for any business-related reasons that you haven’t already discussed. In the worst-case scenario, your insurance company could cancel or refuse to renew your policy if they find out you’re working for a rideshare service and neglected to inform them.
Basically, contact your insurance company if you decide to work for DoorDash — or any other food delivery or rideshare service. Not only will this help you avoid situations where your claim could be denied, but it will also give you a chance to find out if there are any discounts or policies your insurance company offers that could lower your overall rates.
What to Remember About DoorDash Insurance Requirements
- DoorDash requires drivers to possess their state’s minimum required insurance. DoorDash does provide supplemental liability coverage for drivers on an active delivery, but it only applies if a driver’s own coverage is declined after an accident.
- You should purchase your own liability, collision, and comprehensive car insurance coverage before you start driving for DoorDash. You may also want to purchase a rideshare policy or some other form of business coverage in addition to your personal auto insurance.
- You should always contact your insurance company if you plan to work for DoorDash or any other food delivery service, so you can update your policy accordingly.