What Car Insurance Do You Need if You Drive for DoorDash or Uber Eats?

Yes, you need additional insurance to drive for DoorDash or Uber Eats. While both companies provide coverage when you are making active deliveries, there are situations that neither your personal insurance nor the employer’s insurance will cover. It’s important to research different types of rideshare coverage to know which one is best for you.

Consider the different levels of insurance protection delivery apps provide when you are deciding to drive for DoorDash or Uber Eats. Each offers slightly different coverage for drivers, so see which works best for you and what additional personal insurance you will need to make sure you are covered in all situations while driving for a TNC.

DoorDash Insurance Coverage Explained

DoorDash provides Dashers with a commercial auto insurance policy that covers up to $1 million in bodily injury and/or property damage for third parties during active delivery service. Dashers who suffer an injury during a delivery may be eligible for occupational accident insurance. Coverage for both third parties and the driver is for accidents that occur while the driver is actively delivering an order. Any accident that happens when a driver is logged in to the app and available for delivery is not covered by the insurance DoorDash provides.

For DoorDash drivers in Indiana, Kentucky, North Dakota and West Virginia, DoorDash provides third-party auto insurance while Dashers are actively making deliveries and when they are logged in to the app and available for delivery⁴.

Uber Eats Insurance Coverage Explained

Uber Eats provides drivers with coverage both when they’re online and available for a delivery and when they’re en route and making a delivery⁵.

When a driver is online and available for delivery, Uber Eats’ third-party liability insurance covers the following amounts:

• Injuries: $50,000 per person and $100,000 per accident
• Property damage: $25,000 per accident

Depending upon your state Uber Eats may also provide the following coverage:

• Injuries caused by a hit-and-run or an accident caused by an uninsured or underinsured driver
• Personal injury protection
• Medical payments coverage

When a driver is en route and making a delivery, Uber Eats’ third-party insurance covers $1 million for both property damage and injuries in an accident where the Uber Eats driver is at fault. Depending upon your state, Uber Eats may also provide additional coverage like personal injury protection and medical payments coverage. Uber Eats also provides coverage for car repair costs (as high as the cash value of a driver’s vehicle) when a driver is en route and making a delivery.

In addition to the coverage above, Uber Eats offers optional injury protection that a driver can purchase in most U.S. states. Depending on state law, this may cover the following:

• A driver’s injuries in a hit-and-run or an accident where an uninsured or underinsured driver is at fault
• Personal injury protection (PIP)
• Coverage for medical payments

Instacart Insurance Coverage Explained

Unlike DoorDash and Uber Eats, Instacart does not provide insurance for their drivers. Instacart hires their drivers as independent contractors rather than employees which means their drivers are not eligible for insurance provided by Instacart. Rather, drivers are required to carry their own auto insurance to cover accidents and injuries which may occur during delivery service.

Since Instacart does not provide coverage, people looking to drive for Instacart will need to carry their own commercial auto insurance policy. In some cases, a rideshare endorsement from your insurance company may be sufficient. Speak to an agent to ensure you’re covered.

Coverage Gaps You Should Know About

• DoorDash does not provide insurance when you are not actively making a delivery, so you need additional insurance to cover commercial use such as delivery driving.
• Although Uber Eats does offer insurance for when you are logged in to the app and available for delivery, this insurance has much lower limits than the coverage for when you are actively making a delivery.
• No matter which TNC you drive for, you will need additional rideshare insurance to take care of costs not covered by the TNC’s insurance policy. Without rideshare insurance, your insurance company can deny any claim that involves your vehicle being used for commercial purposes.

The type of insurance you need depends on the kind of delivery service you provide and the car you use for the deliveries. For a delivery service like DoorDash or Uber Eats, you will need to add rideshare insurance to your personal auto policy. Other types of delivery services may require you to get a commercial auto insurance policy.

Personal Auto Insurance Requirements

As a delivery driver, you will need to have auto insurance that meets your state’s minimum coverage laws. You will also need rideshare insurance or a commercial auto policy unless you are driving a company car insured through the company.

What Is a Rideshare or Delivery Endorsement?

A rideshare or delivery endorsement is an addition to your personal auto insurance policy that provides coverage for your car while you’re using it for deliveries. Personal auto insurance policies typically don’t cover business use of your vehicle. A rideshare or delivery endorsement fills the gaps between your personal auto insurance and the insurance provided by the company to make sure you are always covered.

When You Might Need a Commercial Policy

If you are using your car for business purposes outside of DoorDash or Uber Eats (for example, to transport goods, non-rideshare passengers, tools or equipment, or to drive to multiple jobsites during the day)⁶, you will need a commercial auto insurance policy. Because personal auto insurance does not provide coverage for accidents when your car is used for business purposes, a commercial policy will ensure you are covered at all times. See our picks for the best commercial auto insurance providers for various scenarios.

Adding rideshare coverage to your personal auto insurance policy will increase your premium, but the amount of the increase will depend on your current policy, age, driving record, state and insurance company. Typically, you can expect to pay around $30 more per month for rideshare coverage. State Farm’s rideshare coverage typically adds 15 to 20 percent to your premium.

When you’re deciding to drive for DoorDash or Uber Eats, it is crucial to make sure you are fully covered between the company insurance and your personal auto insurance policy. Take these steps to ensure you’re getting the right car insurance and the best possible rates:

• Talk to your insurance company first. Let your insurer know if you plan to start working for DoorDash or Uber Eats. Your provider will make sure you are fully covered before you begin delivering.
• Ask about rideshare or delivery add-ons. Rideshare or delivery endorsements are cheaper than a commercial auto insurance policy. If you can be properly insured by adding rideshare or delivery coverage, this would be the best option if you are using your car for business purposes solely by working for a TNC.
• Compare quotes from multiple providers. Remember that not every provider is a good choice for every driver (and not all companies even offer rideshare coverage). Compare quotes with different insurance companies to see who offers the lowest rates for the type of coverage you will need for delivery driving. You may consider switching providers if another company offers better rates when you go to add rideshare coverage to your policy.