DoorDash is a technological-driven American company that functions as an online food ordering and delivery service on its platform. The rise of the pandemic saw this business skyrocket into success. Its delivery services are carried out by registered drivers on the platform, in proximity to the order. DoorDash is one of the most lucrative ways to make money, with a valid driving license, a car, and the appropriate car insurance you too can become a Doordash driver and start earning income. doordash Drivers are 100% responsible for paying their vehicle insurance at all times if they want to be bulletproofed from any unforeseen accidents while driving for DoorDash. DoorDash does not provide this service and will in no way offer it at any given time. Let us see about Does DoorDash require Insurance?
Does Doordash Offer Insurance To Its Drivers?
Unfortunately, DoorDash does not have an insurance plan it offers its drivers. The company however has basic liability insurance to cover drivers who are involved in accidents in which case the other driver is at fault during delivery. This liability insurance is in other to protect the company from potential lawsuits and is in no way about keeping the driver protected.
Does My Insurance Company Need To Know If I Deliver For Doordash?
When using your car for any business purposes such as delivery service, your insurance company must have this information. This is because in such cases, your vehicle insurance does not cover the use of the vehicle for business purposes.
Moreso, through your private insurance provider you can acquire business use coverage. It is simple to do this, you just need to inform your insurance company and tell them you would like to add business use coverage to your insurance plan.
Types Of Insurance Policies That Will Protect You From
Before getting ahead of yourself and registering to be a DoorDash driver just because you fit the credentials of owning a car, valid driver’s license, and car insurance. It is important to note that regular car insurance does not cover DoorDash driving.
The purchase of insurance is important, as it protects you for the future. A traditional car insurance plan is built to protect you from personal use of your vehicle and will not protect you while you are involved in a DoorDash accident, because that is considered business use, because of this as a DoorDash driver, you are required to obtain special coverage on your
- Personal Coverage
Some insurance companies provide the option for which your vehicle include under business purposes but still in personal coverage policies. However, such addition will increase your premium and only applies if the vehicle is used infrequently for business purposes
- Business-Use Coverage
This is the best suitable option for DoorDash drivers, this is because it can be included in most auto insurance policies and does not require a lot of payment, costing only a few more dollars a month to protect your vehicle during business use.
- Commercial coverage
This coverage covers is designed for businesses and vehicles used for those businesses and is the best option if your vehicle is solely used DoorDash delivery and not for personal use
How Does A Vehicle Insurance Plan Work With Doordash?
DoorDash does offer insurance coverage to drivers that contract with them, their policies cover up to a million dollars worth of property damage and bodily injuries that occurs at the fault of the other driver during delivery( which only applies when food is in the car). However, you must actively be carrying out or in the delivery process for the policy to apply.
As a DoorDash driver, you are still required by the company to possess your car insurance that will cover any accidents, in which case you are at fault or not in an active delivery. This is major because this basic liability plan possesses a lot of loopholes. There has to be food in the car for it to apply. Therefore if a driver has just delivered the food, they are not actively in delivery, and thus the liability does not apply. DoorDash will in no way or form step in to cover the damages that you caused while on delivery with them.
What Happens To A Doordash Driver Who Is Involved In An Accident While Delivering For Doordash?
Getting in an accident is never ideal and the failure of the driver to follow safety procedures and rules in due time will lead to the escalation of these consequences. If in any case, this happens the driver will be faced with the following consequences which are
- Deactivation from the platform: This action is taken by the company and depending on the intensity of the accident may be temporary or permanent.
- The driver’s insurance may be canceled or premiums may go up: This is due to the fact that you are now considered as high risk.
- The potential to have none of the damages covered: If the DoorDash driver in question fails to add business use coverage to their insurance plan this may put them at high risk of having none of their damages covered by the insurance company.
- You may sustain points on your driving record
- The driver could get a traffic ticket.
Conclusion on Does DoorDash require Insurance?
Conclusively, It is also important to know that the DoorDash insurance policy is considered a secondary insurance plan and will only kick in once primary insurance is exhausted. The cost of insurance for a DoorDash driver varies based on the state in which you choose to operate in, the policy as well as the insurance company.
Frequently Asked Questions on Does DoorDash require Insurance?
- How do I save money on car insurance for DoorDash?
- Compare car insurance policies in your area before deciding on which one to get.
- Ask your insurance company if you are eligible for discounts.
- Choose an insurance policy whose deductible can be reasonably paid out of pocket
- Drive an affordable used car: This reduces cost and is cheaper to repair and replace
- What is the requirement to be a DoorDash driver?
- Drivers must possess a vehicle in working condition
- Drivers must have at least the state minimum coverage for their personal car insurance policy
- Drivers must be 18 years of age and older
