UberEats, Skip the Dishes, DoorDash – lately more online food ordering and delivery platforms have been increasing in popularity at an astounding rate. The platforms are both easy to use and accessible for anyone who has a mobile phone and an appetite. These services offer delivery jobs for people who are looking to supplement their income with extra cash on the side. But many people don’t realize these 3 key things about food delivery car insurance:
- Your personal car insurance doesn’t cover you while you’re delivering food.
- You can get a special add-on coverage or a commercial vehicle insurance policy to protect yourself while you work.
- The car insurance coverage offered by food delivery services is often limited.
Why isn’t food delivery covered by car insurance?
Your car insurance policy doesn’t cover food delivery because your vehicle is being used for commercial purposes. As soon as your car becomes a method of delivery for a product or you’re being paid to drive it is being used commercially. Once this happens you’re no longer insurable under a “personal” car insurance policy due to this change in use.
So if you’re a Skip the Dishes or UberEats driver your car insurance wouldn’t cover you while you’re driving for work. Let’s say you’ve stopped at a restaurant to pick up an order. While pulling out of the parking lot you get into a fender-bender with another vehicle. If you only have a personal car insurance policy you wouldn’t be covered because you were using your car to work. The costs for damages would be on you.
Keep in mind – if you fail to disclose your delivery driving to your insurance company you’re at risk for your claims being denied and being cancelled by your insurer.
Can I get food delivery car insurance?
Yes! You will generally have two options:
- Add a special endorsement to your personal car insurance
- Get a commercial vehicle policy
Which one you choose will depend on what’s offered by your insurer employer requirements and your working conditions (how often you work how much you drive et cetera).
Food Delivery Car Insurance Endorsement
Insurers are now beginning to offer specialized endorsements for delivery drivers as an “add-on” coverage to your personal car insurance. Availability varies by insurers and some companies only work with certain food delivery services.
Commercial Vehicle Policy for Food Delivery
Commercial vehicle insurance protects cars that are used for business purposes. This insurance covers a variety of delivery vehicles including personal cars used for food delivery.
What about the car insurance offered by the food delivery service?
Each company will offer their own insurance coverage but it is often limited. For example it may only offer coverage for you while you have food in your vehicle or when you’re delivering it to the client – you wouldn’t be covered if you were in an accident enroute to a restaurant. They may also not offer adequate coverage to repair or replace your vehicle in the event of an accident. It’s critical that you understand the limits of the food delivery service’s insurance coverage (if there is any).
Some companies also require their drivers to have their own insurance policy either personal or commercial.
In the end if you’re considering using your your vehicle for food delivery car insurance should be at the top of your priority list. Otherwise you should expect to pay out of pocket for any damages including if you’re held liable for property damage or bodily injury. If you want peace of mind and less worry for your financial stability food delivery car insurance is the answer.