How Does Insurance Coverage Work When Driving For Uber, Lyft or Food Delivery?

Have you thought about becoming a driver for Uber or Lyft? Either to provide taxi service for people or food delivery? It’s an easy way to make a couple of extra dollars on the weekends, but what happens when you get into a car accident on your way to drop off someone’s Friday night-in pizza dinner?

Before you complete one more delivery, read this article. Because chances are, your insurance doesn’t cover you.

Personal policies don’t include delivery service

That’s right, personal policies exclude delivery services. In a 2018 survey, The United States Bureau of Labor Statistics found that delivery and sales jobs are the 5th most dangerous job in the country. A personal policy is explanatory right in its name; personal. If you’re making profit from these deliveries, it no longer is considered personal by a lot of insurers. Why is that? It’s because businesses know how much time can be spent out on the road delivering pizza and sushi to people. Of course, the more time spent out on the road puts you at higher risk of getting involved in an accident. This goes for rideshare services (Uber, Lyft), too.

Grubhub, Postmates, etc. won’t cover you

In case you thought these delivery services you work for provide coverage, think again. These companies do not provide any sort of insurance for you or your car when you’re completing orders for them. However, here is what some of them provide:

Doordash only provides liability coverage as long as you have food in your car. If something happens on your way to the restaurant or after dropping off the food, you’re not covered by them.
Postmates offers liability coverage when you accept an order. You’re personally not covered in the case of an accident, but there is coverage if someone else or their property is injured that you’re liable for.
Uber Eats provides a little bit more than liability coverage. That’s right, Uber Eats provides liability coverage and up to a certain deductible amount while you are out on a delivery.
Grubhub provides no kind of coverage or insurance.

Uber and Lyft do offer up to a certain amount of coverage, so there is a cushion there. Nonetheless, once you surpass those limitations, you’re on your own.

Is it possible to get coverage?

Yes, and that’s where we come in. We can work with you to find out what kind of plan will work for you. You can invest in commercial insurance, coverage through your employer, or special policies for these delivery cases. There are, of course, a lot of things to take into consideration with each. Get in touch with us today and we can help you get covered for those late-night girls night chinese takeout deliveries.