Driving for DoorDash comes with a lot of hidden expenses.
Other than fuel and vehicle maintenance costs, one thing many people don’t think about is how it will affect their insurance – or if they should even tell their insurance at all.
But does driving for DoorDash make your insurance go up, and if so, by how much?
In this article, we’ll cover everything you need to know.
Will Your Insurance Rise If You Start Driving For DoorDash?
In most instances, driving for DoorDash will require you to get commercial vehicle insurance, which is more expensive than insurance aimed for personal use of your vehicle. This is dependent on your specific policy (some personal policies allow you to deliver, as long as you aren’t using your car for ridesharing such as Uber or Lyft.)
This is due to the increased liability risk for insurance companies.
It can be safely assumed that if you’re using your vehicle for commercial purposes, you’ll be driving more frequently and putting far more miles on your vehicle as a result. And the more you drive your car, the more likely it is that you will get into an accident at one point or another.
In order to hedge against this risk, commercial insurance is more expensive than personal expensive. Increases can range anywhere from 20% to 50% or more, depending on your policy.
Insurance companies are well aware of side-gig jobs such as driving for DoorDash, as well as rideshare companies. So, they have special processes in place to provide quotes for DoorDash drivers. In some cases, additional fees can be as little as $10 a month for commercial coverage.
If you already have insurance, you will need to call your insurance company before you begin driving for DoorDash in order for them to update your policy.
If you plan to Dash using multiple vehicles, you will need to be sure that you’re covered for each vehicle that you plan to use for commercial purposes. For more information on using multiple vehicles for DoorDash, click here.
Note: DoorDash will accept you as a driver without checking the details of your insurance – they simply want to see that you have some sort of coverage. However, this doesn’t mean you can legally drive for DoorDash just because they’ve accepted it.
What Happens If You Don’t Say Anything To Your Insurance Company?
The truth is, the vast majority of DoorDash drivers simply never tell their insurance company about their DoorDash activity. This may either be intentional, or unintentional. However, it does not come without its own set of problems.
Technically speaking, failing to notify your insurance company that you’re using your vehicle for commercial purposes is insurance fraud.
If you get into an accident while working for DoorDash, your insurance is unlikely to cover the claim. You could attempt to lie about it or hide your DoorDash activity, but courts are great at uncovering evidence and it’s likely they’ll find out anyway (not to mention, you’d be breaking the law by lying about it.)
To make things more complicated, it’s likely that your insurance company would drop you as a customer, for a violation of your insurance policy.
This will ultimately make things more difficult for you when it comes to finding a new insurance provider. Not only will fewer companies want to work with you, but those that do may charge higher rates for the same level of service.
Ultimately, it’s something that you want to avoid.
While having personal insurance while driving for DoorDash may help you get out of a ‘driving without insurance’ ticket, it may ultimately be worthless if you ever get into an accident.
The right (and legal) thing to do is to notify your insurance company and accept the price increase before you begin driving for DoorDash.
What About The Coverage Offered By DoorDash?
If you’ve been driving for DoorDash for a while, you may be familiar with the insurance coverage offered by DoorDash.
This policy alone has led some people to believe they do not need commercial coverage through their own insurance provider. However, this is false.
DoorDash insurance may cover damage done to the other policy, provided the accident occurred while delivering food and you have already gone through your own insurance provider. In these instances, DoorDash may cover what is left.
However, this only covers accidents that occur while on an active delivery.
Driving for DoorDash (or other food delivery platforms) will make your insurance go up, as you will need to upgrade to commercial coverage.
However, the slight fee increase is worth it for the peace of mind, knowing that you’ll be fully covered in the event of an accident.
I hope that you’ve found this article helpful. If you have any other questions about DoorDash, please ask them using the comment form below.
Wishing you the best,
– James McAllister