Food delivery services have provided a way for residents of New York (and elsewhere) to enjoy their favorite meals in the comfort of their homes.
If you are a driver for Grubhub, Uber Eats, DoorDash, or other companies, you should ask yourself one question: "Do I need special auto insurance as a food delivery driver?"
Do I need special auto insurance as a food delivery driver?
Here is the simple truth: personal auto insurance policies do not provide coverage when you're acting as a food delivery driver. So, the bottom line is YES, you need special auto insurance.
If you get involved in an accident while using your car to deliver food, you'll be left to pay damages and medical costs from your own pocket.
Personal auto insurance is designed for you when using your car for personal use. The moment you begin using it for food delivery, it becomes commercial use. The policy is void in such scenarios, and the insurance company will deny your claims.
How about the insurance provided by food delivery services?
If you work for a food delivery service, your employer may provide insurance coverage for you while you're on the job. However, there are often limitations and restrictions in the coverage they provide.
For example, your employer-provided insurance may cover you while delivering an order to a customer but not while driving to pick up the order or waiting for a request. Also, you may only get comprehensive and collision coverage if you have it on your auto policy.
In addition, some food delivery services do not provide insurance for drivers in New York. Notable examples are Amazon Flex and Uber Eats.
Companies like GrubHub and InstaCart do not even provide commercial coverage for drivers, which means you are stuck with a major bill when delivering for them.
How can I protect myself as a food delivery driver?
If you are driving for a food delivery company, it's crucial to shield yourself from financial woes in the event of an accident. With the limitations in employer-provided coverage, how do you ensure you have complete protection?
First, you can purchase a rideshare add-on or endorsement from your insurance company to provide coverage specifically for delivery services, including food delivery.
Another option is to buy a commercial insurance policy. Although commercial policies cost more, they provide more robust protection and ensure you are adequately insured for food delivery.
Rest easy knowing you are always covered on your delivery job
Whether you deliver food for companies part-time or full-time, you may find yourself in a financial mess if you don't have the appropriate coverage. If you are in New York, talk to us today about your insurance options.