Female courier delivering food at customer house. Find food delivery insurance.

Grubhub, DoorDash, and Uber Eats Driver Insurance

More people than ever before use their personal vehicles to earn money delivering food as a side hustle. Companies like Grubhub, DoorDash, and Uber Eats are just some examples. Alongside questions like ‘How much can I earn?’ one of the most common queries has to do with legal and financial protection.

Do I Need Auto Insurance for Delivery Drivers?

If you are planning on becoming a food delivery driver, you might be wondering if you need to get commercial car insurance. While it always makes sense to protect yourself and your vehicle, it depends on the company you drive for and the state you live in. New Jersey requires motor vehicle liability insurance in general, so you are already covered to some degree if you get in an accident or have another issue.

Some companies require their drivers to have commercial insurance, while others do not. You must carefully check with the company you deliver for, find out what their requirements are, and also determine if they have automatic car insurance for delivery drivers built into their system.

There are different types of car insurance depending on how you use your vehicle and how much of its use is specifically for commercial purposes. Delivering food as an independent worker falls under this heading. The two main options are full commercial policies and business-use insurance. The former covers more and is mostly used when a vehicle is primarily used for work or business. This would cover work trucks, for example, that are never used for a family road trip or a jaunt to the supermarket. Business-use vehicle insurance covers specific and limited work-related uses. Which is the right one for you depends on a variety of factors, so it is important to speak with a qualified Trusted Choice insurance agent who knows the NJ insurance industry inside and out. Luckily, it’s easy to find an independent agent to work with— start here.

What Happens if You Do Not Have Commercial Insurance or Business-use Insurance?

If you do not have commercial insurance or business-use insurance as a delivery driver and you get into an accident, you could be in for some serious legal problems. And if you are involved in a car accident and do not have any insurance at all, you will be responsible for paying for any damage that occurs. This can be a very costly endeavor, and it may even land you in legal trouble. It would take a lot of DoorDash or Uber Eats delivery tips to make up the difference in your bills. Also, you may get removed from the system and not be allowed to drive for that company or any other one again. They have certain criteria in place you must follow if you want to continue your ability to work as a gig delivery driver.

Even if the accident was not your fault, the other driver's insurance company may not pay for the damage to your vehicle. This depends largely on what type of insurance the other person carries. In NJ, liability is required by law, so there should be some money to cover an accident when you are not at fault. However, some people illegally go without. This is why it is so important for you to protect yourself in a responsible manner. Either way, it is important to have commercial insurance as a delivery driver to protect yourself financially in case of an accident.

Food delivery insurance policies provided to drivers from the company they work for vary a lot, and how well you are covered also depends on your overall personal coverage and how much you use your car for commercial purposes. It does not matter which company you drive for. You still need to ensure that you have the right legal coverage for yourself and your vehicle. However, the major companies that offer take-out delivery services and use contract workers often offer some level of protection on their own. Here are a few examples:

Different Delivery Company Policies and the Law

  • Uber Eats Delivery Insurance – Uber Eats has by far the best in-house insurance coverage for delivery drivers of the three popular companies. [1]. In all states, with the exception of New York, Uber Eats will pay up to $1 million in liability if anything happens while you are actually making a delivery. This starts the moment you accept the task and ends when the delivery is complete.

Uber Eats does not cover the time it takes you to drive from the delivery spot back to your home or wherever else you want to go unless you opt for additional coverage. If you are injured or experience property damage between orders or deliveries, Uber Eats delivery driver insurance does offer anywhere from $25,000 to $100,000 for things like bodily injury and vehicle repairs.

If you have personal comprehensive coverage on the vehicle you use for Uber Eats assignments, the company will kick in extra money to help with repairs. At this time, there is a $1000 deductible, which means you would be responsible for this amount of money, and they will pay anything above that.

  • The best car insurance for DoorDash drivers – DoorDash covers accidents while you are actively engaged in a pickup or delivery only. This kicks in after your personal insurance limits are reached. The rules specify that you must have already accepted a request and begun driving to the restaurant or other business in order to have this type of commercial protection. When the order is marked delivered or canceled in the system, the coverage stops. Also, this policy only offers help if you are responsible for the accident or incident that results in injuries and property damage, and your insurance has either denied paying or has already paid as much as they are going to. It does not cover any damage to your own vehicle or injuries you sustained in the accident. [2]
  • Do you need commercial insurance for DoorDash? – Yes. In compliance with New Jersey law and to make up for the gaps in provided coverage, an extra policy of your own may be required. Talk to your Trusted Choice independent agent about your unique circumstances.
  • Grubhub policies about auto insurance – Grubhub does not offer any insurance or special coverage to their drivers at all. This means that you are completely responsible for getting an appropriate commercial vehicle policy in case you get into an accident or experience automobile theft or another issue while doing your delivery job. [3]

Many people who choose to deliver food for these companies also work for others at the same time. This is a great way to maximize income, but it also increases the risk of accidents and incidents that require your insurance policy to kick in. Amazon Flex, for example, offers a commercial auto insurance policy for people in New Jersey and everywhere else around the country other than New York. Instacart does not provide any assistance and instead makes you sign a contract that you will get your own insurance under the law. Postmates provides excess coverage that offers some protection after your personal policy is depleted in the case of an accident with damages or injury suits.

How to Find the Cheapest Insurance for Delivery Drivers

If you are an independent delivery driver for one or more of the companies mentioned in this article, you know that having insurance is a must. But what if you do not have a lot of money to spend on premiums? It is possible to save money while still getting the coverage you need.

  • First, work with a Trusted Choice independent insurance agent to comparison shop. This means looking at different coverage providers with the expert help of a local insurance agent who understands the market well. They will help you choose from more than one option and their experience and knowledge will help you find the coverage to protect you while you are out making money.
  • Second, discuss with your agent how much coverage you really need. While basic liability is required in New Jersey, there are other levels of protection needed for even part-time commercial drivers. Do not skimp on the best just to try to save a dollar or two. Insurance is all about protecting you from much bigger financial issues in the case of an accident, theft, or other serious issues.
  • Third, don’t feel shy about asking for discounts or special offers. These may apply to certain age brackets, good student discounts, or good driver price breaks for those who have never been in an accident before. The best way to know how you can save on insurance as a delivery driver is to ask a qualified professional—your New Jersey Trusted Choice independent insurance agent.

By following these tips, you should be able to find an insurance policy that will protect you while you are on the job. Do not let your Uber Eats, DoorDash, or Grubhub side hustle turn into a huge headache without the proper insurance coverage.

Why Work with a New Jersey Independent Insurance Agent?

In order to get the protection you need and deserve, you’ll want to work with a trusted expert. And who could be better for the job than a local agent who shares your ZIP Code? New Jersey independent insurance agents take the time to discuss exactly how much coverage is necessary for your individual needs.

Independent agents act as your own personal insurance shoppers, offering you more options than one-policy companies. With just one call, they’ll start gathering multiple quotes for you to review so you can be sure you get the right coverage at the right price.

And, because they’re your dedicated agent, they’re not just there at the beginning, they're there to help walk you through the claims process and make sure you’re getting the benefits you're entitled to should an event occur.