An increasing number of people are participating in the ride-sharing economy as drivers for Uber Eats, DoorDash, and other food delivery services. However, they are not aware that their personal auto insurance may not cover them for this type of driving activity.
In these circummures, you are using your vehicle for commercial purposes, which means you might not have a claim against your auto insurance if you get into an accident.
In April of 2019, a Skip the Dishes driver failed to inform her insurance company that she was delivering food until she had an accident, and she filed a claim. The insurance company advised her that her standard auto insurance policy does not cover commercial or for-profit vehicle use. She had to pay $8,400.00 out-of-pocket for the damage to her vehicle.
Different food delivery services would offer various coverage.
UBER EATS
As of September 1, 2020, Uber Eats has a commercial insurance policy with Economical Insurance, which covers you if an accident occurs between accepting delivery and reaching the delivery destination. This policy provides $2 million liability coverage, which means it protects your liability to third parties from the moment you accept an Uber Eats delivery request until its conclusion.
It also provides $2 million of uninsured/underinsured motorist coverage, protecting you from injuries caused by a hit-and-run driver, an uninsured driver, or a driver without sufficient insurance.
It also provides a contingent collision and comprehensive coverage, which covers loss or physical damage to your vehicle up to the vehicle's actual cash value with a $1,000.00 deductible. This coverage only applies if the vehicle is also insured for collision and comprehensive coverage on your personal auto policy.
In addition, Uber Eats also maintains commercial auto insurance on your behalf when you are available through the Uber app but have not yet accepted a delivery request. When applicable, the insurance provides $1 million of third-party liability coverage and uninsured/underinsured motorist coverage along with all of the other coverages listed above.
DOORDASH
Doordash states on their website that damage sustained to your vehicle in an auto accident is your responsibility and should be addressed by your auto insurance carrier directly, so you need to have your personal auto insurance.
However, Doordash provides excess auto insurance, but this policy applies only to damages you cause to other parties and only to accidents while on an active delivery when you are in possession of goods to be delivered. This excess insurance applies only after your personal insurance limits have been exhausted.
SKIP THE DISHES
The Skip the Dishes’ website does not mention any auto insurance protection, which means a Skip the Dishes driver must inform their insurer that they are a delivery driver.
It is the responsibility of the driver to have their auto insurance which means that any collision must be reported through the driver’s personal auto policy.
If you or someone you know has been injured while delivering food, contact JEWELL RADIMISIS JORGE LLPfor a free consultation.