The idea of “being your own boss” sounds appealing to most people, so you’ll probably notice that there is a sudden increase of people clamoring to work as a driver for GrubHub, UberEATS, DoorDash, and other similar niches.
It’s important to realize that these jobs have requirements, one of which is insurance. However, are there delivery jobs that don’t require insurance? Let’s find out.
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Are There Delivery Jobs That Don’t Need Insurance?
Sorry to tell you, but no, there aren’t any delivery jobs that don’t need insurance.
If you try applying as a driver for these delivery apps, you’ll probably need to present some proof of insurance.
However, if you have existing auto coverage, you will find that it normally does not cover any claims involving the paid delivery of goods, including takeout food, groceries, packages, etc.
So if you are involved in an at-fault collision while delivering for UberEATS, DoorDash, or Grubhub, it’s highly likely that your insurance company would deny the claims and would leave you to pay for all damages.
It’s also worth noting that if the insurance companies find out that you are using your vehicle for delivering goods, there is a high chance that they might cancel your coverage.
Of course, if you are an actual employee of a specific restaurant, the insurance policy will probably cover you, but we know that’s not the same with freelance delivery jobs.
Is Insurance Required?
Yes, most delivery apps require you to provide proof of a personal auto insurance policy.
Still, as mentioned, they probably won’t cover you or your vehicle if you use it for livery or commercial use.
We don’t know what accidents may befall you while you’re on the road, and as mentioned, your current auto insurance policy is highly unlikely to cover any claims on the paid delivery of goods.
It would be best if you got an endorsement for your current insurance policy. This is considered a revision or supplement to your current personal auto policy and modifies the original terms of the policy to add coverage to a situation that hadn’t been previously covered.
There is an endorsement called the Transportation Network Company (TNC) for delivery apps.
Your current policy must cover bodily injury and property damage to others first before you are allowed to apply this endorsement.
Once this endorsement is added to your current policy, you will be covered as long as you are logged into the delivery app and are on your way to and from delivery.
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Which Delivery Apps Require Insurance?
Grubhub
The worst delivery app when it comes to providing supplemental coverage is Grubhub. They do not offer any coverage whatsoever.
There is no liability insurance, especially not for you, whenever you are available to take orders. You and your vehicle also aren’t covered.
It’s important to add an endorsement to your current auto insurance policy if you’re thinking of working part-time for Grubhub.
DoorDash
On the other hand, DoorDash is a bit kinder to its delivery service providers.
One of their main requirements is proof of insurance, but they probably will not tell you that using your vehicle for delivering goods won’t be covered by your policy.
DoorDash offers only a secondary policy, meaning you have to file a claim with your existing insurance provider first (and get denied) before you can go to them.
It’s also worth noting that DoorDash’s policy is only in effect while you’re on an active delivery, so as soon as the order is marked as delivered or canceled, the coverage stops.
Also, there is only coverage if you are at fault, and it only pays out the other person’s damages. So, you will still need to foot your own bill.
Instacart
Instacart also doesn’t provide its riders with auto insurance, so you will be left to foot the bill for everything in the event you get into an accident.
It’s best to get an endorsement with your existing auto insurance policy if you’re considering working with Instacart.
Postmates
Much like DoorDash, Postmates will only provide liability coverage when you accept an order. This policy will also only cover others’ properties and injuries that you are liable
for.
Meaning, you and your car are still left uninsured.
UberEats
UberEats offers the most rider-centric policy among all other delivery apps listed.
Firstly, they do provide coverage for you, as long as you have comprehensive and collision on your existing policy. Based on our previous research, this is a $1,000 deductible.
They also provide liability coverage for you and others while you are on your way to pick up food, all the way to getting it delivered.
However, there is still a gap. You are not covered whenever you are “available” for deliveries but not en route.
FAQs
Does Grubhub verify insurance?
Yes, Grubhub does verify insurance and will ask you to present proof of insurance. They will also likely contact your insurance policy to verify your existing coverage.
How do I protect myself as a delivery driver?
The best way to protect yourself as a delivery driver is to remain alert while you’re en route. Make sure always to get enough sleep and to be well-rested before you begin delivering goods.
Of course, it’s also highly imperative that you get supplemental TNS insurance so you are covered in case the unthinkable happens.
Can I deliver food without insurance?
Yes, you can deliver food without insurance, but we strongly recommend you not to do so. It’s best to have food delivery and TNS insurance if you plan to deliver food.
Does Postmates ask for insurance?
Yes, Postmates will ask you to present proof of insurance, and they will likely get in touch with your provider to verify your existing coverage.
Key Takeaways
While delivery apps will require you to present proof of auto insurance, they will likely not inform you that your existing policy won’t cover using your vehicle for livery or commercial use.
Most of these companies (except UberEats) also will not cover any liabilities in the event you get into an accident while working for them.
You will be left to foot the bill for all damages, which can seriously impact your hard-earned money.
It’s best to get an endorsement or supplemental coverage to your existing auto insurance policy that covers all liabilities in accidents.
Want To See For Yourself How Route4Me Can Help Minimize Insurance Costs?
