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Food Delivery Driver Insurance Nightmares

During the pandemic, many in the U.S. used ever-popular food apps such as Uber and DoorDash. Food delivery is convenient for hungry people. For delivery drivers and others, it can be anything but convenient. A simple crash can cause food delivery driver insurance nightmares – for themselves and others.

food delivery driver insurance nightmare

Food Delivery Drivers

Delivering food for companies like Uber Eats and Door Dash is a lucrative job option for some people. They have a car. Why not earn some extra money? But, many drivers don’t understand their car insurance doesn’t cover them, or others while making deliveries.

Delivery Driver Car Accidents

Food delivery drivers can land in hot water after a crash. It’s confusing, they have car insurance, but it doesn’t cover using the car for deliveries. This can cost the delivery driver and others involved in the crash a lot of money. It’s just the beginning of their food delivery driver insurance nightmares.

Insurance Problems for Delivery Drivers

Here is the information you need to know about food delivery insurance nightmares:

Car Insurance

In Pennsylvania, the law requires drivers to have car insurance. But, this car insurance only covers driving for personal use. Most insurance companies classify delivery driving as business use.

food delivery driver car insurance problems

Food Delivery Car Insurance

Using a car to make food deliveries is business use. This leaves delivery drivers without insurance coverage as they make deliveries. What makes matters worse is the lack of insurance provided for delivery drivers by the company they deliver for.

Personal Use vs. Business Use Insurance

Many people are unaware that personal insurance does not cover them if they are using their car for delivery services. Take for instance a woman in Pennsylvania who was involved in a crash with a food delivery driver.

Food Delivery Driver Car Crash

Here is a real-world example of the problems caused by food delivery insurance nightmares. 

A Pennsylvania mom in York County, Sarah Leiphart, was driving home after work. A food delivery driver was clocked in on DoorDash and dropping off a food delivery. The delivery driver crossed into the oncoming lane, causing a crash. Sarah’s car was completely wrecked. They exchanged information and went on their way.

No Insurance Coverage

When Sarah called the delivery driver’s insurance company, she was in trouble. The at-fault driver’s insurance coverage would not pay for the damage to her vehicle due to the driver being “on the clock” for DoorDash.

Uninsured/Underinsured Coverage

Even though the other driver was at fault and had car insurance, they denied Sarah’s claim. She may have had the option to file against DoorDash, but used her own coverage instead. 

Stuck With the Bills

Sarah had to rely on her own uninsured/underinsured coverage. Even then, she had to pay the deductible up-front. After fighting for several months with her own insurance, they refunded her deductible. But many others aren’t so prepared – or lucky.

delivery driver accident claims

Importance of Uninsured/Underinsured Coverage

1 out of 8 drivers has no insurance coverage. Even more drivers only have state-minimum coverage. This reality makes anyone on the road potentially liable for paying for their own repairs and medical expenses. In Pennsylvania, uninsured/underinsured coverage is so important. What would you do if someone without insurance hurt you?

What Delivery Drivers Don’t Know

Many delivery drivers are unaware they’re driving without insurance. Their personal insurance does not cover when they are “on the clock” making deliveries. This isn’t always clear in the sign-up process. Delivery drivers must purchase additional insurance coverage whilst driving for these companies.

Each Delivery Company Differs

What makes this situation even more difficult is that each delivery service’s insurance coverage is different. Some have insurance, some don’t. Finding information from the delivery service is difficult or confusing. The insurance covers some accidents, but not others. It is all very confusing. Even delivery services with insurance coverage make it difficult to file a claim after an accident.

Here is a basic breakdown of coverages provided by food delivery services:

DoorDash – liability coverage covers injury and property damage to third parties. Also provides occupational accident insurance to all US “Dashers” for injuries while on active delivery.

Uber Eats – liability coverage when their driver causes an accident.

GrubHub – no insurance coverage.

Instacart – no insurance coverage.

Postmates – insurance coverage while picking up and delivering, not while waiting.

pennsylvania car accident injury lawyer

Do I Need a Lawyer?

Injured by a Delivery Driver

If you were injured in an accident with a delivery driver, you may need a lawyer. It is always best to talk to an injury lawyer to understand your options. Talk to an injury lawyer for a free consultation.

Injured Delivery Driver

If you were making food deliveries and are injured in an accident, a lawyer might be able to help you. Filing a claim for coverage is tricky. If you say the wrong thing, insurance may deny your claim. Talk to an injury lawyer for a free consultation. They can help you figure out if coverage is available and get the money you need.