Even though dining in is now an option again, it’s not expected that the explosion in the restaurant take-out and delivery business will slow down anytime soon. Since the start on the pandemic, take-out has become a “new normal,” says this CTV News article from early February. As restaurants have pivoted to keep offering the best of their menus while their service is limited, companies like Skip the Dishes, Uber Eats, and Door Dash have been a pandemic success story.
Many people have been considering joining the ranks of the part-time food delivery driver, which can provide much-needed additional income. But, don’t forget about your car insurance if you do. Technically speaking, if you are driving your vehicle to deliver goods of any kind, you are using it for commercial purposes. This can nullify your personal car insurance, so if you get in an accident while delivering it’s unlikely your provider will cover you.
Before you pick up your delivery bag, find out from your car insurance company whether they provide a special endorsement to extend your coverage. Note that some personal providers only work with specific food delivery companies, and some don’t offer a food delivery rider at all. Or, depending on your circumstances and how much you will be driving, you could look into commercial car insurance. Commercial insurance provides broad coverage for delivery vehicles, however it may not cover a sedan or regular car. Unless you have an SUV, van, or truck, commercial auto insurance may not work for you.
Door Dash and Uber Eats provide food delivery car insurance options for their drivers, however both companies ask that their drivers still let their personal car insurance companies know that they are working for them. This helps ensure there are no gaps in coverage.
How Uber Eats handles delivery insurance
Uber Eats provides a commercial insurance policy for their drivers that differs slightly for each province. In Alberta, an Uber Eats policy includes up to $2 million in third-party liability coverage for an insured accident, which is triggered when a driver accepts an order and ends when the order has concluded.
Additional statutory accident benefits through Uber Eats’ food delivery car insurance include:
- Coverage for bodily injuries if an uninsured driver causes an insured accident with a delivery driver’s vehicle
- Collision and comprehensive coverage that will provide for physical damage to a driver’s vehicle up to its actual cash value with the payment of a $1,000 deductible if you have those coverages on your personal insurance
- $1 million in third-party liability coverage for when a driver is available through the app but has not yet accepted a trip in the event that a driver’s personal insurance provider refuses a claim
How Door Dash handles car insurance
Door Dash provides a slightly less robust form of food delivery car insurance than Uber Eats. Their excess auto insurance policy covers for damage a “Dasher” causes to another property or for bodily injury and for accidents while on active duty, including while on route to pick up an order. The Door Dash policy is only available after a Dasher has obtained proper coverage through their own car insurance company first and only comes into effect when a person has exhausted the limits of their coverage.
Skip the Dishes does not provide supplementary car insurance
Skip the Dishes does not provide any sort of supplementary coverage. If you plan on driving for Skip you need to be covered through your own car insurance. Above and beyond that, all they ask for is that you have a reliable vehicle and a valid drivers license.
Find food delivery car insurance through a broker
If your current insurance agency does not provide a food delivery car insurance rider and if commercial auto insurance is not an option for you, insurance brokers such as us at Lane’s are your best bet for finding the coverage you need. We have access to dozens of policies from several different companies, and know what to look for and where to find it. Give us a call so we can get to know you and your insurance situation. Contact us at our Calgary, Banff, Edmonton and greater Alberta offices.
