A Guide to Uber Eats Insurance for Delivery Drivers

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One job that truly proved successful during the 2020 COVID-19 pandemic is that of delivery drivers. Driving for on-demand delivery companies like Uber Eats, Grubhub, Doordash, and Postmates is an easy way to make extra cash. Delivery drivers use their personal vehicles to work, and you may be surprised to know that your own insurance policy doesn’t always cover this type of work. Not all personal insurance policies provide coverage when you use your own car for business purposes. Failing to have the right type of coverage could result in costly bills in the event of an accident.

Do I need insurance to drive for Uber Eats?

Uber Eats requires all delivery driver applicants to show proof of personal auto insurance. This protects the delivery company from civil liability and ensures they don’t employ uninsured motorists. Drivers are also required to show proof of a valid driver’s license before they can make deliveries. The company does offer drivers some insurance, but it’s not meant to replace personal insurance. According to autoinsurance.org, Uber Eats insurance is one of the best types of insurance in the ridesharing and on-demand delivery industry, though it does still have gaps in coverage.

You must be upfront with your insurance provider that you are a courier for Uber Eats if you want to avoid serious consequences. One of the questions that insurance providers ask when you sign up for insurance coverage is whether you will be using your own car for business purposes. Failure to disclose how you will be using your car can result in you not being covered in the event of an accident that occurs when working. Lying about using your car for business purposes to obtain coverage or file a claim is considered insurance fraud. Your insurer has the right to terminate your insurance policy in this case, and if you can manage to find a new policy, you will pay hundreds in premium fees. Failing to purchase a new insurance policy in enough time could result in your driver’s license being suspended by the state.

Does Uber Eats provide car insurance?

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Uber Eats does offer car insurance that applies when you are actively on the clock and making deliveries. This means that you aren’t covered when waiting for a delivery or using your personal vehicle on your own time. The company’s coverage varies by state, but it does offer reasonable minimums: $50,000 in bodily injury coverage per person, $100,000 in bodily injury coverage per accident, and $25,000 for property damage. Depending on the state, the delivery service also includes personal injury protection and uninsured motorist coverage.

Can I get additional insurance?

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Food delivery drivers have two options when choosing insurance coverage from Uber. Commercial insurance is comprehensive coverage that allows the use of your personal vehicle for a range of business purposes. Commercial coverage isn’t specific to on-demand food delivery services, but it does provide adequate coverage for any commercial vehicle applications. This type of coverage is more expensive than traditional rideshare insurance.

Rideshare insurance is offered by many major insurance providers. This type of additional coverage can be added to your current policy. The rates for rideshare insurance vary by driver and vehicle type, but typically, you’ll see premiums increase by 15 to 20 percent. Your exact premium depends on the coverage amount and deductible you choose.

While Uber insurance gives Uber drivers peace of mind when the delivery app is open and they are making active deliveries, they are likely underinsured. As an Uber driver, you are responsible for any damages or losses that exceed the insurance policy’s coverage amount. In the event the delivery company denies a claim, you’re personally responsible for any losses.

It’s a good idea to carry a commercial insurance policy that provides adequate coverage. Uber does offer collision coverage to pay for damages to your personal vehicle if you are at fault for an accident and comprehensive coverage to pay for damages to your personal vehicle outside of collision events.

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