Do Food Delivery Drivers Need Special Insurance? Insight From the Food Delivery Service Accident Lawyers
As the convenience of having food from your favorite restaurants delivered directly to your door has attracted millions across the country to seek the services of different food delivery service apps, so has the appeal to work doing said deliveries.
According to data collected by Second Measure, meal delivery services saw year-over-year growth of 24 percent collectively through the end of March 2020.
Just like the ridesharing business, companies like DoorDash, Postmates, and Uber Eats have attracted drivers to work for them due to the possibilities of setting up their own work schedule, quick turnaround for payment, and not having to deal with riders getting into their personal vehicles.
But just because you have your own car and pay the insurance every month doesn’t mean you’re good to go to work as a food delivery driver. Sure, your personal insurance would suffice to sign up for these independent contractor gigs, but in the event of an accident — like a car crash— you would probably end up getting the short end of the stick, since your insurance most likely wouldn’t cover it.
In order to drive for these food delivery services, you need a personal auto insurance policy that covers the commercial use of a car — no matter if you perform deliveries part or full time. The rates for business use of a car are significantly higher than the ones for personal use, and that is because the risks of being on the road increase due to:
- The frequency of driving
- The time spent driving
- Where one drives
- The distraction issues related to keeping an eye on the order and the navigation
Commercial and business-use policies are designed to cover the risks when you use your personal car for commercial uses. Food delivery services are still a novelty, and the insurance industry is still adapting to the changes. That’s why it’s very important to check with your current insurance carrier on what your options are in terms of coverage if you’re considering working as an independent contractor for these food delivery services.
Among the most popular food delivery services in Los Angeles are Postmates, DoorDash, and Uber Eats. Insurance policies for these companies vary in regards to the amount of coverage they provide for damages arising from food delivery accidents.