DoorDash Driver Requirements and Insurance Coverage
What Are the Requirements to Be a DoorDash Driver and Get Insurance Coverage?
Just like the ridesharing business, food delivery service companies, like DoorDash, have attracted drivers all over the country to work for them due to the opportunities of setting up their own work schedule, being their own boss, and quick turnaround for payment.
According to data collected by Second Measure, meal delivery services saw year-over-year growth of 20 percent collectively through the end of June 2021. After Postmates, DoorDash is the most popular food delivery service in Los Angeles.
In the second quarter of 2021, DoorDash had 58 percent of its users exclusively ordering from them. The company had the highest percentage of exclusive users compared to every other food delivery company.
Much like other similar food delivery service apps, it’s fairly easy to sign up to do deliveries for these companies. In the case of DoorDash, their requirements are:
- Must be 18 or older
- iPhone or Android smartphone
- Any car, scooter, motorcycle, or bicycle (depending on the market)
- Driver’s license number
- Clean driving record
- Car insurance (if driving a car)
- Social security number
- Consent to a background check
However, 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 will 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.
Since doing these types of jobs requires an additional commercial or business-use policy, your personal insurance most likely won’t cover any damages. And since these companies don’t usually cover their independent contractors, you’ll end up with the short end of the stick.
In order to work for companies like DoorDash, drivers need a personal auto insurance policy that covers the commercial use of a car. 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 food delivery services.
Even if you do it only part time, driving for DoorDash is a commercial activity because you are using your car for business purposes. If you have an accident while you are online in the app, your insurance will probably not cover it given you used your vehicle for commercial purposes.
DoorDash Insurance Policy
For its drivers, DoorDash requires them to “maintain an up-to-date auto insurance policy. Damages sustained to your vehicle in an auto accident are your responsibility and should be addressed by your auto insurance carrier directly. If you fail to maintain your own insurance, DoorDash’s coverage may not apply.”
DoorDash offers their drivers excess auto insurance, but only for property damage or bodily injury caused to third parties. In the event of an accident, the driver’s personal auto insurance policy would serve as the primary coverage. If the damages exceed the delivery driver’s policy and the accident happened when the driver was on active delivery, DoorDash’s contingent liability policy of $1 million would only then go into effect. Furthermore, this contingent liability policy only applies if the driver was in possession of goods to be delivered, meaning if they were driving from the restaurant to a delivery but not to a restaurant for pickup.
Starting June 2019, drivers will be qualified to receive occupational accident insurance coverage at no cost, which in the event of an accident will cover:
- Medical bills: Maximum of $1,000,000 with no deductible or co-pay
- Disability payments: Maximum of up to $500 a week
- Survivors payments: Maximum of up to $150,000 for eligible dependents
West Coast Trial Lawyers Is Here to Help
If you are a victim of a food delivery accident, West Coast Trial Lawyers have experienced personal injury attorneys that will work tirelessly to ensure that you are getting the maximum compensation you deserve for your losses, including medical bills, property damage, lost wages, and more.