Many food delivery drivers don’t know, is the fact that they require car insurance coverage for using their personal vehicle for commercial use. Whenever a driver turns their personal vehicle into a commercial food delivery service vehicle from a passenger vehicle, they must notify their respective insurance provider before taking on this new job. When you use your personal vehicle for fast food delivery, you are increasing your risk in the eyes of your insurer. The Insurance Bureau of Canada has made it very clear that drivers utilizing their personal vehicle to deliver fast food must advise their respective insurance providers.
What Kind of Insurance do You Need to Deliver Pizza or Food?
A driver who uses their personal vehicle to deliver pizza or food requires additional coverage on their personal auto insurance policy or may choose to purchase a commercial insurance policy where applicable.
Yes, as a fast-food delivery driver, you will require extra coverage.
Does Insurance Go Up if You Deliver Pizza or Food?
If you are a fast-food delivery driver your car insurance will more than likely go up as you become a higher risk to insurers.
Do I Need to Tell My Insurance I Drive for DoorDash, Skip the Dishes, or Uber eats?
Yes, the Insurance Bureau of Canada has made it very clear that drivers must inform their respective insurance providers that they are using their personal vehicle for fast-food commercial delivery use.
About UberEats Car Insurance
Intact insurance company offers drivers an UberEats commercial insurance policy. The UberEats commercial insurance policy includes coverage of $2 million in third-party liability, uninsured motorist protection, collision, and comprehensive. Keep in mind this coverage only applies to the driver from the point of food pick up and to the place of delivery. However, in between these times, there is coverage but the $2 million in third-party liability becomes $1 million in third-party liability coverage. You must have collision and comprehensive coverage in your personal car insurance policy for these types of coverage in the UberEats commercial insurance policy. This is why it is especially important to advise your personal car insurance provider you are a fast-food delivery driver.
Driver Requirements For UberEats Drivers
UberEats has several requirements for its delivery drivers. These requirements are:
- Drivers must be at least 21 years of age and own a valid provincial driver’s licence
- Drivers must use an eligible vehicle, vehicle cannot be any older than 7-10 year
- Vehicle must pass a vehicle inspection
- Driver must show proof of auto insurance
About DoorDash Car Insurance
DoorDash car insurance is a step down from UberEats car insurance. DoorDash requires delivery drivers to maintain their own respective insurance. DoorDash also advises drivers that any damages that occur to their vehicles are their own responsibility. DoorDash requires their delivery drivers to use their own insurance provider for coverage, however, they do provide excess auto insurance for third-party liability for property damage and/or bodily injury over and above your own car insurance policy. However, access to this excess auto insurance from DoorDash will only take place after you have exhausted limitations on your own personal car insurance policy.
Driver Requirements For DoorDash Drivers
DoorDash has fewer more liberal requirements for their drivers. DoorDash driver requirements are as follows:
- Driver must at least 18 years of age and own a valid driver’s licence
- Driver must have a clean driving record
- Driver must have valid car insurance
About Skip the Dishes Car Insurance
Skip the Dishes does not offer their food delivery drivers any kind of car insurance. Skip the Dishes drivers must ensure they have proper coverage through their own respective insurance provider.
Driver Requirements For Skip the Dishes
Skip the Dishes has minimal driver requirements. These requirements include:
- Driver must have a valid driver’s licence
- Driver must have a reliable vehicle
- Driver must have their own car insurance
Skip the Dishes will perform a background check upon completion of the application. Drivers will also need a smartphone to access the app.
Insurance Options For Fast Food Delivery Drivers
Fast food delivery drivers have several fast food delivery insurance options. It’s best to look at all the options prior to making a decision. Options for fast food delivery drivers include:
- Speaking with your own insurance provider to advise them you are becoming a fast-food delivery driver, they may have a special endorsement for this purpose
- Intact Insurance Company
- Belairdirect Insurance Company
- Desjardins Insurance Company
- Wawanesa Insurance Company
- A commercial policy
Commercial Auto Insurance
A commercial auto insurance policy is one option available to fast food delivery drivers. However, typically a commercial auto insurance policy will not cover sedans, so fast food delivery drivers will require at least an SUV to qualify for this type of policy. Sometimes, for experienced drivers, commercial auto insurance can be cheaper than a regular standard insurance policy.
Ramifications of Not Having Fast-Food Delivery Driver Insurance
Fast food delivery drivers must have a food delivery endorsement on their personal car insurance policy or a commercial auto insurance policy. If a driver fails to obtain the proper insurance required for food delivery it can be disastrous. A fast-food driver that gets involved in an auto collision without food delivery insurance coverage will be treated as if they have no auto insurance at all. The driver is responsible for the liability, rehabilitation, extended care costs, and damages to property. In some cases, this cost out of pocket could be over $200,000. So if you become a fast-food delivery driver to make extra money or to make ends meet and you do not protect yourself as a fast-food driver, it could cost you a huge financial burden.
What Happens If Your Personal Car Insurance Provider Does Not Offer Fast Food Delivery Coverage?
If you have contacted your car insurance provider regarding coverage as a fast-food delivery driver and they deny your request, shop around for an insurance provider that will.