What type of car insurance do you need for DoorDash?

DoorDash is one of the fastest ways for just about anyone with a vehicle, a valid driver’s license, and adequate auto insurance to start earning some income. The company tries to avoid making specific claims about how much money a driver can earn, as it can vary wildly based on numerous factors, but it has clearly been enough for the company to have attracted literally millions of contracted delivery drivers to its platform. . Since you’re reading this, you may also be interested in getting started with DoorDash food delivery, and you might want to know what that means in terms of getting the right driver auto insurance to stay covered.

food delivery driver checking phone

What kind of car insurance do you need to drive for DoorDash?

Before you rush out the door with keys in hand to start driving for DoorDash, consider the fact that you need more than your private auto insurance policy to drive for DoorDash. The company may not specifically verify that you’ve added business coverage to your insurance policy, but you’re out of luck with your insurance company if you’re involved in an accident while driving for DoorDash.

delivery driver giving food to customer

Do I need to tell my insurance that I drive for Doordash?

Yes! When you use your car to drive for DoorDash (or any food delivery company), it’s considered business. To remember:

  • Your personal auto insurance policy does not cover the business use of a vehicle. If you drive for a delivery company, such as Doordash, you are using your vehicle for business rather than just personal use. You are working on your vehicle and personal auto insurance policies do not cover you when you make food deliveries for Doordash.
  • It is very likely that you will be able to obtain coverage for business use through your private insurance provider. Nevertheless, You’ll need to call them ahead of time and let them know you drive for DoorDash and are interested in adding business use coverage to your policy. On the plus side, this additional coverage usually costs only a few extra dollars per month.

How does car insurance work with DoorDash?

delivery man delivering groceries

DoorDash also has coverage for all drivers who are contracted with them. Their policies cover up to $1 million in bodily injury and/or property damage that occurs as a result of another driver colliding with you when you’re on a delivery. You must be actively on a release for this to apply.

On the other side of the coin, the company requires you to carry your own auto insurance to protect against accidents in which you are the at-fault party. The company will NOT step in and pay for damages you cause during a delivery with them. You are likely to face the following consequences if you are in an accident while making a delivery for DoorDash:

  • Deactivation from the platform
  • The possibility that none of the damage is covered (if you did not add commercial use coverage)
  • Your insurance policy may be canceled or your premiums may increase
  • You can collect points on your driving record
  • You could get a traffic ticket

It goes without saying that being involved in an accident is never ideal, but the consequences can increase if you don’t take important safety measures ahead of time.

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What are the pros and cons of getting additional driving insurance for DoorDash?

Doordash driver giving food

All prospective drivers should stop and weigh the pros and cons of adding business use coverage to their private insurance policy if they decide they’d like to drive for DoorDash. Creating a list that helps them see how getting this coverage may or may not benefit them at their DoorDash management company is the best way to determine how to proceed.


  • You’ll know you’re covered by insurance in the event of an accident, even if the accident was your fault
  • It costs only a few extra dollars per month for this peace of mind
  • For starters, you are supposed to have commercial use insurance to participate as a DoorDash driver.


  • Depending on the exact cost and how much you earn on DoorDash, you may be losing money with this proposition.
  • You may need to sign up for business use for a longer period of time than you’ll ultimately end up driving for DoorDash

In general, most drivers decide it’s worth paying a few extra bucks a month if they don’t have to worry about worst-case scenarios if they’re in an accident while driving for DoorDash.

Does DoorDash offer insurance to its drivers?

food delivery driver getting out of the car

DoorDash does not directly have an insurance product that it offers to a food delivery driver. The company provides basic liability insurance to cover drivers who are involved in an at-fault accident while making a delivery.. However, that insurance isn’t about keeping the driver protected, it’s about protecting the company from the possibility of a lawsuit.

As mentioned above, drivers are responsible for paying for their own commercial auto insurance at all times if they wish to retain full protection against any potential accidents while driving for DoorDash. The company does not provide this service and does not offer it at this time.

Affordable auto insurance that can keep you protected while you work as a delivery driver

There are many auto insurance companies that will be happy to work with you to get you the quotes you need when it comes to auto insurance. They want to earn your business, and they know that many customers shop around to find the best products. That is why there is a constant ongoing price war between major insurance providers across the country. Therefore, the quotes provided here are subject to change, but we want to give you an idea of ​​what some of the most affordable companies offer.

All prices are quoted as the annual state minimum insurance cost, so add a little to these for business use coverage, and even more if you want more comprehensive plans:

Estimated Average Rate Chart for Business Auto Insurance

You might look at those numbers and think that it’s pretty clear that everyone should run to USAA for their coverage. They may be a great brand to select from, but it is NOT a guarantee that it will be the one you should go for. They may not be available in your area or may not agree to cover your vehicles specifically. You have to analyze some of these factors before deciding who you go with. Shop around and see the specific quotes these companies can offer you before determining who you go with.

Do people find DoorDash worth driving for?

delivery man getting out of the car

There’s always a question being asked by those exploring the idea of ​​driving for DoorDash about how lucrative it can be and what kind of considerations they need to make. You have to consider your costs when making your choice.

These food delivery services often don’t like to mention the costs drivers must bear to participate in the program. They prefer to hide that because they know that it is information that drivers are not so excited about. That said, it’s also extremely relevant given that each individual driver must decide for themselves if it’s worth it.

To make this make more sense, let’s take a look at a typical example of what a driver might earn and how those earnings might break down after all expenses are considered:

  • The driver makes two deliveries per hour at an average price of $8.50 per delivery.
  • The driver earns $17 per hour before expenses.
  • The cost of commercial use insurance adds $15 to your premium or approximately $0.50 per day.
  • It costs about a gallon of gasoline, for every three deliveries.
  • The price per gallon of gasoline is currently $4 per gallon.
  • Driver’s car depreciation is $0.30 per delivery.
  • The need for more frequent oil changes is reduced to $0.25 per delivery made.
Doordash Driver Earnings Calculation Infographic

If you calculated all of that and assumed the driver did the job part-time (4 hours per day), you would see that even though his earnings appeared to be about $68, the reality is that he only made $52.43 after all of that. expenses are deducted. That reduces his net profit per hour to $13.10 per hour instead of $17.

All that said, this doesn’t necessarily mean everyone should give up driving for DoorDash. Truth be told, $13.10 an hour is a decent wage in many areas, and there are plenty of ways to increase your earnings beyond the $17 an hour we discussed in the example.

There are many people who have been doing this job for some time and who earn much more than that. So it’s fair to say that there are different ways to see how lucrative DoorDash may or may not be for you specifically, and you should definitely check out how much you can earn for yourself before making a final decision.

final thoughts

You should always purchase business auto insurance if you decide to drive for any food delivery service. It’s the least of your expenses when you look at the cost of operating as a food delivery driver, and it provides extreme value in the form of peace of mind about your driving record and the ability to stay safe on the roads. Just remember that you have to commit to staying in the food delivery game for quite some time for the cost of insurance to be worth it.

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