Are You Properly Insured as a Food Delivery Driver:
With the rising cost of living, many Albertans have taken on second jobs to help make ends meet. One popular job is that of a food delivery driver. This includes working for popular food delivery Apps such as Uber Eats, SkipTheDishes and DoorDash. However, people may not be fully insured when delivering on these Apps and run the risk of being on the hook for tens of thousands of dollars if they are in an accident.
Do Food Delivery Apps Provide Insurance Coverage:
Auto insurance coverage provided by food delivery Apps in Alberta varies significantly. Regarding the three leading food delivery Apps, Uber Eats is likely the most generous. The insurance coverage provided by UberEats, DoorDash and SkipTheDishes is as follows:
Uber Eats: Provides $2 million liability insurance when you are delivering for them. However, this coverage is only in place from when you accept a food delivery request to when it is delivered. When you are logged into the UberEats App and waiting for an order, the liability coverage drops to $1 million. Uber also covers loss or physical damage to your vehicle while you are actively available for deliveries on the app. However, there would be a $2500 deductible for this.
DoorDash: According to their website, DoorDash provides only excess third-party auto liability coverage for its drivers during the “delivery service” period. This means the coverage would only apply when a driver has accepted an order and ends when they deliver it. The coverage would only apply after your personal insurance limits have been used. If you do not have valid personal insurance coverage, DoorDash may deny your coverage. Since this coverage only applies during the delivery service period, DoorDash likely will not provide any coverage when you are logged into the app but have not accepted an order. DoorDash offers no coverage for property damage or physical damage to your vehicle.
SkipTheDishes: They do not provide any insurance coverage and state on their website that it is the driver’s responsibility to ensure they have proper insurance coverage.
Will My Insurance Cover Me:
Many people are surprised to learn that their personal auto insurance policy will likely not cover them if they are working as a food delivery driver. Insurance Companies generally view delivering food with your vehicle as a commercial activity and require you to notify them of this. According to the Insurance Bureau of Canada, using your vehicle to deliver food means the vehicle is considered a “business-use vehicle.” This would require different coverage than a standard personal insurance policy, such as having additional commercial insurance. If you were to get in an accident without this commercial coverage, your insurance company can cancel your policy.
Furthermore, your insurance company may cancel your policy even if you are not actively making a food delivery. This is because insurance companies believe using your vehicle to deliver food is a change in “material risk” to your insurance policy. Failure to notify them of this change allows insurance companies to deny you coverage, even when you’re not on a delivery.
If you work as a food delivery driver or are thinking of becoming one, it is best to reach out to your insurance company and ensure you have the necessary coverage in place.