DoorDash Drivers: Are You Covered?

DoorDash allows people to earn money on their schedule. Millions of Dashers drive for the service, and most do so around their other responsibilities, including full-time jobs, school, parenting, and more. Parents may even let their kids use their vehicles to earn some cash as a Dasher.

The arrangement can be beneficial, but it’s important to understand the insurance issues related to DoorDash. While DoorDash does offer some coverage, the terms are limited. Drivers are also required to have their own coverage, which can come with some requirements as well. Neglecting to take the right steps to secure coverage can leave you exposed.

When does DoorDash’s insurance apply?

DoorDash offers some coverage for drivers; however, it only applies during the “Delivery Service Period.” That period only begins once drivers accept a delivery request and only until the order is delivered, canceled, or unassigned. Just being “online” doesn’t count if the driver hasn’t yet accepted an order. During the time before the driver accepts an order and after they complete the order, the driver’s policy should apply. The timing, however, isn’t the only restriction.

What will DoorDash’s policy cover?

For DoorDash’s insurance to apply, even in the “Delivery Service” period, the Dasher must be liable for another person’s bodily injuries or property damage. Additionally, the driver must have submitted a claim to their policy and received a denial.

Importantly, the coverage will not apply when the Dasher’s vehicle is damaged. In such cases, the driver must rely on their own insurance coverage. That coverage is “subject to the policy terms, conditions, limitations, and exclusions, pursuant to local laws.” As a result, drivers may find themselves facing a damaged vehicle and personal injuries without the protection of DoorDash’s coverage.

Possible pitfalls for drivers who don’t inform their insurer that they are Dashing

Drivers may believe that they don’t need to worry too much about whether the DoorDash policy will apply because, after all, they have to have their own insurance to even become a Dasher. Unfortunately, Dashers may find out that their insurance policy will not cover them if they never informed their insurer that they would be using their vehicle to drive for DoorDash. This issue can also be an unwelcome surprise for parents who allow their child to use their car to drive for DoorDash. While they believed they were giving their child an opportunity to earn a little income, they could end up facing liability for damages to another driver with no applicable insurance coverage.

What if the other party is liable?

If another driver is liable in a crash with a DoorDash driver, the at-fault person should be responsible for the damages. In a situation where the other driver doesn’t have insurance, then the Dasher may have to rely on their own uninsured or underinsured driver policy. DoorDash does have coverage for drivers who experience occupational injuries, which only applies for bodily injuries.

What if you are in a crash with a DoorDash driver?

If you are involved in a collision with another driver, whether they are a Dasher or not, you will need to determine who was at fault. If a DoorDash driver caused your accident, the question will be whether the driver was actively carrying out a delivery at the time. The distinction can be extremely important in more serious accidents.

DoorDash insurance often carries higher limits, with policies that cover up to one million dollars. If the driver wasn’t actively involved in a delivery, their personal insurance will apply, but often it will have much lower limits. For instance, the new minimum coverage in North Carolina is $50,000 per person and $100,000 per accident.

If the accident was serious, medical bills and other costs may quickly exceed $50,000, making the DoorDash policy more likely to cover the total losses. As a result, determining which policy applies will be incredibly important.

In cases where the driver’s lower policy limits apply, there still might be an opportunity to recover compensation if your policy includes underinsured driver coverage. You will need to speak to an attorney about the accident to make sure you pursue all possible avenues for recovering compensation.

Can DoorDash be directly at fault?

DoorDash drivers are independent contractors – not employees. This distinction is important when it comes to liability, because when an employee causes harm the employer can be vicariously liable. In the case of DoorDash drivers, the company will likely not be directly liable for injuries caused by its drivers. There could be a few narrow exceptions, such as if DoorDash was negligent in hiring a driver known to have a dangerous driving record – for instance, someone with DUIs and other serious violations. In that case, there could be an argument to hold them accountable. However, in most cases, DoorDash will not face direct liability.

If you or a loved one were involved in a car accident either while driving for DoorDash, or with a DoorDash driver, you need to speak to an attorney. The insurance and liability issues can be complicated. Contact Price, Petho & Associates to discuss your claim with an experienced attorney.