Do You Need Insurance to Deliver for Instacart?

Driving for a delivery service like Instacart can be a great side hustle or full-time job. But before you start making deliveries, it’s crucial to understand the insurance requirements. This article explains why you need special auto insurance coverage as an Instacart driver and how to get the right policy.

Overview of Driving for Instacart

Instacart is an on-demand grocery delivery service that lets customers order groceries and household items from stores like Aldi, Costco, Kroger, Sam’s Club, and more. As an Instacart driver or “shopper”, you:

• Receive delivery orders through the Instacart app
• Shop and collect items at the store for customers
• Deliver groceries to the customer’s doorstep

It provides flexibility to set your own hours. You get paid per delivery plus tips. It can be a lucrative side gig, but keep reading to learn why you need insurance.

Does Instacart Provide Insurance?

No, Instacart does not provide any auto insurance coverage for its drivers. The company requires you to maintain your own active insurance policy on any vehicle used for deliveries.

Many drivers mistakenly believe their personal auto insurance will cover them if they get in an accident while working for Instacart. But this is often not the case.

Personal insurance may exclude coverage for commercial activities like delivering goods for a company. This means if you file a claim, it could get denied since you were driving for business purposes.

You need specialized coverage to fill this insurance gap.

Why Instacart Drivers Need Special Insurance

As an Instacart driver, you need insurance that covers you whenever you are:

• Driving to the grocery store to pick up an order
• Shopping in the store for a customer’s items
• Transporting groceries to the delivery address
• Driving between deliveries

But most standard personal auto policies only cover “personal” use of your vehicle. They may exclude coverage when you drive for commercial purposes like:

• Making deliveries for a company like Instacart
• Transporting goods like groceries or packages
• Driving for income or business purposes

These exclusions put you at serious financial risk if you get in an accident while working for Instacart without proper coverage.

You could be completely responsible for injuries, damages, and losses that happen while on delivery. And these costs can easily total tens of thousands of dollars.

Plus, filing a claim when you knew you weren’t covered is insurance fraud and can lead to legal consequences.

Insurance Options for Instacart Drivers

To make sure you have adequate coverage while making Instacart deliveries, you have a few options:

Rideshare coverage: Some auto insurers like State Farm and Allstate offer rideshare endorsements or add-ons to personal policies. These cover you when driving for gig jobs like Instacart or Uber. Costs range from $10-$30 per month typically.

Commercial auto insurance: This provides coverage when you use your car for business purposes. It’s more thorough but more expensive at $150-$300 per month.

Food delivery insurance: Companies like Progressive, Erie, and GEICO now offer insurance tailored for food delivery drivers. This affordable option fills the personal and commercial insurance gaps.

Business use coverage: A business use add-on to a personal policy may cover food deliveries in some cases. But confirm with the insurer that Instacart driving specifically would be covered.

The best option depends on your insurer, coverage needs and budget. Talk to agents to learn your choices.

5 Tips for Getting Instacart Driver Insurance

Follow these tips when shopping for auto insurance as an Instacart driver:

1. Inform insurers you drive for Instacart

Always disclose this upfront, so you get quoted proper coverage rates.

2. Compare quotes from multiple insurers

Each company offers different options at different prices.

3. Ask about rideshare add-ons

See if they offer endorsements to cover delivery driving.

4. Consider commercial policies

They provide thorough coverage for business use of your vehicle.

5. Choose adequate liability limits

Opt for 100/300/100 minimum recommended limits.

Cost of Instacart Insurance

The cost of insurance for Instacart driving depends on factors like:

• Your age, gender, driving record, and location
• The type of policy you choose
• Your vehicle make, model, and year
• Your coverage limits and deductibles

Typically, you can expect to pay:

• $150 to $300 per month for a commercial policy
• $10 to $30 per month for a rideshare add-on
• Potentially lower for food delivery specific policies

Be sure to get quotes from multiple insurers to find the most affordable option. Providers like GEICO, Allstate, State Farm, and Progressive are worth checking.

Can You Deliver for Instacart Without Insurance?

No, it is illegal and very risky to drive for Instacart without proper insurance coverage. Here’s what could happen if you drive uninsured:

• You may be deactivated by Instacart for not having active insurance.

• You’ll have to cover all costs out-of-pocket if you cause an accident. This could be tens or hundreds of thousands of dollars.

• You could be sued, have your wages garnished, and be forced to repay debts for years.

• Your license could be suspended and your vehicle registration revoked.

• You could face big fines or even criminal charges for insurance fraud.

It’s never a good idea to skip insurance just to save a little money. The financial and legal consequences are just not worth the risk.

Frequently Asked Questions

Does Instacart provide any insurance?

No. Instacart requires drivers to maintain their own insurance. It does not provide auto or commercial coverage.

What insurance do you need to deliver for Instacart?

You need rideshare coverage, commercial insurance, or a food delivery policy to cover you while driving for Instacart.

Can you use regular insurance?

Usually not. Personal auto policies generally exclude coverage when driving for commercial purposes.

Is Instacart driving considered commercial use?

Yes, since you are using your car to deliver goods for a company, insurers classify this as commercial use.

Is Instacart insurance mandatory?

Yes. Having active car insurance is required per Instacart’s terms. Driving without coverage violates the law.

How much is Instacart driver insurance?

Expect to pay $10 to $30 per month for a rideshare add-on or $150 to $300 per month for a commercial policy.

Who offers the cheapest Instacart insurance?

There is no one cheapest insurer. Compare quotes from companies like GEICO, State Farm, Allstate, and Progressive to find the lowest rate for your situation.

The Bottom Line

Driving for Instacart without proper insurance puts you at huge financial risk and violates the law. Work with agents to find the right coverage option at the best price, so you can deliver safely and legally. Comparing quotes from top insurers is key to maximizing savings.