Do You Need Insurance to Deliver for Uber Eats?

Driving for a rideshare or delivery company like Uber Eats can be a flexible way to earn extra income. However, it also comes with some insurance requirements you need to be aware of.

In this comprehensive guide, we’ll explain everything you need to know about insurance when delivering for Uber Eats.

Why Insurance Matters for Uber Eats Drivers

When using your personal vehicle for commercial purposes like food delivery, your regular personal auto insurance likely won’t fully cover you. That’s because personal policies are intended for personal use only.

Driving for Uber Eats is considered commercial use of your vehicle. So there are some potential insurance gaps when relying solely on a personal policy:

• Coverage may be denied if you don’t inform your insurer you drive for Uber Eats.

• You may not be covered for damage to your vehicle while working.

• Liability coverage may be insufficient while delivering food.

• Medical bills may not be covered if you’re injured while working.

To fill these gaps, most personal auto insurers require you to purchase a rideshare endorsement or commercial auto insurance if you drive for Uber Eats.

These provide the extra protection you need as a food delivery driver.

Uber Eats Insurance Requirements

Uber Eats does provide some commercial insurance coverage for drivers, but there are limitations:

• Only covers drivers while they have the app online and are en route to pick up or deliver an order.

• Doesn’t cover damage to your vehicle unless you already carry comprehensive and collision coverage.

• Provides minimum liability coverage, which may not be enough protection in an at-fault accident.

For this reason, Uber Eats requires all drivers to maintain a personal auto insurance policy and meet state minimum liability limits. But most experts recommend getting extra coverage beyond what Uber provides.

Here are the main insurance options to consider:

Rideshare Endorsement

A rideshare endorsement (also called a rider) is an add-on to your existing personal policy that provides coverage tailored for rideshare and delivery drivers.

With a rideshare endorsement, you get coverage for the periods you aren’t covered by Uber Eats insurance, such as:

• When the app is offline
• Driving around waiting for a delivery request
• En route to pick up an order

This fills the gaps between your personal policy and Uber’s commercial coverage. Major insurers like State Farm, Allstate, and Farmers offer rideshare endorsements.

Commercial Auto Insurance

Getting a commercial auto insurance policy provides full coverage whenever you are driving for Uber Eats. It’s more expensive than a personal policy but offers higher liability limits and comprehensive protection.

Some insurers like State Farm allow you to get both personal and commercial policies. Just make sure Uber Eats delivery driving is covered under the commercial policy.

Personal Policy with Delivery Use

Another option is sticking with your personal insurer but informing them you drive for Uber Eats. Some may be fine covering delivery driving under a personal policy, while others will require you to get a rideshare endorsement.

The key is being upfront about using your car for food deliveries to avoid denied claims later.

Why Tell Your Insurer About Uber Eats?

Many personal auto insurance policies have exclusions for driving for a transportation network company like Uber Eats. If you don’t inform your insurer, it could lead to problems down the road:

• Claims for accidents while delivering may be denied.

• You may have insufficient liability coverage while working.

• Your insurer can cancel your policy altogether for not disclosing rideshare/delivery use.

To avoid headaches, always check your personal policy exclusions and be transparent with your insurer. They can then guide you on getting proper insurance for Uber Eats.

How Much Does Extra Insurance Cost?

The cost for rideshare endorsements or commercial policies varies quite a bit. Here are some ballpark figures:

• Rideshare endorsement – Usually an additional $10 to $30 per month or 15% to 30% higher premium than your personal policy.

• Commercial auto insurance – Around $150 to $300 per month depending on your location and driving history. More than a personal policy.

• Personal policy – No additional cost if your insurer allows Uber Eats delivery under a personal policy.

Get quotes from insurers to find the most affordable insurance option for your situation. And consider whether the extra cost is worth it versus what you’ll earn delivering for Uber Eats.

Steps to Getting Insurance for Uber Eats

Follow these steps when getting insurance coverage for delivering food through Uber Eats:

1. Review your personal auto policy – Check the policy details and exclusions to see if rideshare driving is prohibited.

2. Inform your insurer about Uber Eats – Let your insurance company know you plan to deliver food through Uber Eats.

3. Ask about your coverage options – Find out if they require commercial insurance or will allow delivery under your existing personal policy.

4. Get quotes – If you need to change your policy, get quotes for rideshare endorsements and commercial insurance. Compare costs.

5. Adjust your insurance – Either change to a new insurer or modify your existing policy to cover food delivery.

6. Provide proof of insurance – Uber Eats requires you submit proof of personal auto liability insurance to drive for them.

Following these steps ensures you have sufficient coverage while delivering for Uber Eats and avoids problems down the line!

Frequently Asked Uber Eats Insurance Questions

To summarize the key details about insurance for Uber Eats drivers, here are answers to some common questions:

Does my personal auto insurance cover Uber Eats deliveries?

Usually not. Most personal policies exclude coverage when driving for rideshare or delivery companies. You normally need additional insurance.

What insurance does Uber Eats provide?

Uber Eats provides commercial liability coverage and limited collision insurance only while you are en route to pick up or deliver an order after accepting it. There are gaps before and after.

Can I do Uber Eats deliveries without telling my insurance company?

Technically yes, but it’s not recommended. You risk denied claims and cancellation of your policy. Always inform your insurer.

If I’m in an accident during a delivery, will Uber Eats insurance cover repairs to my car?

Only if you carry comprehensive and collision coverage under your personal policy. Uber Eats insurance alone does not cover damage to your vehicle.

Can my insurer cancel my policy if I drive for Uber Eats?

Yes, an insurer can cancel your policy if you don’t disclose you use your vehicle for food deliveries. Check your policy and be upfront about doing Uber Eats.

Will rideshare coverage protect me when I’m not working?

Yes, a rideshare endorsement covers you during personal driving when you aren’t delivering food. It acts as a standard personal auto policy at those times.

Is commercial insurance required to do Uber Eats?

No, commercial insurance is not required but provides the most comprehensive protection. You can also get a rideshare endorsement on a personal policy.

Should I get insurance from Uber Eats rather than my own policy?

No, the coverage from Uber Eats has limitations. You should maintain your own personal or commercial policy for gaps in Uber’s insurance.

Protect Yourself With Proper Insurance

Driving for Uber Eats and other food delivery apps has become very popular. But make sure you understand the insurance implications before signing up.

Having the right insurance for Uber Eats protects you from significant financial risk if you get in an accident while delivering. It also prevents headaches from denied claims and cancelled policies down the line.

Be sure to inform your insurer about doing rideshare delivery, get ample liability coverage, and consider adding a rideshare endorsement or commercial policy. This provides peace of mind so you can focus on safely delivering orders!