Driving for a rideshare or food delivery app company on the side? Make sure you are covered!

Driving for a rideshare or food delivery app company on the side? Make sure you are covered!

If you’re looking for a way to make extra cash, signing up to be a driver for a popular rideshare or food delivery app like Uber or Skip the Dishes as a part-time gig can be lucrative. However, it also increases your risk of getting into a car accident. When you spend hours of your day on the road, you’re more likely to encounter an unsafe driver or make mistakes due to fatigue. If you do get into an accident, it’s important to know if your personal car insurance will cover any damages, the app company provides coverage for its drivers or you need to purchase additional coverage.

Does your personal car insurance policy cover you when driving for a rideshare or food delivery app?

No. Most car insurance policies do not cover commercial or for profit use of your vehicle. Typically, car insurance policies don’t cover transporting materials for a business, delivering food or products for a business, emergency transportation such as towing a vehicle and renting your car to others.1

Delivery person stands with insulated food bag, looking at their phone on their way to deliver the food,However, some car insurance companies will have coverage options that you can add onto your current policy. If you are driving for a rideshare or food delivery app, call your insurance provider to explore your options. If your insurer does not offer an add-on, you can buy a separate commercial vehicle policy; however, these policies can be pricey.

If you get into an accident and do not have coverage with your policy or from the app company, your insurer can deny your claim, you could be held liable for the injury of passengers and your current policy could be cancelled. Having a cancelled policy on your record could make obtaining a new car insurance policy very difficult and expensive.

Do app companies insure their drivers?

It depends on the company. Below are a few examples of the company policies for some of the popular apps:

  • Uber and Uber Eats: In Ontario and Alberta, Uber provides basic commercial car insurance for its drivers and covers the drivers from when they log-on to the app until the rider exits.2

  • Lyft: Lyft covers its drivers with commercial ride sharing insurance from the time they log-on to the app until the passenger exits.3

  • DoorDash: DoorDash has limited insurance that only covers damage to 3rd parties that occurs when the driver is in possession of goods to be delivered.4

  • Skip the Dishes: Skip the Dishes does not provide insurance; all drivers are required to obtain their own insurance.4

  • Foodora: Foodora does not provide insurance, drivers must obtain their own coverage.5

If you’re driving for a rideshare or food delivery app, check their insurance policies and ensure you have the necessary coverage before you start. Additionally, even if the company provides insurance, you still need to inform your insurer of any changes to the use of your vehicle.

If you’re considering driving for a rideshare or food delivery app, call an OTIP broker first at 1-888-494-0090 to let your insurer know and add the coverage you need to your current policy. If you’d like to get a car insurance quote, call 1-888-892-4935.

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1.    Sonnet.ca
2.    Uber
3.    Aviva
4.    CBC
5.    Foodora