As the on-demand delivery industry continues to grow, many individuals are looking for ways to earn extra income by working as Instacart drivers. While the job may seem like a convenient way to make money, there are several factors that drivers need to consider, including insurance coverage.
Instacart provides liability insurance for its drivers, but is it enough to protect them in the event of an accident? In this article, we will examine the coverage provided by Instacart, and whether or not extra insurance is necessary for drivers.
Personal Auto Insurance
For most Instacart drivers, a personal auto insurance policy will be sufficient for covering the risks associated with driving for the service. However, it’s important to understand what is covered under a personal auto insurance policy and what is not.
Typically, personal auto insurance policies cover liability and physical damage to your vehicle in the event of an accident. However, these policies often have exclusions for commercial activities, such as using your vehicle for delivery services. If you are using your personal vehicle for Instacart deliveries, it’s important to check with your insurance company to confirm that you are adequately covered.
If you have an older vehicle or one with a low value, it may not be worth it to purchase additional insurance coverage. In these cases, relying on your personal auto insurance policy may be sufficient.
Commercial Auto Insurance
Commercial auto insurance, also known as business auto insurance, is a type of insurance that covers vehicles used for commercial purposes. Instacart drivers, who use their personal vehicles to make deliveries for the grocery delivery service, may be considered commercial drivers and may need commercial auto insurance.
This type of insurance provides coverage for damages to the driver’s vehicle, as well as liability coverage for damages to other vehicles or property. In addition, it provides coverage for medical expenses and lost income in the event of an accident.
It’s important to note that personal auto insurance policies typically do not cover commercial use, so it’s important for Instacart drivers to make sure they have the right insurance coverage. Commercial auto insurance can be purchased as an endorsement to a personal auto policy or as a separate policy.
Additional Coverage Options for Instacart Drivers
As mentioned, personal auto insurance policies may not cover accidents or incidents that occur while making deliveries for Instacart. In order to ensure that they are fully protected, drivers may need to add additional coverage options to their insurance.
- Non-Owned Auto Liability: This coverage will protect drivers in the event that they cause an accident while making deliveries in their personal vehicle, but the accident is not covered by their personal auto insurance policy.
- Hired Auto Liability: This coverage protects drivers when they are driving a vehicle that they have rented or leased for the purpose of making deliveries.
- Uninsured/Underinsured Motorist Coverage: This coverage protects drivers in the event that they are involved in an accident with a driver who does not have enough insurance to cover the damage they cause.
- Contingent Liability: This coverage provides protection for drivers who are using their personal vehicle to make deliveries for Instacart and are involved in an accident with another vehicle that is being used for commercial purposes, such as a delivery vehicle for another company.
- Package Delivery Insurance: This coverage is specific to drivers who are making deliveries for Instacart and provides protection for the packages they are delivering in the event that they are lost, damaged, or stolen.
It is important for Instacart drivers to understand the risks involved with making deliveries and to ensure that they have the right coverage to protect themselves and their assets. By considering these additional coverage options, drivers can help ensure that they are fully protected while on the job.
In conclusion, being an Instacart driver can present unique insurance needs that go beyond the coverage offered by a standard personal auto policy. While personal insurance policies do cover accidents while using your vehicle for commercial purposes like Instacart driving, it may not be enough in case of a lawsuit or accident involving other drivers, passengers, or property. That is why commercial insurance policies and additional coverage options such as liability insurance, collision and comprehensive coverage, uninsured/underinsured motorist insurance, and delivery insurance are recommended for Instacart drivers. To choose the right insurance coverage, it’s crucial to understand your coverage needs, evaluate the risks involved, and compare different insurance options before making a final decision.
