With the lockdowns of the COVID-19 pandemic over the last year and a half, delivery services saw an increase in popularity. Companies like DoorDash, GrubHub, and Instacart saw an increase in demand for those who make deliveries. As more people turned to these services to earn money while they were out of work, many ran into questions about auto insurance. In many places, liability coverage is required for any driver on the road. In addition, most financial institutions require that you carry full coverage if you are leasing or financing the vehicle.

While some delivery companies might offer optional insurance coverage for drivers, many others do not. Instacart’s contractor agreement, however, requires that you carry an appropriate amount of insurance to comply with legal requirements. However, the problem for many Instacart drivers is that personal auto insurance usually will not cover accidents while using your vehicle for commercial activities.

As discussed, many states require a minimum amount of liability coverage for drivers to operate on the road legally. Liability insurance will pay for claims made by other drivers if you cause the accident. However, this coverage will not protect you or your car if you are at fault for an accident. As a result, many drivers opt for collision and comprehensive coverage, also known as full coverage. Auto insurance that provides full coverage protection will cover you and your car no matter who is at fault in an accident. Additionally, comprehensive and collision coverage will pay for other damages not sustained in an accident. If you drive for Instacart, however, you may not be covered by these standard insurance policies.

While there is no special Instacart insurance, there is commercial coverage that you may be required to carry if you are a food delivery driver. Most personal auto insurance policies will not cover damages from a car accident if you act as a delivery driver or in any other commercial role. If you plan to become a delivery driver for Instacart, you might need a commercial auto insurance policy.

Commercial Auto Insurance


If you only have standard auto insurance coverage and are involved in an accident while driving for Instacart, you may be completely on your own to pay for the damages. If you are driving on your personal policy, your insurer could raise your rates or cancel your policy completely if they find out that you work for Instacart or another food delivery company as an independent contractor. If your policy is canceled, you might face fines or legal issues with your state Department of Motor Vehicles. The way to avoid this is to secure a commercial insurance policy. Commercial insurance is similar to your personal auto policy. However, it covers you when you are driving the vehicle for commercial use.

Comparison Shopping


As discussed, if you are a delivery driver, you will need to get a commercial auto insurance policy. Whether you need personal coverage or commercial coverage, however, you will want to find the best rates and plan for your needs. The best solution for finding affordable insurance is comparison shopping across multiple insurance companies. Online comparison tools allow you to enter personal information and then receive numerous quotes from different insurers. Once you receive the list of quotes, you can compare rates, plans, coverages, and insurance companies to find an insurance policy that is affordable and appropriate.

Car insurance is a requirement in many places, and it is a necessary benefit should you find yourself in an accident. However, if you drive for Instacart or another delivery service, your personal vehicle insurance may not cover you. As you will be driving your vehicle for business purposes, you will need to find affordable commercial insurance to cover you and your car while you are working.

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