Car Insurance for Delivery Drivers - Things You Must Know

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Driving For Door Dash and Grub Hub in Detroit –4 Things You Must Know

car insurance delivery drivers

One of the biggest changes in the economic over the past decade has been the enormous growth in “gig” jobs and the “gig economy.” From driving for Uber, Lyft or food shopping for Instacart, millions of Americans have taken part, either as a side hustle or main job.

As part of these new delivery jobs, one of the most popular positions in Detroit and Michigan has become driving for Door Dash and Grub Hub. Door Dash has over 6,000 drivers operating all over the United States and abroad. The company now makes over $3 billion in revenue and is the largest food deliver service in the country.

Grub Hub is another popular food delivery service in Michigan. It has close to 3,000 drivers and over 31 million active users. The company generated $1.8 billion in revenue in 2020. It is now owned by a Dutch company called Just Eat Takeaway.

If you are a delivery driver for Door Dash, Grub Hub or even Uber Eats, there are certain things you must know. This is especially true when it comes to Michigan car insurance. 

#1 – Your Personal Car Insurance Won’t Cover You

First, your personal auto insurance coverage most likely will NOT cover you if you are in a delivery driver car accident while using the app and in the process of picking up and delivering orders. This is because almost all auto insurance policies have a business exclusion that disclaims coverage when the automobile is used for a business purpose – such as food delivery.

Because of this exclusion, your personal auto insurance will not cover you for the collision damage to your car, pay your medical bills under the Michigan no-fault law or cover lost wages.

In addition, your car insurance will not cover you if you cause personal injury to another driver or pedestrian while driving for Door Dash. This can lead to major consequences, including personal exposure to a personal injury case.

#2 – Purchase an Auto Insurance Rider For Door Dash and Grub Hub

So the question then becomes what auto insurance do I need while I’m driving for Door Dash or Grub Hub? If you decide to deliver for Door Dash, Grub Hub or any delivery service, it is essential you contact them about your car insurance needs. The companies can point you in the right direction and help you purchase inexpensive coverage so you are protected.

Another option is to contact your auto insurance carrier yourself. Tell them you will be using the car to deliver food for Door Dash or Grub Hub on occasion. It is important to disclose how often you plan on using your car to deliver food. The car insurance company can provide a rider or additional coverage for you that will protect you during the times you are working for the company. 

Again, the repercussions for not maintaining the correct auto insurance while acting as a food deliver person for Door Dash or any delivery service are severe. Don’t get caught empty handed. It is worth buying the extra insurance making sure you are protected while working. 

#3 – What Should I Do After a Car Accident With a Door Dash or Grub Hub Deliver Driver?

If you are involved in a car collision with a driver for Door Dash or Grub Hub, it is important to treat it the same as any other car crash. This includes doing the following things:

  • Call the police and make sure a police report is made. The police will get the name, address, auto insurance information and background of the accident. The responding officer will also assign fault to the driver who caused the crash. This is vital later when making a case for pain and suffering compensation and other damages.
  • Get the information of all the motorists involved in the accident. Get their names, addresses and telephone numbers. Like always, exchange auto insurance information.
  • Take photographs of the accident scene. Take pictures of not only your car, but the vehicle damage of the other cars involved. This may be your only chance to get this important evidence.
  • If necessary, take video of the accident scene to show the severity of the accident, where the vehicles ended up after the collision and the vehicle damage. 
  • Seek medical treatment. After a police report is made, it is important to see a doctor or go to a hospital. Even if you don’t feel that bad, a CT scan can reveal hidden internal injuries that can be life threatening.
  • Call an experienced Detroit Door Dash car accident lawyer or Grub Hub accident lawyer.

#4 – What If a Door Dash or Grub Hub Driver Caused the Crash?

If a negligent driver for Door Dash or Grub Hub causes a crash, this driver may be responsible for the personal injuries caused. According to the Michigan No-Fault Law, a person who is at least 50% at-fault for causing a motor vehicle accident must pay non-economic damages (pain and suffering) if the injured person sustained a threshold injury. Under the law, the owner of the at-fault vehicle is also responsible.

Proving a threshold injury is something a knowledgeable Detroit car accident attorney can assist you with. In Michigan, just because you are injured in a car accident does not mean you automatically get compensated. There are certain things you must show to pursue compensation. That it why is important to call a Detroit Door Dash injury lawyer after a crash. 

In addition, besides paying pain and suffering, the negligent Door Dash driver may also have to pay the medical bills and lost wages they caused. Again, each case is different so it is important to contact a lawyer who can answer your questions.

We will do what it takes to get your auto accident case resolved via settlement, mediation, or trial for the maximum amount allowed under Michigan law.

Call the trusted team at Lee Steinberg Law Firm at 1-800-LEE-FREE (1-800-533-3733) for a free consultation.