Am I covered?: Do delivery drivers need insurance?
In Quebec, car insurance has a unique system specific to the province. Both the government and private insurers offer car insurance, and this dual system has been in place since 1978. The government provides mandatory coverage for bodily injury, while private insurers offer both mandatory and optional coverage. This, however, assumes you use your vehicle for personal purposes. What if you work as a delivery driver, say, for a company like Uber Eats or Skip the Dishes?
Personal car insurance does not cover commercial use.
You may already know this, but your personal auto insurance policy won't cover you if you use your vehicle for business purposes. This includes any commercial use other than food delivery. If you regularly transport clients from one location to another, haul goods, etc., this could constitute commercial use. If you only use your vehicle to commute to and from work, and this is the only work-related activity for which you use your car, it won't require commercial insurance.
Some commercial vehicles require special insurance to operate legally, including:
- Garbage trucks
- Buses and catering trucks
- Transport trucks
- Limousines
- Agricultural machinery
For the purposes of this article, let's assume you drive an everyday car but use it to deliver food for a company like Uber Eats. Your personal car insurance won't cover you, but there's a good chance the company you work for would.
Driver/Delivery Person Insurance
Most, if not all, major food delivery services will maintain a commercial auto insurance plan that will help cover you in the event of an insurable accident while making a delivery for an Uber Eats customer or food delivery driver. As of 2020, commercial auto insurance for Uber Eats works as follows:
$1 million liability coverage (per claim)
In Quebec, it is mandatory to have a minimum of $50,000 in liability insurance with private insurers for your personal vehicle. Most insurers will recommend extending this amount to $1,000,000 or even $2,000,000. Uber offers auto insurance to its delivery drivers in Quebec that includes $1 million in third-party liability coverage from the moment you "log on" (i.e., connect to the Uber delivery app) until you "log off." Essentially, every time you work for Uber—"business activity"—you are covered by Uber's driver insurance liability plan.
Continental coverage
If you already have a personal, private car insurance policy, loss or physical damage is covered. In this case, the coverage and deductible you are responsible for are those listed in your personal policy.
Do I still need personal car insurance as a delivery driver?
While Uber or any other food delivery company you work for may offer a commercial driver insurance plan, you still use your personal vehicle and likely use it outside of deliveries, so you'll need separate personal coverage. Think of it this way: when the app is active and you're actively making deliveries for the company you work for, you're covered by Uber's commercial driver plan. When the app is deactivated, you're covered by your personal insurance. Therefore, it's your responsibility to maintain a personal plan that protects your own vehicle.
Do I need additional commercial insurance as a delivery driver?
It depends – if you feel the insurance plan offered by Uber Eats (or the food delivery company you operate under) isn't sufficient, you have two options to expand your coverage. You can inquire about purchasing separate commercial insurance, which is a comprehensive plan that allows you to use your vehicle for a wide range of business purposes.
You can also look into carpool insurance, which is offered by many major insurers. You can add it to an existing plan, and it's usually less expensive than a full commercial policy. Rates will vary, as with any personal auto insurance plan, but you can expect your rates to increase by 15 to 20 percent. Your rate will depend on the amount of coverage and the deductible you choose.
One thing to note – you must always tell your insurer that you work as a food delivery driver. If you don't, you could run into serious problems. A question that will always come up when your provider asks how you use your vehicle is whether or not you use it for business purposes.
Finally, most food delivery companies will require you to have a personal car insurance policy in addition to the coverage they offer. You cannot work or make deliveries for Uber or most other food delivery companies without insurance.