First-time Instacart drivers often wonder if they need Instacart auto insurance. In recent years, ridesharing and on-demand delivery services have become incredibly popular. In fact, many insurance companies have even added supplemental coverage options to protect drivers who are using their vehicles for work or a side hustle.
While picking up strangers or dropping off fast food orders may not be your thing, supplemental coverage is a good idea even if you’re just making grocery deliveries with Instacart. Delivering for Instacart puts you at an increased risk for an accident. This is due to the extra hours that you will spend behind the wheel and out on the road. What you may not know is that you actually need Instacart auto insurance if you want to be covered while working. The reason for this is that your standard “personal use” policy will not typically cover any incidents that occur while you are making deliveries. In this guide, we’ll help you find the right coverage and answer common questions about Instacart-related car insurance.
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Does Instacart Provide Auto Insurance for Drivers?
Unfortunately, Instacart does not provide auto insurance for drivers. While some other on-demand delivery and ridesharing companies do, Instacart has yet to follow suit. Even if the company starts providing coverage in the future, it will probably work similarly to coverage from Uber and Lyft.
Generally, relying on a ridesharing service to provide auto insurance is a bad idea. Doing so can result in gaps in your coverage or, in the case of Instacart, having no coverage at all. For this reason, it is best to do your own research and hand-pick a policy that fits your needs.
What Kind of Auto Insurance Do Instacart Drivers Need?
If you want to be protected while making deliveries, you will need a commercial, or “business use,” insurance policy or a type of add-on coverage called rideshare insurance.
Commercial insurance will be a bit more expensive than personal coverage, but it will ensure that you are protected in the event of a crash while making deliveries. If you neglect to obtain coverage, your personal policy will not provide coverage for any event that occurs while you’re making deliveries. While it may be tempting for you to simply withhold this information from your provider, lying about the circumstances surrounding an accident is considered insurance fraud.
Even if you are not involved in a crash, many companies will drop your policy altogether if they find out that you drive for Instacart without proper coverage.
Is Instacart Auto Insurance Different from Rideshare Insurance?
Rideshare insurance can serve as Instacart auto insurance when you have the right provider. While rideshare insurance is typically cheaper than business insurance, you’ll want to check that your policy covers Instacart deliveries. For example, GEICO’s rideshare insurance specifically covers on-demand deliveries. This makes the company a good choice if you work for more than one company like Uber, Instacart, and DoorDash, as it will allow you to protect all of your work with a single policy.
What to Do If You’re in a Car Accident While Delivering for Instacart
Hopefully, you will never be involved in a car accident. However, driving for Instacart or a ridesharing company increases the risks of this happening. That is why you need to have a plan in place. Knowing what to do in advance can help you overcome the stress of being involved in a crash.
- If you are involved in a car collision while delivering for Instacart, you should start by checking yourself for injuries. As long as you do not notice any immediate injury concerns, contact law enforcement. They will respond quickly and begin conducting an investigation.
- After you have addressed immediate injury concerns and contacted the police, you should contact Instacart. If you have not dropped off your delivery yet, consider contacting the client as well. They may be able to respond to your location and pick up the food. This will give you one less thing to worry about while you wait on a tow or your crash report.
- You will also need to contact your insurance company and/or that of the other driver. If you believe that the other driver was at fault in the accident, contacting their provider first is a good idea. Their company will expect a case number from the investigating law enforcement officer, as well as information for all vehicles involved, including your policy number.
- If you are unsure who was at fault, simply contact your insurance company. You will still need the other driver’s information. This includes their vehicle make and model, the tag number, the driver’s name, and their insurance policy information.
As long as you are partnered with a reputable insurance company, the company will arrange a tow, request any needed documents, and handle your claim. The company will even coordinate with Instacart if needed.
Our Recommendations for Auto Insurance
We have ranked every major car insurance provider on the market in areas such as cost, customer service and reputation. Progressive and GEICO are two of our top choices for auto coverage, including Instacart auto insurance.
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Progressive: Best for High-Risk Drivers
We named Progressive the best provider for high-risk drivers. If you have a less-than-perfect driving record or have recently filed a claim, the company may be able to give you the best rates. We awarded the company a total score of 4.4 out of 5.0 in our review. Progressive also earned a 4.0 for reputation, 4.4 for cost, 4.3 for customer service, and 4.4 for coverage.
Progressive has plenty of discount options, too. The company offers reduced rates for the insurance on multiple vehicles, for additional drivers on your policy, and for loyalty (i.e. staying with the company for consecutive years).
GEICO: Best Discounts
GEICO has been around for decades and earned the title of Best Overall in our comprehensive review. We gave the company a 4.6 out of 5.0 overall. The insurer’s comprehensive ridesharing coverage is especially great if you want to work for multiple on-demand companies.
GEICO offers a variety of discounts and coverage such as mechanical breakdown insurance, which can help cover the cost of repairs after a breakdown.
Our expert review team takes satisfaction in providing accurate and unbiased information. We identified the following rating categories based on consumer survey data and conducted extensive research to formulate rankings of the best car insurance providers.
- Affordability: A variety of factors influence cost, so it can be difficult to compare quotes between providers. Our team considers auto insurance rate estimates generated by Quadrant Information Services and discount opportunities when giving this score.
- Coverage: Because each consumer has unique needs, it’s essential that a car insurance company offers an array of coverage options. We take into account the types of insurance available, maximum coverage limits, and add-on policies.
- Industry Standing: Our team considers Better Business Bureau (BBB) ratings, financial strength, and years in business when giving this score.
- Availability: Auto insurers with greater state availability and few eligibility requirements are more likely to meet consumer needs.
- Customer Service: Reputable car insurance providers operate with a certain degree of care for consumers. We consider complaints filed with the National Association of Insurance Commissioners (NAIC), J.D. Power claims servicing scores, and customer feedback.
- Online Experience: Insurers with easy-to-use websites and highly rated mobile apps scored best in this category.