If you’re like many Americans, the cost of car insurance is one of your biggest monthly expenses. With the average cost of car insurance coming in at $1,000 per year and climbing, it’s more important than ever to find ways to keep that cost as low as possible.
Driving for a delivery service like DoorDash can be an excellent way to reduce your own car insurance costs. Depending on your situation, driving for a delivery service may also have the added bonus of actually lowering your car insurance premiums rather than raising them.
Let’s take a closer look at how driving for DoorDash affects your car insurance and whether it’s something you should consider doing if you own a car.
What is DoorDash and how does it affect your car insurance?
DoorDash is an on-demand food delivery service that has grown in popularity in recent years. Customers use the DoorDash app to place an order with one of the many restaurants that have partnered with DoorDash. They enter the delivery address and a driver is dispatched to the location.
Drivers use their own vehicles to pick up the food and bring it to customers who have ordered takeout for dinner or to feed their families.
Driving for DoorDash is, of course, completely optional. If you want to keep your regular job and just pick up some extra cash driving on the side, that’s fine.
But there are a few ways that driving for DoorDash specifically can affect your car insurance in a good way. If you do choose to drive for DoorDash on a regular basis, be sure to let your car insurance provider know as soon as possible.
Can you drive for DoorDash and still be insured?
If you already have car insurance, you may be wondering whether driving for DoorDash will cause your car insurance to be cancelled.
Luckily, it’s extremely unlikely that you’ll find your car insurance cancelled because you’re now driving for DoorDash. However, if you don’t let your car insurance provider know you’re driving for a delivery service on a regular basis, you may end up with a cancelled policy.
Specifically, if you’re committing a false statement with your car insurance provider, there’s a high risk that your coverage will be cancelled. This is a serious matter that can lead to major penalties. You may even face criminal charges in extreme cases. Your car insurance company may also have the legal right to sue you if they feel you’ve committed a false statement.
Can you save money on your car insurance by driving for DoorDash?
In many cases, driving for DoorDash can actually save you money on your car insurance rather than costing you more. How much you save will depend on a variety of factors, including your age, your car insurance provider, and the coverage you already have in place.
If you drive a newer car and have a good driving record, you may even be able to lower your premiums by a significant amount when you add the fact that you’re driving for DoorDash into the equation. However, be aware that if you’re driving for DoorDash on a regular basis, your insurer may request extra coverage or premium to make up for the added risk involved. This is why it’s so important to let your insurer know about your new driving habits as soon as possible.
Is there a risk to driving for DoorDash when it comes to your insurance?
As we’ve discussed above, driving for DoorDash can actually save you money on your car insurance. Many providers will see the additional driving you’re doing as a way to increase your experience and therefore increase your coverage.
There is, however, one thing to keep in mind if you’re considering driving for DoorDash. If you’re involved in an accident while working for DoorDash, the insurance coverage on your vehicle will apply. If you don’t have enough coverage on your car insurance policy, you may be left with a serious financial burden. In extreme situations, you may even face criminal charges if you’re at fault in the accident.
In this situation, your car insurance coverage will only apply to your vehicle and not to any injuries or damages you cause to others. This is why it’s so important to have enough car insurance coverage at all times.
Bottom line
Driving for a delivery service like DoorDash can be a great way to earn some extra money and help pay for expenses such as car repairs or a new car. It’s also a great way to reduce your own car insurance costs.
Many insurance companies will see the additional driving you’re doing as a way to increase your experience and therefore raise your coverage. This is especially true if you’re driving a newer vehicle and have a good driving record.
If you’re considering driving for DoorDash, be sure to let your insurance provider know as soon as possible. In many cases, driving for a delivery service like DoorDash can actually save you money on your car insurance rather than costing you more.
