Automobile

The Ins and Outs of Postmates Insurance

Postmates insurance is critical for many drivers who make extra money delivering food and groceries through the Postmates service. To legally operate a vehicle on the road, all drivers must maintain at least the state-minimum liability insurance. Failure to do so can result in penalties, such as:

  • Tickets.
  • License suspension.

    When signing up as a driver for Postmates, one part of the onboarding process is informing drivers that they must meet or exceed the minimum car insurance requirements for their state. Postmates explicitly states that any damage to a driver’s vehicle will be solely their responsibility. However, they have been known to step in when one of their driver’s insurance does not cover the full amount of damages.

    What Types of Coverage Can You Expect From Postmates Insurance

    According to Business Insider, Postmates insurance can provide you with added protection to ensure that you are covered in the event of an accident while on the job. Some of the coverages that Postmates insurance includes are:

    • Excess auto liability coverage: Postmates insurance provides liability coverage of up to one million dollars per accident for bodily injury sustained or property damage to the third party.
    • General liability coverage: Postmates couriers will have up to one million dollars of coverage when delivering on foot or by bike if they cause damage to another’s property in the course of their delivery.
    • Accidental occupational liability: Postmates is unmatched by its competitors when it comes to occupational liability protection. With this coverage, their deliverers will be covered for up to $50,000 of medical expenses to go towards injuries sustained during the course of their duties.

      What Postmates Insurance Does Not Cover

      While Postmates insurance provides great coverage for liability, there are limits to the coverage that may leave delivers in need of additional coverages to ensure that they are properly protected. Postmates will not cover any damage to the driver’s vehicle or bike due to an accident. During the onboarding process, Postmates makes it clear to drivers that they will need to carry their own policies to cover expenditures. The Zebra recommends that Postmates drivers also purchase:

      • Commercial insurance: A commercial policy can cost more than a personal insurance policy, but how much more expensive it will be depends on the use of your vehicle. These policies can give you peace of mind as they will cover you for any incident that occurs during your delivery duties.
      • Business-use policy: This policy option is ideal for drivers who may use their vehicle for occasional business use. If you deliver for Postmates full-time, there is a good chance you won’t qualify for this coverage. But if you only deliver for Postmates part-time, purchasing a business-use policy can be a less costly way to get the coverage you need. This type of coverage basically attaches a rider to your policy stating that your vehicle is occasionally used for business purposes, so you will be covered even if your accident occurs during delivery.
      • Personal auto policy: Some drivers rely solely on their personal auto policy to cover them if they are involved in an accident while delivering for Postmates. This option is risky, as typical personal policies do not cover business use. Furthermore, if when signing up for your policy, you fail to tell them you occasionally use your vehicle for business, they can deny your claim, even if the accident occurred when you were on the job.

        Additional Policy Perks Offered by Postmates

        In addition to their liability coverage, Postmates offers a few additional perks that can protect their deliverers. One perk they offer is free memberships to One Medical. This service provides couriers with the ability to set up same-day appointments with doctors. Bike couriers are also offered free bike racks and messenger bags to provide added convenience during deliveries.

        Postmates Occupational Accident Insurance

        Postmates also offers its couriers occupational accident insurance. This coverage provides expenses for medical, disability, death, and survivor payments that are a direct result of the policy holder’s occupation. This type of policy goes into effect on every delivery from the moment that the courier hits accept. According to The Ride Share Guy, this type of policy offers:

        • Up to $500 per week for temporary disability to replace earnings.
        • Continuing weekly payments up to $500 per week for total disability.
        • Up to $100,000 for accidental death.
        • A survivor’s benefit up to $100,000.
        • Up to $200,000 for accidental dismemberment.

          What if You Don’t Have Enough Coverage?

          Failing to have the right coverage or enough coverage can lead to significant financial hardship. If you wreck your vehicle and don’t have the proper coverage, you will have to pay for the repairs yourself. If you totaled your car, you would have to replace the vehicle and pay off any loans or liens against the vehicle.

          The Entree Couriers discusses the fact that if you are at fault for an accident and liable for major damage that exceeds the coverage provided by Postmates, you will be responsible for paying the excess expenses for the third party. If you are unable to afford the payments, the court can order that your assets seized and sold to cover the damage. They could also order a wage execution, which would automatically direct a portion of your earnings to the injured party until the debt has been satisfied. There is also the possibility of declaring bankruptcy, but you are not always guaranteed forgiveness and could still be responsible for a large portion of the debt.

          While Postmates liability coverages and perks provide you with a lot of coverage that many similar policies do not, it’s still important to review your coverages to ensure you are properly protected. Always be honest with your insurance company, and they will work with you to come up with a policy designed to fit your needs.

          Check this out if you need additional information, resources, or guidance on car insurance.

          Sources:

          Car Insurance

          Car Insurance for Delivery Drivers

          Business Insider

          Here’s How Delivery Insurance Works for Uber Eats and DoorDash Drivers/

          What Happens if You Are in an Accident While Delivering for Grubhub, Postmates Instacart or Doordash?

          Business Car Insurance: Everything You Need to Know

          What Is Commercial Auto Insurance?

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