When people sign up to shop or deliver groceries, many don’t realize that standard auto insurance coverage does not always protect them during commercial use. Working for Instacart is considered business activity, because you earn money with your vehicle. If an accident happens while you are shopping or delivering an order, regular personal insurance may refuse to pay. That’s why understanding auto insurance coverage for commercial use on Instacart is extremely important.
A lot of new gig workers assume Instacart provides full coverage, but that is not the case. Instacart has a policy that covers some liability when a shopper is on an active delivery, but it does not protect everything. Your car repairs, medical bills, or damage to your own vehicle may not be covered unless you have commercial or delivery-friendly insurance. Many drivers only discover this after a crash, and by then, it’s too late. Knowing how auto insurance coverage works for Instacart can help protect your finances and keep you legally safe on the road.
Why Auto Insurance Coverage Matters for Instacart Drivers
When your vehicle becomes a tool to make money, the risk increases. You drive more miles, visit unknown neighborhoods, and often rush to meet delivery times. Auto insurance companies know this and treat delivery driving differently from personal driving. Standard insurance is designed for everyday use, such as going to work, running errands, or taking kids to school. When the vehicle is used for business, insurers classify it as “commercial use.”
Every Instacart driver should understand that if you get into an accident while delivering, your insurance company can deny the claim. That could leave you responsible for thousands of dollars in damages. Having proper auto insurance coverage keeps you protected and prevents financial disaster.
Does Instacart Provide Auto Insurance Coverage?
Instacart does offer third-party liability coverage, but only during active delivery—meaning when an order is in your car and you are on your way to the customer. It does not cover you when:
- You are waiting for orders
- You are driving to the store
- You are shopping inside the store
- You damage your own vehicle
So, if someone hits you while you are parked, or if you hit another driver while heading to pick up an order, Instacart is not responsible. Many drivers misunderstand this and think they are fully covered. Instacart’s policy is limited, and it mainly protects the customer or the public, not the driver. That’s why upgrading your auto insurance coverage is important if you shop and deliver regularly.
Best Types of Auto Insurance Coverage for Instacart Drivers
The good news is that many insurance companies now offer policies made for gig workers. There are three common options:
1. Auto Insurance Coverage with Delivery Add-On
Some companies let you add a small delivery rider to your personal insurance. This is cheaper than full commercial insurance and is the most popular choice for Instacart drivers. It covers accidents that happen while you are working, not just when you are driving for personal use.
2. Full Commercial Auto Insurance Coverage
Commercial insurance is the highest level of protection. It is more expensive, but it covers you anytime you use your vehicle for business. Many full-time delivery drivers choose this, especially if they also work for DoorDash, Uber Eats, Grubhub, or rideshare companies.
3. Hybrid Auto Insurance Coverage
Some insurers offer hybrid policies that automatically switch between personal use and commercial use. This eliminates confusion and makes sure you are always covered.
How Much Does Auto Insurance Coverage for Instacart Cost?
The price depends on the company, your driving record, your state, and how often you deliver. A delivery add-on can cost as little as $8 to $30 per month. Full commercial auto insurance coverage can range from $120 to $250 per month. While that sounds expensive, it is far cheaper than paying out of pocket after an accident.
Many Instacart workers are surprised when they learn that some companies will cancel a policy if they discover you are delivering without telling them. Insurance companies see it as a risk if you hide the fact that you drive commercially. Being honest with your insurer is safer and cheaper in the long run.
Which Insurance Companies Offer Auto Insurance Coverage for Instacart?
In many states, the major companies that offer coverage for delivery drivers include:
- Progressive
- Allstate
- State Farm
- GEICO
- USAA
- Farmers
Some companies charge very little to add delivery protection. Others require a full commercial plan. Rates also depend on your state because insurance laws are different across the country.
What Happens if You Get Into an Accident Without Commercial Auto Insurance Coverage?
If you are working for Instacart and do not have the proper auto insurance coverage, two bad things can happen:
- Your insurer can deny your claim.
That means no help paying for repairs, medical bills, or other losses. - You could be sued.
If the accident injures someone or damages property, you might be legally responsible.
Even if Instacart’s liability policy pays something, it only covers certain situations, and it does not protect your vehicle. One mistake could cost more than a full year of commercial auto insurance coverage.
How to Make Sure You Are Fully Covered
The easiest way to stay safe is:
- Call your insurance company
- Tell them you drive for Instacart
- Ask whether they offer delivery or commercial auto insurance coverage
Most insurance companies will gladly explain the best option. Some will even lower your rate if you are a safe driver or if you have multiple policies with them.
Final Thoughts: Every Instacart Driver Needs Proper Auto Insurance Coverage
Driving for Instacart can be a great way to earn extra income, but it also brings real responsibility. You are on the road more often, you rely on your vehicle to make money, and accidents can happen at any time. The last thing any driver wants is a denied claim or a huge repair bill. Getting the right auto insurance coverage gives peace of mind, protects your income, and keeps you legal.
If you plan to shop or deliver regularly, take time to talk with your insurer and choose a plan made for commercial use. You might pay a little more each month, but it’s nothing compared to what an uncovered accident could cost. In simple terms, proper auto insurance coverage is the difference between earning money and losing money while working for Instacart.