If you deliver food in Canada using your own car, there is a gap in your insurance coverage that could leave you personally on the hook for thousands of dollars in damages. In January 2022, a SkipTheDishes driver in Ontario had a $15,000 claim denied after his insurer found out he used his car for deliveries, even though the crash happened while he was driving home, not working. His claim was only paid after media coverage pushed the insurer to reconsider. That case is a warning for every delivery driver in Canada.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified insurance professional.
Delivery platforms treat drivers as independent contractors. That means you are responsible for your own insurance. Most personal auto policies exclude any commercial use, and if you have a crash while delivering — or even if your insurer later discovers you deliver — your claim can be denied and your policy voided. Here’s what you actually need to know.
The central concept here is commercial use exclusion. Most personal auto policies in Canada contain a clause that voids coverage if the vehicle is used for any business purpose, including food delivery. That exclusion applies even when you are not actively delivering — the SkipTheDishes driver’s crash happened on his way home, but his insurer still denied the claim because he had used the car for deliveries in the past.
What I tend to notice is that most drivers only think about insurance after a crash. By then, it is too late. The time to sort this out is before you accept your first delivery order.
What happens when your insurer finds out you deliver food
The consequences of not having the right coverage go beyond a single denied claim. If your insurer discovers you have been delivering food — even if you never filed a claim — they can cancel your policy retroactively. That means any claims you made in the past could be reopened and denied. It also means you will have a cancellation on your insurance record, which makes it much harder and more expensive to get coverage in the future.
In the SkipTheDishes case, the driver’s claim was denied because he admitted to having used his car for deliveries. The insurer argued that this was a material change in risk — a legal term meaning the driver had not told the insurer about something that significantly increased the likelihood of a claim. Under Canadian insurance law, you are required to inform your insurer of any material change in risk. If you do not, they can void your policy from the date the change occurred.
This is not a hypothetical risk. DoorDash, SkipTheDishes, and Instacart all state in their independent contractor agreements that drivers are solely responsible for all liability, including personal injuries, death, and property damages. Uber Eats is the only major platform that provides any insurance to its drivers, and even that coverage has limits and exclusions depending on your province.
If you are already delivering, the safest move is to stop until you have confirmed your coverage. A conversation with a legal professional can help you understand your specific obligations and risks before you make any changes to your policy.
Common mistakes delivery drivers make with insurance
Assuming the platform covers you
Most delivery drivers I talk to assume that because they are working for a company like DoorDash or SkipTheDishes, that company must have insurance for them. That assumption is wrong. DoorDash’s FAQ mentions “excess auto insurance” but provides no details and has a deactivated claims form link. SkipTheDishes and Instacart explicitly state they provide no insurance at all. Only Uber Eats offers coverage, and it varies by province.
Thinking personal coverage applies when you are not on a delivery
The SkipTheDishes driver’s crash happened while he was driving home, not while delivering. His insurer still denied the claim because he had used the car for deliveries in the past. Insurers view the entire period you own the vehicle as relevant. If you have ever used your car for deliveries, your personal policy may be voided retroactively, even if you were not delivering at the time of the crash.
Not telling your insurer before you start
Many drivers think they can start delivering and sort out insurance later. That is a mistake. If you have a crash on your first delivery, your insurer will ask questions. If they find out you were delivering, they will deny the claim. You need to contact your insurance agent before you accept your first order. They can tell you what coverage you need and whether your current insurer offers a commercial or rideshare endorsement.
Assuming Uber Eats coverage is the same everywhere
Uber Eats provides different coverage in different provinces. In most provinces, you get $1-million third-party liability when available through the app and $2-million when on delivery, plus collision and comprehensive with a $2,500 deductible. In Quebec, you only get $1-million third-party liability — no collision, comprehensive, or accident benefits. In Alberta, you get bodily injury coverage and statutory accident benefits. In British Columbia, Saskatchewan, and Manitoba, Uber Eats does not provide any commercial car insurance at all; your coverage depends on the public insurer.
If you are unsure about your province’s rules, a Canadian legal service can help clarify your obligations before you start delivering.
How to get the right insurance for food delivery in Canada
Start with a conversation with your current insurer
Before you sign up with any delivery platform, call your insurance company or broker. Tell them you are considering using your car for food delivery. Ask them what coverage you need and whether they offer a commercial use endorsement or a rideshare policy. Some insurers offer a specific add-on for delivery drivers that costs less than a full commercial policy. Others may require you to switch to a commercial auto policy, which is more expensive but provides full coverage.
Understand what Uber Eats actually covers
If you drive for Uber Eats, you have some coverage through the platform, but it is not a replacement for your own insurance. Uber Eats provides $1-million third-party liability when you are available through the app and $2-million when you are on a delivery. Collision and comprehensive coverage is available at actual cash value with a $2,500 deductible, but only if you have collision and comprehensive on your personal policy. That means you still need a personal policy that includes those coverages. And in BC, Saskatchewan, and Manitoba, Uber Eats provides no commercial coverage at all.
Get a dash cam to protect yourself
Delivery driving increases your risk of being involved in a crash, and having video evidence can make a significant difference if a claim is disputed. A Garmin X110 dash cam offers wide-angle recording, GPS tracking, and voice control, which can help document exactly what happened in a crash. For full 360-degree coverage, the AZDOME M660 provides multi-angle recording with night vision and Wi-Fi app access.
Consider a vehicle tracker for added security
If you are delivering in an area with higher theft risk, a GPS tracker can help recover your vehicle quickly and may even lower your insurance premium. The Drone X2 LTE is a plug-and-play 4G LTE tracker that allows remote monitoring through an app, giving you real-time location data.
Compare quotes from multiple insurers
Not all insurers offer coverage for delivery drivers, and those that do may charge very different rates. Use a comparison service to get quotes from multiple providers. Be honest about your delivery work when filling out the application. Lying or omitting information can void your policy later. Some insurers specialize in coverage for gig economy workers and may offer better rates than traditional insurers.
Frequently asked questions about car insurance for delivery drivers
Can I deliver food without telling my insurance company? ▾
Does DoorDash provide insurance for drivers in Canada? ▾
Does SkipTheDishes provide insurance for drivers? ▾
Does Instacart provide insurance for drivers? ▾
What does Uber Eats insurance cover in Canada? ▾
Will my insurance go up if I tell them I deliver food? ▾
Your next move as a delivery driver
The insurance gap for Canadian delivery drivers is not going away. Platforms like DoorDash, SkipTheDishes, and Instacart have made it clear they will not provide coverage. Uber Eats offers some protection, but it varies by province and does not replace your own policy. The only way to protect yourself is to talk to your insurer before you start delivering, get the right coverage in place, and keep a record of your policy documents.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified insurance professional.
If this was useful, you might also want to read The Future of Car Insurance in Canada: What Technological Changes Mean for You.
Sources and Further Reading
Stolen Vehicle Reimbursement Tips for Car Insurance in Canada — Practical guidance on what to do if your vehicle is stolen and how reimbursement claims work.
Understanding Diminished Value Claims for Car Insurance — Explains how to claim for the loss in your vehicle’s value after a crash, relevant for delivery drivers who put more miles on their cars.
Ratehub (2023). Food delivery driver personal car insurance. 🔗
Uber (2023). Uber Eats delivery insurance in Canada. 🔗
