Here’s something the DoorDash sign-up page doesn’t highlight: your car insurance rate can jump the minute you start dashing. If you sign up to drive for DoorDash and think your regular insurer will be cool with it—think again. Most standard policies won’t cover delivery work. That means if you get into a fender bender on a delivery, your claim could get denied. Suddenly, pretty good side gig money isn’t looking so hot.
Why Does DoorDash Driving Affect Your Insurance?
Insurance companies get jittery about food delivery because statistically, there’s more risk. Driving on tight schedules, parking in unpredictable places, city streets and rural roads—delivery driving means you’re on the road at the weirdest hours, stopping and starting constantly, sometimes stressed out by timers and customers. According to the Insurance Institute for Highway Safety (IIHS), "Crash rates for delivery drivers are notably higher than those of regular commuters." Being a dasher puts you in a category closer to ride-share drivers (like Uber and Lyft) or even small business couriers in the eyes of your insurer.
Here’s the truth: your regular personal policy, that everyday one that protects you while you commute to work, won’t cover accidents that happen while you’re actively making deliveries. This gap is why car insurance for DoorDash drivers costs more. Some insurers will drop you from their policy altogether if you keep your delivery gig a secret. You’re not just stretching the rules—if they find out and you’ve made a claim, you might get hit with insurance fraud charges. The whole reason rates rise comes down to risk calculations. With more miles on the road (during riskier hours), and with more stops, statistically you’re going to have more accidents.
Let’s break down what that bump actually looks like. California’s Department of Insurance published guidance that delivery drivers face premium hikes anywhere from NZ$30 to NZ$180 extra per month—sometimes even more if you’ve had past accidents. Some drivers in Auckland report paying an extra 25-40% over their regular car insurance rates once they add delivery coverage. It really depends on your driving record, where you live, what car you drive, and which company you’re with. If you pay NZ$1000 per year now, expect it to jump to anywhere from NZ$1250 to NZ$2000 annually if you’re honest about DoorDashing.
But not all insurers are created equal on this front. The big brands—think State, AA Insurance, Tower—often treat gig delivery differently. Some offer a “delivery rider" (a bit like a sidecar to your regular policy) that helps fill coverage gaps, but not all of them do. If you’re with a company that won’t touch delivery insurance, you’ll need to hunt for a specialist provider who covers ride-share and courier drivers. They’re out there, but policies can be pricey—and sometimes have a mileage cap or extra restrictions on your hours.
The confusing part: DoorDash does offer some insurance, but it’s barebones. Their “commercial policy” only covers you for liability when you’re actively delivering—meaning you’ve got food in the car, heading to a customer. Not before you pick up or once you’ve delivered. Their insurance won’t pay for repairs to your car, only damage you cause to others. As DoorDash themselves say, “Drivers are required to maintain their own auto insurance coverage.” In the fine print, that DoorDash commercial policy is the absolute last safety net, and it doesn’t absolve you from having adequate personal, and in most cases, commercial coverage.
One Auckland Dasher, Maya L., told me she learned this the hard way: “My regular insurer said if I got caught delivering without the proper add-ons, they’d refuse a claim—even if it wasn’t during work hours. I had to swap to a much more expensive delivery-friendly policy.”
Breaking Down the Costs: Exact Increases and Real-World Examples
Okay, so just how much more is car insurance for DoorDash drivers, really? Time for the hard numbers.
A recent 2025 study by the New Zealand Insurance Authority showed that Auckland drivers with clean records paid an average of NZ$1460 per year for basic comprehensive coverage. Add commercial coverage or a delivery rider, and suddenly that bill jumps to NZ$1850–NZ$2400 per year, depending on limits. That’s a difference of around NZ$32–NZ$80 extra a month, or 25–60% higher.
It gets even steeper if you drive in Wellington, where delivery rates per insurance data from 2024 indicate a 40% rise due to higher accident rates in the city. Young drivers, drivers with older cars (yes, this seems counterintuitive, but older cars are riskier due to lack of safety features), or those with any black marks on their record sometimes see insurance go up by up to 100%!
For a real example: Sam, 27, in Hamilton, paid NZ$1272 a year for comprehensive insurance before DoorDashing. After telling his insurer about his new gig, his premium shot up to NZ$2150. That’s nearly NZ$900 more annually—NZ$75 per month, just to cover the new risk of delivering hot chips on a Friday night.
But here’s the thing—some companies bundle the delivery add-on for a lot less. You could find a smaller insurer, or providers specializing in gig workers, doing it for just NZ$200–NZ$350 extra per year. But double check for any restrictions, like: Do they have a mileage limit? Are you allowed to work for multiple food delivery apps? Do they cover you if your car gets stolen while you’re dashing inside a restaurant?
The more you drive, the more you’ll pay. Many companies split drivers into “occasional” and “frequent” categories. Occasional drivers (say, under 10 hours a week) might only see a 15–20% hike, while someone hustling full-time could pay double a regular policy rate. And a handful of companies charge by the job rather than by time, but that system’s rare in NZ.
Want a tip? If you’re thinking about DoorDashing, don’t just price shop online—call insurers before you set up your account. Ask specifically: “What if I use my car for food delivery with DoorDash, about X hours a week—will you cover me?” If they hesitate or say no, move on. Never take the risk of lying about delivery work on your policy questionnaire. It’s simply not worth it.
Smart Ways to Save on DoorDash Auto Insurance
If tacking on NZ$50–NZ$100 a month to your car insurance sounds painful, there are ways to make delivery driving more affordable. The trick is about being proactive and doing your homework.
- Shop around like a pro. Don’t just go with the first price you get. DoorDash forums are packed with Kiwis who saved hundreds by calling every major insurer and a few niche gig-economy companies until they found a fair rate. Even if you love your current insurer, always get a few quotes after you decide to drive for DoorDash.
- Raise your deductible. If you’re pretty careful and your car isn’t worth a fortune, consider a higher excess. You’ll pay more if something does go wrong but your monthly premium drops.
- Bundle your insurance. If you have home or renter’s insurance, add your car (with delivery coverage). Multi-policy discounts can soften the commercial delivery blow.
- Use telematics. Many big NZ insurers now offer “driver tracking” apps. If you drive safely, avoid hard braking, and stay off your phone, you can save big—even as a DoorDash driver. It’s a little Big Brother-ish, but the savings are real for careful drivers.
- Consider a lower-value car for deliveries. A runabout that’s cheap to insure—think a used Toyota Corolla or Mazda 3, with good safety ratings—can help skirt sky-high premiums. Avoiding newer, sporty, or luxury cars will keep your rates from ballooning.
- If you’re only DoorDashing part-time, ask if an “occasional delivery” rider is available. Don’t just accept a full commercial policy if you’re only on the road a couple of nights a week.
- Review your mileage. If you dash only within a small local zone, explain that to your insurer. Sometimes, smaller delivery radiuses mean lower risk, and hence, lower cost.
And hey, keep your record clean. Every single claim you make or traffic infraction can send your premium up another 10–20%. Think of it this way: extra insurance costs are like another hour or two of deliveries a week. The better your driving record, the more deliveries you keep for your own pocket.
Just to hammer home the importance of proper insurance: If you cause an accident while uninsured (or under-insured) as a DoorDash driver and hurt someone, you could face a lawsuit for damages. “Liability lawsuits resulting from uninsured delivery accidents often lead to financial disaster for the driver, not the platform,” says the New Zealand Law Society.
Bottom line—yes, DoorDash car insurance is going to cost you more. How much more depends on your specific insurer, driving record, age, location, and how honestly you communicate with your insurance company. Expect anything from a modest NZ$200 hike up to over a grand extra per year. It’s not cheap, but neither is getting denied a claim after an accident. Do your homework, don’t fudge the details, and treat insurance as the cost of doing business—not just some annoying fine print.
