Shipt Car Insurance Requirements: How to Stay Covered and Avoid Issues

Shipt requires all of its Shoppers and Drivers (read about the differences) to have car insurance policies that meet their state’s minimum requirements. 

In most cases, that means having liability insurance that covers bodily injury and property damage. The precise amount of coverage you need (the max amount of money your insurer will pay out) varies from state to state.

Even though you need to have your own coverage, Shipt does provide occupational accident insurance that covers up to $1,000,000 in disability payments, replacing up to $500 per week in income as well as up to $250,000 in accidental dismemberment and death benefits. However, coverage is likely dependent on using the car that you signed up for Shipt with, so if you’re driving someone else’s car when you get into an accident (if your car is in for maintenance, for example), then don’t expect to be covered. 

But even with your own coverage and Shipt’s excess coverage, car insurance can be a tricky subject for gig workers: insurers don’t like when you use your car for business, and they might give you a hard time if they find out about your new work situation. 

Plus, all that time on the road makes it more likely that you’ll get in an accident, and if you don’t have a good enough policy, you could end up with a hefty bill if you crash your car. 

Shipt’s only car insurance requirement: meet your state’s minimum

Shipt mentions car insurance as part of the car requirements section of both its Shopper requirements and Driver requirements. 

Since working with Shipt involves using your car for commercial activities, it’s common for prospective Shoppers and Drivers to worry that they’ll need an expensive commercial insurance policy before they start working. 

But that’s a mistake: Shipt does not require its Shoppers or Drivers to take out a commercial insurance policy. Shipt only requires Shoppers and Drivers to meet their state’s minimum coverage requirements. 

That doesn’t mean that it isn’t advisable to get more coverage though — depending on your situation, getting commercial or more comprehensive coverage may still be a good idea. It just means that that decision is entirely up to you. Shipt doesn’t care what policy you have so long as you meet your state’s minimum.

Your insurer, on the other hand, is a different story. 

Your car insurance may be affected by being a Shipt Shopper or Driver

Even though Shipt doesn’t require its Shoppers and Drivers to have commercial car insurance policies, many insurers won’t cover any accidents that occur while the policyholder is engaging in commercial activities. Generally, accidents that occur during Shipt deliveries aren’t covered by your personal car insurance.

That can be a big problem for gig workers. As a Shopper or Driver, you’re going to be spending a lot more time on the road, which increases your risk of getting into an accident. If you total someone else’s car in an accident and they file a claim against you, your personal car insurance might not cover you, leaving you with a gigantic bill that you might not be able to pay. 

Some insurers may also raise your rates if they find out you’re driving for Shipt. 

For these reasons, it’s usually a good idea to get ahead of the game and talk with your insurer about what will and won’t be covered as well as whether it makes sense to get a more comprehensive policy. 

Getting more coverage — six different types of insurance to choose from

There are six basic types of coverage, and they each come in two different flavors: personal and commercial. Personal auto policies will cover you whenever you’re not directly using your vehicle for money-making purposes, and commercial auto policies are the exact opposite. 

The six types of coverage you can get are:

• Liability: This is generally the only type of coverage that Shipt requires you to have — that’s because most states only require drivers to have liability insurance. Liability covers damage to other people and their property. So, if you hurt someone in an accident and they sue you, your insurance will cover the costs of your legal defense and any amount you need to pay (up to your maximum policy coverage amount).
• Uninsured and underinsured motorist: This type of coverage pays for damages to yourself and your property if you’re in an accident and the other driver’s insurance won’t cover the costs. Generally, if someone hits you, their liability insurance is supposed to pay for damages. However, there’s always the risk that someone is uninsured or underinsured, which means you can’t get paid by their liability insurance — that’s when this coverage kicks in. 
• Comprehensive: Comprehensive coverage pays for damage that typically occurs when you’re not driving, such as theft, vandalism, fire, or damage from severe weather.
• Collision: As the name implies, collision coverage covers damage to your car sustained in a collision. If your car is totaled in an accident, this type of coverage would pay to repair or replace it. 
• Medical payments: This covers medical costs for anyone that was injured in an accident in the insured car. In other words, if you get into an accident and need medical treatment, this type of coverage will pay the associated hospital bills. 
• Personal injury protection (PIP): PIP is essentially medical payments coverage that also covers other costs that may result from an accident-related injury, such as lost income and childcare costs. 

Outside of liability coverage, none of these types of coverage are required by Shipt (unless your state has additional coverage requirements). However, investing in additional coverage can protect you against unexpected expenses that could lead to financial hardship. Whether you think the additional coverage is worth the cost is entirely up to you, but it’s something you should think carefully about.

One of the benefits of working with Shipt is that you can get up to a 12% discount on Liberty Mutual Auto’s collision and comprehensive policies. So, if you want to upgrade your coverage, you’ll get a good deal if you go through Liberty Mutual.  

Shipt verifies car insurance, but it won’t contact your insurer

When you sign up for Shipt, you’ll be asked to provide proof of insurance so that Shipt can verify you meet its requirements. Shipt won’t contact your insurer to do so — you just need to provide a photo of your insurance card. 

Unlike other delivery and rideshare platforms, you only need to verify your insurance once when you sign up. James Tuliano, who has been working with Shipt since 2020, says, “I signed up for Shipt four years ago, and I've only had to show them proof of insurance when I first signed up, so they aren't verifying it continuously unlike Uber.”

Keep in mind that your name needs to be on the insurance policy for Shipt to accept it. That means that if you’re driving under your husband or wife’s policy and you’re not listed as a driver, Shipt won’t accept your insurance. If your name isn’t already on the policy, make sure you add it before you apply to work with Shipt. 

James adds that “Shipt also allows you to use rental cars as long as you provide proof of your personal insurance policy. Obviously, not a wise financial choice, but if someone was doing gig work as their only income, not all gig jobs allow you to use a car that you don't actually own, so you would be without an income if your car was in the shop and you had a rental or something similar.”

What to do if you get in an accident while on the job

If you’re in an accident while shopping or driving for Shipt, you should alert Shipt. You can contact support via the Shipt support website or via email at support@shipt.com. 

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