I scraped a guardrail while delivering. No other cars involved. The damage was $1,500. I decided to pay out of pocket and not tell my insurance to avoid a rate hike. Three months later, my policy was non-renewed. They found out because I had reported the “Safety Incident” to the App to avoid deactivation.
Key Takeaways
- Databases Talk: Gig Apps share data with background check services (Checkr) and insurance databases (ISO/Verisk). Your “internal” report to DoorDash isn’t secret.
- The “Failure to Report” Clause: Your policy requires you to report any accident. Failing to do so is a breach of contract.
- The CLUE Report: Once the incident hits your CLUE (Comprehensive Loss Underwriting Exchange) report, your insurer will see it at renewal time.
- Honesty is Cheaper: A small claim might raise rates 20%. Being cancelled for “Undisclosed Incident” makes you uninsurable for 3 years.
The “Why”: The Information Chain
- You tell DoorDash: “I scratched my car.”
- DoorDash logs it: It goes into their safety record.
- Data Sale: Aggregators scrape this data or buy it to update driver risk profiles.
- Renewal Review: Your personal insurer runs a scan. They see an “Incident” on [Date]. They check their files. No claim? Result: Non-Renewal.
[IMAGE: Flowchart showing how data moves from App > Database > Insurance Carrier]
The Investigation: To Claim or Not to Claim?
I spoke to an underwriter about the consequences of “hiding” minor accidents.
- Underwriter: “If we find out you had an accident and didn’t tell us, we assume you are hiding other things. We view you as a moral hazard. We cancel.”
- The Threshold: If the damage is very minor (bumper scratch) and you fix it yourself without telling the App or Police, you might get away with it. But if you tell the App, the cat is out of the bag.
Comparison Table: Reporting Strategy
| Scenario | Tell Insurer? | Risk of Non-Renewal |
| Reported to App | YES | Low (Rate hike only) |
| Police Report Filed | YES | Low (Rate hike only) |
| Paid Cash (No App/Police) | Optional (Technically req.) | Medium (If discovered) |
Step-by-Step Action Plan
- Did you tell the App? If yes, call your insurer. The secret is already out.
- Did you hit another person? Always report. If they sue you later and you didn’t report it immediately, your insurer can deny coverage for “Prejudice due to late reporting.”
- Get a Quote First: If you are terrified of the rate hike, get quotes from other carriers before you file the claim, so you have a backup plan.
FAQ
Can I just repair it and not tell anyone?
If no other property was damaged and you don’t tell the App, it is unlikely the insurer will find out. But you are technically violating your policy conditions.
How much will my rates go up?
Usually 20-40% for an at-fault accident. It stays for 3-5 years.