I was reversing out of a dark driveway after dropping off a pepperoni pizza. Crunch. I hit a parked Mercedes S-Class. The damage was $6,000. My personal insurance denied it because I was “on the clock.” The pizza shop’s insurance denied it because I was an independent contractor (1099), not an employee. I was left holding the bag.
Key Takeaways
- Private Property ≠ No Rules: Liability laws apply in driveways just like on highways. You are liable for the damage.
- The “Unladen” Trap: If you had just dropped off the pizza, some commercial policies say your “job” was done, pushing you back to Period 1 (where coverage is weak).
- Non-Owned Auto Liability: Pizza shops often have this insurance for their protection, not yours. It stops them from getting sued, but doesn’t stop the Mercedes owner from suing you.
- DoorDash/Uber Coverage: They usually cover liability in this scenario, but you must prove you were “Online” or “Active.”
The “Why”: The Period Shift
The exact moment the pizza leaves your hand, your insurance status changes.
- Pizza in car: Period 3 (Covered by Delivery App/Store).
- Walking back to car: Gray Area.
- Reversing car: Period 1 (Waiting for next order) OR Period 3 (Completing the run).
In 2026, insurers argue over this split second. If the app considers the delivery “Complete” the moment you swiped “Delivered” at the door, you might be in Period 1 when you backed into the Mercedes. In Period 1, many apps provide lower liability limits or none at all for collision, and your personal policy still excludes you.
[IMAGE: Diagram showing a driveway accident and the “Coverage Gap” timeline]
The Investigation: Who Covers the Bumper?
I analyzed the contracts of the big three pizza/delivery situations.
1. Domino’s / Papa John’s (Employee)
- Coverage: The store’s “Hired and Non-Owned” policy usually covers the liability (the Mercedes).
- Your Car: You are usually responsible for your own car repairs unless the store is generous.
2. DoorDash / UberEats (Contractor) – Active
- Coverage: If you haven’t swiped “Complete” yet, their $1M liability policy covers the Mercedes.
- Action: Do NOT swipe “Delivered” until you are back in your car and safely on the road.
3. Independent “Mom & Pop” Shop
- Coverage: Often Zero. Many small shops don’t buy the right insurance for drivers.
- Risk: You are totally exposed. You need a Commercial Auto policy.
Comparison Table: Hitting a Parked Car
| Status | Personal Policy | Delivery App Policy | Store Policy (Employee) |
| En Route to Customer | Denied | Covers Liability | Covers Liability |
| Leaving Driveway (Job Done) | Denied | Maybe (Period 1 limits) | Covers Liability |
| Damage to YOUR Car | Denied | No Coverage | No Coverage |
Step-by-Step Action Plan
- Don’t Swipe Yet: Keep the order “Active” in the app until you have exited the driveway. This keeps you in Period 3 (Full Coverage).
- Take Photos: Document the Mercedes damage and your position.
- Get the Business Use Endorsement: This is the only way to ensure your own car is fixed if you back into a concrete wall instead of a Mercedes.
FAQ
Does the pizza shop pay my deductible?
Rarely. As an independent contractor (which most drivers are in 2026), you are your own business. Expenses are yours.
What if I hit a mailbox?
Same rules apply. It’s property damage liability.