DoorDash Accident and Legal Troubles with USAA

Long story short, my sister was at fault in an accident while doing DoorDash. She had insurance with rideshare coverage but no specific food delivery coverage. She was honest with her insurance company, USAA, about being on a DoorDash delivery, which she now realizes may not have been the best move. USAA refused to cover anything related to the accident. Her car was paid off, but she ended up buying a new one. Unfortunately, she totaled the other vehicle involved. There were three people in that car, and they had minor injuries. The other party also had USAA insurance.

It’s been almost two years since the accident, and my sister hadn’t heard anything until recently. Out of the blue, she received a letter from USAA stating they are filing a lawsuit against her. The letter didn’t provide much information, which understandably caused her to panic. After making several calls, she finally got in touch with Assurant, which is DoorDash’s third-party claims adjuster. The claims adjuster was helpful and informed her that the medical expenses had already been covered, but for some reason, no property damage had been paid out. The adjuster suspects that USAA is going after my sister for the value of the other vehicle, but it’s unclear why DoorDash’s insurance hasn’t paid for the property damage.

The adjuster advised my sister that if she gets served with any legal documents, she should forward them to Assurant so they can handle it. However, there’s still confusion about why DoorDash’s insurance didn’t cover the property damage and why USAA is suing my sister. The adjuster my sister spoke with only handles the medical claims, while property damage is dealt with by another department, and no one seems to have clear answers.

Does anyone know why DoorDash’s insurance wouldn’t cover the other vehicle, or what USAA might be suing my sister for? She hasn’t been formally served yet. Could this be related to a statute of limitations issue or something else?

Thank you.

(And yes, she’s already aware of the consequences of not having the right insurance coverage. She’s out a lot of money because of this, and we’re just grateful there were no serious injuries.)

Is there a reason you didn’t include a ride-sharing endorsement in your own policy? Even when these companies provide coverage for their drivers, the limits are typically embarrassing. You must take precautions to keep yourself safe.
I believe that as time goes on, we will witness an increasing number of these.