Everything You Need To Know About Delivery Driver Insurance

Any car that is parked or driven on public roads must have the state’s minimum auto insurance requirements. If a motorist chooses to drive without the appropriate auto insurance, they are subject to a ticket or license suspension. If you are a delivery driver, your job requires you to use the public roadways, leaving you at risk for liability. Delivery driver insurance can help protect you from financial responsibility after a traffic accident.

Delivery Driver Insurance Options

Business and commercial auto insurance policies can cover you when delivering food or other commercial operations. When you work as an independent contractor delivering food, you face some unique risks that some insurance companies refuse to cover under a personal car insurance plan, according to The Zebra.

  • Commercial policy: A commercial car insurance policy is usually more expensive than your personal plan. The price of a commercial policy depends on several factors, including your personal information and the vehicle being insured. With this type of insurance, you’ll have peace of mind knowing any incident is covered. Commercial policies cover any vehicle owned and used by the business, including box trucks, small delivery vehicles, and vans.
  • Business-use policy: This policy is for motorists that use their personal vehicle for their business. If you are a full-time contractor with a ride-sharing company, you may not qualify for this coverage.
  • Business Auto Policy: if you have one or more vehicles that belong to your business, you can purchase a Business Auto Policy or BAP. BAP insurance includes liability coverage, physical damage coverage, MedPay, and uninsured or underinsured motorist coverage.
  • Personal insurance policy: If you decide not to tell your insurance provider you’re doing deliveries, you’ll be at risk of liability, having your policy canceled, and getting claims denied. If you are doing deliveries part-time or full-time, you should report it to your insurance company.

    Best Insurance Providers for Delivery Drivers

    Insurance companies are typically reluctant to cover delivery drivers because of the risks involved with the occupation. These risks include:

    • Inexperienced drivers.
    • High turnover rates.
    • The pressures of on-time delivery.

      With that being said, many major insurance companies provide some delivery driver insurance. Here are the best delivery driver insurance providers, per Investopedia:

      GEICO: GEICO’s personal auto policy can cover motorists regardless of why they are driving. Coverage extends to ride sharing, package delivery, and much more. Because of its simplicity, GEICO is one of the best options for delivery drivers.

      • Ride-share insurance is considered a hybrid policy instead of an add-on.
      • Coverage includes on-demand delivery options.
      • Drivers can work for many different companies at the same time.

        Progressive: Ride-share insurance is usually only able to cover drivers with passengers aboard. Progressive offers a plan that extends coverage to delivery drivers like those who work for DoorDash and Uber Eats. Progressive offers flexibility to its policyholders who also deliver food.

        • Coverage extends to ride sharing, food delivery, grocery delivery, and more.
        • You won’t need commercial coverage with Progressive.
        • It’s easy to add ride-share coverage to an existing policy.
        • You may be able to get your deductible reimbursed.

          State Farm: State Farm offers a ride-sharing policy, though it’s usually not required when delivering groceries. This could potentially save you money and time while still being covered. If you are a delivery driver who specializes in grocery delivery, State Farm is a terrific pick.

          • Options are available for 46 states and Washington, D.C.
          • Ride-share coverage is available but not required for some deliveries.
          • Policies are low-cost business-use plans.
          • State Farm is ranked number 36 on the Fortune 500.

            Allstate: Allstate is a great pick for delivery drivers as it offers GAP protection to its policyholders with ride-share coverage. Allstate offers coverage in nearly every state and has partnered with Lyft and Uber to provide commercial coverage to drivers in some areas.

            • Allstate insurance is widely available.
            • Your personal coverages are still active while ride sharing.
            • Both GAP and deductible GAP coverages are offered.

              Erie: Erie offers ride-share insurance at a low premium, though it isn’t required for Amazon Flex drivers. Delivery drivers save money by adding a policy notation rather than purchasing additional coverages.

              • You may be able to add a notation for a business-use policy.
              • Erie offers several coverage options to rideshare drivers.

                Am I Covered If I Drive a Company Vehicle?

                Using your own vehicle has become more popular over the years due to more available options like ride sharing. If you use your own vehicle to transport goods, your delivery trips may fall outside your personal car insurance coverage. If you are driving your own vehicle without purchasing additional coverage, you risk having your claims denied.

                Take a look at your options below, provided by CarInsurance.com:

                • Operating a company vehicle: When driving a company-owned vehicle, the liability falls to the business. Even though the business is liable, any violations will still be placed on your own driving record.
                • Driving your vehicle: If you are driving your own vehicle, you may need to answer some questions from your insurance provider. Most insurers won’t cover you with your existing policy because of the risk associated with delivery.

                  Restaurants can purchase car insurance to protect their business from the liability of their delivery drivers. If a delivery driver is involved in an accident while driving a personal vehicle, the restaurant would not be held liable. Though this coverage protects the business from liability, it does not cover the cost of medical bills or damage to the vehicle.

                  Do Delivery Companies Provide Car Insurance to Their Drivers?

                  While it largely depends on the company you are delivering for, some ride-share companies will provide car insurance to their drivers. Let’s focus on Postmates.

                  Any responsibility for vehicular damage belongs to the driver when delivering for Postmates. However, the company may provide some level of coverage if your personal policy doesn’t cover damage to a third-party vehicle.

                  Though your existing car insurance policy is supposed to protect you whenever you get behind the wheel, personal auto insurance plans usually won’t cover you if you are driving for business use. If you choose to drive without proper coverage, you may be endangering yourself and your assets. Quotes are easy and available online for free. Just head to your insurance provider’s website to get started on your delivery driver insurance today.

                  Check this out if you need additional information, resources, or guidance on car insurance.

                  Sources:

                  Car Insurance

                  What Is Secondary Car Insurance Coverage? Everything You Need to Know

                  What Is Commercial Auto Insurance?

                  Car Insurance for Delivery Drivers

                  Best Delivery Driver Insurance Companies

                  Food Delivery Drivers and Car Insurance

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