Postmates Auto Insurance: Rates & Requirements (2024)

Postmates is a delivery service for food and other goods, where couriers can deliver items via cars, bikes, scooters, and on foot. If you’re interested in working for Postmates, you’ll need proper car insurance. So what are Postmates’ auto insurance requirements?

Postmates provides extra auto insurance coverage to its couriers, but drivers must purchase car insurance coverage meeting their state’s requirements to drive for the company.

Does Postmates offer car insurance to its employees?

Postmates offers several types of auto insurance coverage to its delivery personnel. Some of the options for coverage include:

• Excess auto liability coverage. With this coverage, Postmates provides liability coverage of up to $1 million per accident for couriers.
• General liability coverage. General liability with Postmates offers up to $1 million worth of liability coverage for couriers delivering food and goods on foot or by bike. This coverage also applies to a third party’s bodily injury and property damage.
• Accidental occupational liability. Accidental occupational liability is an uncommon coverage setting Postmates apart as a delivery service. It protects delivery personnel with up to $50,000 in medical expenses for injuries sustained during delivery.

Postmates’ coverages are helpful for all delivery employees, particularly since not all delivery companies offer insurance to drivers. However, anyone using their car to deliver must purchase car insurance meeting their state’s minimum coverage requirements.

What does Postmates insurance not cover?

Postmates doesn’t offer car insurance to its drivers when they’re not working for the company. So anyone who works for Postmates must carry a separate car insurance policy. 

Required liability coverages vary by location. Each state sets its own laws for car insurance requirements. The table below shows requirements in each state for liability coverage.

Minimum Auto Insurance Coverage Requirements by State

Most states require property damage and bodily injury coverage, but some require additional coverage like personal injury protection, medical payments, and uninsured/underinsured motorist coverage.

However, the above coverages may be inadequate if you drive with Postmates. So it’s a good idea to consider additional coverage options if you work as a courier or delivery person in your state.

How to Drive for Postmates

If you’re considering applying for Postmates work, there are some Postmates driver requirements you may want to consider. Postmates says its employees must have the following:

• A high school diploma
• A valid U.S. driver’s license
• A working vehicle (some areas allow for other methods of transportation)
• A smartphone

Requirements for Postmates drivers are relatively relaxed. There are no Postmates driving requirements, as some cities and areas allow Postmates couriers to deliver by foot, bike, or scooter. Still, Postmates drivers should consider the coverage that’ll work best for them. 

Requirements for Postmates Driver Insurance

You may want to lean on three options as a Postmates driver: your personal auto policy, standard commercial coverage, and a business-use policy.

While personal auto insurance policies are the most obvious solution because they’re already mandatory for anyone who owns a vehicle, depending on your personal car insurance for coverage as a delivery driver can be risky. Many insurance companies have exclusions for the business use of your car.

Insurers could deny your claim if you get in an accident while driving for Postmates. Additionally, the insurer could cancel your policy if it was unaware you used your car for work before the accident.

People who drive for work should consider commercial coverage. If you deliver for Postmates — particularly if you’re full-time — a commercial policy offers extensive coverage on your vehicle in the event of an accident. Commercial car insurance can be expensive, but it provides peace of mind to delivery drivers.

A business use policy, or a business use add-on to a policy, is the middle ground between your personal auto insurance policy and commercial coverage. With business use, you acknowledge that you use your car occasionally for work purposes and could add limited commercial coverage to your personal policy.

Before you become a Postmates driver, ask a representative with your insurance company which option might work best for you. Clarify that you work as a delivery driver and ask whether your personal policy covers you while making deliveries.

Postmates Auto Insurance: The Bottom Line

If you want to learn how to drive for Postmates, it’s not too complicated — you can apply with the company if you meet its requirements. If you plan to drive your car to make deliveries, you must carry a policy meeting your state’s minimum requirements for car insurance coverage.

Postmates drivers should consider carrying extra coverage outside of what the company offers. For example, a commercial insurance policy or a business-use add-on to a policy may work well for you if you work for Postmates.