Delivery Driver Auto Insurance: Rates & Requirements (2024)

Delivering goods swiftly and safely to their destination is your primary responsibility as a food delivery driver. But accidents can happen, so it’s critical to consider delivery driver auto insurance.

You should think about getting food delivery driver car insurance if you’re using your personal vehicle for DoorDash or to make other deliveries because your personal policy might not cover you. Although it’s not always simple, there are insurance choices that can help people drive safely. 

If a delivery driver is injured while on the job, food delivery insurance will provide them with protection. We’ll go over all you need to know about car insurance for delivery drivers.

Delivery Driver Auto Insurance Explained

Your personal policy will not cover any losses sustained while working as a food delivery driver. When you have delivery driver insurance, you are covered the whole time you are driving for a food delivery service like DoorDash or UberEats.

It is important that delivery drivers obtain this type of auto insurance because it will prevent major issues for both the person delivering the food and their employer.

Getting delivery driver auto insurance is a crucial step in safeguarding your vehicles and yourself from unanticipated mishaps while on the job.

Why Deliver Drivers Need Auto Insurance

Drivers and delivery services who fail to insure their cars are subject to a variety of fines and surcharges, which vary by state. 

For instance, if a motorist is involved in an accident in New York, their license and vehicle registration might be suspended for a year in addition to a fine of up to $1,500.

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Comparing Delivery Driver Auto Insurance Rates

Delivery driver auto insurance costs will go up 15% to 20% if you add rideshare coverage. In addition to personal coverage, you may also purchase commercial coverage. Naturally, a number of variables affect just how much you pay. 

For example, are you delivering to a large metropolis or a small town? Are you searching for delivery driver insurance as a 17-year-old or as a 49-year-old? If you’re younger and employed in a larger city with a greater rate of auto theft, you’ll have to pay extra.

Delivery Driver Auto Insurance Average Rates

The cost of adding delivery insurance to your standard auto insurance can be high. It depends on the type of delivery you make, the service provider, and the type of insurance you buy, such as rideshare or delivery insurance vs. business usage endorsements

Best Delivery Driver Auto Insurance Companies

Due to the risks associated with the job, some insurance companies hesitate to insure delivery drivers.

These dangers consist of:

• Unseasoned drivers
• High rates of turnover
• The demand of quick and timely delivery

The good news is a lot of popular auto insurance companies offer delivery driver insurance. We found the top insurance companies for delivery drivers:

Geico

Geico is one of the top solutions for delivery drivers due to its simplicity. It offers a hybrid policy that replaces traditional personal coverage with a combination of rideshare and personal insurance. Ridesharing, food and parcel delivery, and a lot more are included in a personal policy for a delivery driver.

Progressive

Typically, rideshare insurance can only protect drivers who are carrying passengers. Progressive gives its policyholders who also deliver food flexibility. An affordable insurance plan from Progressive includes coverage for delivery personnel employed by DoorDash and Uber Eats.  Learn more about Progressive auto insurance here.

State Farm

State Farm is a great option if you are a delivery driver who specializes in delivering groceries and meals because your personal policy automatically covers you. Personal coverage extends to grocery and other types of meal delivery. However, if you work for rideshare, you need a business-use endorsement. Learn more about State Farm auto insurance here.

Allstate

Due to the fact that it provides GAP insurance along with rideshare coverage to its clients, Allstate is a fantastic option for delivery drivers. Nearly all states are covered by Allstate, which has also joined forces with Lyft and Uber to offer commercial coverage to drivers in some regions. Learn more about Allstate auto insurance here.

Erie

Although Amazon Flex drivers are not obliged to have rideshare insurance, Erie Auto Insurance provides it at a reasonable cost. By adding a policy endorsement rather than requiring additional coverage, delivery drivers save money with Erie.

Specific Auto Insurance Policies for Delivery Drivers

You must have adequate insurance if you plan to deliver pizza or groceries for a living. Check if your current insurance company might cover delivering people or meals in your car. 

If companies don’t call it delivery driver insurance, they may refer to it as rideshare insurance rather than UberEats insurance or Grubhub insurance.

In any case, you must inform your insurance provider that you are employed by a ridesharing or food delivery service. Even if this is a side job, your insurance company must assess your risk, and auto insurance rates for delivery drivers are likely to increase.

Before you make the transfer, call your insurance provider and verify that you are adequately insured. Don’t learn the hard way that your personal auto insurance policy does not protect you. Get in touch with customer support if you’re looking for new coverage, and compare auto insurance rates online to get more affordable coverage. 

Insurance Advice from Experts for Young Delivery Drivers

When letting a child use the family car for food delivery insurance, parents should exercise caution. When damages exceed the policy limitations, the automobile owner may be turned to for compensation even if business coverage is in place.

To determine whether they could still be held liable for a child’s activities, parents should review their state’s laws on liability. The driver’s personal assets, or those of the parents if the at-fault driver is a minor, are vulnerable if an accident occurs and liability limits are reached.

Even when the car is registered in the child’s name, the parents may still be liable if the child is living at home and is recorded as a dependent on the parent’s tax filings.

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Different Types of Delivery Driver Auto Insurance

Because claims cost more if there was an accident or damage suffered while working, insurance companies won’t allow consumers to use their personal auto insurance plans for business-use driving. 

If you use your car to make deliveries and get paid for it, your insurance company will likely reject an accident claim on your personal policy unless you have business use or commercial coverage. This is due to the fact that making deliveries in your car is seen as business use rather than personal use. 

It would be wise of you to purchase business coverage if you want to safeguard your car and yourself. Scroll down to explore some choices for delivery driver auto insurance.

Business-Use Auto Insurance Coverage

People who only sometimes use their cars for business purposes should purchase business-use auto insurance coverage. Drivers who use their vehicles for purposes other than food delivery are also covered by business-use insurance.

Because delivery drivers are more likely to get into accidents and submit claims than other drivers, car insurance companies view business use as more high-risk than personal use. If you don’t have the right or enough coverage, you might have to pay out of pocket for repairs and medical expenses if you get into an accident while on delivery.

Business Usage Endorsement Addition

A specific business usage endorsement is frequently offered on personal policies to help part-time delivery drivers save money on insurance.

Companies like State Farm and Erie offer business-use add-ons to provide that additional coverage when you’re in between deliveries but still at work. Claims will be covered if you contact your insurance provider in advance and put the right coverage in place.

Commercial Auto Insurance

Commercial auto insurance is a separate policy for a vehicle you use for full-time delivery. Coverage will be more expensive than a personal auto insurance policy. 

Costs will vary based on your circumstances and the sort of vehicle you drive. However, if you have a business policy, you may relax knowing that any incident is covered.

The insurance provider will handle everything if you cause a collision and are at fault. To make sure that your claim is processed as swiftly and painlessly as possible, your provider will be on hand. If it is possible under your policy, they will assist with handling any damages or offer rental cars.

Auto Insurance for Individuals

Make sure you have adequate coverage before using your personal vehicle to deliver food. You will be responsible for covering the costs of the damages out of pocket if you cause an accident and don’t have enough insurance coverage.

Individuals’ personal motor insurance policies do not provide coverage for any business use, such as pizza or food delivery. This implies that it is up to you and your provider to decide whether they will pay or deny all claims if you have an accident while on the job or someone else impacts your car while delivering a pizza.

Insurance companies typically won’t pay out on company claims if they originate from private coverage.

Occupational Insurance

The ridesharing business may cover you in the event of an accident if you carry personal auto insurance, as long as the policy’s limitations are met. 

However, coverage might be limited to liability only. And if there is any damage that goes over what their insurance will cover, you will be responsible for those costs.

Delivery Driver Endorsements on Personal Auto Insurance

The term “endorsement” refers to a particular adjustment or addition to an existing insurance policy. By extending coverage for something that wasn’t previously covered, an endorsement changes the terms as they were originally written.

An endorsement known as a Transportation Network Company (TNC) endorsement is available for some rideshare and delivery apps. In an effort to assist those who drive for Uber or Lyft, certain insurance providers have added the option of a TNC endorsement. 

With the additional protection of a TNC endorsement, these businesses permit drivers to work for ridesharing firms under the terms of their personal vehicle policy. However, if this is not available with your insurer, you will need to buy commercial or delivery insurance coverage. 

When Employers Provide Delivery Driver Auto Insurance

Simply because of the rising demand, many states have been urging businesses to permit drivers to carry extended insurance for food delivery and other delivery services.

Some businesses, like Uber Eats and Amazon Flex, provide coverage for their drivers during deliveries, although it primarily depends on the business you work for. 

However, it’s extremely improbable that the owners of a tiny neighborhood restaurant where you work have obtained coverage for drivers. Confirm with your employer and insurance company that you have adequate delivery insurance. You may want to start shopping for quotes to see how much auto insurance rates for delivery drivers are in your neighborhood. 

What happens if I’m using a company car?

If you cause an accident while operating a corporate car, the business is responsible. All of the infractions, however, still count against your personal driver’s license.

If a restaurant’s delivery driver is in an accident while operating a personal vehicle, auto insurance can shield the company from blame. This kind of insurance protects the company against liability, but it does not pay for car damage or medical expenses.

What happens if I drive my own car?

Both your insurance provider and potential employers will have some inquiries about your use of a personal automobile. Due to the significantly elevated dangers, the majority of insurance providers will not provide personal insurance coverage for delivery drivers.

Under normal circumstances, this would entail getting business-use coverage by calling your insurer. In certain circumstances, the company you work for may offer car insurance that you can purchase in addition to your own coverage while you’re making deliveries.

Many personal auto insurance policies do not provide coverage for damages sustained when driving your car to make paid deliveries. That means that if an automobile accident occurs while you are at work, you can be held personally liable if you don’t have this insurance.

What about auto insurance for pizza delivery drivers?

Your employer can demand that you get some kind of food delivery insurance. If the work is part-time and the policy is coded to include business use, some policies will pay for delivery trips. 

For example, Progressive offers commercial vehicle insurance called pizza delivery insurance to safeguard you and your car while working as a pizza or food delivery driver. 

Whose insurance will cover an incident involving a delivery driver?

When a delivery driver is involved in an accident, the business insurance policy is considered first. An uninsured or underinsured employer might become quite problematic, and a resolution with the company does not always exonerate the driver. 

The driver’s policy is next put to the test — if you chose the cheapest state-minimum liability policy, it may not pass. Insurance claims from even a minor collision can rapidly exceed $5,000 in property damage and $15,000 per injured person limits. 

If you don’t carry the right business or food delivery coverage, your claim will be rejected, and you’ll be financially responsible for damages.

How to Buy Delivery Driver Auto Insurance

You can begin by getting in touch with your current insurance provider to sign up for delivery driver insurance. They can put you in touch with an agent so you can talk about how much insurance is necessary for your particular circumstance. 

You can select the day that your delivery driver insurance policy takes effect once you’ve signed up for it. Drivers who haven’t started working yet can choose a start date that falls on their insurance renewal date to begin receiving coverage right away. If you currently carry State Farm, you might already be covered. 

Keep in mind that your existing auto insurance company is the only place where you can get delivery driver insurance. In other words, Allstate personal auto insurance is not compatible with Geico delivery driver insurance.

What safeguards can you take to get the best food delivery insurance? First, inquire about coverages and exclusions offered by your employer or delivery service. Then, check your personal insurance policy to see what kind of coverage you need. Finally, compare commercial and food delivery insurance quotes online to get the best rates.

The best auto insurance for food delivery will have more coverage than what is offered by the state’s minimum requirements. We recommend purchasing coverage limits of $100,000 for physical injuries per person, up to $300,000 per accident, and $100,000 for property damage.

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Delivery Driver Auto Insurance for Catering

In the United States, catering is a sizable and quickly expanding industry. But do you know what might quickly put a stop to your catering company’s operations? A mishap involving one of your drivers while moving supplies or food. 

Your employees, your property, and your company’s reputation could all be at risk of accidents if you don’t have business insurance or commercial auto coverage.

By now, you should know that business insurance is a requirement for all business owners. Additionally, if you run a catering business, you are legally obligated to carry employer’s liability insurance. It is good to note that It is advised for caterers to obtain commercial auto insurance, especially if they have a fleet of company-owned vehicles.

What kind of auto insurance is required for catering?

There are many insurance options available to catering service owners to choose from when it comes to insuring their enterprise. Your workers’ driving while on the job will most likely be covered by your Business Owner’s Policy (BOP). Otherwise, you must buy commercial auto insurance.

Any vehicle that your catering company owns or employs for delivery purposes must adhere to the minimum auto insurance liability standards set forth by your state.

All typical commercial insurance meets the minimum liability requirements, but you can choose to add additional levels of protection. Be warned that adding more coverage will result in higher costs.

How much does auto insurance cost for caterers?

According to the Centers for Disease Control (CDC), transportation accidents caused more fatalities than any other on-the-job injury. Due to these facts, commercial auto insurance premiums are higher than those of typical personal coverage.

Unfortunately, this means that your auto insurance premiums will be rather high for caterers and business owners. The typical cost of business catering vehicle insurance is $217 per month.

The Bottom Line on Delivery Driver Auto Insurance

Delivery driver car insurance specifically covers you while driving for a food delivery service like DoorDash or UberEats. Your personal insurance policy will not cover accidents that happen while you’re working or on delivery.

State Farm and Geico offer the best auto insurance rates for delivery drivers and convenient policies that make for seamless coverage between personal and business use. However, if you use your vehicle for ridesharing or catering on top of food delivery, you may need additional coverage.

Business-use and commercial auto policies each provide adequate insurance for delivery drivers, but your budget and work needs will determine which is better for you. Commercial car insurance rates are more expensive, so shop around with different company policies to find the lowest delivery driver auto insurance quotes.

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