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A delivery job can be a convenient, consistent way to earn money. For some it works as a great side hustle, for others it can be a full-time job. The demand for food delivery services continues to grow, further making it a viable option for earning money. Before you consider taking on a side gig or full-time work as a delivery driver, it’s important to make sure you have the proper insurance in place for your vehicle in case you are involved in an accident while on the job.
Do delivery drivers need special insurance?
Insurance for delivery drivers may not be as straightforward as you would think. While many drivers might assume personal vehicle coverage extends to delivery driving in a personal car, this might not be the case. Understanding how your personal policy reads for delivery driving is crucial. The last thing you want is to be involved in an accident while making a delivery only to find out you don’t have the coverage you thought.
To avoid this situation, review your current coverage with your insurance agent or by calling the insurance company. If you use your personal vehicle while making deliveries, you specifically want to ask if delivery driving for business use is covered by your current policy or if there are add-on coverage options available. Many major insurance providers, such as Progressive, offer rideshare insurance as an endorsement. However, you’ll want to check that the coverage extends to food delivery. If this is not available, you may have to purchase a separate commercial auto policy.
Some food delivery services also offer coverage for drivers while actively making deliveries, although relying on this alone could leave you with gaps, such as while on your way to pick up the food from a restaurant.
Where to get delivery driver insurance
Becoming a delivery driver is an ideal time to shop around and compare insurance options. Getting the right policy in place with the most robust coverage is important before you start driving for business with your personal car. Consider the following options to stay adequately insured while delivery driving:
Who this company may be best for: Someone looking for a budget-friendly option.
Geico offers specific rideshare and on-demand delivery driver insurance in every state except Alaska, Georgia, Kentucky, Michigan, Nevada, New Jersey, New York, North Carolina, Texas and Utah. This policy takes the place of your personal auto insurance policy, and Geico says it usually does not cost much more.
Who this company may be best for: Pizza delivery drivers or other food delivery drivers.
In most states, Progressive’s rideshare insurance policies will extend to delivery drivers, although you should call them to confirm that you will have the delivery driver insurance you need with their rideshare coverage. This is another policy that replaces your personal auto insurance, helping give you seamless coverage no matter why you get behind the wheel.
Progressive also offers coverage specifically for pizza delivery drivers.
Learn more: Progressive Insurance review
Who this company may be best for: Someone looking for an extension of their personal car insurance policy.
While State Farm does not specifically advertise car insurance for delivery drivers, its rideshare insurance extends to people who drive for transportation network companies (TNCs), and many states include delivery service providers in their list of TNCs.
Alternatively, you can explore State Farm’s commercial auto insurance for the delivery driver insurance you need.
Learn more: State Farm Insurance review
Who this company may be best for: Current or former military service members seeking delivery driver insurance
If you are a member of the military or a veteran — or an eligible family member of a military member — USAA could be an option for you. This provider routinely earns high ratings for its customer service and insurance rates. USAA offers rideshare gap protection to fill in where the delivery service’s commercial auto policy and your personal auto policy leave off, such as when you’re waiting for a new customer request to come in.
Learn more: USAA Insurance review
What delivery companies cover for car insurance
Some companies automatically offer delivery insurance, but it can get tricky. Here are a few examples:
- DoorDash offers insurance only once your personal auto insurance policy limits are exhausted. You also need to be in possession of the food delivery at the time of the accident, which means you could be left without coverage if an incident occurs as you are on your way to pick up from a restaurant.
- Amazon Flex offers an Amazon Commercial Auto Insurance Policy to drivers in states other than New York, but you need to have your own personal auto insurance policy and you need to be on active delivery for their commercial coverage to kick in.
- Grubhub does not provide any car insurance.
- Instacart’s Independent Contractor Agreement specifically states, “You should verify whether your automobile insurance covers performance of your services, not all insurance policies cover such services, and you are not entitled to receive such insurance coverage from Instacart.”
- Pizza Hut’s delivery driver job listings state that you need your own auto insurance, which implies that it does not offer coverage.
- Uber Eats offers third-party liability coverage if your personal auto insurance doesn’t cover you while waiting for a delivery. If you are in an accident while driving during pickup or delivery, Uber offers a third-party policy of up to $1,000,000 in liability.
- Domino’s Pizza does not offer car insurance for drivers, so drivers need to have their own policy in place.
Ultimately, you should look over the fine print of your agreement with your delivery company, as well as the specifics of your personal auto insurance coverage.
Who should have delivery driver insurance?
Not every delivery driver has to purchase their own commercial auto insurance policy in order to be covered during a commercial delivery. However, certain companies will require you to have your own delivery driver coverage in place. If you are a small business owner and your business makes deliveries for food or merchandise, having a commercial auto insurance policy is important for liability coverage. You would also need a commercial auto policy if you have vehicles designated for business use.
Does standard car insurance cover delivery drivers?
While many personal auto insurance policies may extend coverage to delivery drivers using their personal car, there could be gaps in the coverage. For this reason, a separate rideshare or delivery driver endorsement could be necessary, or even a commercial auto policy.