Car insurance for delivery drivers

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A delivery job can be an excellent way to make money. It can be consistent enough to serve as your primary source of income, but the hours can be flexible enough to function as a side hustle. Plus, with the recent move toward more e-commerce and food delivery, the demand for delivery drivers continues to rise.

Whether delivery driving is your full-time job or your side gig, you want to make sure you have the right insurance in place. Double-check that you have delivery insurance coverage to cover you in the event of an accident.

Do delivery drivers need special insurance?

You may think that because you drive your personal vehicle for your deliveries, your personal auto insurance policy will cover you. However, many car insurance providers specifically exclude coverage for business use. That means that if an accident happens while you were out on delivery, you might get denied coverage.

Ultimately, you want to avoid this situation. To start, call your insurance company and ask if they consider delivery driving business use. Ideally, they will extend delivery driver insurance through your existing policy.

In many cases, though, you may need to get specific car insurance for delivery drivers. Some companies offer rideshare insurance policies that can offer the delivery insurance you need. If yours does not offer this type of coverage, you can either get a commercial auto insurance policy or add a business-use endorsement to your personal policy. We will help you explore your options for auto insurance for delivery drivers later in this article.

For now, though, contact your insurer to get clarity on where you might be lacking the delivery insurance you need.

How COVID-19 affected insurance needs

Obviously, the pandemic took a toll on delivery drivers. At the same time, though, it boosted your money-making opportunities.

Many states and insurance companies jumped into action to support delivery drivers. Several state insurance authorities mandated that insurance providers extended coverage to drivers while delivering. Additionally, some insurance companies made the decision to extend coverage independent of state orders.

Ultimately, that means that you may have had protection while driving during the pandemic. But as the economy reopens and things normalize, you should not expect those extensions to continue. (Farmers, for example, only extended automatic coverage to delivery drivers through May 2020). The duty to get the right level of delivery insurance falls to you.

The best delivery driver insurance companies

Some of the best car insurance companies have adapted to the gig economy more quickly and already offer policies specifically for delivery and rideshare drivers, for example. Here are a few companies that offer options.


Allstate offers coverage for TNC drivers, which may or may not protect you if you drive for a delivery company. Relevant regulation and coverage vary from state to state and company to company, so call to ask if the Ride for Hire policy could offer the delivery insurance coverage you need.

If not, Allstate also offers commercial auto insurance.


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.


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.

State Farm

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.


If you are a member of the military or a veteran — or an eligible family member of a military member — USAA is an option for you. This provider routinely gets great reviews from third-party rating organizations for its customer service and insurance rates. USAA also offers policies for rideshare and delivery drivers for rates as low as $6 a month.

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 says, “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.”
  • Postmates requires you to have your own insurance in place, but they can provide excess coverage once you exhaust your policy limits.
  • Pizza Hut’s delivery driver job listings say that you need your own auto insurance, which implies they do not offer coverage.

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.

Frequently asked questions

How much does delivery insurance cost?

Delivery insurance will usually add to your average car insurance costs. How much it will be depends on your details, the insurance provider and what method you choose. Options can include a business use endorsement or you can get a rideshare/delivery policy. Finally, you could get a commercial auto insurance policy, but you will need to pay for that in addition to your personal policy.

How do I get delivery driver insurance?

A great place to start is by calling your current insurance provider to explore your options for getting the coverage you need.

Who needs delivery insurance coverage?

If you ever make deliveries for money — even if you deliver materials for your boss every once in a while — your personal auto insurance policy might not deliver enough protection. Talk to your insurance company to understand where you might need more coverage.

Written by
Kacie Goff
Personal Finance Contributor
Kacie Goff is a personal finance and insurance writer with over seven years of experience covering personal and commercial coverage options. She writes for Bankrate, The Simple Dollar, NextAdvisor, Varo Money, Coverage, Best Credit Cards and more. She's covered a broad range of policy types — including less-talked-about coverages like wrap insurance and E&O — and she specializes in auto, homeowners and life insurance.
Edited by
Loans Editor