You can get insurance as a delivery driver — but the challenge is knowing which type of insurance policy you'll need. If you damage your car while making deliveries and don't have the right coverage, you could end up paying out of pocket.
Understanding Insurance for Delivery Drivers
Why Delivery Drivers Need Special Insurance Coverage
Delivery drivers require special insurance to make sure they're covered while working. App-based services like DoorDash and Uber Eats offer coverage while you're making deliveries, but it's typically not full coverage.
"If you are using your car for business of any type, you need to let the insurance company know. You will need to pay extra to have coverage as a delivery driver," says Larry Schneider, personal injury attorney and partner at Larson Larimer Schneider. "If you fail to get this additional coverage and you are in a crash while working, the insurance company will not cover this crash, and you could be out of pocket."
This is why many delivery drivers consider additional rideshare coverage or commercial auto insurance. You can protect yourself by finding the best auto insurance for delivery drivers.
Types of Insurance Relevant to Delivery Drivers
Here are common types of car insurance for delivery drivers:
- Personal auto insurance
- Liability insurance
- Commercial auto insurance
- Rideshare insurance
- Non-owner car insurance
- Insurance provided by the delivery service
Personal Auto Insurance vs. Commercial Auto Insurance
Personal auto insurance covers you while you're driving for personal reasons, whereas commercial insurance covers business-related driving.
If you're driving a personal vehicle for business purposes, including deliveries, then your personal insurance will cease coverage as soon as you start working. That's why commercial insurance or another solution is necessary.
Types of Delivery Driver Insurance
Delivery drivers have several options for insurance coverage. The key is to find a solution that will protect you from financial disaster if you're involved in an accident or another incident while completing deliveries.
Commercial Auto Insurance
Commercial auto insurance typically covers vehicles owned by a business, but you can also use it to cover a personal vehicle used to make deliveries. It's usually more expensive than personal insurance and not mandatory for delivery drivers.
Often, it's more affordable for app-based drivers to use the insurance provided by the delivery company along with additional rideshare coverage provided by their current insurance company. If your provider doesn't offer a rideshare add-on, commercial insurance may be your best option.
Non-Owner Car Insurance
Non-owner car insurance is for drivers who are using a car they don't own. In some cases, businesses will take out non-owner insurance to cover drivers who occasionally use their personal cars for work. However, this coverage might not apply to anyone who regularly uses a personal vehicle for deliveries.
Rideshare Insurance vs. Delivery Driver Insurance
If you're working with a delivery app like DoorDash or Uber Eats, the service may provide delivery driver insurance to give you added coverage.
The problem is that this insurance only provides coverage while you're actually delivering food (i.e., after picking up the food from the restaurant and until you drop it off at the recipient's home) and not when you're logged into the app, waiting to receive orders. Your personal insurance might also not cover you during this waiting period. That's where rideshare insurance coverage becomes necessary.
You can add a rideshare insurance endorsement to your personal insurance policy. It will cover the gaps in your existing coverage, including the time between receiving orders. Using both the delivery driver insurance provided by the delivery service and rideshare insurance is often the best option for anyone performing app-based deliveries.
Liability Insurance for Delivery Drivers
Liability insurance pays for damage to another person's health or vehicle when you're found responsible for an accident. It's a legal requirement (laws vary by state) and included in personal auto insurance policies.
If you add rideshare coverage to your personal insurance policy, then your liability coverage will remain active while you're working as a delivery driver. Commercial insurance plans also include liability coverage.
How to Choose the Right Delivery Driver Insurance
To get the right car insurance policy as a delivery driver, you need to consider the type of deliveries you make. You should also shop around to find the best insurance rates.
Assessing Your Needs Based on the Type of Deliveries You Make
Not all delivery drivers have the same auto insurance needs. Here's how to handle common situations:
- You're using your own car for an app-based delivery service. In this case, you likely get insurance from the service, which you can supplement with rideshare coverage added to your personal auto insurance.
- You're completing extra deliveries off the app. The insurance provided by a delivery service won't cover extra trips that you make on the side, which means you might need commercial auto insurance to maintain full coverage.
- You use a company car to make deliveries. The business could cover the trips, which means you wouldn't need your own insurance. Just make sure you ask the business if they have auto insurance coverage prior to making any deliveries.
Comparing Insurance Providers for the Best Rates
Whether you're looking to add rideshare coverage to a personal auto insurance policy or you want to buy commercial auto insurance, the best way to save money is by requesting and comparing quotes from a variety of car insurance providers.
Start by checking if your current auto insurance company offers the type of coverage you need. If you want rideshare coverage, but your personal auto insurance provider doesn't offer it, you'll need to request a quote for a commercial auto policy. Unlike rideshare coverage, commercial auto insurance can be purchased as a standalone policy. So, it's worth it to request quotes from multiple insurers to find the best deal for the coverage you want.
How to Get Delivery Driver Insurance
To add rideshare coverage to your existing personal auto insurance policy, you can call to speak with an agent at the insurance company or add the coverage through your online account portal, depending on the insurer.
Commercial auto insurance is slightly more complicated because you're purchasing an entirely new policy. Your first step is to request and compare quotes online. Once you've found a policy you like, you can continue the application process online or call to speak with an agent from the insurance company.
Information Required for Delivery Driver Insurance
To buy a new car insurance policy, you typically need to provide the following information:
- Full name
- Date of birth
- Social Security number (SSN)
- Driver's license number
- Address
- Driving history
- Claims history
- The vehicle's make and model
- Vehicle Identification Number (VIN)
- The vehicle's mileage
Common Requirements and Eligibility Criteria
To be eligible for a car insurance policy, you need to be a licensed driver with a Social Security number. To buy commercial auto insurance, you'll also have to answer some questions about how the vehicle will be used for business purposes.
Common Delivery Driver Issues and Considerations
Handling Claims as a Delivery Driver
When your car is damaged as a delivery driver, you need to decide which insurance policy covers the incident. If the damage occurred during the actual completion of a delivery and you work for a service that provides insurance coverage, then you'll likely have to file the claim with the service's insurance provider first. You can learn more about the claims process from the service.
If you don't have insurance from the delivery service or the damage occurs when you aren't making a delivery, then your own car insurance company will likely handle the claim. The claims process will be unique to your insurance provider.
Coverage Gaps You Need to Be Aware Of
If you work for an app-based delivery service, you need to watch out for a gap between your personal auto insurance and the delivery service's coverage.
The delivery service's insurance likely covers you while you're delivering food, but not when you're waiting to receive an order. Your personal auto insurance also won't cover you during this time since you're technically working. It's best to fill this gap by adding rideshare coverage to your personal auto insurance policy or purchasing a commercial auto insurance policy.
Car Insurance for Delivery Drivers FAQ
Do I need commercial auto insurance as a delivery driver?
Most delivery drivers don't need commercial auto insurance. If you're driving for an app-based delivery service, you'll probably get coverage through a combination of your personal auto insurance and insurance provided by the delivery company.
Can I use my personal auto insurance for delivery driving?
No, you cannot use your personal auto insurance for delivery driving. However, if you're delivering for an app-based service that provides limited insurance coverage, you can close any remaining coverage gaps by adding a rideshare coverage endorsement to your personal auto insurance policy.
How much does car insurance for delivery drivers typically cost?
Commercial car insurance for a delivery driver typically costs $147 monthly. Adding rideshare coverage to a personal auto policy can add $5 to $46 to your monthly car insurance premium.
What types of deliveries require special car insurance?
All paid deliveries require special car insurance beyond standard personal auto insurance. That's because personal insurance doesn't cover work-related driving.
Can I get car insurance if I use my own vehicle for deliveries?
Yes, you can get car insurance if you use your own vehicle to make deliveries. You could get commercial auto insurance or add rideshare coverage to a personal auto insurance policy.
What happens if you don't have the right car insurance coverage?
If you don't have the right car insurance coverage, your claims could be denied. That means you would have to pay for repairs costs out-of-pocket.
