Car Insurance for Delivery Drivers
Because delivery drivers use their vehicles for work, they require a different type of insurance endorsement on their auto policy. Thanks to the growing reliance on delivery for restaurants, grocery stores, and even pharmacies and other businesses, the need for delivery driver insurance also continues to grow. Unfortunately, several drivers might not be familiar with this coverage, or worse, that they even need it in the first place.
Fact: If you are using your personal vehicle for deliveries of any kind, you need special business-use endorsements that cover you in all circumstances.
In this guide, we’ll help you learn all about car insurance for delivery drivers, including what it includes, how you can get it, and even which companies offer insurance for their drivers so that you don’t have to pay out-of-pocket. Plus, to help you decide, we’ll take a look at the best insurance companies for delivery insurance based on the types of products and solutions they offer. First up, let’s break down what this insurance actually is and why you need it.
Delivery Driver Insurance: What You Need to Know
Delivery driver insurance is a very specific product that is often sold as an endorsement on a personal auto policy. In some cases, drivers may need to upgrade to a commercial policy for delivery driving when it is a full-time job or the primary use of the vehicle.
However, most people today that are doing food delivery and ridesharing through platforms like Uber and DoorDash can suffice with an endorsement added to their existing insurance policy that covers their vehicle while it is being used for work.
During COVID-19, many states have been encouraging companies to allow drivers to have extended coverage for food delivery and other delivery services, simply because of the growing demand. With restaurants and dining areas closed or restricted in many places, and more people being left to a limited income, states are seeking relief to help with the cost of additional insurance or even having to purchase the coverage. Still, you should buy the coverage when you can so that you’re protected, no matter what.
Here are some quick facts before we dive into some more details:
- Some delivery services and companies offer insurance to assist their drivers.
- These policies don’t usually cover the individual’s vehicle, which is why additional insurance is necessary.
- Using your vehicle for work when it is insured for personal use can result in claim denial if you get into an accident or collision.
- Restrictions right now are less serious due to the coronavirus pandemic, so it’s a good time to get insured.
Take advantage of the wealth of information that is out there and the leniency of insurance companies to get the coverage that you need. Even if you’ve been doing delivery work without additional coverage up to this point, you won’t be penalized. Just compare the different quotes that you can get by shopping around to see what’s out there.
Do Delivery Drivers Need Special Car Insurance Coverage?
If you start doing delivery work with your personal vehicle and you don’t inform your insurance company, you could be at serious risk of claim denial or other potential issues. In fact, any business use at all of your personal car or truck could be considered an excluded situation if there is an accident or another incident that requires an insurance claim.
Unless you’ve got thousands of dollars to spend on property damage repairs, medical bills, and other expenses, then yes, you absolutely need this coverage. Even if your state doesn’t technically “require” you to purchase an endorsement or specialty insurance for gig driving or other work, you’re not going to like the outcome if you don’t. Think about it—would you rather spend a few extra dollars a month on insurance premiums or spend months in court getting cleaned out because you didn’t have coverage?
The good news is that because of the coronavirus pandemic, some insurance companies are being more lenient or offering better policy coverage at better prices. Some are foregoing the additional endorsement for those who only work a limited number of hours or are offering the endorsement at a reduced cost. Some companies may even offer this endorsement, temporarily, for no additional cost whatsoever. Therefore, buying this insurance shouldn’t put you out as much as you originally thought.
Which Delivery Services Insure Their Drivers?
If you’re fortunate, you’ll work for one of the few delivery companies that do insure drivers. Of course, if you’re a full-time employee or driving a company vehicle, such as the drivers who work for Amazon and Amazon Flex, you are covered by company insurance. Delivery driver coverage is only for those who work gigs or contract positions where they are using their personal vehicle for work-related deliveries.
Most delivery services require drivers to purchase their own additional insurance to cover them while delivering for the company. There are some, however, that will extend their own coverage. DoorDash has additional insurance available, but it’s only going to cover the cost of the other party’s damages or losses, so you’ll still want to protect yourself.
Postmates is a good example of a company that offers insurance assistance. They have general and excess liability coverage available to couriers and delivery drivers in the amount of up to $1 million each. However, again, they don’t cover vehicles used for deliveries and this type of company may require a commercial policy instead of just an endorsement to a commercial policy. It can all be a lot to sort out, but it’s not anything that you have to do on your own.
Does My Personal Insurance Apply to My Delivery Job?
Your personal auto insurance applies, in part, to your delivery job. Essentially, you cannot just have a standard auto policy if you are delivering food, groceries, or packages. Without additional coverage or a separate commercial policy, you run the risk of having claims go unpaid or being liable for damages and medical bills as a result of an accident while you were working. Several different companies offer insurance for delivery drivers, but it typically comes in one of two forms:
- Business-Use Endorsement: The business-use endorsement is the most common option for people who are looking to get extra protection for their vehicle so that they can do delivery work. This endorsement is an optional add-on that can be designated in various amounts of coverage for occasional business use. Your insurance provider will be able to tell you whether the work that you do qualifies as “occasional” or if you need to upgrade to a commercial policy.
- Commercial Auto Policy: A commercial auto insurance policy is a full upgrade of your policy, turning your personal vehicle into a vehicle for business use. This is typically reserved for those with a full-time business and may be too much coverage for the occasional delivery driver. Fortunately, the service that you work with and the insurance provider alike will be able to help you determine if you need this much coverage or if the endorsement will do the trick.
This topic is one that’s hard to nail down because there are so many variables right now. The rules are different in every state already. Plus, you have the changing and flexing guidelines and assistance from insurance providers in light of the COVID-19 pandemic. It’s no wonder delivery drivers can’t figure out which insurance products they need.
The best thing that you can do is to work with a trusted resource to check out and compare your options for delivery driver insurance. While you’re shopping around, be sure to write down any questions or concerns that you have so that you can ask your insurance provider, your delivery service, or anyone else what you need to know.
Speaking of your delivery service, you should talk to them about the insurance requirements for the job. Typically, these companies will have information and resources available, and they may even have partnerships or connections with different insurance companies and providers in various states, helping you get and stay insured no matter how much delivery work you do.
Who Has the Best Delivery Driver Insurance?
Based on recent reviews and studies of the major insurance companies in an article posted by Investopedia, five providers are leading the pack for delivery driver insurance products and solutions. Their team compared coverage, policy premiums, terms, and other details to create a comprehensive list of the insurance providers that offer the best insurance for delivery drivers, and here’s what they found:
- GEICO is the best overall delivery driver insurance solution.
- Erie Insurance is best for Amazon delivery.
- Allstate has the best plans for ridesharing.
- Progressive is the leader in food delivery driver coverage.
- State Farm offers the best grocery delivery business coverage.
Of course, you’ll need to get your own personalized quotes from these and other companies to see if their insurance meets your needs. It doesn’t matter who is the best, after all, if they don’t offer the actual best solution for your delivery insurance.
The major insurance companies are all doing their part to help with delivery driver insurance during the coronavirus pandemic, too. Companies like Allstate, Farmers, and AAA are automatically extending coverage during any emergency order periods for delivery drivers who are delivering food, medicines, or other goods. Some companies have gone on to offer discounts on coverage or assist drivers in other ways once the emergency periods have ended, as well.
You can find a full, updated list of state guidelines related to COVID-19 delivery driver coverage at the National Association of Insurance Commissioners website.
A lot of companies simply say that they’re offering “expanded coverage” for their drivers in relation to delivery work in these trying times, so we can’t really tell you what everyone is offering or how good of a deal you’ll find without actually applying for coverage yourself. We can tell you, however, that you should have no trouble finding the solutions that you need.
Get Lower Insurance Rates Delivered Instantly
You might not realize it, but you can save a lot more on your auto insurance, even if you need delivery driver coverage, by simply shopping around and comparing the available rates. Now might be a good time to revisit your auto insurance anyway and take advantage of better premiums and deals that are out there. You might even consider investing in a different insurance policy altogether because it has better delivery coverage and support. It’s all about getting what you need.
The first step is to use the tools here to compare your auto insurance options. Find the best deals on personal auto insurance and look at who’s offering the coverage so that you can see if they’re among the best choices for delivery driver insurance. Then, once you have a better idea of what your options are and how much you can get for your money, you’ll be able to make the right decision.
In some cases, you might have to comparison shop for auto insurance by itself and then reach out to the provider about additional specialty coverage after the fact—if you’re using the comparison tools correctly, you’ll still be able to get cheap auto insurance rates so that the extra coverage doesn’t break the bank. The gig delivery world is still new and so are the insurance products that come with it. Therefore, it might take a little more time and effort for you to get the coverage that you need, but it’s not impossible.
Take the time to comparison shop for your personal auto insurance rates to see if you can save any money by switching, or if you can get a better policy that includes the delivery driver coverage that you need. If your delivery service has left you on your own to get coverage, you will be happy to know that you’re not alone. Check out quotes now and start getting the coverage you deserve.