Your Guide to Delivery Driver Insurance

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Man delivery food while protected by delivery driver insurance

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, pharmacies and other businesses, the need for delivery driver insurance also continues to grow.  

Unfortunately, many delivery drivers aren’t 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 you don’t have to pay out-of-pocket. Plus, to help you decide, we’ll take a look at the best companies for delivery insurance based on the product type and solutions they offer. 

First up, let’s break down what this insurance is and why you need it.

What is Delivery Driver Insurance?

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.

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. Still, you should buy the coverage when you can so you’re protected, no matter what.

Here are some quick facts before we dive into 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.

You can take advantage of the wealth of information available and the leniency of insurance companies to get the coverage you need. Even if you’ve been doing delivery work without additional coverage up to this point, you won’t be penalized. Reach out to your insurance company to see what rate you can get for delivery insurance and go from there? 

Not sure if you’re currently getting the best rate for your auto insurance? Compare quotes from different insurance companies and see if you can save on your primary policy before adding on the delivery insurance endorsement. 

Does Personal Car Insurance Cover You as a Delivery Driver?

If you start doing delivery work with your personal vehicle and don’t inform your insurance company, you could be at serious risk of claim denial or other potential issues. In fact, any business use 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 because of the increase of gig-centered jobs, 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.

Do Delivery Service Companies Provide Insurance Coverage for 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’re 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 purchase 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 you have to do on your own.

4 Delivery Driver Car Insurance Options

Man delivering food with delivery driver insurance (1)

Commercial 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 you work with and the insurance provider alike can help you determine if you need this much coverage or if the endorsement will do the trick.

Business Use Insurance

The business-use endorsement is the most common option for people who are looking to get extra protection for their vehicle so 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 you do qualifies as “occasional” or if you need to upgrade to a commercial policy.

Personal Auto Insurance

Before you begin using your personal vehicle for deliveries, check to make sure you have the appropriate amount of coverage. While your coverage will meet the minimum state requirements, your policy might not offer enough protection in a collision. 

Even worse, you run the risk of claim denial if you start driving as a delivery driver and fail to inform your insurance company. You’ll need to pay for any repairs out of pocket, and your insurance company could prevent you from renewing your policy. 

Employer Insurance

An employer insurance policy means you’re insured through the delivery company. In case of an accident, you’ll be covered within the policy limits. However, if the damage incurred during the accident extends beyond what their policy covers, you’ll be responsible for the remaining amount. Keep in mind that you’ll only receive liability coverage, not comprehensive or collision protection while you’re driving your vehicle for an employer. 

How Do You Compare Your Delivery Insurance Options?

While there are several delivery insurance companies out there to choose from, not all companies are created equal. Here are a few points to keep in mind:

  1. Coverage Area: Not all delivery driver insurance companies offer coverage nationwide. Check to see if your company of choice provides coverage in your area before moving forward in your decision. 
  2. Industry: Insurers will have restrictions on coverage depending on the industry. Make sure your insurer covers your specific industry before purchasing a policy. 
  3. Price: Prices can differ wildly between insurers. Take time to compare quotes from various insurers to see which company will give you the coverage you need at the most affordable price. 
  4. Coverage Limits: How much coverage are you looking to purchase? Each insurer offers drivers different coverage limits. Pay attention to these limits when comparing carriers. 

We make it easy to compare your delivery insurance options. Just type in your zip code below to get started.

Who is Delivery Driver Insurance For?

If you’re using your own vehicle to make deliveries of goods, such as food, these deliveries fall outside the range of your personal auto insurance coverage. If you get in an accident while making a delivery, your insurer may not cover you. To avoid this situation, drivers using their vehicles to make deliveries should purchase delivery driver insurance. With these policies, you’ll be protected at all times, not just when you’re driving for personal use. 

Which Insurers Offer Delivery Driver Insurance?

Many insurers took note of the rise in drivers performing food delivery and ridesharing jobs. They’ve adapted and now offer policies to meet their needs. Here are a few insurers who offer delivery driver insurance, but keep in mind this isn’t an exhaustive list. Be sure to check with your insurance company to see whether they offer a specific delivery driver policy. 


Delivery drivers can find the coverage they need with Progressive’s rideshare insurance. You can purchase this insurance as an add-on to your existing policy, so you won’t need to buy a commercial policy unless the add-on is unavailable in your state. If this is the case, you could always purchase the commercial policy to make sure you have enough coverage.

If your food delivery platform offers drivers coverage, you’ll be covered by that policy first. Then, your Progressive policy will make up for any gaps in coverage if needed. 

State Farm 

If you drive for ridesharing apps, State Farm offers a form of coverage called Rideshare Driver coverage. However, if you only deliver foods or goods and never passengers, you can opt to put a “business use” notation on your personal policy. If you transport passengers, you’ll need to purchase the Rideshare Driver coverage to be fully protected. 

It’s worth noting that the “business use” notation is generally more cost-effective than purchasing additional coverage, as this will increase your monthly premium. This coverage isn’t available in all fifty states, so contact your local State Farm agent to find out if you live in a state with this option. 


Allstate’s form of delivery driver insurance is called Ride for Hire. This program covers both delivery drives and ridesharing drivers. This is an add-on policy, so you won’t need to purchase an additional commercial policy. 

This policy’s cost depends on several factors, such as your age, location, and driving history. On average, Allstate says their policy should only add about $30 to your existing monthly premium. 

How Much Does Delivery Driver Insurance Cost?

The cost of adding delivery driver insurance to your policy depends. The final cost is based on the kind of deliveries you do, the provider, and the type of coverage you need. You can either choose to have a business use endorsement or a ridesharing/delivery policy. Another option is to choose a commercial auto insurance policy, but you’ll need to pay for this along with your existing personal policy. 

On average, adding delivery driver insurance to your policy will cause your premiums to rise anywhere between 15% to 20%. The cost of your policy is also dependent on many factors, such as your location and driving history. It pays to compare auto insurance rates to ensure you’re getting a good deal on your primary auto insurance, so when you add an additional delivery driver insurance you’re keeping your costs as low as possible. 

What Happens if You Have an Accident While Working as a Delivery Driver?

Car in an accident driven by a delivery driver who had delivery driver insurance

If you have an accident while working as a delivery driver and you failed to inform your insurer about your profession, they could reject your claim and you’d be responsible for all damages out of pocket. On the other hand, if you have coverage through your delivery platform, you need to know what the coverage limitations are. 

For instance, some delivery companies only offer protection to drivers who are actively working. Drivers will only be covered when food, items, or passengers are in the car during a delivery route. If you were on your way to pick up the items, you might not be covered by your platform. 

Even if your company’s insurance policy covers you during a collision, the coverage may only cover liability claims. You’ll be responsible for any damage to your vehicle, so ensure you have collision coverage to avoid paying out of pocket for repairs.

Note: It’s always your responsibility to alert your insurance company that you’re a delivery driver. Avoid lying to them about what you use your vehicle for, as this could lead to your coverage being canceled or coverage being denied for a claim.  

How Do You Sign up for Delivery Driver Insurance?

To sign up for delivery driver insurance, you can start by contacting your current insurance company. They can connect you with an agent, and you can discuss the right amount of coverage for your situation. 

Remember you can only purchase delivery driver insurance from your current auto insurance provider. In short, If you want to purchase delivery driver insurance from GEICO, you can’t have personal auto insurance with AllState. 

Once you’ve signed up for delivery driver insurance, you can choose the day it goes into effect. Drivers who haven’t started working yet can choose their start date to coincide with their insurance to have coverage from day one. 

FAQs About Delivery Driver Insurance

What is delivery driver insurance?

Delivery driver insurance is a type of auto insurance that protects you if you’re working as a food delivery or rideshare driver. While some types of delivery driver insurance can be added to your existing policy, drivers may need to purchase additional commercial policies to secure coverage. 

What companies offer delivery driver insurance?

You’ll need to have an existing personal policy with an insurer to purchase delivery driver insurance from them. Companies that offer this policy include Progressive, State Farm, Allstate and more. 

Who should purchase delivery driver insurance?

Anyone who is making deliveries for money should consider purchasing delivery driver insurance. Personal use auto insurance policies don’t cover you for any business use. If you’re in an accident while making a delivery, your provider could choose to reject your claim or cancel your policy entirely.  

How can you sign up for delivery driver insurance?

You can sign up for delivery driver insurance by contacting your current insurance company. An agent can help you get a quote and determine the kind of coverage you need.

Do delivery companies provide insurance for their drivers?

It depends on the company you deliver for. Drivers who work for Amazon, Amazon Flex, or Postmates are provided some level of coverage if damage costs exceed their personal policy limits. Even with this coverage, drivers should consider purchasing additional delivery driver insurance in case of a collision. 

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