Your Guide to Delivery Driver Insurance: Make Sure You’re Covered

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Delivery driver insurance: delivery man driving a car

The need for delivery driver insurance continues to grow exponentially thanks to an increasing reliance on (and love for) delivery services. Food delivery is now worth more than $150 billion in the global market, according to McKinsey.

Delivery drivers require a different type of insurance coverage on their auto policy because they use their personal vehicles for work. Unfortunately, many delivery drivers are unaware that they even need this coverage at all. Special business-use car insurance endorsements that cover you in all circumstances are required if you’re using your personal vehicle for deliveries of any kind.

In this guide, you’ll discover what auto insurance coverage for delivery drivers is, how you can get it, and even which delivery companies offer insurance so drivers don’t have to pay out-of-pocket for coverage. Also, you’ll get an overview of the best companies for delivery driver insurance based on the type of car insurance products they offer. 

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What is Delivery Driver Insurance?

Delivery driver insurance is often sold as an endorsement or add-on on a personal auto policy. Delivery drivers who drive as a full-time job or primarily use their vehicle for delivery work may need to upgrade to a commercial insurance policy.

Most delivery and ridesharing drivers just need to add an endorsement to an existing personal auto insurance policy that covers the vehicle while it is being used for work. This is adequate for drivers with companies like Uber, Lyft, and Grubhub.

Because of the growing demand, many states are encouraging car insurance companies to allow drivers to get extended insurance coverage for food delivery and other delivery services

You can make sure you’re protected no matter what happens by purchasing delivery driver car insurance coverage.

Here are some important car insurance policy facts for food delivery drivers and rideshare drivers to keep in mind:

  • Some food delivery services and companies offer food delivery insurance to assist their drivers. For example, while DoorDash requires its drivers to maintain their own personal auto insurance, they also have a commercial auto insurance policy that covers bodily injury and property damage to third parties when accidents happen during active delivery.
  • Business insurance policies don’t usually cover the driver’s vehicle in the event of an accident, which is why combining it with a personal auto insurance policy is necessary.
  • Using your vehicle for delivery work when it is insured for personal use only can result in claim denial in the event of an accident or collision.

Reach out to your insurance company to see what rate you can get for delivery driver insurance. You won’t be penalized, even if you’ve been doing delivery work without the correct insurance coverage up to this point.

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

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Does Personal Car Insurance Cover You as a Delivery Driver?

You can be at serious risk of claim denial or other potential issues if you start delivery work with your personal vehicle and don’t inform your insurance company. Any business use of your own car or truck can be considered an excluded situation in the event of an accident or other incident that requires an insurance claim.

Even if your state doesn’t technically require you to purchase specialty insurance for gig driving or similar business purposes, you need this coverage unless you’ve got thousands to spend on out-of-pocket property damage repairs, medical bills, and other bodily injury expenses. 

In most cases, it’s safer to spend a few extra dollars a month on insurance premiums rather than many financially draining months in court because you didn’t have coverage. Luckily, since gig-centered jobs are expanding, some insurance companies are being more flexible in offering better policy coverage options at more competitive rates. 

Some auto insurance companies are offering the delivery driver endorsement at a reduced cost, foregoing the additional endorsement for those who work only a limited number of part-time hours. They may even offer this endorsement temporarily for no additional cost whatsoever. So, ask your insurance agent about buying this insurance. It might not cost as much as you think.

Do Delivery Service Companies Provide Insurance Coverage for Drivers?

Most delivery services require drivers to purchase a personal insurance policy to cover their car while delivering for their company. Some food delivery and rideshare companies will extend their own insurance coverage under certain circumstances

If you drive for Amazon and Amazon Flex, you’re covered by the company’s commercial insurance but you also need to have your own car insurance. Delivery driver coverage is only for gig workers or independent contractors when people are using their personal vehicle for work-related deliveries.

DoorDash coverage only extends to drivers if your claim is denied by your personal insurance company. Its commercial auto insurance coverage covers up to $1 million in bodily injury and property damage when you’re actively delivering.

Grubhub doesn’t offer commercial car insurance coverage to its drivers. You’ll need your own car and personal insurance policy to do deliveries.  

Postmates offers insurance assistance after a driver’s personal policy limits are met. They provide bodily injury and/or property damage coverage in the amount of up to $1 million. You must have personal car insurance and you can add on occupation insurance coverage in case you get injured while making deliveries.

Uber Eats covers drivers during active delivery times with a commercial auto insurance policy for up to $1 million in property damage and bodily injury. You have to opt in for comprehensive and collision on your personal policy to qualify for coverage. Comprehensive and collision insurance with Uber Eats comes with a $2,500 deductible that must be paid by the driver.

4 Delivery Driver Car Insurance Options

Delivery driver insurance: delivery man handing a plastic bag to a senior man

Here are the four primary car insurance options that provide coverage for delivery drivers.

1. Commercial Policy

A commercial auto insurance policy is a full upgrade of your personal policy, transforming your own vehicle into a business-use vehicle. This is typically reserved for full-time delivery drivers and may be too much coverage for the part-time worker. Fortunately, the delivery company you work with and your insurance provider can help you determine if you need commercial coverage or if an endorsement will be enough.

2. 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 add-on that can be designated in various amounts of coverage for infrequent business use. Your insurance provider can tell you whether the work you do qualifies as occasional or if you need to upgrade to a commercial car insurance policy.

3. Personal Auto Insurance

Before you begin using your personal vehicle for deliveries, check to make sure you have the right coverage amount. Your policy might not offer enough protection in a collision even if your personal insurance coverage meets minimum state requirements. 

Even worse, you run the risk of claim denial if you fail to inform your insurance company when you start working as a delivery driver. You’ll need to pay for any car repairs out of pocket, and your insurance company may not renew your policy. 

4. Employer Insurance

An employer insurance policy offers drivers coverage through the delivery company. Drivers are covered within the company’s policy limits in the event of an accident. However, drivers are responsible for any remaining amount of damage incurred during an accident if it extends beyond what the company policy covers. While you’re driving your vehicle for an employer, you’ll only have liability insurance, not collision or comprehensive coverage.

How Do You Compare Your Delivery Insurance Options?

While there are several delivery insurance companies available to choose from, not all are created equal. Here are a few essential points you should know:

  • Coverage area: Not all delivery driver insurance companies offer coverage nationwide. Check to see if your chosen company provides coverage in your area before moving forward in your decision to work with them. 
  • Industry: Insurers will have restrictions on insurance coverage depending on the industry. Make sure your insurer covers your specific industry before purchasing a policy. 
  • Price: Prices can vary widely between insurers. Take time to compare free quotes from multiple insurers to see which company will give you the coverage you need at the most affordable price. 
  • Coverage limits: How much delivery driver insurance coverage are you looking to purchase? Pay close attention to these when comparing carriers because each insurer offers different coverage limits for drivers.

Easily compare your delivery insurance options by entering your ZIP code below to get started.

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What Are Some Expert Tips for Teen Delivery Driver Insurance?

Teen delivery drivers should research and compare insurance providers to find the most suitable coverage options for their needs. They can look for insurers that specialize in providing coverage for young drivers or offer specific policies for delivery drivers.

Many insurance companies offer discounts for teen drivers who maintain good grades. If a teen excels academically, they can submit their report card or transcripts to the insurance provider to potentially qualify for this discount.

Completing a defensive driver course can demonstrate to insurance companies that your teen is committed to safe driving practices. Some insurers offer discounts for completing an approved defensive driving course.

Rather than obtaining a separate policy for your teen, it’s probably cheapest to add them to your existing auto insurance policy. As an established policyholder, you can benefit from multi-car discounts and potentially lower rates.

The type of vehicle your teen drives can also significantly impact insurance rates. Choose a car with good safety ratings and that is less expensive to repair and has lower theft rates. Avoid high-performance or luxury cars, as they typically come with higher insurance costs.

Which Insurers Offer Delivery Driver Insurance?

Many insurers noticed the rise in drivers performing food delivery and ridesharing jobs. They’ve adapted and now offer policies to meet these specific needs.

Here are a few insurers who offer delivery driver insurance. This isn’t an exhaustive list. Be sure to check with your insurance company to see whether they offer their own delivery driver insurance for their personal policyholders


Delivery drivers can find the coverage they need with Progressive’s rideshare insurance. You can purchase this as an add-on to your existing policy, so you don’t need to buy a commercial policy unless this rideshare insurance is unavailable in your state.

If not, you can purchase the commercial policy to make sure you have enough coverage. If your food delivery company offers coverage, you’re covered by that policy first. Your Progressive policy will then make up for any gaps in coverage if needed. 

State Farm 

If you drive for ridesharing apps, State Farm offers a form of insurance called Rideshare Driver coverage. However, if you only deliver food 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 insurance 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 50 states, so contact your local State Farm insurance 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 a commercial policy. 

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

How Much Does Delivery Driver Insurance Cost?

The cost of adding delivery driver insurance to your policy depends on the kind of deliveries you make, 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, which can be expensive. On average, adding delivery driver insurance to your current policy will cause your premiums to rise anywhere between 15-20%. The cost of your policy is also dependent on many factors, such as your location and driving history. 

It pays to get a few free quotes to compare auto insurance rates so you can make sure you’re getting the best deal on your primary auto insurance. This way when you add delivery driver insurance you’re keeping your costs as budget-friendly as possible. 

What Happens If You Get in an Accident While Working as a Delivery Driver?

Damaged black car on the street

In the event of an accident while working as a delivery driver for Uber Eats or other similar services, your insurance company may reject your claim if you fail to inform them about your profession. As a result, you’d have to pay for all property damages out-of-pocket. It’s your responsibility to alert your insurance company that you’re a delivery driver. Your coverage can be canceled or denied for a claim if you don’t let your insurer know what delivery services you use your vehicle for.

On the other hand, you need to be aware of what the insurance coverage limitations are if you have coverage through your delivery company. For instance, some delivery companies only offer protection to drivers who are actively working. This means drivers are only covered when the food or items 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 delivery company’s insurance. 

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

How Do You Sign Up for Delivery Driver Insurance?

You can contact your current insurance company to sign up for delivery driver insurance. An insurance agent can discuss the right coverage for your situation. 

Remember you can only purchase delivery driver insurance from your current auto insurance provider. For example, 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 insurance start date to coincide with their job start date so that they have coverage from day one. 

What Delivery Drivers Should Know About Auto Insurance

Delivery person ringing a doorbell

Delivery driver insurance is typically offered as an endorsement or add-on to a personal auto policy, but full-time drivers may need a commercial insurance policy. Insurers like Progressive, State Farm, and Allstate offer delivery driver insurance, but coverage options, prices, and availability vary. Some delivery service companies offer insurance coverage, but it may have limitations, so additional coverage is often necessary. 

Contact your current insurance provider to sign up for delivery driver insurance and discuss the appropriate coverage with an insurance agent

If you’re not happy with your current policy, now is the perfect time to get some free quotes. Compare rates for the best possible deal on your primary auto insurance before you add delivery driver insurance.

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