Car insurance for delivery drivers

Though companies offer their workers some insurance, delivery drivers need separate delivery driver insurance to be fully covered on the job.

Rachael Brennan headshotAndrew Hurst

By

Rachael Brennan

Rachael Brennan

Senior Editor & Licensed Auto Insurance Expert

Rachael Brennan is a senior editor and a licensed auto insurance expert at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.

&Andrew Hurst

Andrew Hurst

Senior Editor & Licensed Auto Insurance Expert

Andrew Hurst is a senior editor and a licensed auto insurance expert at Policygenius. His work has also been featured in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin, and Property Casualty 360.

Updated|4 min read

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Delivery drivers can’t rely on their regular personal car insurance while working. Instead, they will need either commercial auto insurance or a rideshare insurance endorsement to make sure they’re covered in case of an accident.

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Some delivery companies, like Doordash and Uber Eats, offer insurance for their drivers as long as they’re actively delivering food, but that coverage still leaves gaps. Fortunately, there are lots of well-known car insurance companies that offer insurance for delivery drivers.

Key takeaways

  • Delivery drivers need their own policies, plus either commercial auto insurance or a special endorsement, to be covered during work.

  • Some companies insure their drivers while they’re on deliveries, but not in the time while they’re waiting for deliveries to come in.

  • Most major car insurance companies, including State Farm, Allstate, and Progressive, offer some form of insurance for delivery drivers.

What is delivery driver insurance and who needs it?

The term delivery driver insurance just means insurance coverage for drivers who use their cars to make deliveries. Normally, regular insurance doesn’t cover you if you use your car for business (including deliveries) — even if it’s just part of the time.

If you’re a delivery driver, you’ll need to either get a separate policy or add special coverage to your regular car insurance policy in order to be protected. Delivery car insurance can be a commercial car insurance policy or a rideshare insurance endorsement on your normal policy.

You’ll still need to get delivery driver insurance even if your company provides you with some coverage when you’re on the job. 

Company-provided coverage — sometimes called Transportation Network Provider coverage (TNC) — won’t fully cover your vehicle if it’s damaged, and doesn’t always offer protection for all of the time you’re working.

If you choose not to get delivery driver insurance — or if you don’t let your regular car insurance company know that you’re using your own car for deliveries — and you’re involved in a crash, you may have to pay out of pocket for the damage, which could cost you tens of thousands of dollars.

Does personal auto insurance cover delivery drivers?

Since insurance companies have exceptions when it comes to using your personal car for business uses, your personal auto insurance policy won’t protect you while you’re delivering food, groceries, or other goods — unless your insurance company offers a special add-on, or endorsement, specifically for delivery drivers.

This is because the risks that delivery drivers face are different from those of drivers who only use their cars for pleasure or commuting. 

For example, a delivery driver uses their car for longer periods of time than most drivers, and may have to start and stop their vehicle a lot in crowded places in order to pick up and drop off deliveries. This can make it more likely that they’ll get in an accident and have to make a claim.

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Types of car insurance for delivery drivers

There are a few common forms of insurance for delivery drivers. Delivery drivers can get insured by purchasing commercial auto insurance or a rideshare insurance endorsement.

My boss has non-owned coverage, do I still need insurance?

Non-owned insurance covers employers whose employees occasionally use their own vehicles for work, including deliveries. But that kind of insurance only covers extra liability, you should still have your own personal auto insurance policy and tell your insurance company that you’re using your car for deliveries.

Commercial car insurance

Delivery drivers can get the most complete insurance protection with a commercial auto insurance policy. This is because commercial car insurance provides the same types of protections as a regular personal auto policy, but usually has even higher limits.

Commercial auto insurance can also cover more than one driver or vehicle. However, due to the increased risks that delivery drivers face, along with increased protection that commercial auto insurance offers, these policies can cost more than personal insurance.

→ Read about car insurance for commercial vehicles

Rideshare insurance endorsement

A rideshare insurance endorsement is delivery driver insurance that you add onto a regular policy and most often covers people who work for Uber, Lyft, or other app-based car services. But rideshare insurance can also cover drivers who deliver for app-based food-ordering services.

If you’re a worker for an app-based food delivery company, like Doordash or UberEats, you would use rideshare insurance for coverage during the period you have your app turned on but aren’t yet picking up or dropping off deliveries.

Most app-based companies offer liability insurance that covers you during this period, but there could be a coverage gap that leaves you open if your car gets damaged or you’re injured and need medical care.

Some companies also offer standalone rideshare insurance as a hybrid policy that will automatically cover you for both personal use and when you’re on the clock making deliveries.

→ Read about how rideshare insurance works and when you need it

Do delivery companies insure their drivers?

While some delivery companies provide some insurance coverage for their drivers, you should still get your own delivery driver insurance. The coverage that these companies give their delivery drivers only provides partial protection and may have high deductibles.

Usually, the insurance that an app-based company offers its delivery drivers only provides liability insurance coverage to the driver when they’re making deliveries, as well as excess liability in the event of a serious crash.

This narrow window of coverage means that your employer’s insurance wouldn’t pay for damage to your own car after an at-fault crash. You’d have to have your own delivery driver insurance — or pay for the damage yourself.

It also may only cover you while you’re actively making a delivery, not during the time when you’re on the clock but haven’t accepted a delivery yet.

Which insurance companies cover delivery drivers?

Most large insurance companies offer some form of insurance for delivery drivers. Each company has their own standards and limitations for rideshare and commercial car insurance, so make sure you review the coverage before making a purchase.

Here are some of our top picks for the best insurance for delivery drivers.

State Farm

3.8

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

State Farm logo

State Farm’s Rideshare Driver coverage, which also covers delivery drivers, has the most complete protection for food delivery drivers.

State Farm’s version of delivery driver insurance extends your existing coverage to  the entire time that you’re working. You get physical damage and medical coverage during all stages of delivery time  — and extra liability coverage during any time you’re not delivering.

State Farm is also the company that’s most up front about its costs. According to the company, State Farm’s delivery driver insurance increases your regular policy by about 15% to 20%, depending on your limits.

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Allstate

4

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

Allstate logo

Allstate’s Ride for Hire is an endorsement offered that improves your existing auto insurance coverage.

Besides offering full coverage (assuming your personal policy has it), Ride for Hire helps close the coverage gap that occurs in between the time you start driving and get a delivery. 

It also comes with deductible gap coverage, which pays the difference between your policy’s deductible and any deductible on your employer’s delivery driver insurance — potentially saving you hundreds of dollars if you’re in a crash.

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Progressive

4.1

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

Progressive logo

Adding Progressive’s rideshare or delivery driver endorsement to your regular policy is a great way to carry over your regular coverage to the time when you’re working.

Progressive’s rideshare endorsement provides drivers with deductible gap coverage, along with any coverages that are a part of your regular policy. These include roadside assistance, which might not be available with every other insurance provider for delivery drivers.

One downside of Progressive’s delivery driver insurance is that it’s not available everywhere. While it’s available in most states, drivers might have to get a separate commercial policy where ever the rideshare endorsement isn’t offered.

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Other companies offer drivers the ability to add rideshare insurance to their regular policies, too.

Company

Policygenius rating

Coverage highlights

Erie

3.9/5

Excess coverage that pairs with your existing policy to provide business-use coverage while you're delivering food.

Farmers

3.9/5

Extends your policy's regular protection the time before you're delivering food, acts as excess coverage elsewhere.

GEICO

4.6/5

Partners with Lyft to offer rideshare insurance; also offers other rideshare benefits referred to as a hybrid policy.

Liberty Mutual

Not rated

Partners with Uber in some states and Lyft in others to offer rideshare coverage.

USAA

4.0/5

Rideshare coverage available for as little as $6 per month, covers liability, comprehensive, and collision.

Frequently asked questions

Is delivery insurance required?

Yes, drivers who use their cars for food delivery need insurance for delivery drivers to make sure they are covered in an accident. If you don’t purchase the right insurance policy, your claims may be denied and the insurance company could even cancel your coverage altogether.

Does being a delivery driver raise your insurance?

Yes, insurance can cost more for delivery drivers since they’re adding more protection to a standard policy. Adding rideshare insurance to an existing policy won’t increase your rates by much, but with separate commercial coverage you should expect to pay a much higher rate.

What happens if I can’t find car insurance for delivery drivers?

While rideshare insurance endorsements isn’t available everywhere, commercial insurance is available from most major insurance companies. If you can’t find rideshare coverage, consider buying commercial insurance coverage instead.

What counts as business use for car insurance?

Using your car for business might include delivering food and other goods, providing a service to a customer, and transporting passengers or other items. If you get paid for the service you provide in your vehicle, it most likely qualifies as business use.

Authors

Senior Editor & Licensed Auto Insurance Expert

Rachael Brennan

Senior Editor & Licensed Auto Insurance Expert

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Rachael Brennan is a senior editor and a licensed auto insurance expert at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.

Senior Editor & Licensed Auto Insurance Expert

Andrew Hurst

Senior Editor & Licensed Auto Insurance Expert

gray linkedin icon link

Andrew Hurst is a senior editor and a licensed auto insurance expert at Policygenius. His work has also been featured in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin, and Property Casualty 360.

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