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All about the Best Car Insurance for Delivery Driving in the US

  • Auto Insurance
  • Natasha Young
  • 5 minutes

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Insurers may be reluctant to provide commercial auto coverage because of the unique risks associated with delivery driving. Depending on who owns the vehicle, you will need a different insurance policy. A commercial car insurance policy may be necessary even if you have personal auto insurance like the majority of Americans. As a delivery driver, what kind of insurance do you need? What is the best car insurance for delivery driving? Read to know more. 

Car insurance for delivery driving

What are the different car insurance options for delivery drivers? 

Commercial policy 

Commercial policies may cost a little more than personal policies, but this difference is negligible. The cost depends on your unique characteristics and the vehicle you drive. Rest assured that any incident you may encounter will get commercial policy coverage.   

Personal auto insurance policy 

Choosing not to disclose your job as a delivery driver carries a number of risks. Otherwise, it cancels out your insurance, and future claims get denied. Also, it is always best, to tell the truth, and stay out of trouble! 

Business-use policy 

For instance, this type of policy is great for drivers who use their vehicles for business purposes only. Inquire with an insurance agent if you want to learn more. 

Which delivery drivers are eligible for commercial auto insurance? 

Due to the unique dangers of delivery driving, insurance companies are often reluctant to cover it. That might include: 

  • Young or inexperienced drivers are at an increased risk of injury or death. 
  • A lot of turnovers among drivers. 
  • Pressure to meet a tight deadline results in reckless driving. 

To sum up, lack of options for coverage can be frustrating, especially as more businesses offer apps to help customers get take-out meals, groceries, or other items delivered to their homes within hours to them. If one of the delivery drivers is involved in an accident, your business could be held liable.  

As a delivery driver, do you need additional insurance? 

In fact, state-minimum liability insurance is required for all vehicles on public roads. In addition, the lack of insurance coverage in the event of an accident can lead to either a citation or a suspension of your driver’s license. 

Is food delivery covered by my personal auto insurance policy? 

Personal auto insurance policies may not cover delivery drivers because they use their vehicles to transport goods rather than people. Also, having a personal auto policy and driving for a delivery service at the same time puts you at risk of having your claim for damages rejected.  

However, food delivery and other commercial uses are covered by commercial and business-use policies, which are created to minimize the risks. As a delivery driver, you’re an independent contractor, which means you’re not covered by most personal insurance policies. 

car insurance for delivery driving

Do delivery services cover the drivers’ insurance costs? 

In short, it all comes down to context. According to Postmates, the driver is solely responsible for any and all vehicle damage. However, if a driver’s insurance does not cover the damage done to third-party vehicles, the platform may step in. 

Moreover, drivers’ vehicles and bicycles are not covered by Postmates’ insurance policies, and the company does not provide workers’ compensation benefits. For vehicle damage, Postmates states that drivers must use their own insurance. Working for Postmates may necessitate the purchase of commercial insurance, which can be a hassle. 

Who are the available car insurance providers for delivery drivers? 

Progressive’s Rideshare Insurance 

Similarly, Progressive’s rideshare insurance may cover delivery drivers. if the add-on is not available in your state, you might need to purchase a commercial policy. If you live in an area where rideshare insurance isn’t available, you can always buy a commercial policy to make sure you’re covered. 

For instance, if you’re delivering goods for a platform, Progressive’s rideshare coverage allows you to keep your existing policy limits and deductibles. If the food delivery platform provides its own insurance (which most do), you will get the policy coverage first. And if an accident occurs while the driver is delivering food to your home or office. Progressive’s insurance would serve as a backup plan. 

State Farm’s Rideshare Driver Coverage 

As a delivery driver with State Farm, all you need is a “business use” notation on your personal auto policy to get Rideshare Driver Coverage, according to the carrier. However, only drivers who deliver goods and food and never have passengers are affected by this regulation.  

Above all, the Rideshare Driver Coverage is necessary if you also drive for hire with passengers. Purchasing rideshare insurance is more expensive than adding a business use notation to your personal policy. In addition, according to State Farm, adding rideshare insurance will raise your premiums by 15 to 20 percent. 

USAA’s Rideshare Gap Coverage 

For instance, USAA is optional coverage for your personal auto policy. An “unmatched” amount of time is covered by this additional insurance. This is the amount of time you spend waiting for a delivery request on your food delivery app. You can do this online or by contacting your USAA representative. Rideshare gap coverage rates are based on a variety of factors, but USAA estimates that this endorsement will cost you as little as $6 per month. 

Allstate’s Ride for Hire 

Allstate’s delivery driver insurance is called Ride for Hire. It covers both delivery drivers and drivers for ride-hailing services like Uber and Lyft. In order to provide insurance to their customers, Allstate teamed up with these companies. In short, a personal auto policy can be supplemented with Ride for Hire coverage. Briefly, Allstate estimates that adding Ride for Hire coverage will increase your monthly premium by about $30, depending on your age, driving history, and geographic location. 


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