Delivery Drivers Auto Insurance: Protection on Every Trip

By Randy Luton | Last Updated: 06/28/2023

Most motorists are covered by personal auto insurance. Even while it offers financial security, delivery drivers won’t find it sufficient. Your insurance company can deny your claim if you have an accident while delivering a delivery. You should obtain delivery driver auto insurance to make sure you are protected even when working.

If you want to use your automobile only for business, you might want to look into purchasing commercial auto insurance. Drivers who want to use their vehicles to transport food or commodities can get commercial auto insurance or a ridesharing insurance add-on to get financial protection.

If you are confused about how to buy cheap car insurance for delivery drivers or how much it will cost then this article is for you.

Why do delivery drivers need auto insurance?

Every state mandates that drivers have personal car insurance for their vehicles, or else they must be able to cover their financial obligations in the event that they cause an accident.

Without motor liability insurance, you could face fines from your state and risk losing your driving rights. Additionally, it exposes you to serious financial damages in the event of an accident.

Your personal auto insurance is generally not going to protect you in the case of an accident if you use your own vehicle for work. To make sure you are protected financially and legally for the use of your vehicle for business purposes in the event of an insurance claim, it is a good idea to review your auto insurance policy.

You should make sure you have additional financial protection beyond your personal car insurance, which most likely does not cover food delivery or ridesharing, whether you operate a courier service, or you are a food delivery driver.

Which are the best auto insurance companies for delivery drivers

We all know that your occupation affects car insurance premium even if you are a delivery driver. Let’s have a quick look at some leading companies that can still help you get affordable car insurance:

Car Insurance CompanyCoverage for Delivery drivers
GEICODeductibles can be as little as $250, and policyholders are permitted to drive for multiple companies at once. Currently, Geico offers ridesharing insurance in 40 different states.
ProgressiveWhen transporting items for a platform or for personal purposes, drivers may preserve their current insurance limits and deductibles with Progressive’s ridesharing coverage.
State FarmAs a delivery driver with State Farm, all you need is a “business use” statement on your personal auto policy. State Farm offers what they term Rideshare Driver Coverage for customers who drive for apps like Uber or Lyft.
All StateRide for Hire, a product offered by Allstate, provides coverage for both delivery drivers and drivers for Uber and Lyft. One may pair their existing personal auto policy with ride-for-hire coverage.

How much are auto insurance rates for delivery drivers?

On an average monthly premiums for commercial vehicle insurance are typically between $140- $150.

Rates for car insurance for delivery drivers depend on a variety of factors, such as:

  • Number of automobiles
  • Driving records of the driver
  • Type of vehicle and cost
  • Risk level that is present
  • History of claims
  • Policy deductibles and limitations

What should you do if you have an accident at the time of delivery?

  1. Check your safety: Make sure you and everyone else involved in the accident are safe. This comes first. If you can, get away from traffic and other potential hazards to a safe area.
  2. Make a call to the police: Call the police and report the occurrence if there are any injuries or if the collision is substantial.
  3. Gather information: Obtain crucial information from the other accident participants. Names, phone numbers, insurance information, and license plate numbers are all included. Try to get any witnesses’ contact information as well if there are any.
  4. Record the scene: Take pictures or videos of the accident scene, capturing the weather, the state of the road, and any other pertinent information. The handling of insurance claims can benefit from these visual recordings.
  5. Let your employer know: Inform your employer or your supervisor about the incident. They will instruct you on how to go forward and perhaps offer more guidance or help.
  6. Speak with your insurance provider: As soon as you can, let your food delivery driver’s insurance company know about the accident. Give them all the information they require, and abide by their claim-filing instructions.

Frequently Asked Questions

  • Will personal car insurance cover delivery accidents?

    No. If you are the driver then you need commercial insurance to get coverage for an accident.

  • Do delivery services provide insurance coverage for drivers?

    While making deliveries, some businesses insure their drivers, but not when they are waiting for deliveries to arrive.

  • What other types of insurance do delivery drivers and couriers need?

    1. Comprehensive General Liability Insurance.
    2. Fire and Burglary Insurance.
    3. Workers Compensation.
    4. Cyber Insurance.
    5. Professional Indemnity Insurance.

  • Can I make deliveries without delivery driver insurance?

    Yes, you can but without delivery driver insurance, you run the risk of being legally liable for any damage to the products you’re transporting as well as to your vehicle if you get into an accident while delivering them.

  • Does car insurance cover delivery drivers?

    No; your general car insurance can not cover delivery drivers.

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Editorial Guidelines: The above is meant as general information to help you understand the different aspects of auto insurance. This information does not refer to any specific auto insurance policy. Coverages and other features vary between insurers, vary by state, and are not available in all states. References to costs of coverages/repair, average or typical premiums, amounts of losses, deductibles, etc., are indicative and may not apply to your situation. We encourage you to speak to our insurance representative and to read your policy contract to fully understand your coverages.

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Randy Luton is the Founder and CEO of RateForce. He is passionate about InsurTech services and has in-depth knowledge about the auto insurance sector of the USA.