Delivery driving has grown exponentially in the last few years. Many drivers for companies like DoorDash, Uber Eats and Postmates may wonder which insurers offer the best car insurance for delivery drivers.
In this article, we at the MarketWatch Guides team will explore the coverage options delivery drivers can try and the best car insurance companies that offer these options. We’ll also explain how these options fill the coverage gaps left by rideshare and delivery companies.
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Do Delivery Companies Cover You in an Accident?
Every delivery company has its own policies surrounding car insurance for its drivers. While most companies offer their own version of rideshare insurance, sometimes these only become active after your personal car insurance policy has been expended.
If you’re driving for multiple companies, a commercial auto insurance policy may be your best bet to make sure you’re covered in the case of an accident. In the table below, you can see the insurance policies of some of the largest delivery services.
| Delivery Company | Insurance Policy Details |
|---|---|
| Amazon Flex | Amazon will cover you under its commercial car insurance policy, but you must maintain your personal insurance policy. Amazon Flex’s coverage includes liability insurance up to $1 million, underinsured/uninsured motorist coverage and collision and comprehensive coverage. Amazon’s coverage only applies while you’re delivering and won’t cover any passengers you have. Amazon Flex insurance coverage is provided free of charge in all states except New York, where you may need additional commercial insurance. |
| DoorDash | DoorDash offers a commercial car insurance coverage of up to $1 million in bodily injury or property damage for when you’re on “active delivery” time.DoorDash only covers you if your personal insurance policy denies a claim. |
| GrubHub | GrubHub won’t offer any commercial car insurance coverage. You must have your own car insurance coverage to do deliveries. |
| Instacart | Instacart does not offer any insurance for its employees. You’re responsible for having your own personal or commercial liability car insurance that meets your state’s requirements. |
| Postmates | Postmates provides liability and auto excess coverages of up to $1 million for bodily injury and/or property damage of third parties.This coverage only kicks in after your personal policy limits are exhausted.You can also get occupation insurance to cover your own injuries under Postmates.You must carry your own personal car insurance policy to qualify.You can only be covered within the active delivery time frame, which is the time you accept a delivery request until the time your customer receives their order. |
| Uber Eats | Uber Eats offers commercial auto insurance policies during active delivery times for up to $1 million for every state except New York.Uber Eats can cover between deliveries with $50,000 for bodily injury for one person per accident, $100,000 for bodily injury to multiple people in one accident and $25,000 for property damage in one accident.You must have comprehensive and collision insurance on your personal policy to qualify for Uber Eats’ collision and comprehensive insurance.You’ll have a $2,500 deductible to pay for Uber Eats’ collision and comprehensive insurance. |
Transportation network companies (TNCs) and food delivery services are specific in the times when they will cover passenger transporters or delivery drivers. When it comes to food deliveries, many companies will cover you from the time you’ve accepted a job to the time the food is delivered. This time period is called the active delivery time.
However, many companies won’t cover you if you’re just waiting for a delivery. Your personal insurance policy may not cover you during this time either.
Does Personal Car Insurance Cover Food Delivery Drivers?
Most personal auto insurance policies don’t cover delivery drivers without coverage add-ons. That’s why drivers should reach out to their local insurance agent to know their best options.
Can You Deliver Without Delivery Insurance?
If you choose not to get additional delivery insurance on top of your personal insurance policy, you take on certain risks. If you get into an accident without additional delivery insurance, you risk your claim being denied. In that case, you’d pay for damages out of pocket. Some companies may also not allow you to deliver for them if you only have a personal car insurance plan.
We recommend getting additional coverage to protect yourself and your vehicle as you deliver — whether part time or full time. You should also exceed your state’s liability coverage limits on your personal plan if you drive a lot. In fact, as part of Postmates’ onboarding plan, you must provide proof that your coverage exceeds state liability limits.
Source: The Dave Ramsey Show
What Insurance Do Delivery Drivers Need?
The two most common policies for delivery and rideshare drivers are rideshare insurance and commercial insurance policies.
Rideshare Insurance Policy
If you get into an accident while delivering for a TNC, most rideshare companies will cover the damages to any other cars, but if you’re at fault, they may not cover your vehicle’s damages. This is where rideshare insurance from an insurance company comes in.
Rideshare insurance from a car insurance company should cover you while you’re between orders. Some rideshare policies may even cover you when you’re on an active order, but most fill the gap between orders.
Most insurers have a rideshare insurance option as an add-on to your personal car insurance policy. The additional cost will vary based on your age, location, vehicle and driving history.
Commercial Insurance Policy
If you’re a delivery driver, you may need a commercial insurance policy to help cover you when you’re on the job. A commercial policy is more expensive than a personal liability plan because insurance companies see this as a business use of the vehicle. People who drive for businesses often drive more, which means their vehicles are a bigger financial risk to insure.
If you’re using a company-owned vehicle, the liability would fall on the company if you got into an accident. However, the violations will still be applied to your license. If you use your own vehicle, your company may cover your car while you drive it for business. You should still check with your insurance agent to make sure that you’re protected when delivering commercially.
Commercial insurance policies are also useful if you’re a small business owner using your vehicle for business. However, if your employees are using their personal vehicles for your business, this coverage may not cover their vehicle damages or hospital bills.
Insurance for Seasonal Delivery Drivers
Many drivers don’t deliver for companies full time or even part time all year long. If you’re a seasonal driver who uses services like DoorDash and Uber Eats as supplemental income, you should still have additional auto insurance coverage to protect yourself.
However, if you’re just driving for certain times throughout the year, whether it’s during the holidays or the summer, a commercial driver policy or a business-use policy might not make sense for you. Instead, you can add a business use endorsem*nt to your personal coverage plan for the time that you’re driving. Depending on your insurance provider, you can add or drop the endorsem*nt by contacting your insurance agent or changing your policy online.
Endorsem*nts are the most affordable way for seasonal drivers to protect themselves with insurance for the times they’re driving without having to pay for coverage during the times they’re not.
Top Insurance Providers for Delivery Drivers
Whether you stay with your current provider or need to find a new one, there are many options for car insurance as a delivery driver. Below, we highlight coverage options from several companies.
Progressive
Progressive Rideshare Insurance
Progressive offers rideshare insurance as an add-on to your personal car insurance plan. This coverage is required if you deliver for a company. Rideshare insurance also covers you if you’re planning on driving for Uber or Lyft with passengers.
Progressive’s rideshare insurance covers you in between trips while waiting for an order when most delivery companies won’t. This add-on isn’t available in the following states:
- Alaska
- California
- Connecticut
- Delaware
- Hawaii
- Kansas
- Nevada
- New Jersey
- New York
- Vermont
Read more: Progressive Insurance Review
USAA
USAA Rideshare Insurance
USAA offers rideshare gap insurance coverage to make sure you’re covered while you’re waiting for a delivery order or a passenger. This gap can often be just a few minutes, but in that short time frame, most companies won’t cover you.
Adding this coverage to your plan is as simple as asking your agent or doing it online. It’s not available in the following states:
- Hawaii
- Michigan
- Montana
- New Mexico
- New York
- North Carolina
- South Carolina
- Virginia
Read more: USAA Insurance Review
State Farm
State Farm Rideshare Insurance
If you plan on delivering food or driving for Uber or Lyft with passengers, you’ll need to add State Farm’s rideshare insurance coverage. Your insurance cost varies based on many factors, but this may add 15% to 20% to your car insurance premium.
State Farm’s rideshare insurance plan may not be available in every state.
Read more: State Farm Insurance Review
Allstate
USAA Rideshare Insurance
Allstate’s rideshare insurance coverage is called Allstate Ride for Hire®, and it covers drivers during the gap in time where they have not yet accepted a delivery. This coverage is available online and through your agent, but the price will depend on where you live. When you’ve accepted a delivery, Ride for Hire also provides deductible gap coverage for damage to your vehicle up to $2,500 on top of what your delivery company offers.
Ride for Hire is not available in New York.
Read more: Allstate Insurance Review
The Bottom Line: Delivery Driver Insurance
Rideshare insurance is the most common solution for the coverage gap between your personal insurance policy and the company policy. However, based on your insurance profile, location or company, you may require alternative options. It’s best to reach out to your insurance agent. If you don’t have coverage, you can compare car insurance quotes from multiple companies.
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Delivery Driver Car Insurance: FAQ
Many delivery and food companies offer insurance that cover delivery drivers and their cars during work hours, but those delivering for Uber Eats or a similar company would need rideshare insurance. Many insurance companies offer commercial or rideshare coverage to help drivers who drive vehicles for business or who transport deliveries and passengers with cars.
If you deliver with DoorDash or another TNC, you should let your insurance provider know and look into its rideshare insurance coverage. If you choose to not let your company know about you using your vehicle for work, you may have your insurance claims denied in the event of an accident.
Many delivery or rideshare companies will only cover your injuries or your car’s damages if you get into an accident after you’ve accepted an order but haven’t completed the delivery. Some companies will only pay for injuries or property damages to any third-parties in that situation. You’re more likely to be covered during those coverage gaps with rideshare insurance from a car insurance company.
As a delivery driver, the best way to protect yourself is to make sure that you have the right car insurance coverage required by your delivery company and your insurance company. Many delivery or rideshare companies only cover certain time periods during deliveries or passenger transport — but the right coverage should fill those gaps. Reach out to your local insurance agent and research your company to find your ideal coverage.
Our Methodology
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
- Cost: Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
- Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Reputation and experience: Our research team considered market share, ratings from industry experts and years in business when giving this score.
- Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
- Customer experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
Our credentials:
- 800 hours researched
- 45 companies reviewed
- 8,500+ consumers surveyed
*Data accurate at time of publication.
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.com.
