Delivery Driver Insurance: Do I Need Special Insurance to Be a Delivery Driver?

You will need delivery driver insurance because your personal auto insurance policy will not cover you for business use. Some delivery driver insurance requirements include minimum deductibles of $2500, or you may have to get a non-owner vehicle liability insurance policy. Allstate, State Farm, and Progressive are among the companies that provide delivery driver insurance, and the average delivery driver insurance quote is between $104-$225 per month.

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Rachel Bodine graduated from college with a BA in English. She works as an associate editor and writer for 4autoinsurancequote.com for over a year and enjoys creating content that offers expert advice on car insurance topics.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs...

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Reviewed byLeslie Kasperowicz
Former Farmers Insurance CSRhttps://res.cloudinary.com/quotellc/image/upload/insurance-site-images/4autoins-live/6ea5d860-leslie-kasperowicz.jpg

UPDATED: Aug 7, 2020

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Delivery Driver Insurance Summary
Delivery Insurance SummaryDetailsFrom Experts...
Food delivery marketProjected to grow 12 percent per year through 2023Forbes
Business auto insuranceCoverage costs an average of $304.83/monthQuadrant
Delivery and sales jobs are more dangerous than we think.Jobs involving driving are the 5th most dangerous job in the country.United States Bureau of Labor Statistics
Number of American employees killed in "transportation incidents," 2016-20174,106U.S. Department of Labor
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There are millions of delivery drivers across the United States. Years ago, most delivery drivers drove company trucks. Today, however, a growing number of independent contractors use their own vehicles for delivery runs.

Whether you’re delivering pizzas, mail, or anything else, doing deliveries without business insurance is a huge risk. Today, we’re going to help you with understanding auto insurance as it applies to you as a delivery driver.

Studies are consistently following the growth in the food delivery industry. But what about those working food delivery jobs — the essential workers who make our food dreams possible?

The responsibility of delivering food also carries the added responsibility for auto insurance. So how does delivery driver insurance work?

If you’re wondering what will happen if you’re in an accident while delivering food, look no further. Our guide will answer all of your questions, including: Do I need special insurance to be a delivery driver?

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What type of insurance do I need to be a delivery driver?

A major question for many workers is how to get insurance as a delivery driver. Do you need special insurance to be a delivery driver? Do you need special insurance to deliver food? If you drive your own car for commercial purposes, then you need special auto insurance.

There’s no on-demand delivery insurance, but you can get the right policy easily. There are millions of delivery drivers in the United States who have similar insurance needs, so it’s easy to find a policy that works for you.

Commercial Auto Insurance For Delivery Drivers

First, let’s make one thing clear.  If you are using your car for business purposes, then your ordinary auto insurance won’t cover you. So, what is commercial insurance? How do delivery drivers know if they need commercial auto? The video below answers this question.

This means that you’ll need additional coverage, or you’ll be stuck paying out of pocket for the damages after any accident you cause.

Commercial auto insurance is often included as part of a Business Owner Package or Business Owner Policy (BOP). A BOP is any custom, commercial insurance package that uses some combination of liability coverage and property insurance.

Discussing your needs with an insurance agent is the best way to go about buying commercial auto insurance.

Commercial Auto Insurance Cost

Progressive Average Auto Insurance Rates for Food Delivery Drivers
Type of Food Delivery ServiceProgressive Average
Monthly Rates
Progressive Average
6-Month Ragtes
Progressive Average
Annual Rates
Average Rate Increase
Personal insurance (no delivery)$105.83$635.00$1,270.000.00%
Personal insurance (delivery)Won't CoverWon't CoverWon't CoverWon't Cover
Food delivery (business/personal)$296.83$1,781.00$3,562.00180.47%
Food delivery (business only)$273.08$1,638.50$3,277.00158.03%
Pizza delivery (business/personal)$296.83$1,781.00$3,562.00180.47%
Pizza delivery (business only)$273.08$1,638.50$3,277.00158.03%
Catering (business/personal)$235.08$1,410.50$2,821.00122.13%
Catering (Business Only)$216.92$1,301.50$2,603.00104.96%
Food truck (business/personal)$763.25$4,579.50$9,159.00621.18%
Food truck (business only)$434.42$2,606.50$5,213.00310.47%
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So, how much more does it cost for car insurance if you are a delivery driver? And do you need special insurance coverage to use your car for work?

Most major insurance companies offer convenient commercial auto insurance policies.

If you already have personal car insurance and are using it for your personal car delivery jobs, then it may only cost a few extra dollars per month to add commercial auto insurance to your vehicle.

The most common insurance option in this instance will be to switch over to a commercial vehicle policy. Check with your insurance company and other drivers where you work to find out what’s out there.

The key here, as with most things involving auto insurance, is to shop around. So, how much more does it cost for car insurance if you’re a delivery driver?

Below is a table of the average costs for minimum liability insurance, collision, commercial, and comprehensive coverages.

Average Annual Auto Insurance Rates by Coverage Type
Coverage TypesAverage Annual Rates
Comprehensive$148
Collision$323
Liability$538
Commercial$900-$1,700
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As you can see from the table above, there is a large range for commercial coverage. This is because of the different add-ons, including:

  • Hired and non-owned auto liability: $50 per year
  • Hired auto physical damage ($100 deductible): $175 per year
  • Roadside Assistance: $50 per vehicle per year
  • Rental Reimbursement: $100 per year

The price is often manageable, especially if you know what you want. If your current company wants to charge significantly more to add commercial coverage, then we recommend shopping around.

Alternatively, if you don’t have car insurance through your employer, you can buy your own commercial auto insurance policy. Wondering where to get a delivery driver insurance policy? Good news: most major insurance companies offer commercial car insurance policies.

Deliver Driver Coverage Through Your Employer

Sure, some companies may offer auto insurance to their employees.

If this applies to you, that’s great. If not, you may need to buy your own commercial insurance policy, or seek comprehensive coverage for yourself.

If you work for a pizza chain or a large corporation, then your employer might already have insurance coverage for all its drivers automatically. These companies purchase non-owned vehicle liability insurance for their delivery drivers.

Hired and non-owned vehicle liability insurance allows all company employees to be protected when driving any vehicle for work purposes, regardless of whether or not that vehicle is owned by the company.

Ask your employer if this coverage is available to you.

There are a few commercial auto policies for businesses to choose from, including hired and non-owned vehicle liability insurance. It’s often available through large chain or commercial businesses.

  • Hired vehicle liability coverage – protects an insured when driving a vehicle he or she doesn’t own (such as a company car)
  • Non-owned vehicle liability coverage – protects an employee when they drive their own vehicle for business purposes

Either of these policies will cover an employer’s drivers when they are using their personal vehicles for work-related activities or driving a company vehicle.

If you work for a pizza chain or a large corporation, your employer might already have insurance coverage for all its drivers automatically.

These companies purchase non-owned vehicle liability insurance for car delivery jobs.

This allows all company employees to be protected when driving any vehicle for work purposes, regardless of whether or not that vehicle is owned by the company. Be sure to ask your employer if you’re covered under such a policy.

Use of Personal Vehicle for Business Purposes

So, how does personal car insurance work if you are a delivery driver?

A personal auto insurance policy is called a personal policy for a reason: it covers your personal driving needs. When you’re delivering pizzas, taking items from one office to the other, and performing other similar tasks, then you are driving for business purposes.

For that reason, most personal auto insurance policies have language that expressly specifies you are not covered when driving your vehicle for commercial purposes. Business use of personal vehicle insurance is frowned upon.

So, do you need business insurance to be a delivery driver? What insurance do I need for delivery driving? Read on for more.

How do I get insured as a delivery driver?

If you don’t look into your employer’s commercial insurance coverage, you could be the one facing the bills for damages related to repairs and injuries if you’re in an accident.

There are a few possibilities for getting the necessary coverage for making deliveries or driving for a rideshare company. Minimum liability auto insurance could leave holes in your policy that won’t cover the other party’s expenses.

Auto Insurance Providers for Delivery Drivers

Now that we’ve answered the question, “What type of insurance do I need to be a delivery driver?” let’s look at some providers.

  • Allstate – Rideshare coverage is available as an add-on, but only for Uber, Lyft, and UberEats drivers.
  • Crump Property & Casualty – Hired and non-owned delivery policies are available with premiums starting at $1,250 and minimum deductibles of $2,500.
  • Geico – Add-on coverage can be purchased by drivers for any on-demand app with a cost of about $20-$25 more a month.
  • International Property & Casualty (IPC) – Hired and non-owned delivery policies are available with up to one million dollars in coverage options; premiums start at $2,700.
  • Progressive – Food delivery coverage can be purchased and adjusted for busier months.
  • State Farm – An add-on is available for food/goods delivery only for about a five percent premium increase.
  • Sunderland Insurance – Hired and non-owned delivery policies are offered with up to five million dollars in coverage options.

How much does delivery driver insurance cost? Exact delivery driver insurance costs will vary based on the company, coverage offerings, where you live, your driving record, and other factors insurance companies consider when adjusting rates.

Pizza Delivery Driver Insurance

Do I need special insurance to deliver pizza? Pizza delivery drivers are lucky to have their own brand of insurance coverage, a pizza delivery driver insurance known colloquially as “Pizzasurance.” Certain companies, namely Papa John’s and Pizza Hut, do not offer their employees insurance pizza delivery insurance programs.

Pizzasurance, which provides auto insurance for business owners, lists Domino’s, Papa John’s, Pizza Hut, Round Table Pizza, and many more on its list of vendors.

Remember, this auto insurance coverage is adopted by your employer, meaning Pizzasurance isn’t a supplemental add-on to your own policy. So, do I need business insurance for pizza delivery? Most likely.

Most auto insurance policies have language that expressly forbids any type of coverage for commercial vehicles. The moment you’re delivering a pizza, transporting items for work, or working as an independent delivery driver, your personal auto insurance policy may no longer be in effect.

Food Delivery Driver Insurance

Now that you have all of this knowledge, it’s time to look for new insurance coverage. You may be wondering: how much auto insurance do I need?

You might not have to get a full-fledged commercial car insurance policy. Some car insurance companies now offer customized delivery driver car insurance.

If you get into an accident while delivering pizzas or performing other commercial tasks, a claim filed on your standard auto insurance policy will most likely be denied.

That means you’ll need to pay any damages out of pocket — including any damage you caused to other vehicles, any medical bills incurred by the other driver or passengers, and other damages resulting from the accident.

The type of policy you need may be labeled “Insurance for Uber Drivers,” “Rideshare Insurance,” or something similar. So how does insurance work with Uber or Lyft?

Car insurance companies know that a growing number of people are delivering for Uber Eats, Amazon, and other companies as independent contractors. That’s why some now offer customized delivery driver car insurance.

Postmates Driver Insurance

Becoming a Postmates driver is just one of the many car delivery jobs available to those looking for full-time work, or even just a side hustle.

As we discussed earlier in the article, a personal auto insurance policy won’t cover you when transporting goods, people, or doing any line of commercial delivery work.

A personal or standard auto policy covers you/your vehicle for social use and for commuting to and from work.

Luckily, Postmates does offer their drivers one million dollars in coverage, but you have to exhaust your own coverage first.

Postmates allows for deliveries on foot, via bicycle, on a scooter, or by car.

Postmates’ insurance policy is designed to protect Postmates. It won’t cover your injuries (that’s what your own liability insurance is for) and has a $2,500 deductible for damage to your car if an accident occurs.

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Delivery Driver Insurance Policies

There are several reasons to take precautions before heading out for your first delivery. The stipulations for your specific delivery driver insurance policy will vary from job to job.

Here are some general rules of thumb for delivery drivers to follow when building an auto insurance policy:

  1. The points you accrue from an on-the-job accident apply to your personal driver’s license.
  2. Restaurant policies have business liability, but this type of insurance doesn’t cover damages to your vehicle or medical bills.
  3. Keeping uninsured/underinsured motorist coverage on your policy may protect you when you aren’t at fault.

Consider this scenario. Josie has just accepted a new pizza delivery job. Her boss agrees that she can use her own vehicle, and asks her if she has a minimum liability insurance policy.

She says yes and shows up for her first day on the job. At 11:15 p.m. she rear-ends someone at a red light.

When Josie calls her insurance company to file a claim, a police report is also filed. “What were you doing before the accident happened?” they ask her.

“I was delivering pizza for Domino’s,” she explains.

It just so happens that Domino’s insurance isn’t a thing.

Damages to its delivery drivers’ vehicles, while they’re on-the-job, is on the driver. Since delivery driving puts you on the road much more than you would be normally, your chances of having an accident are also much, much higher.

Does personal auto insurance work if you are a delivery driver?

The answer is no. Normal auto insurance policies do not typically cover delivery drivers.

Let’s say Josie the pizza delivery person was 100 percent at-fault for the collision, but she has collision coverage so she believes repairs to her vehicle will be paid for.

She files a claim with her auto insurance company, only to have the claim denied; her auto insurance company does not cover the use of a personal vehicle for business purposes, which means her ordinary auto insurance policy will not pay for damages.

An auto insurance company is a business trying to make a profit. If you’re spending significantly more time on the road due to working as a delivery driver, you’re more likely to be in an accident, which your insurer will have to pay out for. You’ll need a special policy or add-on to account for that increased risk.

UberEats Vehicle Requirements and Insurance

Aside from keeping up with the appropriate coverage, delivery drivers must adhere to other regulations. Do I need extra insurance to drive for Uber Eats?

Delivery driver requirements are based on many qualifying factors, like people’s age and whether or not they have a valid license.

The requirements for Uber Eats drivers are pretty straightforward. First, the driver must meet the minimum age requirements. They also need a valid driver’s license AND a two or four-door car newer than 1998.

Further requirements include a valid registration and vehicle insurance. Whether or not your current policy is enough depends on your employer’s preferences.

Uber offers Driver-Partner coverage at a fee. The coverage is valid and active when the app is on. Lyft also offers contingent liability coverage when the app is in driver mode.

How much more does it cost for auto insurance if you are a delivery driver?

Did you know that for just a few dollars more per month, you can prevent excessive charges after an accident? In this section, we’ll cover the types of insurance that you need to have as a delivery driver.

With changes to coronavirus auto insurance rates pandemic, it’s important for delivery drivers to find a policy that suits their budget.

Customized Delivery Driver Car Insurance

In recent years, according to Forbes, there has been significant growth in the food delivery industry.

Thanks to services like Uber Eats, Postmates, and GrubHub, and DoorDash, customers can order food from their mobile device and have it delivered to their doorstep.

That’s why some companies now offer customized delivery driver car insurance.

If you drive for Grubhub or DoorDash and expect insurance, it might be a good idea to purchase some form of supplemental, commercial insurance. These companies do not offer insurance to their employees, so you won’t be able to get DoorDash insurance.

Postmates insurance does offer its drivers a decent coverage option. Drive for Postmates, and you can get one million dollars of liability coverage. The catch is, you must exhaust your own coverage first.

Issues with Delivery Driver Auto Policies

It’s important to remember that while driving for your employer, or for any commercial purposes at all, you’re not covered by your personal auto insurance policy. You may or may not be covered by your employer’s policy, depending on where you work.

The video below points out some key issues with delivery drivers’ auto policies.

You might not have to get a full-fledged commercial car insurance policy. Some car insurance companies now offer customized delivery driver car insurance, as discussed above.

If a delivery driver has an accident, whose insurance covers it?

According to the National Institute for Occupational Safety and Health (NIOSH), crashes the top cause of work-related deaths.  If a delivery driver has an accident, the question of who pays for the damages is dependent on the type of insurance they have. There are, of course, a few precautions that delivery drivers should take to make sure they’re protected.

The table below outlines a few possible scenarios for delivery drivers.

Insurance Coverage Outcomes for Delivery Drivers
Insurance CoverageOutcome
No insuranceYou may lose your license, and you/your employer risk being sued
Minimum Liability (personal)The other party may sue you/your employer and your claim could be denied
Collision (personal)Protects your personal vehicle from damage from another vehicle or foreign object, but leaves you liable
Comprehensive (personal)Protects your personal vehicle from theft, damage, or fire/rain/flood, but leaves you liable
Uninsured/underinsured motorist coverageKeeps you from paying damages after an accident with an uninsured driver while on the job, but leaves you liable
Hired Vehicle Liability (commercial)Protects an insured when driving a vehicle he or she doesn’t own (such as a company car)
Non-hired Vehicle Liability (commercial)Protects an employee when they drive their own vehicle for business purposes
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In the worst scenario, your claim could be denied and you and your employer could be subject to a lawsuit.

The best-case scenario, however, is that your employer has purchased non-hired auto insurance. This way, you know you’re covered when you’re out making deliveries and your employer knows they’re not going to get sued.

If your employer has purchased commercial liability coverage for their business, your extra delivery driver insurance cost will be low or non-existent.

Claim Denial When Driving For Business

Ask yourself: Is saving a little money now worth going bankrupt later? Is one mistake while making a delivery worth losing your job and freedom to drive? Lying to your insurance company about your vehicle usage is not cool.

Your insurance provider is constantly adjusting policies and claims  — including your own — and should be open and receptive to any changes you may need to make.

Insurers are there to accommodate your needs. If you start a delivery job, why not tell them?

If you do lie to your insurer about the uses of your personal vehicle, or anything else, you are committing auto insurance fraud.

Here are just a few reasons why lying to your auto insurance provider as a delivery driver will only hurt you:

  1. When a claim is filed, your insurance company will do thorough research before they pay out a claim. That means that if you were using your vehicle for anything other than personal purposes (say, delivering for Uber Eats or Domino’s) they will definitely know.
  2. Accident reports are taken by the police. Your delivery driver status will be revealed out of necessity. Your activities before, during, and after the accident will be prime data for the police report. Wondering if can you can file an insurance claim without a police report? While it may be possible in some scenarios, it’s usually not a good idea.
  3. When your provider discovers that you were using your vehicle for business purposes and you only have a personal policy, they are definitely going to deny your claims. If you’re at-fault in this scenario, you’ll have to pay for all medical bills and damages out-of-pocket.

Remember, auto insurance companies perform a thorough review of all accidents.

If the auto insurance company finds any evidence you were performing a business activity at the time of the incident — like a pizza sign attached to the top of your vehicle — then your auto insurance claim could be denied.

We do not recommend lying to your car insurance company in an attempt to get a claim covered.

If you lie to your auto insurance company, they may do more than just deny your claim — they might cancel your policy entirely.

In some states, having your auto insurance policy canceled after an at-fault accident can also cause your driver’s license to be revoked.

Do I Need Special Insurance to Be a Delivery Driver? The Final Word

Yes, you need special car insurance as a delivery driver. Without commercial car insurance coverage, you will not be covered when delivering pizzas, dropping off meals, or even taking a package from one office to another.

Check with your employer to determine if your company extends coverage to privately-owned employee vehicles.

If not, then you may need to buy your own independent commercial car insurance policy. Start your search by entering your ZIP code below.

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