Shipt Auto Insurance for 2020

If you plan on becoming a driver for Shipt, auto insurance is an absolute must. You will need to inform your insurer that you require commercial coverage. This form of coverage, in combination with personal coverage, can cost about $3,500 annually.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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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. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: May 28, 2021

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Shipt Auto Insurance Summary
Shipt Auto Insurance FactsSource
Most insurance policies do not cover business use of a personal vehicle.consumer.ftc.gov
You do not have to own the car you drive while shopping with Shipt. help.shipt.com
You do have to be insured on the policy that covers the car you drive.help.shipt.com
You will most likely need a commercial auto policy.consumer.ftc.gov
If you are not covered you may have to pay for medical care and car repairs from your own pocket.consumer.ftc.gov
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In the age of COVID-19, the food delivery industry has attracted a lot of business for a customer at home wanting same-day deliveries. If you plan on driving for the grocery delivery service Shipt, you must have the proper auto insurance to do so. We will detail step by step how to obtain Shipt auto insurance coverage.

We understand finding the right insurer can be a bit of a hassle. Feel free to follow this link to learn more about Coronavirus car insurance rates, and type your ZIP code into our free, helpful tool above to find rates from insurers in your area.

Do you need special insurance for Shipt?

You may be asking, “Do I need special insurance to be a delivery shopper and driver?” There is no specific Shipt vehicle insurance policy. Instead, you will need to meet your state’s minimum coverage requirements. According to the Federal Trade Commission, you will also commercial insurance. The following video further describes what commercial coverage entails.

This is coverage specifically geared towards those who use their vehicles for business reasons, such as food delivery for a customer. The following table compares rates from Progressive for commercial and non-commercial policies.

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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As you can see, driving commercially can drastically increase your rates, sometimes by as much as 180 percent. While this seems steep, it is preferable to the ramifications of getting into an accident without the proper coverage.

You may be wondering why do you need special insurance coverage to use your car for work. The more time you spend on the road puts you at more risk of an accident. This is why you may want to contact your insurer and raise your limits. If you plan on driving for Shipt, you’ll need to contact them regardless because if you use your vehicle for business purposes and fail to inform them, they can drop you from your policy.

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Does Shipt verify auto insurance?

Do you need car insurance to work for Shipt? Yes, Shipt verifies the existence of auto insurance coverage for all of their driving partners. This means you must have coverage in place prior to joining Shipt as a driver. If you do not have coverage, they are likely to deny your application.

Shipt’s insurance requirements essentially match the state you’re living in. The good news is that getting auto insurance as a Shipt shopper is not especially difficult, especially considering the difficult times we’re all living in where delivering food has become necessary for many United States citizens.

Now that you know more about Shipt auto insurance, feel free to type your ZIP code into our helpful tool below to find reasonable rates for a Shipt shopper in your area.

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#1 – Does Shipt auto-renew and if so can I cancel Shipt auto-renewal?

For whatever reason, you may decide you don’t want Shipt anymore. Maybe you don’t need select items, had bad experiences, decided to instead do pickup, or are just going through unwanted subscriptions and want to cut out the subscription fee.

A Shipt membership through Target subscriptions will renew automatically, but you can cancel your food delivery services membership prior to the next annual membership fee renewal being charged. You can call them at (205) 502-2500 or email [email protected] to cancel your membership.

#2 – Does Shipt increase car insurance?

Yes, in the sense that adding commercial coverage to your policy will increase your premiums.

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#3 – Does submitting auto insurance information to Shipt make rates go up?

Simply submitting your information to Shipt will not elevate your premiums.

#4 – What pays more, Shipt or Instacart?

Shipt and Instacart both pay their drivers about $15-$20 per hour.

#5 – Does Shipt offer health insurance?

Although Shipt does offer health insurance to their employees, their driving partners do not qualify.

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#6 – Does Progressive Insurance cover Shipt or Instacart?

Yes, Progressive offers commercial coverage for these and similar delivery services.

#7 – Is there a Shipt welcome package?

Yes, it includes an insulated delivery bag and two t-shirts.

#8 – For Shipt, how do I submit auto insurance info?

There is an application on their website that makes submitting auto insurance info extremely easy.

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