An Adelivery job is a great way to make some extra money. While it can provide a steady income stream, the hours can be flexible enough that you can use it as a side business. The demand for delivery drivers is increasing due to the new ecommerce and delivery.
You need the right insurance, no matter if delivery driving is your main job or a side hustle. You should double-check your delivery insurance coverage in case of an accident.
Do delivery drivers need special insurance?
It may seem as though your auto insurance policy covers you because you use your own vehicle to deliver your orders. Many car insurance companies exclude coverage for business use. This means that coverage may be denied if you are not at home when an accident occurs.
This is something you want to avoid. Call your insurance company to ask them if delivery driver use is covered. They may extend your delivery driver insurance through an existing policy.
However, in many cases you will need specific car insurance to drive delivery vehicles. Many companies offer rideshare insurance policies which can provide the delivery insurance that you require. You can get commercial auto insurance or add a business-use endorsement on your personal policy if yours doesn’t offer this coverage. Later in this article, we will assist you with your options regarding auto insurance for delivery drivers.
Contact your insurance company to find out if you aren’t getting the delivery insurance that you need.
How COVID-19 impacted insurance needs
Evidently, delivery drivers suffered from the effects of the pandemic. It also increased your money-making potential.
Many states and insurance companies took action to support delivery drivers. Many state insurance agencies required that insurance providers extend coverage to drivers who were delivering. Some insurance companies also decided to expand coverage without state orders.
This means that you might have been protected while driving during the pandemic. However, as the economy recovers and normalizes, it is unlikely that these extensions will be extended. (Farmers for example have only extended automatic coverage to drivers via May 2020). You are responsible for ensuring that you have the correct level of delivery insurance.
Best delivery driver insurance companies
Many of the top car insurance companies are more adept at adapting to the gig economy and offer policies for drivers who rideshare or deliver. These are just a few of the companies that offer options.
Allstate
Allstate provides coverage for TNC drivers. This may or not cover you if your company is a delivery service. You can call to find out if the Rider for Hire policy may provide the coverage you require.
Allstate offers commercial auto coverage if you don’t have it.
Geico
Geico provides specific rideshare insurance for drivers who are not licensed by the state. Geico claims that this policy replaces your auto insurance policy and is usually less expensive than it.
Progressive
Progressive’s rideshare policies are available in most states. However, you should contact them to verify that they will provide the driver insurance you require with their rideshare coverage. This policy replaces your personal auto insurance and provides seamless coverage regardless of why you drive.
Progressive also provides coverage for pizza delivery drivers.
State Farm
State Farm doesn’t advertise car insurance for delivery drivers but its rideshare Insurance covers people who drive for transportation networks companies (TNCs). Many states also include delivery service providers on their list of TNCs.
Alternativly, State Farm’s Commercial Auto Insurance can be used to get the driver insurance you require.
USAA
USAA may be an option for military personnel or veterans. Third-party rating agencies consistently give this provider high marks for their customer service and insurance rates. USAA offers policies for delivery drivers and rideshare at rates starting at $6 per month.
What delivery companies are covered for car insurance
Although some companies offer delivery insurance automatically, it can be complicated. Here are some examples:
- DoorDash provides insurance once your auto insurance policy limits have been exhausted. Also, you must have the delivery of food at the time of an accident. This could mean that you may be without coverage if you’re on your way to pick up food from a restaurant.
- Amazon Flex provides an Amazon Commercial Auto Insurance Policy for drivers in other states than New York. However, you must have your own auto insurance policy. You also need to be active delivery in order to get their commercial coverage.
- Grubhub doesn’t offer any type of car insurance.
- Instacart’s Independent contractor agreement states specifically that “You should verify if your automobile insurance covers the performance of your services. Not all insurance policies cover these services and you are therefore not eligible to receive such insurance coverage through Instacart.”
- Postmates will require that you have your own insurance. However, they can provide additional coverage if you have exhausted your policy limits.
- Pizza Hut’s driver job listings state that you will need to have your own auto insurance. This implies that they don’t offer coverage.
You should read the fine print in your agreement with the delivery company as well as details of your auto insurance coverage.
Questions frequently asked
What is the cost of delivery insurance?
Your average cost of car insurance will typically include delivery insurance. It will depend on what you choose, your details and the insurance provider. You can choose to get a delivery or rideshare policy, as well as an endorsement for business use. You could also get commercial auto insurance, but this will require you to have a separate policy.
How can I obtain delivery driver insurance?
Calling your insurance provider is a great place to begin to discuss your options for getting the coverage that you require.
Who has delivery insurance?
Your personal auto policy may not provide enough protection if you make any deliveries for money, even if you occasionally deliver materials to your boss. To find out if you need additional coverage, talk to your insurance company.
