Do you need special car insurance for delivery?

Yes, you need special car insurance for delivery driving unless you are driving a company vehicle. If you drive your own car for a delivery company like Uber Eats, Grubhub or DoorDash, the company will not provide enough car insurance to protect you, so you’ll need to buy a rideshare or business add-on for your personal car insurance policy.

Without the proper add-on, most personal car insurance policies specifically exclude coverage when you are driving for business purposes. Your personal insurance company can deny your claim or drop you as a customer if you lie about using your car to make deliveries. You might even be charged with insurance fraud.

In addition, delivery companies treat drivers as independent contractors, so they do not have to provide extensive insurance coverage, either. Consequently, delivery drivers often face significant gaps in coverage.

Delivery Driver Insurance Provided by Popular Delivery Companies

Note: Comprehensive and collision coverage from Uber Eats and Amazon Flex are only available to customers who have these coverage options on their personal car insurance policy. Additionally, delivery companies are restricted by state laws in New York, so be sure to ask your employer for your coverage details if you work in that state.

If you rely on a delivery company’s insurance, you will not have coverage for yourself or your car while you are waiting for an order request. And for companies like Instacart and Grubhub, the company does not provide insurance coverage for any point in the process. It is also important to note your personal car insurance will not provide coverage while your delivery app is on, whether you are waiting for a request or actively picking up or delivering. 

Best Insurance for Delivery Drivers

• State Farm
• Allstate
• Farmers

The best car insurance company for delivery drivers is State Farm because the company’s traditional car insurance policies cover delivery driving. That means State Farm customers who drive for delivery services can skip the added expense of a business policy or rideshare add-on.

If you don’t have a policy with State Farm and don’t want to switch, the next best way to get delivery insurance coverage is by purchasing a rideshare add-on that covers delivery driving as well.

The best car insurance companies for a rideshare add-on are Allstate and Farmers because their add-ons provide protection for delivery drivers in addition to rideshare drivers, unlike most companies. Allstate provides broad “Ride for Hire” insurance that can help plug coverage gaps and even reimburse you for part of a delivery company’s deductible. Similarly, Farmers rideshare insurance extends to Grubhub and Uber Eats, among others, though it is only designed to cover drivers waiting for a request.  

Add-ons typically cost 15% to 20% of a driver’s annual premium, so they’re usually less expensive than purchasing a commercial policy.

Tips for Choosing Delivery Driver Insurance

Bear in mind that some insurance companies treat certain delivery services differently, so be sure to mention which one you drive for. For example, Geico’s rideshare policies cover Lyft and Uber but not delivery services like Uber Eats.

It’s also worth noting that most personal rideshare insurance policies are designed to supplement the insurance provided by the company itself, so they usually do not provide any liability coverage while delivery items are in the car. Consequently, you might need a commercial policy if your delivery company does not provide any liability coverage during this period.

For example, if you drive for Instacart or Grubhub, be sure to purchase a policy that will cover you regardless of whether you have food in the car. Commercial policies are typically more expensive, but it’s better to pay extra for the right coverage than to face the financial consequences of an accident that is not covered by your insurance.