On-demand delivery services are on the rise, and if we want to cash in, it may mean we need to upgrade our existing auto insurance or upgrade it to be protected.
If you're new to being a delivery driver, this guide on the Best Insurance for Delivery Drivers means you're int he right place.
In this article you're going to learn that:
- For your delivery work because the standard insurance policies do not suffice.
- You cannot use personal insurance for claiming expenses arising out of incidents during delivery services.
- If you are working for UberEats, PostMates, DoorDash, etc., commercial insurance of delivery drivers is essential.
- As the companies do not offer insurance to the workers, the onus of getting it is on you.
This guide will help you find out the best policies for car insurance for delivery drivers.
Do Delivery Drivers Need Insurance?
Yes, all delivery drivers need auto insurance especially built for the purpose. Depending on the job profile or service you are associated with, there are different insurance policies.
Food delivery drivers have separate insurance requirements than grocery or parcel delivery drivers. Delivery drivers need auto insurance because they are using your vehicle for commercial purposes.
Companies offering jobs as delivery drivers also require the workers to get auto insurance. It is a mandatory requirement to get enlisted as a delivery driver.
Not having insurance leaves you financially vulnerable and stranded to pay for costly liabilities in case of an accident. You need to get insured in accordance with the state-minimum liability insurance.
Since every state has different minimum insurance requirements, you need to check with the right person before getting one.
Takeaway Insurance Delivery Driver Overview
Takeaway insurance for delivery drivers comes under commercial auto insurance. You should not consider it a business use insurance policy because it is different from commercial insurance. There are a lot of insurance companies offering their best plans as per your requirements.
Amazon, Postmates, DoorDash, Caviar, etc., provide up to $1 million in liability coverage. Companies also provide cover for accidental death, uninsured or underinsured motorists, collision cover, etc.
Delivery drivers run into all sorts of people on the road. Some pedestrians crossing the road unannounced or a motorist taking a quick turn to avoid standing behind red lights. Their negligence can become a threat to your business or job.
When you start working as a delivery driver, you must inform your existing insurance provider about the same. As the popularity of delivery jobs increases, your insurance company might already have a plan in place that you can take.
They will offer a top-up on the current policy, or you can opt for a pay-as-you-go type of insurance cover. While getting insurance from your existing insurance provider, ask about the status and changes to your personal or domestic insurance.
Delivery drivers working independently, like you may be right now, also need public liability insurance. This type of policy covers the compensation and legal costs a third party claims from you.
Does Being a Delivery Driver Increase Insurance?
Auto insurance for delivery drivers is costlier than personal car insurance. Within commercial insurance, you have to pay the premium for extended coverage. Some of the components are liability coverage, medical payments, uninsured motorist coverage, collision coverage, etc.
Commercial vehicles tread the road day in and out, which increases the risk. In the insurance industry, high risk translates to high insurance premium or cost. The higher cost is to protect you from any sort of liability coverage and protect your savings.
The cost of commercial insurance also depends on the type of vehicle you drive and your driving record. Insurance companies have become smart these days. They account for your driving efficiency before working out the premium cost.
Negligent drivers who had been into a series of accidents before can get into more often; at least, that’s what the insurance companies believe. Due to their reckless driving, the companies charge higher premiums.
When you drive your vehicle to deliver food or other items, commercial insurance rules apply. So, make sure to get commercial auto insurance for the vehicle.
The Best Delivery Driver Insurance Companies of 2021
Not having the right insurance policy as a delivery driver can lead to a financial disaster. The company you are associated with may not always have a coverage policy in place for independent contractors.
The onus of getting one is on you. Getting the right insurance policy is crucial so, we cannot leave you to make it on your own, now can we? So, here are the top recommendations on insurance for delivery drivers.
We are listing out the creme de la creme insurance companies that have specific plans for delivery drivers.
Best Overall Insurance Company - GEICO
GEICO provides specially designed personal auto insurance for delivery drivers and gig workers. Their Rideshare Insurance is a hybrid policy aimed at replacing your personal auto insurance policy.
The Rideshare policy is great for all sorts of gig working jobs. You may be delivering food, picking up passengers, or delivering items; GEICO’s Rideshare policy covers it all.
GEICO covers liabilities arising from property damage, bodily injury, collision coverage, comprehensive physical damage coverage, medical payments, and uninsured motorist coverage.
We have picked it as the best overall insurance for delivery drivers because of its comprehensive coverage. With GEICO, your insurance is not an add-on but an exclusive coverage package.
You can drive for different delivery companies at once with a single blanket cover insurance policy. The best part is that you need not get a separate personal auto insurance policy. GEICO’s Rideshare policy covers personal and commercial auto insurance.
GEICO offers online assistance to take claims easily and swiftly. They have experienced staff to help you handle the claim proceedings and navigate the process easily.
Insurance for Food Delivery Drivers - Progressive Commercial
Progressive Commercial’s insurance is best for food delivery drivers. This is different from the rideshare insurance coverage policy, which does not cover the delivery drivers work.
Progressive Commercial’s delivery driver policy takes into account the majority of operating food delivery companies. This includes UberEats, DoorDash, Postmates, etc.
Delivering food is different from delivering an item in a box. Let’s say you are about to hand over hot soup to a customer, and the packet spills over, ruining the customer’s carpet.
You will be held accountable by the customer and may have to pay for a new carpet or cleaning the ruined one. But if you have insurance, there is no reason to worry about these costs.
The Progressive Commercial insurance for food delivery drivers covers other segments as well. With the same insurance policy, you can safeguard yourself against claims arising during delivering groceries, taking passengers, etc.
This insurance policy is offered as an add, which is something that nags delivery drivers, but if you are getting the benefit without turning any stones, it’s not that bad. Getting insurance coverage as an add on your personal auto insurance invites less premium charges.
On average, the cost of insurance for food delivery drivers ranges between $137 to $262 per month. These costs might change when you ask for a specific quote according to your requirements.
Exclusively Great for Ridesharing - State Farm
In the ridesharing industry, getting the right insurance policy is the difference between losing your savings and protecting them. Uber provides its in-house insurance program to the drivers; for others, State Farm is one of the best options.
State Farm is available in all 50 states, but the Ride for Hire insurance is also available in 46 of them. This insurance covers the listed damages in your policy regardless of whether you are driving or not. It is better than the insurance provided by Uber as it won’t be operational when you have signed out.
You can opt for an exclusive policy to protect you from unnecessary costs while working or add the benefits to your existing policy. As you are free to choose, the final cost of getting State Farm insurance depends on your choice.
With State Farm insurance, until you are signed out, the personal auto policy is in operation. When you are signed in to the ridesharing application and available for hire, the benefits of the personal policy extend to include the liabilities arising out of commercial activities.
Type of Insurance You Need
A common misconception lurks around when you get into talks regarding getting insurance for delivering food, groceries, etc. Within the discussion, you will hear some people preferring business insurance while others are asking to take commercial insurance.
The confusion between them is understandable, and these terms are also used interchangeably. That is not how it should be. Business insurance is different from commercial and so are the benefits connected to them.
Let’s get some clarity. Rest assured that you only need commercial insurance for your independent contract work. You may be working with Uber, Amazon, PostMates, etc. in any case; commercial insurance will suffice.
Commercial auto insurance covers specialized vehicles and activities, and business insurance is for the vehicles that operate within the regular traffic. Yes, this does not clear things at all, because as a delivery driver, you will also drive on the same roads as other traffic.
There isn’t a different tarmac road built for delivery drivers, you wish, but there isn’t. Commercial insurance policies are more specific in terms of the benefits that accompany.
Best Pizza Delivery Driver Insurance
As a pizza delivery driver, you need to befriend speed. With speed, you will get the power to deliver pizzas quickly but at the risk of getting into accidents. Even if it's not your mistake, a pizza delivery guy is the first suspect of an accident.
Why so? Because you need to deliver the pizza hot, and for that, reckless driving comes naturally. This is what a third party will believe and tend to prove when they are involved in an incident.
A TikTok video helped raise awareness about the dangers of being a delivery driver. Yes, a user posted a video about preparing to go out delivering Papa John’s pizzas.
The background story of this TikTok video is authenticated by a statistic in USA Today. Every 26.4 delivery drivers out of 100,000 can sustain fatal injuries during work.
This rate is higher than working as a cop, where the rate of fatal injuries is 14.6 per 100,000. As a delivery driver, you are working your a** off and facing more risk than being a cop.
Adding the financial woes of getting into an accident and having to pay for the damages caused is not right.
The Domino’s $32 Million Compensation Case
In 2012, a Domino’s delivery driver hit a couple, causing the wife to succumb to the injuries and the husband suffering a brain injury, which left him without a voice. The case went to court. The driver and Domino’s was held responsible, wherein the Pizza company was asked to pay $32 to the family.
The lawyers fighting for the couple also found that the pizza company provides rewards for faster delivery. This can be easily taken as an incentive to drive fast, endangering the life of other people on the road.
The crux of everything is that getting into an accident is easy when you are working as a delivery driver. You need to protect yourself from all paying up any sort of compensation and for the damages.
Best Domino’s Pizza Delivery Driver Insurance
Progressive Commercial is the best insurance you need for the delivery of Domino’s pizzas. The cost of insurance depends on several factors, including the vehicle condition and your claim seeking history.
With Progressive Commercial, you will get the option to customize your benefits and get an ideal quote. Before taking the Progressive Commercial insurance, ensure to check its viability in your State.
Progressive Commercial does not offer insurance for pizza delivery drivers in every State. You can also add other delivery works like groceries or ridesharing to the list of benefits connected to the insurance policy provided by them.
It is mandatory to get insurance if you want to deliver for Domino’s. The organization does not offer an in-house insurance policy, so that leaves you looking for one yourself.
We recommend going with Progressive Commercial as they offer great benefits at competitive costs. A.M. Best has given A+ Superior rating to Progressive Commercial. Standard and Poor has given them an AA rating, and Moody’s has given Aa rating.
Best Pizza Hut Delivery Driver Insurance
Progressive Commercial will fit the bill Insurance for delivery drivers working with Pizza Hut. Their insurance program is specifically created to cover the damages caused by food delivery drivers.
Pizza Hut does not have an insurance policy in place for its drivers. According to a Reddit post, companies like Pizza Hut and Domino’s will only protect their interest in case of an incident.
If they are not named in the case, Pizza Hut won’t help you by paying the damages. You have to look for one yourself. Not to worry, as we are here to help you with everything you need to know.
As Progressive Commercial has the right way out for several incidents, you can choose their plan for working with Pizza Hut.
Need another option? USAA is another option in insurance for delivery drivers associated with Pizza Hut. USAA offers insurance plans to military personnel. So, if you have returned from service and are looking to make some extra bucks by delivering pizzas, USAA is a better option for you than Progressive Commercial.
Papa John’s Delivery Driver Insurance
For Papa John’s delivery driver insurance, you can look towards Progressive Commercial, USAA, or we are adding another option, The General Labs. General Labs provides insurance from different companies.
You can ask for a customized insurance plan depending on the State in which you will be working. This insurance company is also working closely with Papa John’s to find the most effective ways to provide you with car insurance coverage at affordable prices.
Papa John’s is the first pizza company we know that is working to help its delivery drivers access affordable insurance. Otherwise, some Reddit users have posted that they are paying more than $250 per month as insurance.
Delivering pizzas is not an easy job. You know this better than anyone else. When you have to pay for unnecessary expenses and damages, things get difficult. The organizations hiring delivery drivers only operated to safeguard themselves.
You must protect yourself from paying any sort of damages, yours or for someone else. Take the right insurance for delivery drivers policy and work stress-free.
Best Food Delivery Driver Insurance
Progressive Commercial is the best insurance policy for food delivery drivers. This insurance for delivery drivers applies to the contractors whose companies do not have in-house insurance provisions.
During the pandemic, the number of delivery drivers multiplied on the road. Hitting another vehicle, a person, property while delivering food creates a precarious situation for the perpetrator and the victim.
In the end, we are left with one question, who will pay for the damages? The service provider, the driver, or the insurance company? Getting an insurance policy against your delivery work is to not only protect you from paying hefty amounts in damages but also safeguard your future.
We say this because an incident in North Carolina left a DoorDash driver fighting a hit and run case. The driver’s insurance company rejected the claim because he didn’t have a commercial policy. The DoorDash coverage of $1 million was also rejected because the driver had delivered the food and wasn’t on active duty.
It is clear that when the time comes, companies like DoorDash can easily use their loophole to avoid paying any money. This brings us to the point, which are the best insurance policies for food delivery drivers.
Best Insurance For Instacart
Progressive Commercial is the best option for you here. The other stalwarts in the industry like GEICO do not care about giving commercial insurance unless you are working with Uber or Lyft.
Just like its counterparts, Instacart does not provide dedicated insurance coverage for its delivery drivers. If you are working with Instacart, you need to get your commercial insurance policy.
Some Instacart shoppers are found saying that as long as you don’t tell your personal insurance company about your association with Instacart, they will cover your losses.
This is not a good option. At some point, your insurance company can find out about the same. It can be either when the people involved in the incident report the same to the company or are somehow involved in talks with your insurance company.
You do not want an insurance fraud proceeding against you, right? It is better to inform your personal auto insurance company and ask them if they have commercial auto insurance that you can buy.
Best Insurance For DoorDash
The best insurance for delivery drivers working with DoorDash is GEICO. In selected states, GEICO offers a bundled personal and commercial auto insurance. This gives you peace of mind as you are protected when you are driving the car.
Other options than GEICO are State Farm and Liberty Manual. Out of the three, Liberty Manual has the lowest premium after some users giving as low as $20 per month to get commercial policy coverage.
DoorDash also has an in-house insurance policy. Under the Occupational Accident Policy, DoorDash provides insurance coverage up to $1 million. DoorDash delivery drivers also require personal auto insurance in addition to the coverage provided by the company.
The one million dollar liability coverage covers bodily injury and property damage done to a third party. When you get into an accident while delivering food for DoorDash, you can seek a claim via the DoorDash automobile insurance form and report the incident.
DoorDash does not provide health insurance. This means that the costs incurred for your health checkups and treatments required after the accident are not covered by the company.
Their insurance policy does cover medical expenses up to $1 million, and disability payments amount to $500 per week. These benefits are subject to the qualification of your claim, which is a mystery to us.
DoorDash insurance for food delivery drivers has some gaps, which makes it efficient for the contractors. The occupational accident policy will only cover the expenses if the accident happens while there is food in the car.
Once you have delivered the food, the policy protection vanishes. While you are using your car to work for DoorDash, personal auto insurance will not apply.
This creates an uncanny situation for the delivery driver. Until the time they don’t have food in the vehicle but are active on the application, none of the insurance providers provide coverage.
Best Insurance For UberEats
GEICO is the best overall insurance provider for an UberEats driver. Wondering why we are not recommending Uber’s in-house insurance for delivery drivers? That is because there are loopholes in their policy.
If you stick to the UberEats insurance, you won’t get any benefit unless you meet with an accident while the food is in the car. Yes, it's the same story as DoorDash. They won’t give you any money unless you are actively working on delivery.
Apart from GEICO, if you are a military veteran or have an active member serving in the military, USAA is a better option. GEICO may not provide insurance for food delivery drivers in all states.
In the states, they provide insurance; the costs are too high to afford for an occasional delivery driver. UberEats also has several legal requirements for delivery drivers insurance, which we will discuss in the subsequent sections.
UberEats drivers get coverage for up to $1 million in liability packages from the company. They are also required to add personal insurance to this policy.
Uber Driver Insurance Requirements
Uber and UberEats drivers are required to follow a procedure in the form of insurance requirements. Uber has Portier for maintaining the required insurance benefits meant for the delivery and rideshare drivers.
While signing up for UberEats, you get into a contract with Portier LLC, a subsidiary of Uber. Uber provides liability insurance to UberEats and rideshare drivers as long as they are logged in the application.
As a delivery driver, you must also have personal auto insurance that helps fulfill the state’s minimum financial insurance responsibility. The requirements also differ with every state.
In New York, you must drive an NYC TLC-licensed for-hire vehicle for delivering food, and the car must have commercial insurance coverage. Navigating the specific rules set forth for ridesharing and UberEats delivery drivers can easily confuse the best of us.
The specific licensing requirement does not apply to the cars used for delivering food in New Jersey. Here you are required to maintain a separate insurance coverage along with Uber’s in-house policy.
It is recommended that you consult with the right person before onboarding and agreeing to the company-state insurance terms.
What does Uber’s insurance policy provide?
Uber-provided insurance for delivery drivers has a liability cover of up to $1 million. As soon as you accept a delivery order, the insurance kicks in and covers the expenses up to the said limit.
Uber’s insurance policy adds to the personal auto insurance policy. While you have personal auto insurance cover, UberEats will offer;
- Physical damage covers up to the vehicle’s actual cash value. The same does not apply if you already have comprehensive and collision coverage within your insurance policy.
UberEats does one better than other company-provided insurance benefits by giving coverage between deliveries. While delivering food for UberEats, drivers also get bodily injury liability coverage to every driver for up to $50,000. You will also get bodily injury coverage for up to $100,000 for every accident and $25,000 for property damage liability.
All these benefits apply to the UberEats insurance for delivery drivers in every State except for New York.
Uber Driver Insurance Cost
This is where you will feel a sigh of relief from hefty insurance costs. Uber’s insurance for delivery drivers costs between $6 to $20 per month. A small fee to pay for getting $1 million liability compensation.
Yes, there are some caveats involved, but given the low cost, Uber’s insurance policy is preferred by the drivers. The final cost of purchasing insurance from Uber depends on;
- Amount of coverage
- Policy provider (In this case, it is Portier LLC)
- City you are working in
- Driving record
A few other factors also come into play while deciding the final monthly cost. The insurance for delivery driver costs can also increase after filing for a claim under the policy.
You can also look for other options than Portier LLC insurance to operate as an UberEats delivery driver. Some of the best insurance houses in the US include GEICO, State Farm, Progressive Commercial, and USAA.
We have discussed in the previous sections that Progressive Commercial is the best company for food delivery drivers. They cover common expenses like liability coverage, etc., along with providing specific benefits like covering food spills, etc.
Uber Driver Common Insurance Issues
Insurance houses are known to be notorious when it comes to accepting claims. Somehow, they will find a way that won’t let them pay. Uber Insurance is no different. They have set some controversial rules to avoid paying the compensation.
Here are some of these issues reported by the Uber Ridesharing and UberEats delivery drivers.
1. Claim can be taken only when you are delivering or driving
Logging in on the UberEats app means you are officially on the clock. While you are using your vehicle for commercial purposes, it isn’t possible to file a claim under personal insurance.
Unless there is food or passengers (in case of ridesharing) in your car, you cannot claim insurance from Uber. This leaves you unprotected from any liabilities appearing due to an incident.
Even if your car is struck from behind while parked on the side, Uber insurance or your personal auto insurance won’t cover the expenses.
2. Compensation is not Enough
Remember the case we discussed above? A DoorDash driver hit a couple, and the DoorDash company was asked to pay $32 million in damages to the family.
The court found the company at fault more than the driver, and they had to pay for the damages. Imagine a scenario when the court finds you as the main culprit and asks to pay a hefty sum to a third party.
Uber Insurance only covers you for up to $1 million. Where will the rest of the money come from?
3. Account Suspension
We found that Uber can also suspend your account while the insurance proceedings are being solved. That is after you have been into an accident.
So, if they are suspending your account, then what good does any insurance bring. Any incident can take a bad turn, and you may find yourself going to court hearings.
Will the account suspension continue until there is a final verdict? Moreover, there is no set procedure for what will happen after you are involved in an accident.
We have come across some Reddit posts sharing that Uber has suspended the accounts due to an incident.
Uber’s insurance policy is a tricky bull to tame. They might have you thinking that you are covered for the expenses arising while working for the company, but that is not entirely true.
Uber Driver Health Insurance Plans and Cost
Uber does not directly provide health insurance plans to its drivers. As UberEats and rideshare drivers are considered independent contractors, they are not eligible for employer-sponsored health insurance.
So, here again, it is your responsibility to protect yourself with Stride health insurance plans. Stride provides recommendations for the best insurance plan according to your requirements at optimal pricing.
Remember that Stride is not an insurance company; it only shares recommendations for the kind of insurance you should get. Uber offers access to Stride to its independent contractors who are working with Uber Pro. If you want health insurance for delivery driver, contact them separately.
Uber-provided health insurance is only available in California. By law, it is necessitated that Uber shall provide healthcare subsidies to the drivers and help them with the premium. At present, Uber's share is 41% for delivery drivers and others who work for an average of 15 to 25 hours per week.
Insurance is a necessity for driving your car on the road. Most of the companies hiring independent contract workers do not have in-house insurance plans. Those who do have, like Uber or DoorDash, their policies are not beneficial for the drivers.
To get complete coverage for your auto and health insurance, consider talking to your existing personal auto insurance provider. Another way is to look for plans offered by GEICO, Progressive Commercial, USAA, and American Family Insurance.
They have exclusive insurance plans for delivery and rideshare drivers covering specific elements of the job and the costs associated with them.
Highest Paying Delivery Driver Jobs
Ever since the pandemic, delivery driver jobs are on the rise. The need for more drivers arises due to the increase in online ordering. People are buying everything under the sky online and expecting prompt delivery on the same.
The highest-paying delivery driver jobs are offered by UPS, where you can earn up to $40 an hour for delivering packages. Working with UPS also means that you need not necessarily use your car. There is an option to bring your car into work, but it is best if you avoid that.
Followed by this, working with FedEx can increase your bank balance by more than $75,000 per year. If you want to deliver food, DoorDash delivery drivers start with $16.06 per hour, which is better than UberEats hourly pay rate of $14.57.
Working with any of these companies has its pros and cons. Some are offering great pay rates, but the tips and others are negligible. Others may have lower hourly wages, but the tips they can gather and the job smoother.
If you are a student, delivery jobs that have flexible working hours are better. This includes UberEats, DoorDash, PostMates, etc. If you can put in 8 hours of honest work into it, working as a UPS or FedEx delivery driver is the best option.
Delivery drivers are pivotal to sustain and scale the on-demand services. Without them, the companies won’t be able to deliver their products on time, which means they will eventually run out of business.
As it has become an important job, creating a proper structure for the people working is imperative. Insurance for delivery drivers is a crucial aspect of this entire system. Given the importance of delivery drivers for these companies, they refuse to acknowledge the need for effective insurance for the drivers and their vehicles.
As a delivery driver, you need to find the right insurance for your vehicle and yourself. While choosing an insurance provider, look for specific plans meant for independent contractors and the available cities.
Do not make the mistake of not getting the right insurance for your work. It is easy to deny any responsibility. Yes, the commercial insurance costs can add to your worries, but that is why you need to take some help from the experts and get the right recommendations.