If you’re delivering for Instacart, Doordash or Uber Eats, you need additional auto insurance coverage. This can be rough, especially when considering all the other costs associated with being a delivery driver.
Thankfully, there are carriers and plans available starting at $10/month, and also ways to reduce your bills by up to $550.
Read on to learn more from our Auto Insurance guide for Delivery Drivers.
Insurance is a nasty thing, to be honest. But, if there's an incident, it helps protect you from a lot of liability. Yes, SAVE. You may have to part with a some cash on a monthly basis, but what about how much you'll save in case there’s an accident?
Insurance companies for delivery drivers cover you and your car when transporting food, groceries and Amazon deliveries.
Many delivery drivers are covered by rideshare insurance, which is very common.
You may get delivery driver insurance from a variety of private insurance firms, but you should shop around before settling on one. The finest delivery driver insurance provides comprehensive coverage, large policy limits, low premiums, and simple purchasing options.
Won’t My Personal Auto Insurance Cover Delivery and Rideshare?
No, it won’t. As soon as you hop in your car and log in to start delivery work, commercial auto insurance becomes mandatory.
Your personal auto insurance may not be sufficient, depending on how frequently you drive your car for deliveries. Personal coverage only extends to social use and basic commuting, but it excludes commercial use.
The difference in liability coverage between commercial and personal use is significant. Commercial policies are intended to limit the risks that come with owning and operating a business, in our case, driving for Uber or Instacart, etc.
Personalized insurance, on the other hand, is designed to protect you from the hazards of everyday life.
The liabilities involved with owning a business are not covered by a personal insurance policy.
This clarifies the difference between delivery drivers' auto insurance and personal insurance.
Now, let’s move to cover the major insurance providers and the services they cover.
Delivery and Rideshare Insurance Cost Comparison
Rideshare insurance add-ons cost anywhere from $6 per month with USAA and Mercury to around $20 per month with GEICO. Because the plans aren't available in every state for every beneficiary, double-check which states are covered under yours.
GEICO offers ridesharing insurance, which is a more complete plan that eliminates the need to pay any supplemental costs.
The majority of the insurance providers that cover rideshare and delivery driver insurance offer it as an add-on. This means that at some extra cost you can get coverage for accidents or incidents while working as a delivery or rideshare driver.
Including personal auto insurance, the total cost, including delivery driver auto insurance, may lie somewhere in between $150 and $350. But everything depends on the insurance provider, your requirements, and some other factors.
Considering only the rideshare and delivery driver insurance part, you may end up paying $5 to $30 extra on your existing personal insurance.
If your current policy does not cover rideshares in your state, you may want to consider switching to one that does. You could also investigate commercial auto insurance, which usually costs around $1800 per year, on average.
Payments for this insurance may also be deducted from your income taxes, depending on your state, and it may contain bonuses like roadside assistance, bundles that include cheaper insurance prices for other products you're interested in, and discounts for responsible drivers.
Which Insurance Companies Cover Delivery and Rideshare?
There are two ways you can get insurance for delivery or rideshare services. One way is to get company-provided insurance.
Uber and Uber Eats provide liability insurance, and so does Lyft, DoorDash, PostMates, etc. Even though you have access to these options, they may not be sufficient to shield you from every type of risk while delivering or driving.
We will discuss the details of each of these insurance programs later. At this point, we simply mean to stress that you will need an extra level of insurance to operate in a commercial capacity legally.
Popular companies for this include Allstate, Progressive, Geico.
Here’s a table listing services covered by major insurance companies in the US.
Given that food delivery can be somewhat dangerous, having insurance is important for your personal protection and that of others on the road.
Besides the dangers of driving on the road, there is the risk of coming across an angry customer. Remember what happened with Willy Solis? Or the gruesome murder of Karen Hassan?
As a delivery or a rideshare driver, you need the right type of coverage to secure your savings. The chance of encountering an incident is more likely when you spend so much more time driving.
Some people may find car insurance for delivery drivers to be worthwhile, while others may not. It depends on your unique needs, as well as the type of coverage (if any) provided by the delivery firm. This will differ from company to company.
Does Geico Cover Instacart, DoorDash, Uber, etc.?
Geico is one of the most comprehensive commercial auto insurance providers. They have high satisfaction scores and a great reputation, which makes getting insurance from Geico beneficial.
Geico auto insurance for delivery drivers and rideshare is often just slightly more expensive than insurance for personal use. But it offers more coverage and a lower deductible than Uber and Lyft insurance.
Geico provides the following types of insurance coverage for delivery drivers:
- Damage car coverage
- Deductible Gap Coverage
- Medical expenses
- Comprehensive collision liability
For better information on Geico insurance products, we recommend getting in touch with a local agent. In some instances, insurance companies have rules and policies that are best clarified by a company representative.
If you proceed to work as a deliver driver, your insurance provider may insist that you get the necessary coverage. For instance, we found a user on Reddit claiming that Geico asked him to terminate his contract with Uber or get Geico commercial insurance. Follow here for the full story.
Does Progressive Cover DoorDash, UberEats, PostMates, etc.?
Progressive's rideshare and delivery driver insurance cover drivers who transport passengers as well as food delivery drivers.
To acquire Progressive food delivery insurance, you must have an active Progressive personal car insurance policy. All personal car insurance coverage, including roadside assistance and rental car reimbursement, also apply while delivering food.
Fill out the car insurance application and click the option that says "I also use this vehicle for Ridesharing" to get a free quote online.
Their rideshare and delivery insurance covers;
- Comprehensive and collision
- Uninsured or underinsured motorist
- Additional coverages
- Deductible reimbursement
You can file a claim either online, through the mobile app, or by calling customer care. Progressive works with a network of auto body shops, but you can choose any automobile repair shop if your vehicle is damaged during delivery.
All State Rideshare & Delivery Driver Insurance
Allstate may not cover every rideshare and delivery service, but they provide coverage for the major ones. Most endorsements, such as accident forgiveness and rental car reimbursement, will apply when driving for a delivery service, if you have an Allstate personal car insurance policy with add-ons.
Whatever endorsements you have on your personal auto policy will immediately apply whether you deliver goods or food or transport passengers.
For rideshare and delivery driver insurance, you will be covered for;
- Collision cover
- Comprehensive coverage
- Liability coverage
- Medical payments
- Roadside coverage
- Uninsured and underinsured cover
With Allstate's Ride for Hire delivery driver insurance, we discovered that there isn't a lot of information online about the coverage limitations, deductibles, or savings available. If you want a free quote or buy an endorsement, you'll need to contact a local agency.
Does USAA Cover PostMates, DoorDash, etc?
USAA provides flexible delivery driver insurance in most areas, and the company has highly ranked customer service satisfaction.
If you already have USAA personal auto coverage, you can purchase rideshare insurance. Coverage is available for any type of delivery driving, including regular ridesharing, food delivery, and prescription delivery.
USAA does not disclose the cost of its delivery driver insurance or the coverage limitations provided. By connecting into your USAA account online, you can acquire a free quote and add a rideshare endorsement to your existing policy.
You can easily make a claim online or using the mobile app if your vehicle is damaged during a delivery run. We also like the fact that you may get guaranteed vehicle repairs at one of USAA's many auto body shops.
Rideshare and Delivery Driver Insurance Cover by Farmers
During the pandemic and enforced lockdown, Farmers Insurance started providing insurance cover to deliver drivers. The motive to provide the same was similar to other companies. However, Farmers Insurance started covering drivers in areas where they were not covered.
Even better, Farmers insurance didn't charge extra. While delivery services are typically excluded from standard auto insurance policies, this temporary change to Farmers-branded policies will allow customers to extend their existing personal auto and motorcycle insurance coverages.
Rideshare and Delivery Driver Auto Insurance Coverage
Four Periods of activity are used to determine rideshare coverage. It is considered 'Period 0' when you are driving your car for personal purposes. 'Period 1' starts when you've activated your ridesharing app and are waiting for a ride request.
'Period 2' includes the drive to the area where your passengers or package will be picked up. Finally, 'Period 3' is when you have passengers in your vehicle.
Insurance providers are offering rideshare policies to bridge the gap between your personal insurance and the coverage provided by rideshare companies. They each fill in the gaps in their own way.
Period 1 is the most risky period. Several insurance companies do not extend commercial coverage for this period and the same applies to personal coverage.
As the popularity of on-demand delivery and ridesharing services such as Instacart, DoorDash, Uber, and UberEats continues to grow, questions about insurance coverage have become increasingly important. Whether you're a driver or a customer, understanding what auto insurance covers for these services is essential.
Let's take a closer look at what auto insurance covers for these four popular on-demand services.
Instacart is a grocery delivery service that relies on drivers using their personal vehicles to make deliveries. While Instacart provides commercial auto insurance coverage for its drivers, this coverage only applies while they are actively engaged in a delivery for the company. This means that if a driver gets into an accident while driving to or from a delivery, they may not be covered by Instacart's insurance.
In this case, the driver's personal auto insurance policy would likely come into play. It's important to note that many personal auto insurance policies exclude coverage for commercial activities, so it's crucial for Instacart drivers to check with their insurance provider to make sure they have the necessary coverage.
DoorDash is a food delivery service that also relies on drivers using their personal vehicles to make deliveries. Similar to Instacart, DoorDash provides commercial auto insurance coverage for its drivers, but only while they are actively engaged in a delivery.
Again, this means that if a driver gets into an accident while driving to or from a delivery, they may not be covered by DoorDash's insurance. As with Instacart, it's important for DoorDash drivers to check with their personal auto insurance provider to make sure they have the necessary coverage.
Uber is a popular ridesharing service that allows drivers to use their personal vehicles to transport passengers. Uber provides liability insurance coverage for its drivers, which kicks in when the driver accepts a ride request and ends when the ride is completed.
However, this coverage only applies if the driver's personal auto insurance policy doesn't provide adequate coverage. In other words, if a driver's personal policy has a higher coverage limit than Uber's liability coverage, the driver's personal policy would apply instead.
UberEats is a food delivery service that operates similarly to DoorDash. Like DoorDash, UberEats provides commercial auto insurance coverage for its drivers, but only while they are actively engaged in a delivery.
As with Instacart and DoorDash, UberEats drivers should check with their personal auto insurance provider to make sure they have the necessary coverage for accidents that occur while driving to or from a delivery.
In conclusion, it's important to understand what auto insurance covers for on-demand services like Instacart, DoorDash, Uber, and UberEats. While these services do provide insurance coverage for their drivers, it's crucial for drivers to also have personal auto insurance policies that provide adequate coverage. As a customer, it's important to understand the coverage that these services provide to their drivers, as it can impact your liability in the event of an accident.
The 2023 Auto Insurance Companies That Actually Cover Delivery Drivers
Several auto insurance providers mention covering delivery services, but it's important to note that coverage may vary depending on the policy and the specific on-demand service.
Some of the auto insurance providers that offer coverage for on-demand delivery services include:
- GEICO - GEICO offers coverage for on-demand delivery services through its commercial auto insurance policy. This policy provides coverage for accidents that occur while drivers are using their personal vehicles for business purposes, such as making deliveries for on-demand services.
- Farmers - Farmers offers a commercial auto insurance policy that includes coverage for on-demand delivery services. This policy provides liability and physical damage coverage for drivers while they are making deliveries.
- Progressive - Progressive offers a commercial auto insurance policy that includes coverage for on-demand delivery services. This policy provides liability and physical damage coverage for drivers while they are using their personal vehicles for business purposes.
- Allstate - Allstate offers a commercial auto insurance policy that includes coverage for on-demand delivery services. This policy provides liability and physical damage coverage for drivers while they are using their personal vehicles for business purposes.
- State Farm - State Farm offers a commercial auto insurance policy that includes coverage for on-demand delivery services. This policy provides liability and physical damage coverage for drivers while they are using their personal vehicles for business purposes.
It's important to note that the coverage provided by these insurance providers may vary depending on the policy and the specific on-demand service. It's always a good idea for drivers to check with their insurance provider to make sure they have the necessary coverage for the on-demand service they are working with.
Having adequate insurance is critical to avoiding financial difficulties, whether you are a part-time or full-time delivery driver. This is especially important in the event of an accident.
Always speak with your current insurance provider first, but don't be hesitant to shop around for quotes to ensure you get the best deal. Some insurance companies may offer great deals in terms of price, but that won’t matter if your claim is denied when you need the insurance to have your back.
Don’t go for the cheapest delivery drivers auto insurance policy. Take your time to explore the market, or you can go through the article above. We hope you have a bit more knowledge now about some of the most important aspects of car insurance when it comes to driving for Uber, Lyft or any of the delivery services.