The Best Car Insurance for Delivery Drivers

Looking for Doordash delivery driver insurance? Finding the best car insurance as a delivery driver is important, since personal auto insurance will not cover commercial use, and the cost of insurance will affect the overhead of your business. Even if you use your vehicle for both personal and business trips, you’ll need to be insured adequately in both instances. 

For those who find themselves in need of UberEats insurance or DoorDash car insurance, you’re probably wondering what companies provide the best car insurance, as well as what coverage you’ll need. Read on to learn more.

Who offers the best insurance for delivery drivers?

Even if you aren’t sure if your personal car insurance policy covers your food delivery vehicle, most major insurance companies are now offering commercial insurance to delivery drivers. According to multiple sources, the following are companies that have been highly rated for insuring delivery drivers.

The Best Overall Car Insurance for Delivery Drivers

USAA was recently ranked as the best overall by J.D. Power, particularly for its availability in all states as well as its excellent customer service. The downside is that it’s only available to retired and active-duty military personnel and their spouses and children.

When it comes to availability and flexibility, Allstate is also a strong overall choice. The option of add-ons to your personal auto insurance policy may help you avoid having to purchase a different policy if you have a commercial vehicle for private use.

The Best Car Insurance for Delivery Drivers with Small Businesses

Erie allows small business owners to add a business usage option to their personal auto insurance, something not all companies offer. These add-ons are perfect for small business owners and free-lance delivery drivers since they won’t need two policies for a vehicle that is used for both personal and business activities. 

The downside is that its policies are not available in all states and its online footprint is pretty small.

The Best Car Insurance for Food Delivery Drivers

Progressive’s rideshare insurance policies make it an excellent choice for food delivery drivers and other rideshare drivers, such as Uber or Lyft. 

Its policies are purchased in addition to your personal auto insurance and cover you while you are in “app on” mode. The only downside is that the rideshare policies aren’t as widely available as other Progressive products. As of 2022, the service is only offered in 34 states.

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What types of coverage might be required for delivery drivers?

It’s important to find out what coverage is required by law for delivery drivers in your state and industry. 

For example, in some states, like Michigan, delivery drivers who use a personal vehicle need two policies, a no-fault personal auto insurance policy and a commercial policy. Therefore, depending on the state, your options for proper coverage might be:

• Two policies — one personal and one commercial
• Personal auto insurance with one or more add-ons for commercial use
• Personal auto insurance with a rideshare policy

Be sure to talk with your agent or broker to make sure you are properly covered in case of an accident.

What if the company you drive for provides insurance? 

Some delivery platforms or companies provide drivers with insurance as part of the sign-on package. Some examples are:

• Amazon Flex. Amazon provides its freelance drivers with insurance in every state except New York. The coverage, however, is dependent on you having your own auto insurance policy already. It only covers you when you’re delivering, and the coverage does not include passengers.
• DoorDash. While they are out delivering, DoorDash auto insurance covers its drivers with a commercial policy. However, Doordash liability insurance and other coverage only kicks in once the driver’s personal insurance is exhausted.
• UberEats. Company car insurance for UberEats drivers is similar to the car insurance for Doordash drivers, but the benefits are a little more extensive. For example, some drivers may qualify for collision and comprehensive coverage, and others may even qualify for coverage between deliveries.

Other companies require drivers to purchase their own insurance and maintain legal compliance:

• GrubHub. Drivers for GrubHub are required to purchase their own insurance, including any commercial coverage required by law.
• InstaCart. Drivers for InstaCart sign an agreement saying they are responsible for insuring their own vehicle.

Whether the company you drive for offers insurance or not, you are responsible to make sure your coverage is adequate and compliant. So do your research and read the fine print carefully so that you don’t end up paying damages out of pocket. 

Keep in mind that the food industry may require other types of insurance as well, so get familiar with local and state laws.

Final Thoughts on Car Insurance for Delivery Drivers 

Finding the best car insurance for delivery drivers is part of making sure your business is protected and is operating in compliance with local and state laws. You’ll need to shop around and see whether you need two policies or just purchase the applicable add-ons. And even if the company you drive for offers insurance coverage, you are still ultimately responsible for making sure your coverage is adequate and legally compliant.