Food Delivery Vehicle Insurance: Are food delivery vehicles covered by personal car insurance?

Food delivery vehicle insurance must be commercial car insurance. Using your personal car for delivery jobs, you'll pay an average of $100/mo. more for food delivery car insurance. Whether you need food delivery auto insurance for Skip the Dishes, Uber Eats, or GrubHub, you will need commercial car insurance to deliver food.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Jan 22, 2021

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Here's what you need to know...

  • If you’re a food delivery driver, you must purchase commercial car insurance for your personal vehicle
  • Some delivery companies have hired and non-owned car coverage to cover damages you cause to another vehicle in an accident
  • Commercial car insurance is typically higher than personal coverage at $100/mo on average

As a food delivery driver, you probably never considered that you might need a specific type of car insurance for business use of your personal vehicle. Car insurance for Skip the Dishes, UberEats, Doordash, Instacart, and other food delivery services aren’t provided by the company. The company will require you to have car insurance before they hire you.

What insurance do I need for food delivery? If you’re driving your vehicle and get into an accident, personal car insurance won’t cover damages. You must purchase commercial car insurance, which may not be offered by all of the best car insurance companies.

You might think that you don’t need to get food delivery vehicle insurance because your car insurance company will never find out you had the accident while on the clock. You’ll quickly discover this isn’t true.

The police officer will note in the accident report that you were driving for a delivery. This report will be sent to your car insurance company. Your insurance might deny your claim, and you might also find yourself out of a job. This is something most delivery drivers can’t afford, so it’s important to get commercial car insurance for food delivery right away.

To compare food delivery car insurance cost, enter your ZIP code in our FREE online tool to find the best car insurance rates.

How much does commercial car insurance cost for food delivery?

Let’s say you want to become a courier for food delivery service Skip the Dishes (operating now as Grubhub in the U.S.). You’ll need a valid driver’s license and registration. Skip the Dishes insurance coverage won’t be provided by the company because you’ll be driving your personal vehicle. When you apply for a job with Skip the Dishes, food delivery auto insurance cost becomes your responsibility, and you’ll need to show proof of coverage to get hired.

What insurance do you need to deliver food? If you delivered fish and chips in the United Kingdom, you would need takeaway business insurance. But here in the U.S., you’ll need to get commercial car insurance. So, what is the difference between a commercial car insurance policy and a personal car insurance policy?

This video from Travelers explains commercial car insurance and why you need it.

What does commercial car insurance for delivery cover? Like personal car insurance, you must carry the minimum liability coverage required by your state. Collision and comprehensive coverage will pay for any damages to your vehicle sustained on the job.

To give you an idea about what you might pay for commercial car insurance, the table below shows the average annual rates for liability, collision, and comprehensive coverage for a personal policy.

Average Annual Car Insurance Rates by Coverage Type
Car Insurance Coverage TypeAverage Annual Rates
Liability$555
Collision$326
Comprehensive$148
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Commercial car insurance rates are typically higher than personal coverage. However, some people find it only slightly more expensive.

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Why can’t I use personal car insurance on my car if I have a food delivery driver accident?

Because you’ll be driving more, you can’t use personal car insurance when you’re using your vehicle for food delivery. Frequent driving increases your risk of a car accident. Also, commercial car insurance protects your cargo as well as your vehicle and the others in an accident.

What kind of insurance do I need to deliver pizza? It doesn’t matter if you’re delivering pizza, sushi, or steak. In 2018, the U.S. Bureau of Labor Statistics discovered car accidents accounted for 48.3 percent of fatalities in the food and beverage service industry. Commercial car insurance provides additional coverage when you use your personal car for delivery jobs.

Do pizza delivery drivers need commercial insurance if the company logo isn’t on the car? Even if the company logo isn’t on the vehicle, you must carry commercial car insurance. According to the Insurance Information Institute, if you get into an accident and your personal policy doesn’t cover damages, your company could be sued.

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Why doesn’t my place of employment cover this insurance for me?

Some companies provide hired and non-owners car insurance for the vehicles that their employees drive. What is a non-owners car insurance policy? This commercial liability coverage covers damages you cause to another vehicle in an accident.

The reason some companies carry this coverage is to prevent themselves from being named in a lawsuit if you didn’t have the proper insurance to cover damages.

No laws require a business to carry hired and non-owners insurance. Also, this coverage doesn’t cover your personal vehicle — only the vehicle you’ve damaged.

Just because your employer has hired and non-owners car insurance doesn’t mean you can skip buying commercial insurance on your vehicle. If you’re doing deliveries without business insurance, you could find yourself unemployed along with being unable to pay to get your car fixed or losing your vehicle.

Are food delivery vehicles covered by personal auto insurance? The Bottom Line

If you use your personal vehicle for work, you can find food delivery insurance and even car insurance for courier drivers by shopping around for commercial car insurance.

Are you ready to find the best insurance for delivery drivers? Enter your ZIP code in our FREE quote comparison tool to discover cheap delivery driver car insurance — even Skip the Dishes car insurance — right now!

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Frequently Asked Questions: Are food delivery vehicles covered by personal auto insurance?

#1 – Does USAA insurance cover pizza delivery drivers?

USAA offers small business insurance and rideshare insurance but not commercial car insurance. If you need food delivery insurance, compare policies from different companies to ensure you have appropriate and enough coverage. Several popular personal car insurance companies like Geico and Progressive also offer commercial car insurance for food delivery.

#2 – Can I use pay-as-you-go car insurance as a food delivery driver?

For food delivery insurance, pay-as-you-go coverage might be an option if your insurance company allows it for a commercial policy. However, pay-as-you-go or usage-based car insurance programs adjust your rates on how you drive and your mileage. If you make a lot of deliveries or drive long distances, pay-as-you-go insurance will most likely not save you money.

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