Delivery Driver Insurance

Every car owner and driver, including delivery drivers, must have car insurance.

If you’re a delivery driver, you need to know one of the critical rules of car insurance: insurers do not allow using your vehicle for business and the transportation of goods.

While most people have personal car insurance policies, if you are delivering goods using your car, you may require a commercial or delivery car insurance policy. It is a standard procedure.

The big question here is: if you are a delivery driver, how should you insure your vehicle? Or put simply, what does delivery driver insurance entail?

Should You Get A Special Cover As A Delivery Driver?

The law stipulates that every vehicle should be insured with state-defined minimum liability car insurance. If you fail to maintain active car insurance, you may get a ticket or license suspension, accompanied by a lack of coverage if you get involved in an accident.

Usually, standard liability car coverage allows you to use your vehicle for domestic, pleasure social and commuting to work. It is not so if you use your vehicle for delivery.

If you are a delivery driver, liability insurance alone isn’t enough.

A delivery driver will need extra coverage or an entirely separate policy, depending on how your company classifies you as a worker or how often you carry out deliveries.

Side view of young delivery men carrying cardboard box while walking by truck

Additionally, standard car insurance will not provide sufficient coverage for delivery drivers. This is because most delivery drivers often operate on a “hire and reward” basis, with a few additional risks.

Hire and reward means using your vehicle to offer delivery services in exchange for a reward (the payment).

Do Delivery Companies Provide Delivery Car Insurance?

It depends on the delivery service company; it may or may not provide car insurance to its drivers.

Different delivery service companies have different insurance policies for their drivers or different amounts of coverage.

Take, for example, Postmates. The company states that all drivers are personally responsible for all vehicle damages unless the driver’s liability coverage cannot cover the damage inflicted on a third-party vehicle. This is called ‘support on a need basis.’

Most delivery service platforms, like Postmates, do not cover a driver’s vehicle or a rider’s bicycle. They do not compensate for the drivers. Most platforms outline that drivers must use their insurance policies to cover any vehicular damage.

This is why delivery drivers may require a commercial insurance policy to cover their vehicles while conducting commercial deliveries.

Can A Delivery Driver Use A Personal Insurance Policy?

Because insurers do not allow you to use personal vehicles for delivery or transportation of commercial goods, delivery typically falls off outside your car insurance policy.

Delivery drivers are classified as under-pressure drivers. For instance, when you deliver for Postmates, UberEats, or DoorDash, you’ll always be in a hurry. The Pizza should not get cold.

Insurers classify delivery drivers as high-risk compared to other motorists.

Like any insurance policy, a higher risk translates to a higher premium, which translates to higher claims. This is why insurance companies do not even offer delivery insurance because of the higher risks involved.

If you get an accident when undertaking a delivery service and have only a personal car policy, you risk your corresponding claim being denied.

Insurers do not allow you to use your car coverage for commercial purposes. They’ll require you to have additional insurance to cover delivery services.

Delivery Driver Insurance Options

As a delivery driver, there are a few possibilities to enable you to get the necessary delivery driver insurance. These include:

  • Coverage through your platform (employer)
  • Commercial insurance policy
  • Business–use policy
  • Uber Driver Insurance or Pizza Delivery

part piece of envelope mail post office signs service of delivery time date tracking signature pickup insurance guaranteed

Coverage Through Your Platform

If you work for an employer or delivery service company such as Postmates, UberEats, or DoorDash, you will likely benefit from some coverage from the company.

Before you get any insurance, check what your service platform offers and to what level.

Additionally, some delivery services employers, such as large and chain independent restaurants – provide delivery driver insurance in the form of hired and non-owned vehicle liability insurance. This policy covers their delivery drivers (employees) when using their vehicles for work-related activities.

It is wise to ask your employer if this type of coverage is available.

Commercial Insurance Policy

If you are a delivery driver, the most apparent insurance choice should be the commercial vehicle policy. Check with other delivery drivers where you work and your insurance company to find out how to acquire a commercial insurance policy.

Most insurance companies do not offer coverage to delivery drivers because of related risks.

Also, commercial coverage tends to cost slightly more than a personal insurance policy. But the rates will depend on your vehicle, driving records, and personal attributes. The key, as like most things involving car insurance, is to shop around to get the best.

With a commercial coverage, you can rest easy knowing any incident or accident you encounter will be covered.

Business-Use Policy

If you are an occasional delivery driver, you would prefer to opt for a business-use insurance policy. Insurers offer a business-use policy for delivery drivers who use their vehicles for limited business use.

Delivery driver using tablet in van with parcels on seat outside warehouse

If you deliver as a full-time job in UberEats, DoorDash, or Postmates, you might not qualify for business-use coverage. You can speak to an insurance agent to understand this coverage better.

Personal Car Insurance Policy

You have an option to use your vehicle for delivery under a personal car insurance policy. But this is a risky business, and you have to let your insurer know that you are using your vehicle for commercial delivery.

Declining to report your newly acquired delivery driver occupation has its risks. First, your insurance claims may be declined if you get involved in an incident or accident. Second, you risk having your insurance policy canceled.

Uber Driver Insurance or Pizza Delivery Insurance

It definitely won’t be called “pizza delivery or Uber Driver insurance,” but some insurers offer such particular policies for delivery persons. Sometimes the policy can be supplemental coverage to a personal insurance policy.

Uber maintains commercial car insurance for drivers to help protect you in case of an accident while making a delivery on the Uber app. Here’s how it works.

On the other hand, Uber offers commercial car insurance named Driver-Partner coverage to protect drivers in case of a covered accident while making a delivery.

Close-up Of A Person's Hand Filling Commercial Insurance Form

But they offer the coverage at a fee and under conditions. For example, the coverage is active and valid only when the Uber app is on.

Lyft, another delivery service platform, also offers help to drivers for contingent liability coverage, but only when the app is indicating that it is in driver mode.

What factors affect delivery driver insurance rates

The factors that affect delivery driver insurance rates include:

  • Related risk of driving: delivery driving has related risky habits that could lead to accidents such as rash driving, speeding, cutting sudden corners, or sudden braking
  • High mileage driving, especially for rural deliveries or full-time delivery employment
  • Rush hour deliveries, which are prone to accidents and compensations
  • Multiple claims: delivery drivers are prone to accidents making them have high claim rates, which is risky to insurers

Final Thoughts

If you’re a delivery driver, you need additional insurance on top of your typical personal car insurance. This ensures that you’re covered and safe in the event of an accident or severe damage.

If your employer does not offer delivery driver insurance, look for insurance providers who will provide you with excellent protection for delivery services.