Commercial Auto Insurance For Delivery Drivers – If you deliver for Instacart, Doordash or Uber Eats, you need additional auto insurance coverage. It can be rough, especially when you consider all the other expenses associated with being a delivery driver.
Thankfully, there are carriers and plans available starting at $10/month, and even ways to lower your bills up to $550.
Commercial Auto Insurance For Delivery Drivers
Insurance is a nasty thing, honestly. But, it helps protect you from many liabilities, should an incident occur. Yes, save it. You may have to pay some cash on a monthly basis, but what about how much you’ll save in the event of an accident?
What Is Commercial Auto Insurance?
You can get delivery driver insurance from a variety of private insurance companies, but you should shop around before settling on one. Excellent delivery driver insurance offers comprehensive coverage, large policy limits, low premiums and simple purchase options.
No, it won’t. As soon as you get into your car and log in to start a delivery job, commercial auto insurance becomes mandatory.
Your personal auto insurance may not be enough, depending on how often you drive your car for deliveries. Personal coverage extends only to social use and basic travel, but excludes business use.
The difference in liability coverage between business and personal use is significant. Business policies are meant to limit the risks of owning and operating a business, in our case, driving for Uber or Instacart.
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Rideshare insurance add-ons range in price from $6 per month with USAA and Mercury to $20 per month with GEICO. Since plans are not available in every state for every beneficiary, double check which states cover you.
GEICO offers ridesharing insurance, which is a more comprehensive plan that eliminates the need for any supplemental costs.
Most insurance providers that cover rideshare and delivery driver insurance offer it as an add-on. This means that you can get coverage for accidents or incidents while working as a delivery or rideshare driver for some additional cost.
With personal auto insurance, the total cost with delivery driver auto insurance can be between $150 and $350. But everything depends on the insurance provider, your needs and some other factors.
Commercial Motor Insurance
Just considering the rideshare and delivery driver insurance portion, you could pay an extra $5 to $30 on top of your existing personal insurance.
If your current policy does not cover rideshares in your state, you may want to consider switching. You can also check out commercial auto insurance, which usually costs around $1800 a year on average.
Payments for this insurance may also be deducted from your income tax depending on your state and may include bonuses such as roadside assistance, cheaper insurance prices for other products you may be interested in, and discounts for responsible drivers.
There are two ways you can get insurance for delivery or rideshare services. One way is to get company-provided insurance.
What Is Rideshare Insurance?
Uber and Uber Eats provide liability insurance, and so do Lyft, DoorDash, PostMates, etc. Even if you have access to these options, they may not be enough to protect you from all risks while delivering or driving.
We will discuss the details of each of these insurance programs later. At this point, we simply mean that you will need an additional level of insurance to legally work in a professional capacity.
Given that food delivery can be somewhat dangerous, it is important to have insurance for your personal protection and that of others on the road.
Along with the dangers of driving on the road, there is the risk of facing angry customers. Remember what happened to Willie Solis? Or the gruesome murder of Karen Hassan?
Best Delivery Driver Insurance Of 2023
As a delivery or rideshare driver, you need the right type of coverage to protect your savings. The more time you spend driving, the more likely you are to have an accident.
Some people may find car insurance for delivery drivers worthwhile, while others may not. This depends on your unique needs, as well as the type of coverage (if any) provided by the delivery firm. This will vary from company to company.
Geico is one of the most comprehensive commercial auto insurance providers. They have high satisfaction scores and a good reputation, which makes getting insurance from Geico worthwhile.
Geico auto insurance for delivery drivers and rideshares is slightly more expensive than insurance for personal use. But it offers more coverage and lower deductibles than Uber and Lyft insurance.
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For better information about Geico insurance products, we recommend contacting a local agent. In some instances, insurance companies have rules and policies that are explained by a company representative.
If you go on to work as a delivery driver, your insurance provider may insist that you get the required coverage. For example, we found a user on Reddit who claimed that Geico asked them to terminate their contract with Uber or take out Geico commercial insurance. Follow here for the full story.
To get 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 applies when delivering food.
Fill out the car insurance application and click on the option that says “I also use this vehicle for ridesharing” to get a free quote online.
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You can file a claim online, through a mobile app or by calling customer care. Progressive Auto works with a network of body shops, but you can choose any automobile repair shop if your vehicle breaks down during delivery.
Allstate may not cover every rideshare and delivery service, but they do provide coverage for major services. If you have an Allstate personal car insurance policy with add-ons, most endorsements, such as accident waivers and rental car reimbursement, will apply when driving for delivery services.
Whatever endorsements you have on your personal auto policy will apply immediately whether you deliver goods or food or transport passengers.
With Allstate’s ride for hire delivery driver insurance, we found that there wasn’t much information available online about coverage limits, deductibles or savings. If you would like a free quote or purchase support, you will need to contact the local agency.
Overview Of The Business Auto Policy
USAA offers flexible delivery driver insurance in most areas, and the company ranks customer service satisfaction high.
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 limits provided. By connecting to your USAA account online, you can get a free quote and add rideshare support to your existing policy.
If your vehicle gets damaged during the delivery run, you can easily claim online or using the mobile app. We also love that you can get a vehicle repair warranty at one of USAA’s many auto body shops.
Does Your Auto Insurance Cover Your Delivery Driving?
During the pandemic and the imposed lockdown, Farmers Insurance began offering insurance coverage to delivery drivers. The intention to provide the same was similar to that of other companies. However, Farmers Insurance began to cover drivers in areas where it was not covered.
Even better, there is no additional charge for farmer insurance. While delivery services are typically excluded from standard auto insurance policies, this temporary change to Farmers-branded policies will allow consumers to expand their existing personal auto and motorcycle 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 reasons. ‘Period 1’ starts when you activate your ridesharing app and wait for a ride request.
‘Period 2’ involves going to the pick up area for your passenger or package. Finally, ‘Period 3’ is when you have passengers in your vehicle.
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Insurance providers are offering rideshare policies to bridge the gap between your personal insurance and the coverage provided by rideshare companies. They each fill the void in their own way.
Period 1 is the most dangerous period. Many insurance companies do not extend commercial coverage for this period and the same applies to personal coverage.
As on-demand delivery and ridesharing services like Instacart, DoorDash, Uber and UberEats grow in popularity, questions about insurance coverage have become more important. Whether you are a driver or a consumer, understanding what auto insurance is for these services is essential.
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 when they are actively engaged in making deliveries 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.
Commercial Fleet Insurance
In this case, the driver’s personal auto insurance policy is likely to apply. It’s important to note that many personal auto insurance policies exclude coverage for business activities, so Instacart drivers need to make sure their insurance provider has the necessary coverage.
DoorDash is a food delivery service that also relies on using drivers