Safety is key when working a delivery job, and that includes proactively securing yourself and your car from incidents. Without certain protections, an incident could result in hefty medical and vehicle maintenance costs. That’s where delivery driver insurance enters the picture.
Delivery driver insurance is a kind of auto insurance designed to cover drivers who use their personal vehicles to deliver goods or services. Standard personal auto policies may not fully cover incidents that occur while a vehicle is being used for commercial purposes, such as making deliveries. Plans like delivery driver insurance help bridge this divide, providing the necessary protection so you can work with peace of mind.
Why get delivery driver insurance?
Delivering from restaurants, grocery stores, and other merchants might seem straightforward, but the minute you hit the road for work, your personal auto insurance might not be enough to keep you fully protected. Delivery driving comes with unique risks, including navigating busy streets or unfamiliar roads. Without delivery driver coverage, an accident or event could leave you facing repair expenses, doctor bills, and third party claims. Let’s explore why delivery driver insurance is beneficial.
Stay protected beyond personal auto insurance
A standard personal auto policy may exclude coverage for commercial activities like delivery driving. If you are in an accident while delivering goods to customers, you could face legal and financial consequences for not having sufficient coverage. Delivery insurance may ensure you meet legal requirements, avoiding risks such as fines, license suspension or costs to defend a claim, and pay damages to an injured person.
Meet employer or platform requirements
A standard personal auto policy may exclude coverage for commercial activities like delivery driving. If you are in an accident while delivering goods to customers, you could face legal and financial consequences for not having sufficient coverage. Delivery insurance may ensure you meet legal requirements, avoiding risks such as fines, license suspension or costs to defend a claim, and pay damages to an injured person.
Guard against liability risks
Liability coverage is crucial if a driver is at fault in an accident, as it covers the cost of damages to other vehicles or property, and expenses due to injury to other persons. A delivery driver plan would also provide defense costs, so you don’t need to pay for your own lawyer.
Cover medical expenses
Accidents happen, even to the most cautious drivers, and medical bills can add up. Delivery driver insurance may cover these expenses, giving you peace of mind while you’re on the road. It can include personal injury protection (PIP) or medical payment coverage, which helps cover medical expenses for the driver if they’re injured in an accident, regardless of fault.
Coverage against uninsured or underinsured drivers
Not everyone on the road has adequate insurance. If you’re hit by an uninsured or underinsured driver while out for delivery, you could be stuck covering your own costs. Delivery driver insurance may protect you in these situations. This coverage addresses your injury costs if the uninsured or underinsured vehicle is at fault.
Key features of delivery driver insurance
It’s easy to assume nothing bad will happen while you’re out making deliveries. However, proactive measures are much more effective than reactive ones. For instance, it’s easier to pay monthly auto insurance rates than shell out large sums if your vehicle gets damaged in a collision.
So, what does delivery driver insurance typically cover? While each option is different, there are a few elements that are consistently provided by this type of plan:
- Liability coverage: Covers damages or injuries caused to others while you’re delivering, as well as legal costs.
- Collision coverage: Pays for repairs to your vehicle if it’s damaged in an accident while you’re on a delivery job.
- Comprehensive coverage: Covers non-collision-related damages, such as theft or vandalism, while you’re on the job.
- Uninsured/underinsured motorist coverage: Protects you if you’re injured in an accident with an at fault driver who lacks sufficient insurance.
- Medical payments or personal injury protection: Covers medical expenses for you after an accident.
Types of insurance available to you
There are several coverage options for you to choose from when building your plan. Here is a breakdown of a few of them:
Occupational accident insurance
Designed for independent contractors like Grubhub delivery partners, this type of insurance covers things such as lost wages and medical expenses if an accident occurs while you’re working. It’s a great safety net for delivery drivers who don’t have full-time employer benefits. Grubhub offers occupational accident insurance to all delivery partners at no cost—learn more.
Rideshare or delivery endorsement
Rideshare coverage and delivery endorsements are add-ons to your personal car insurance policy that offer additional protection when you use your car for purposes like driving for a rideshare company or a delivery service. Specifically, this option protects you during the period when you’re in the vehicle to pick up a delivery but haven’t accepted a job on the app yet.
Commercial or personal auto insurance
While these two types of plans are similar, they’re not quite the same. A commercial auto insurance policy covers vehicles used for business purposes, including making deliveries. Personal auto insurance covers everyday personal activities. The physical damage and liability coverages below would be part of the commercial or personal auto insurance.
Physical damage coverage
Physical damage coverage includes collision and comprehensive coverage. It helps repair or replace your car if it’s damaged in a crash, stolen, or affected by natural disasters while working deliveries. This is important because your car is the way you make money. You can also add “substitute transportation” coverage if you purchase physical damage coverages so that you can rent a car while yours is being repaired.
Uninsured/underinsured motorist coverage
This type of coverage option protects you financially if you’re injured in an accident caused by a driver with little or no insurance.
Liability-only delivery insurance
For drivers seeking the most affordable option, liability-only insurance is a good choice. It covers damages to others in accidents where you’re at fault but doesn’t include coverage for your own vehicle. This means it’s a good add-on for traditional delivery driver insurance, giving you extra protection for costs associated with incidents involving other drivers. It also does not include coverage for your injuries.
Delivery driver insurance FAQs
Still have some questions that need to be answered before selecting your type of coverage plan for delivery driving? Below are some of the top queries to help you out. And remember, you should always consult with insurance professionals to select policies that comply with all state and local insurance regulations and coverage limits. Be sure to advise your insurance professionals that you are doing deliveries, so that coverage addresses what you are doing.
What’s the average cost of car insurance for delivery drivers?
The cost of your coverage will depend on several factors, including what type of vehicle you drive and whether you want minimum or more robust coverage. Other considerations include your location, driving history, and how many hours you spend on the road. The average auto insurance rates are $150-165 a month, according to The Zebra.
Do delivery services provide insurance coverage for drivers?
It depends on the delivery company that you’re driving with, but many don’t. Grubhub offers occupational accident insurance at no cost to delivery partners to cover medical expenses and some disability benefits resulting from delivery-related injuries, however you should also have your own delivery driver insurance coverage in place so you can do your job well without worrying about the associated risks.
Where can delivery drivers get insurance?
Finding delivery driver insurance isn’t as complicated as it might seem. Several insurance providers offer coverage tailored to delivery drivers. Below are some of the best places to explore your options:
- Your current auto insurance company: Many personal auto insurance companies offer delivery endorsements or add-ons to existing policies. Start by contacting your current insurer to see if they provide coverage for delivery drivers. Adding a rideshare insurance plan or delivery endorsement can be a cost-effective solution for many drivers.
- Commercial auto insurance providers: Commercial car insurance providers like Progressive, GEICO, or State Farm often have specific policies meant for delivery and rideshare drivers, ensuring your needs are fully met.
- Specialized auto insurance coverage providers: Some companies specialize in providing coverage for gig workers. Providers like CoverWallet, Buckle, or Next Insurance offer flexible plans designed for drivers using their vehicles for food, package, or grocery delivery.
- Independent insurance broker: An independent insurance agent can help you compare policies from multiple providers and find the best fit for your needs and budget. They can also explain the differences between personal insurance, hybrid insurance, and commercial insurance to ensure you’re adequately protected for your delivery work.
- Online insurance platforms: Online platforms like The Zebra, Policygenius, or Insurify allow you to compare multiple insurance providers quickly. These tools are especially helpful if you want to explore a wide range of options and get quotes tailored to your needs.
Having the right insurance coverage is crucial to staying safe, legal, and confident while delivering goods. Don’t wait for an accident to take action—secure your delivery driver insurance and get behind the wheel with peace of mind.
