What Is Delivery Driver Insurance?
Though personal auto insurance coverage is intended to protect policyholders when they’re behind the wheel, it won’t often cover incidents if the driver is operating the vehicle for business use. If you’re using your car to make deliveries—especially through an on-demand platform like Postmates, Uber Eats, and the like—you may be financially endangering yourself and your assets.
Rather than risking a denied claim and being forced to pay for damages and injuries out of pocket, policyholders should consider purchasing delivery driver insurance coverage. This coverage aims to protect drivers even when they are working from an on-demand delivery app, usually at a low monthly cost.
Does My Employer Cover Accidents When I’m Working?
Some delivery platforms will offer protection to drivers when they are actively working, though it’s important to know that the coverage limitations will vary.
For example, certain companies will only cover drivers when they are on a delivery route and the items (food, groceries, or passengers) are in the vehicle. If you are on your way to pick up the item(s) and get in an accident, you may not be protected by the platform’s coverage.
At the same time, you may not be covered by your personal auto policy if you’re on your way to or from a delivery. This grey area is why delivery driver insurance is so important.
Who Needs Delivery Driver Insurance?
Some companies provide insurance coverage for their delivery drivers, especially if the drivers are considered employees (versus independent contractors). This is often the case when it comes to pizza delivery drivers or even courier firms.
If you are using your own vehicle to make deliveries as an on-demand and/or contracted driver, though, you are likely responsible for your own auto insurance. Depending on which platform you drive for, you may be automatically protected when you have a delivery/package in your vehicle and are on an active route. However, this delivery platform coverage doesn’t always extend to the period immediately before or after the delivery takes place.
This can result in a grey area, where the delivery platform’s coverage might not extend to you in an accident and your personal insurance policy may not cover you. Because of this, you will need to purchase delivery driver coverage through your chosen insurance carrier. That way, you are protected at all times, whether you’re driving for personal or business reasons.
Be sure to ask your insurer whether delivery drivers are protected and, if not, which coverage can be added onto your policy to provide this protection. Also, it’s important to note that rideshare insurance often covers drivers who are working for ride-hailing companies (meaning, driving passengers), though they often exclude deliveries such as groceries, food, or medications.
How Much Does Delivery Driver Insurance Cost?
If you’re looking to earn extra cash to pay off debt or boost your budget, on-demand delivery driving can be a flexible and lucrative option. Having to pay significantly more for your auto insurance coverage can really eat into those earnings, so it’s important to shop around for the best and most affordable delivery driver insurance.
You can expect rideshare coverage to add approximately 15% to 20% onto your existing personal policy premiums. Of course, this may vary depending on factors such as the coverage you have, your location, and how many miles you drive for business each year.
How We Chose the Best Delivery Driver Insurance Companies
In order to provide this guide, we looked at more than 15 of the top insurance carriers in the United States. We compared the type of coverage offered to delivery drivers and whether it was limited to ride-hailing platforms only. We also compared important factors such as the cost for delivery driver insurance coverage, consumer ratings, and the availability of this coverage across the country.
— to www.investopedia.com