Delivery Driver Insurance Explained: Coverage, Pricing, etc

Personal auto insurance does not cover accidents that occur while you’re using your vehicle for business reasons, such as pizza or food delivery. As a delivery driver, you may want to or be required to purchase a different type of auto insurance to protect yourself and your vehicle on the job.

Many chain and national food delivery companies, such as Pizza Hut and Papa John’s, carry hired and non-owned vehicle liability insurance — which covers drivers who are on the clock. However, companies like Domino’s, Jet’s Pizza, and Hungry Howie’s, as well as on-demand food delivery services like GrubHub, DoorDash, and Postmates, don’t carry this type of insurance. Some smaller franchises may have liability insurance but may not have enough coverage for delivery drivers. If you are delivering for any of these types of companies, you will need to purchase and maintain your own auto insurance.

Below we detail what you need to know about delivery driver insurance — otherwise known as commercial auto insurance — and which companies offer the best policies.

Table of Contents

What Does Delivery Driver Insurance Cover?

Auto insurance policies include two primary types of coverage: bodily injury and property damage. While personal auto insurance provides separate coverage for each type, commercial auto insurance combines these into a single policy and insures them for higher amounts.

For personal auto policies, insurance companies usually recommend coverage of around $300,000 for bodily injury and $50,000 for property damage. However, commercial auto insurance provides much higher coverage, typically offering up to $1 million for combined property damage and bodily injury. (The Insurance Information Institute recommends at least $500,000 in liability coverage for commercial auto insurance policies.)

In addition to property damage and bodily injury, some policies may also offer coverage for medical payments, uninsured and underinsured motorists, collision damage, comprehensive damage, and even roadside assistance, depending on the policy you choose.

Insurance Companies That Cover Delivery Drivers

Virtually all insurance companies offer some form of commercial vehicle insurance. However, there are some important factors to consider when choosing a commercial auto policy for your personal delivery vehicle:

As a delivery driver, you will likely be insuring only one vehicle for business use. This can make a difference in the policy you choose, as some commercial auto insurance is designed for delivery companies with multiple drivers or fleets of business-owned vehicles.
In addition to standard commercial auto insurance, some companies also offer insurance designed specifically for people who use their personal vehicles for business purposes through on-demand apps, and these policies can sometimes cover delivery drivers.

The Best Insurance Policies for Delivery Drivers

In the course of our research, we found that the following insurance companies offer the best policies available for delivery drivers.

State Farm

State Farm offers affordable policies with bundled discounts, and also features a delivery driver add-on for personal insurance policies. Its delivery driver/rideshare option will cover your vehicle for business use, whether you deliver for a national chain or an on-demand delivery app, and includes rental reimbursement and emergency roadside service.

Progressive

Progressive offers insurance tailored specifically toward pizza and food delivery drivers. Its prices vary depending on your vehicle type and insurance claim history, as well as the coverage options you choose; after you request a quote, Progressive will help you determine the amount of coverage that is adequate for you.

GEICO

GEICO offers a hybrid personal and commercial insurance policy designed expressly for people who drive for on-demand delivery apps. GEICO’s policy covers drivers for Amazon Flex, Grubhub, DoorDash, Instacart, Postmates, and Uber Eats and can provide coverage for drivers working with multiple apps.

Esurance

Esurance provides fully-online insurance services for both policy creation and claims. It is one of the lower-priced options for delivery driver insurance; it offers a variety of discounts for commercial policies, including discounts for auto-pay and vehicles with antilock brakes.

The Hartford

The Hartford offers flexible, customizable commercial auto insurance policies. It also provides downtime loss coverage and rental reimbursement, so you’ll have additional coverage if your vehicle is involved in an accident, and if you’re unable to work until it’s repaired.

Nationwide

Nationwide offers multiple commercial auto coverage options and customizable policies. Its rates vary depending on the details of your policy but are competitive compared to similar insurance options. Customer reports online note that Nationwide typically provides strong customer service and quick claim settlement.

Other Companies That Offer Delivery Driver Insurance

More insurance companies that offer commercial auto insurance include:

Delivery Driver Insurance Pricing

Commercial auto insurance costs can vary significantly depending on several factors, such as your vehicle, your state, your driving record, and the types of coverage you need.

Commercial Auto Insurance

For commercial insurance policies, small business insurance specialists with Insureon estimate that a commercial auto policy costs around $1,700 per year ($140 per month) for a policy with $1 million in coverage. However, this average includes small businesses with multiple covered vehicles. If you’re insuring a single car for business purposes, the price will be around $1,500 per year ($125 per month) or less, on average.

Add-On Policies for Delivery Drivers

Rideshare and delivery driver add-ons can be less expensive than full commercial insurance policies, provided you have a good driving record. In general, rideshare insurance add-ons cost an average of $20 more per month on top of your personal auto policy.

For example, GEICO’s rideshare insurance costs about $20 to $25 more per month than personal auto insurance alone, agents told us. State Farm agents we spoke with also stated that their rideshare add-on costs around $15 to $20 extra per month for delivery drivers.

For more information about purchasing auto insurance, check out our article on purchasing auto insurance online with a checking account.