If you drive for an app like Postmates or UberEats, do you need to purchase a commercial car insurance policy? Your personal auto insurance might not provide you enough coverage as a delivery driver. Though these types of apps may offer limited coverage to you as a driver, exploring commercial car insurance options can help you secure multiple layers of protection. 

Best Delivery Driver Insurance

If you earn money driving deliveries, you are using your car for commercial purposes — even if you drive only once in a while. Many auto insurance providers also offer a rider or extension that applies your current policy to your delivery periods for a small additional monthly fee. However, most insurance providers require that you already have a policy through their coverage before you can add delivery driver coverage. Explore a few of the best insurance companies offering delivery driver insurance below. 

USAA

USAA is a unique insurance provider that offers a delivery driver add-on coverage to its standard range of auto insurance options. Unlike some delivery driver insurance providers, USAA’s add-on coverage keeps you protected for multiple types of commercial auto activities that might otherwise require a commercial auto insurance policy. For example, your coverage extends past delivering food to include traditional ridesharing as well. If you’re involved in an accident, you can quickly complete a claim online or through USAA’s mobile app. You’re also guaranteed repairs at more than 2,900 USAA-approved locations nationwide. This feature helps you rest with the peace of mind that comes with knowing that only professionals are working on your vehicle.

Unfortunately, not everyone will be able to purchase a car insurance policy with USAA. The company only provides policy options to active members of the armed services, veterans and select members of service members’ families. You must already have your auto insurance issued through USAA if you would like to take advantage of delivery driver insurance. If you already have an auto insurance policy through USAA (or you still need car insurance and you qualify for coverage), this insurer is worth considering for its low rates. 

Erie Insurance

If you’re like most delivery drivers, you’ve probably been coasting on your personal auto insurance policy while transporting food to customers. However, you might be surprised to learn that your personal auto insurance policy may not cover you under all circumstances when you’re delivering because you’re using the vehicle for commercial purposes. This means that if you have an accident while you’re working to visit a restaurant or deliver to a customer, you could find yourself without financial coverage for your vehicle.

Erie Insurance makes auto insurance easier for delivery drivers by offering a limited “business use” designation on your personal auto insurance plan. This convenience adds only a small increase to your personal auto insurance but ensures that your vehicle is always covered, no matter if you’re using it for deliveries or standard usage. Erie Insurance also saves you from needing to invest in an entirely new commercial auto insurance policy, which is often more expensive than personal insurance. Like USAA, you’ll already need to be an Erie Insurance customer to add this designation to your policy and take advantage of the protection.  

Progressive

Progressive is one of the only auto insurance providers that specifically extends coverage to food delivery drivers. While you’ll also be covered for ridesharing activities under Progressive insurance, the company has created a package insurance policy that covers all aspects of food delivery as well. This feature can help you drive easier knowing that you’re protected no matter if you’re transporting food, picking up passengers or simply using your vehicle to run errands. This optional coverage can be added to any personal Progressive auto insurance policy.

Progressive even offers a deductible reimbursement that can help cover the difference between your ridesharing company’s insurance deductible and the deductible on your personal policy. Ridesharing companies like Uber and Lyft provide limited insurance when you’re actively driving a customer to their destination but may not offer coverage when you’re picking them up. If you’re involved in an accident and need to use your ridesharing insurance, Progressive will reimburse you the difference between your personal auto insurance and your ridesharing insurance. For example, if your ridesharing policy has a deductible of $1,000 and your Progressive insurance policy has a $200 deductible, Progressive will provide you with $800 to make up the difference when you file a claim. 

Allstate

Allstate is a nationwide insurance provider offering personal and commercial car insurance throughout the country — which means that you might already have an auto insurance policy with the company. If you do, you’ll want to consider adding auto insurance riders to your current coverage, as any rider that you have on your personal policy covers you when you’re driving for a ridesharing app. Allstate’s Ride for Hire insurance, despite its name, also applies when you’re delivering for an app like Uber Eats. If you drive delivery and you’re looking for affordable add-on protection for ridesharing, Allstate can provide you with a one-stop-shop to get covered. 

Who Needs Delivery Driver Insurance?

Many types of delivery drivers can benefit from special auto insurance protections. However, depending on your employment status and the company that you deliver for, you may already have some form of protection. For example, if you work for a chain delivery restaurant like Domino’s Pizza, the owner of your franchise may have already purchased commercial car insurance for the vehicle that you drive. Be sure to check with your management team before you purchase an individual policy so you understand when you do and do not have coverage. 

If you use your personal vehicle to deliver food for a ridesharing app, you will likely need to purchase an extension on your personal auto insurance policy that clears you for commercial use. Some examples of apps that require drivers to use their personal vehicles include companies like Grubhub and DoorDash. Though these companies may provide you with a limited amount of protection, they will not provide you with commercial-level coverage. Depending on your current insurance policy, you may not be able to file a claim with your insurance provider if you’re involved in an accident while delivering. 

Do Delivery Drivers Need Commercial Auto Insurance?

Technically, using your personal vehicle to perform food deliveries is commercial use of a vehicle. Insurance companies do not allow personal auto insurance policies to provide coverage when you’re working or providing commercial services because these drivers file more claims. This means that commercial insurance policies are more expensive than personal policies.

If the only food delivery you’re doing is through an established app or ridesharing company, you probably won’t need to purchase a separate policy to do business. Instead, you can purchase gap coverage that fills in the gray area between when your app’s insurance is in place and when you’re using your personal vehicle. Most ridesharing companies have policies that protect you when you’ve got a passenger or delivery in your vehicle, but you may not be covered beyond this time. If you own a restaurant or deliver on behalf of a small business, you will likely need to purchase a separate commercial auto insurance policy unless you already have commercial coverage through your employer. 

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