What car insurance do delivery drivers need? Whether you are working a side hustle or a full-time job as a delivery service provider for businesses that need transportation, you are exposed to certain risks, and unlike normal drivers, the need for insurance is important. Since you frequently use the road, especially during high-traffic hours, you need specialized coverage to safeguard you against potential risks associated with your job type.
Besides, delivery driving is a type of job that is gaining popularity. Thus, you might have a personal auto insurance quote that covers your vehicle because your state makes it mandatory to have coverage. You might also think that your current insurance quote is sufficient to cover your business gigs. But what if I told you that it might not? This is why you need to understand what form of car insurance is essential for delivery drivers.
What Car Insurance Do Delivery Drivers Need?
Delivery drivers need certain forms of auto insurance to cover the specific risks associated with their profession. When it comes to business-related activities, a standard personal auto insurance policy has exclusions. Here are the types of car insurance a delivery driver needs:
Commercial Auto Insurance
This form of auto insurance is designed for vehicles used for business purposes only. It also offers wider coverage, unlike personal auto insurance. Moreover, commercial auto insurance usually includes uninsured/underinsured motorist coverage, liability coverage, comprehensive coverage, and collision coverage. Therefore, it covers injuries, damage to the company’s vehicle, and damages caused by others as well.
Rideshare Insurance
Rideshare insurance is necessary for delivery drivers working for companies that use rideshare platforms like Uber, DoorDash, and many more. In other words, this form of coverage is meant for drivers who use their vehicles for delivery or rideshare services. Coverage for comprehensive losses incurred, liability, and collision is included. Additionally, rideshare insurance helps to fill the gap between coverage offered by rideshare companies and personal auto insurance.
Other Optional or Additional Options to Consider Include:
- Cargo insurance.
- Delivery van insurance.
- Non-owned auto insurance.
- Cargo insurance.
- Personal Injury Protection (PIP).
- Umbrella insurance.
- Workers’ compensation insurance.
Do Delivery Companies Cover You in an Accident?
Each delivery company has its policies in terms of auto insurance for its drivers. Although most companies provide a specific version of rideshare insurance, it might only become active after your car insurance policy has expired. Hence, a commercial auto insurance policy might be a good option if you are driving or working for different companies. So, its coverage comes in if you ever get involved in an accident.
Where to Get Car Insurance for Delivery Drivers
Here are some of the top insurance providers for delivery drivers. Whether you wish to stay with your current insurance company or wish to find a new insurance provider, you can consider purchasing a policy from these companies:
- Geico: Known for its customizable coverage and competitive rates for delivery drivers.
- Farmers: Known for its tailored insurance quotes for commercial and delivery drivers.
- Progressive provides specialized coverage options for delivery drivers with incredible flexibility.
- Allstate provides different insurance quotes, including those customized for delivery drivers.
- Travelers: Best for comprehensive coverage options, including delivery driving.
- State Farm offers comprehensive insurance solutions and outstanding customer service.
- USAA: Best for special insurance for delivery drivers, specialized for military families.
- Liberty Mutual offers coverage to meet the needs of delivery drivers.
- Nationwide: well-known for its customizable coverage focusing on commercial and delivery use.
Apart from specialized insurance providers, there are other means to get the right auto insurance policy as a delivery driver. You can work with an insurance broker, check out online insurance marketplaces like The Zebra or Compare.com, or try out local insurance agents to get personalized advice and services based on your needs.
Frequently Asked Questions
What should I do if I have an accident while delivering?
If you get involved in an accident while driving, you need to report to your insurance company and the delivery company promptly. Make sure that you document the damages properly, like getting witness statements and taking photos and videos to support your claim.
Do I need commercial auto insurance if I only deliver part-time?
Whether you are delivering part-time or full-time, you need a commercial auto insurance policy or a rideshare endorsement. This is because one of the exclusions of personal auto insurance is coverage for business-related activities.
Will my personal auto insurance cover me while making deliveries?
As mentioned previously, delivery driving and other commercial activities are not covered by personal car insurance. This is why you need to have a special policy like rideshare insurance or commercial auto insurance to ensure proper coverage.
Can I use my personal vehicle for delivery without additional insurance?
Additional insurance is usually needed, especially if you are using your personal vehicle for business-related delivery. You might also need commercial or rideshare insurance for adequate coverage, depending on your state regulations and the policy of your delivery company.