The Best Delivery Driver Insurance Companies

Personal auto protection when using your vehicle to make deliveries

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These days, being an on-demand delivery driver is a common—and potentially lucrative—side hustle option that allows you to earn money around your schedule. Whether you’re delivering food, groceries, medicine, or Amazon orders, however, you’ll need to ensure that you have the right auto insurance coverage in place.

Many drivers don’t realize that their existing auto insurance may not cover them in an accident if they are using their personal car for side hustle deliveries. That’s often the case, even with a full coverage policy in effect. That could mean you’re on the hook for thousands (or even tens of thousands) of dollars in damages if you’re in an accident, putting your family’s assets at serious risk.

Some companies may provide temporary insurance coverage for drivers while they’re actively on a delivery. However, you’ll want to read the fine print to understand when you’re covered and the limitations of coverage. Then, you’ll need to ensure that your personal policy covers you the rest of the time.

The following guide was created to help you find the best delivery driver insurance policies for you, based on the type of deliveries you make. We compared coverage from more than 15 carriers to determine who offers the most comprehensive protection to drivers at the best possible rates.

The Best Delivery Driver Insurance Companies of 2021

The Best Delivery Driver Insurance Companies
The Best Delivery Driver Insurance Companies

Best Overall : GEICO

GEICO

 GEICO

GEICO offers a comprehensive personal auto insurance policy intended to cover drivers no matter when or why they’re on the road. Protection extends to various gig platforms, including ridesharing, Amazon delivery, and more, making it our overall top pick for simplicity and comprehensive coverage.

Pros
  • Rideshare insurance is a hybrid policy rather than an add-on benefit

  • Coverage extends to on-demand delivery and ride-hailing service drivers

  • Policyholders can drive for several companies at once

Cons
  • Not available in all states

  • Switching back to a personal policy is a bit more involved

Our overall top pick for delivery driver insurance is GEICO, an auto insurance carrier that has been around since 1936 and has received a top A++ rating from AM Best. GEICO currently underwrites policies for more than 28 million vehicles across the country and offers a hybrid rideshare insurance policy to drivers in 40 states.

With GEICO’s rideshare insurance policy, drivers are protected when driving for companies like Uber, Amazon, Lyft, and more. Deductibles start as low as $250 on this policy. Coverage options may vary depending on the state you reside.

GEICO’s rideshare insurance product is a standalone, hybrid policy that offers 24/7 coverage whether you’re driving for personal reasons or working through an on-demand platform. This is different from most rideshare coverage options through other carriers, most of which just allow drivers to add-on coverage to an existing personal auto policy.

This can get a bit tricky if and when you decide to stop driving for a delivery platform, as you’ll need to convert back to a personal auto policy (rather than simply removing an add-on coverage option). To do that, you’ll need to provide proof that you’ve stopped driving for those companies, which could be in the form of a deactivation statement.

Best for Food Delivery : Progressive

Progressive

 Progressive

While rideshare coverage is often designed to cover drivers with passengers, Progressive’s coverage also extends to delivery drivers, such as those working for platforms like DoorDash and Uber Eats. Because this rideshare insurance coverage is more flexible than most, Progressive gets our top pick for food delivery drivers.

Pros
  • Coverage includes a variety of on-demand services, including ridesharing, food delivery, and grocery delivery

  • No commercial coverage is needed

  • Rideshare insurance protection is a simple add-on to an existing personal auto policy

  • Deductible reimbursement is available

Cons
  • Coverage isn’t available in all states

  • Even if Progressive’s rideshare insurance is available in your area, it may not include grocery or food deliveries where you live

With an auto insurance history dating back to 1937, Progressive has been an innovative carrier for more than 80 years. In fact, it was the first U.S. insurer to create a drive-in claims location, the first to offer comparison rates and the ability to buy a policy over the phone, and was the first auto insurance company to have a website.

It’s no surprise, then, that this carrier is also at the forefront of providing flexible coverage for the gig economy, designed to protect drivers even when they are using their vehicle for part-time work. That’s why Progressive snagged our top spot for food delivery drivers. Whether you opt to only deliver food or want the flexibility to deliver groceries and/or offer ride-hailing services, Progressive’s rideshare insurance coverage is there to protect you.

This coverage is offered as an add-on to an existing personal auto insurance policy (there's no need to purchase a commercial policy), giving side hustlers an affordable way to protect themselves behind the wheel whether they’re driving for Uber Eats, DoorDash, or even platforms like Instacart and Lyft.

With Progressive’s rideshare coverage, drivers can maintain their existing coverage limits and deductibles whether they are driving for personal reasons or are earning within a delivery platform. Just keep in mind that if the delivery platform also offers coverage when drivers are actively delivering an order, Progressive’s coverage will be secondary during that time period.

It’s important to note that as of this writing, Progressive’s rideshare insurance coverage is only offered in 34 states plus the District of Columbia. And in some states, that rideshare coverage may be restricted to ride-hailing services only. (If rideshare coverage on a personal auto policy is not yet available in your state, though, Progressive may still offer commercial coverage to suit your needs.)

Progressive holds an A+ (Superior) financial strength rating from AM Best. In addition, Progressive ranks seventh in the most recent JD Power Auto Insurance Industry study. According to the National Association of Insurance Commissioners (NAIC), Progressive auto insurance received a 1.33 complaint index in 2019. This indicates that the company received a bit more consumer complaints than expected for their size.

Best for Grocery Delivery : State Farm

State Farm

State Farm

State Farm is a trusted, highly-rated insurer that offers policies in nearly every state. Though it does have a rideshare insurance product, that is generally not required if you’re only delivering groceries, potentially saving you time and money while staying safely insured. This makes State Farm our top pick for anyone needing auto insurance coverage for grocery delivery services.

Pros
  • Available in 46 states and the District of Columbia

  • Rideshare insurance is offered, but not needed for grocery and food deliveries

  • Coverage only requires a lower-cost “business use” designation

  • State Farm is No. 36 on the 2020 Fortune 500 list

Cons
  • Online details are a bit vague

  • Policies are only sold through agents

Founded in 1922, State Farm has been providing auto insurance coverage for nearly a century. 

The company is not only 36th on the 2020 Fortune 500 list, but it also received sixth place in the 2020 J.D. Power Auto Claims Satisfaction Study and a strong 881 rating. It also holds an A++ (highest possible) financial strength rating from AM Best.

Though State Farm operates in all 50 states plus the District of Columbia, rideshare insurance coverage is only available in 46 of those states (and the district). This designation may not even be needed if you’re delivering groceries, though: according to agents that we spoke with, a “business use” notation on an existing personal coverage policy is typically all that’s needed as long as you’re not driving other people. You don’t actually need rideshare insurance coverage for things like food or grocery deliveries, which is precisely why it snagged our top spot in this category.

Some delivery platforms offer limited coverage while you’re actively delivering an order. On the way to pick up that delivery, though, or on the way back, you may not be covered. With State Farm, your personal auto policy will offer you the same protection at all times (if and when the delivery platform does not cover you), whether you’re driving to school or heading to start a delivery.

Coverage and policy limits vary by state, so be sure to check with your local agent to learn more. Pricing will depend on your personal factors, such as age, gender, driving history, credit score, and the vehicle.

Best for Ridesharing : Allstate

Allstate

 Allstate

Our top pick for rideshare coverage is Allstate, a carrier that not only offers gap protection to rideshare drivers in nearly every state but has actually partnered with both Uber and Lyft to offer commercial protection to its drivers in certain areas.

Pros
  • Available almost everywhere

  • All personal coverage options stay in effect while ridesharing

  • Offers both gap protection and deductible gap coverage

Cons
  • Online pricing and info is limited

When choosing the best rideshare driver insurance, it might be difficult to argue against Allstate's benefits. After all, both Uber and Lyft have partnered with Allstate to provide commercial coverage to drivers while actively driving passengers on the platform. It’s obvious that this carrier is not only familiar with the popular ride-hailing platforms, but it also supports its drivers.

That’s why we chose Allstate as the best rideshare insurance carrier, which offers coverage in nearly every state and the District of Columbia. New York is the only state excluded.

Allstate’s Ride for Hire coverage can be added onto an existing personal insurance policy to provide gap coverage when you’re driving for a rideshare service but are not yet matched with a passenger. This is a grey area between most personal auto policies and the coverage offered by the rideshare platforms themselves.

With Ride for Hire coverage, Allstate also offers up to $2,500 in deductible gap protection. This means that if you are involved in an accident that is covered by the rideshare platform (because you either have a passenger or have been matched with a rider), but the deductible for the accident is higher than your personal auto deductible, this coverage will help take care of the difference.

The added cost of Ride for Hire coverage will depend on many personal factors, such as your age, driving history, location, existing coverage, and the vehicle you drive. However, Allstate advertises its rideshare coverage as costing “pennies a day,” so you can reasonably expect it to run around or less than $30 a month extra.

Best for Amazon Deliveries : Erie

Erie

 Erie

Though Erie offers low-cost rideshare coverage, it’s not even required for Amazon Flex drivers in most cases. Instead, delivery drivers can save even more money with a simple policy notation, earning this carrier our top nod.

Pros
  • Getting coverage may be as simple as adding a “business use” designation to your policy

  • Many valuable auto policy options offered

  • Delivery coverage is a low-cost add-on to existing insurance

Cons
  • Available in a limited number of states

  • Needs to be purchased through an independent agent

Since its founding in 1925, Erie has grown into a Fortune 500 carrier with more than 5 million policies in force. The company operates in 12 states and the District of Columbia and boasts more than 5,000 employees.

Erie offers coverage for gig economy drivers without requiring them to purchase commercial coverage. Instead, Erie just makes a “business use designation” on the personal auto policy, indicating that the vehicle is sometimes driven for delivery or rideshare purposes.

Erie provides personal coverage when your vehicle is being driven for personal use, as well as rideshare coverage when driving immediately before and after an assigned route. When on a specified delivery route, however, most platforms automatically provide coverage for drivers.

An increase in premiums is expected after adding the business use designation, of course, but the impact on your insurance premiums should be minimal—think a few extra dollars a month versus the hundreds of dollars that a commercial policy would cost. However, Erie policy’s exact premiums will vary based on personal factors like driving record, age, and vehicle.

FAQs

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 they 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 to 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% to 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

We looked at more than 15 of the top insurance carriers in the United States to provide this guide. 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.

Article Sources

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