Best Delivery Driver Insurance

USAA offers the best delivery driver insurance

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If you’re looking for some extra cash, becoming a delivery driver can help supplement your income. But first, you need to make sure you have the right type of insurance. Delivery driver insurance companies cover you and your vehicle while you’re transporting goods, including food, groceries, or Amazon orders. Rideshare insurance is one of the most common types of insurance that will cover many delivery drivers.

You can purchase delivery driver insurance from a number of private insurance companies, but it’s important to compare providers before choosing one. The best delivery driver insurance offers robust coverage options, high policy limits, affordable premiums, and easy purchase options.

Best Delivery Driver Insurance of 2022

Best Overall : USAA



  • No. Policy Types: 1
  • Coverage Limit: Varies
  • Price: Varies
Why We Chose It

USAA offers flexible delivery driver insurance to workers in most states, and the company is highly rated for customer service and overall satisfaction.

Pros and Cons
  • Guaranteed vehicle repairs through USAA’s network of shops

  • Excellent customer service ratings

  • Easy to add a rideshare endorsement through the online customer portal

  • Only available to active duty and retired military personnel, as well as their family members

  • Must have a personal USAA auto policy to get rideshare coverage


We chose USAA as the best overall delivery driver insurance company because it’s one of the highest-rated carriers in the industry. In the J.D. Power 2021 U.S. Auto Insurance Study, USAA ranked as the top provider for overall customer satisfaction in every region, and it also ranked highly for claim handling in the 2020 Study.

You can get rideshare insurance through USAA if you have an existing USAA personal auto policy. Coverage can be used for any delivery driving, such as traditional ridesharing, delivering food, or delivering medications.

USAA doesn’t specify how much its delivery driver insurance costs or what coverage limits are available. However, you can easily get a free quote and add a rideshare endorsement to your existing policy by logging into your USAA account online.

If your vehicle gets damaged during a delivery run, you can easily file a claim online or through the mobile app. We also like that you can get guaranteed vehicle repairs at one of many auto body shops in USAA’s network. 

Although USAA is highly rated, there are a few downsides. Notably, you must be an active duty or retired military service member or a family member to get USAA rideshare insurance.

Best for Small Business : Erie



  • No. Policy Types: 1
  • Coverage Limit: Varies
  • Price: Varies
Why We Chose It

Small business owners can get delivery insurance through Erie by adding a “business use” designation to their personal auto policy, which allows them to use their vehicle for any business purpose. 

Pros and Cons
  • Business use designation provides coverage for all types of transport.

  • Erie’s personal auto policies come with a variety of built-in add-ons

  • Good option for people who prefer to work with an in-person agent

  • Not available in every state

  • Limited information online about what the policy covers

  • Can’t get a quote online


Erie offers rideshare insurance as a business use designation added to your personal auto policy. It’s the best option for small business owners who deliver items and use their personal vehicles for other business purposes.

Erie claims that its rideshare insurance is affordable but doesn’t advertise a potential cost. To get a free quote, you’ll need to call an agent or visit one in person. During the quote process, you can see how much coverage is available where you live and what deductibles you can choose. You have to work with an agent to purchase a policy. 

Because Erie’s rideshare insurance is a business use designation badge, you can use this coverage for any delivery or business-related transportation.

One of the biggest downsides to Erie is that coverage is limited to only a few states. Currently, you can get rideshare coverage in Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin, and Washington, D.C.

Best for Food Delivery : Progressive



  • No. Policy Types: 1
  • Coverage Limit: Varies
  • Price: Varies
Why We Chose It

Progressive’s rideshare insurance covers drivers with passengers, but it also provides coverage to drivers who use their personal vehicles to deliver food through companies like DoorDash, Uber Eats, and Grubhub. 

Pros and Cons
  • Specifically covers food delivery drivers

  • Certain add-on coverages, like roadside assistance, apply when delivering food.

  • Offers a deductible reimbursement if you need to file a claim

  • Must have a Progressive car insurance policy to get rideshare insurance

  • Policies can be expensive depending on your driver profile.


We chose Progressive as the best delivery driver insurance company for food delivery because its rideshare policies extend coverage to anyone working as a food delivery driver. Progressive’s rideshare insurance also covers drivers for Uber and Lyft. 

To get food delivery insurance from Progressive, you must have an active personal car insurance policy from the company. While delivering food, all of your personal car insurance coverages apply, including roadside assistance and rental car reimbursement (if you add them).

You can get a free quote online by filling out the car insurance application and checking the box that says, “I also use this vehicle for Ridesharing.” You will also be able to choose your coverage limits and set your deductible. If you already have a Progressive auto insurance policy, you may be able to add a rideshare endorsement through your online account. 

If you need to file a claim, you can do so online, through the mobile app, or by calling customer service. Progressive works with a network of auto body shops, but you can choose any car repair shop if your vehicle gets damaged during a delivery.

There aren’t many downsides to Progressive’s delivery driver insurance, but the main one is that coverage is not available everywhere. You can only get rideshare insurance in 34 states plus Washington, D.C.; however, Progressive does offer a separate commercial policy in all states. Additionally, a policy from Progressive may not cover food delivery drivers in every state or for every stage of the food delivery process.

Best Coverage Options : Allstate



  • No. Policy Types: 1
  • Coverage Limit: Varies
  • Price: Varies
Why We Chose It

If you have a personal car insurance policy from Allstate with add-ons, most of those endorsements will apply when driving for a delivery service, including accident forgiveness and rental car reimbursement. 

Pros and Cons
  • Available in most states

  • All personal coverage options stay in effect while making deliveries.

  • Includes deductible gap coverage

  • Can’t buy a policy online

  • May not cover all types of delivery drivers

  • No information online about coverage limits or deductibles


We chose Allstate as the best delivery driver insurance company for coverage options because any endorsements you have on your personal auto policy will automatically apply when you deliver goods or food or transport passengers. Not all rideshare insurance providers structure their policies this way.

That means if you have endorsements, like accident forgiveness, new car replacement, or custom equipment insurance, those coverages will still remain active when you drive for a delivery service. 

When researching Allstate’s delivery driver insurance, called Ride for Hire, we found that there’s not much information online about the coverage limits, deductibles, or discounts available. If you want to get a free quote or purchase an endorsement, you’ll need to contact an agent in your area.

Another advantage of Allstate’s delivery driver insurance is that coverage is available almost everywhere. As of 2018, Allstate’s Ride for Hire policy was available in 47 states. The only catch is that you must have a current personal car insurance policy from Allstate.

One thing to keep in mind with Allstate is that it may not cover all types of delivery drivers. The website focuses mainly on coverage for rideshare drivers, so if you deliver food or goods, check with an agent to see if Allstate’s policy will cover you.

Final Verdict

Many delivery driver insurance companies are on the market, but each one has its pros and cons. Based on our comparison, we determined that USAA is the best provider overall. 

USAA is highly rated for customer service and claim satisfaction, and it’s easy to add a rideshare endorsement to your policy online. Not to mention, USAA typically has affordable rates if you meet the military eligibility requirements. 

Delivery Driver Insurance

Compare the Best Delivery Driver Insurance

Company Price  Industries Covered  Coverage Limit  Policy Types
Best Overall
Varies Food, Goods, Amazon, Passenger rideshare Varies Rideshare endorsement
Best for Small Business 
Varies  Food, Goods, Amazon, Passenger rideshare  Varies  Business use designation 
Best for Food Delivery 
Varies  Food, Goods, Amazon, Passenger rideshare  Varies  Rideshare endorsement 
Best Coverage Options
Varies  Passenger rideshare  Varies  Rideshare endorsement 

Guide for Choosing the Best Delivery Driver Insurance

Is Delivery Insurance Worth It?

Car insurance for delivery drivers may be worth it for some people and not for others. It depends on your specific needs, including what type of coverage (if any) the delivery company provides for you. This will vary among companies. 

For instance, Uber Eats and Amazon Flex provide coverage during deliveries, and assuming you have auto insurance, you may not need to purchase separate delivery driver insurance. But if you deliver food for a local Chinese restaurant, they may not offer insurance, in which case having delivery driver insurance would come in handy.

Comparing Delivery Insurance

Not all delivery insurance is created equal. Here are a few things to consider when comparing providers:

  • Price: Some insurance carriers are more expensive than others. Get a few personalized quotes and compare them to see which company can offer the coverage you need for the lowest premium.
  • Coverage limit: Every insurance company offers a different amount of coverage. This is something to pay attention to when you compare carriers.
  • Industry: Some insurance carriers have restrictions around which industries qualify for coverage. Make sure your industry is covered before you buy insurance. 
  • Availability: Some insurance carriers, including the ones we reviewed, don’t offer nationwide coverage. Pay attention to the coverage area for each company you compare and make sure that both states are within the coverage area if you drive between states for work.

Signing up for Delivery Driver Insurance

Gettchooing delivery driver insurance can be slightly more difficult than getting a regular car insurance policy. Most providers require you to contact an agent to get a quote and purchase a policy.

Also, remember that you likely need to have a current auto insurance policy from the same provider that you buy delivery driver insurance from. So if you want to buy delivery driver insurance through Allstate, you can’t have a personal auto policy from State Farm. 

Once you purchase the policy, you can choose what day the coverage takes effect. If you need to make changes to your coverage, you can do so through the online customer portal or contacting an agent. Many providers also have a mobile app to file claims, get roadside assistance, and download ID cards.

Frequently Asked Questions

What Is Delivery Driver Insurance?

Though personal auto insurance coverage is intended to protect policyholders when they're behind the wheel, it often won't 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 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 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 cover drivers only 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 gray 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 and not independent contractors. This often is 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 or contracted driver, though, you likely are 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 on an active route. However, this delivery platform coverage doesn’t always extend to the period immediately before or after the delivery.

This can result in a gray 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 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 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. Paying 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.

What Does Delivery Driver Insurance Cover?

Personal car insurance policies don’t cover you when you’re using your vehicle for business purposes, including making deliveries. Delivery driver insurance companies cover the period when you are traveling from one point to another while making a delivery. Once you make the delivery, your personal car insurance policy takes over.

Do You Need Delivery Driver Insurance?

You might need delivery driver insurance if you work for a service like Grubhub, DoorDash, or Amazon. However, it depends on what insurance coverage you already get from the company. Even if the delivery company provides some coverage, getting your own policy will provide more coverage in the event of a claim.

One thing to keep in mind is that delivery driver insurance only applies to people who use their personal vehicles to make deliveries. For instance, if you deliver pizza for Domino’s and use a company-owned vehicle to make deliveries, you don’t need your own insurance. In that case, the company must carry commercial car insurance that will cover you during deliveries.


To find the best delivery driver insurance, we compared six auto insurance carriers that sell this type of coverage. Specifically, we looked at the coverage options, premiums, third-party ratings, areas of coverage, and accessibility for each company. We also compared providers based on the industries covered and prioritized carriers that offer coverage to a wide variety of delivery workers.

Delivery Driver Insurance
Article Sources
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