Best Delivery Driver Insurance

USAA, which stands for United Services Automobile Association, was founded in 1922. A members-only insurance company and FDIC-insured online bank, it caters to military families, sells insurance products, and offers traditional banking services, like checking and savings accounts, investments, and credit cards. The company is regularly recognized for its excellent customer service, including the highest overall score in all but one region in the J.D. Power 2022 U.S. Auto Insurance Study.

Although USAA is highly rated, there are a few downsides. Notably, you must be an active duty or retired military service member or family member to use its services. If you have your auto insurance through USAA, you can purchase its additional rideshare insurance. This type of policy can be used for any delivery driving, such as traditional ridesharing, delivering food, or delivering medications.

You also can easily file a claim online or through the mobile app if your vehicle gets damaged during a delivery run. We also like that you can get guaranteed vehicle repairs at one of many auto body shops in USAA’s network. USAA doesn’t specify how much its rideshare insurance costs or what coverage limits are available. However, you can get a free quote and add a rideshare endorsement to your existing policy by logging into your USAA account 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. Because Erie’s rideshare insurance is a business use designation badge, you can use this coverage for any delivery or business-related transportation.

Erie claims its rideshare insurance is affordable but doesn’t advertise a potential cost. You can get an auto insurance quote online, call an agent, or visit one in person to get a free quote. 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. 

One of the most significant downsides to Erie is that coverage is limited to only a few states. As of March 2023, you can get rideshare coverage in Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin, and the District of Columbia.

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, including 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 can also 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. While it's now available in many states, there are some where it's not offered. You can call them or initiate a quote online to see if it's available in your state. Progressive does offer a separate commercial auto 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.

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 and Allstate's methods can make coverage easy. For example, 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. 

While auto insurance quotes are available online, there's not much information online for the endorsement, so if you want to get a free quote or purchase the endorsement, you'll need to contact an agent in your area. The rideshare endorsement has deductible gap coverage up to $2,500 which gives some hints about what deductibles might be available.

Another advantage of Allstate's delivery driver insurance is that coverage is available almost everywhere. As of 2023, 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.