Food delivery drivers are tasked with getting meals to their destination safely. But since accidents happen, having the right car insurance is important. Delivery driver insurance will protect drivers if they are involved in an accident on the job.
Grand View Research valued the online food delivery market at $221 billion in 2022 and expected it to grow at a compound annual rate of around 10% from 2023 to 2030.
There are plenty of insurance options to keep delivery drivers safe on the road. We explore your options below.
What is delivery driver car insurance?
Delivery driver insurance is a type of car insurance that protects you while working as a food delivery driver. Technically, delivery driver insurance is a rideshare endorsement that you add to a standard car insurance policy.
Most personal auto policies will not cover losses incurred while working. Therefore, delivery drivers need to get this supplemental insurance coverage because not having it could result in severe liability for the individual providing food delivery and their employer.
Proper delivery driver car insurance protects your vehicle and yourself against unforeseen incidents during work hours.
Who needs food delivery driver insurance?
Insurers know that many delivery drivers work for companies like Uber, Lyft, Grubhub and DoorDash.
Your insurer probably offers coverage for delivering passengers or food under an endorsement. If your insurer doesn’t call it delivery driver insurance, they may refer to it as rideshare insurance coverage. So, if you deliver food or folks, you must add the rideshare endorsement to your policy.
Why do delivery drivers need special car insurance?
Without the appropriate car insurance, delivery drivers could face significant liabilities after an accident. You want to alert your insurer that you work for a rideshare or food delivery company. You’ll often need to add an endorsement to your insurance policy.
Your rates may or may not go up if this is a side gig, but you don’t know what you don’t know. Call your insurer, or if you’re looking for a new policy, ask your agent or contact customer service before you make the switch.
Below is a look at why you’ll need to modify your coverage if you start delivering food.
Personal auto insurance doesn’t cover commercial use of your vehicle
If you don’t have delivery driver insurance and haven’t checked to make sure you’re adequately insured, you may find out the hard way that you aren’t covered under your personal auto insurance policy.
You often need a business use endorsement on your car insurance policy. Making deliveries with your car is considered a business activity, not a personal one. Business-use coverage protects drivers who use their vehicles to deliver packages or any other types of items aside from food.
Car insurance companies charge higher rates for business use because they deem it more high-risk than personal use. Delivery drivers are more likely to get into accidents and file claims.
But without it, you could be responsible for paying for repairs and medical bills out of pocket if you have an accident.
Suppose you use your car to make deliveries and get paid for it. In that case, your accident claim will likely be denied unless you notify your insurance company beforehand and get the appropriate coverage.
What if I’m driving a company vehicle?
The business is liable for an accident if you’re driving a company-owned vehicle. However, all the violations still accrue to your own driver’s license. So, jump in and drive—carefully.
Restaurants can purchase auto insurance to protect the business from liability if their delivery driver is involved in an accident while driving a personal vehicle. While this type of liability insurance protects the company from liability, it doesn’t cover the cost of damages to the vehicle or medical bills.
Do I need rideshare insurance?
Driving your own vehicle requires questions from your insurance company and prospective employers. Due to the dramatically increased risks, most insurance companies won’t cover delivery drivers under a personal insurance policy.
Under ordinary circumstances, this would mean contacting your insurer to get business-use coverage. In some cases, the business you work for may offer car insurance when making deliveries, which you can get in addition to your primary coverage.
According to Progressive, many personal auto policies will not cover losses while using your vehicle to deliver for a fee. Without rideshare insurance, you could be held personally responsible for an auto accident while working.
Do delivery services provide insurance coverage for drivers?
Some companies, such as Uber Eats and Amazon Flex, offer coverage during deliveries. But this largely depends on the company.
If you’re driving for a small, local restaurant, it’s doubtful the restaurant’s owners have purchased coverage. Make sure to ask about the insurance details before hopping into your own car to make a delivery.
Risks of claims denial for delivery-related accidents
If you get in an accident while making a delivery, it’s easily possible for the situation to get complicated quickly. For drivers without the appropriate type of insurance in place, the claim you file against your personal auto insurance policy might be denied if the insurance company knows you were delivering items.
After a claim denial, you’ll likely be on the hook for paying to repair the other driver’s vehicle and cover their medical expenses. On top of that, you’ll have to pay for damages and injuries you sustained to get yourself back on the road.
Without the correct coverage, the fallout of a delivery-related accident could significantly derail your finances.
Legal requirements for delivery drivers
As a driver of any kind, you must obtain a policy that meets the minimum liability coverage requirements for your state.
However, as a delivery driver, you are required to report this type of activity to your insurance company. With this disclosure, the insurance company will likely require you to purchase an add-on, or endorsement, to your personal policy that covers your delivery-related activities.
What are the types of delivery driver insurance?
You cannot use your personal auto insurance policy to cover yourself while making deliveries without an endorsement. But as a delivery driver, you have other options to cover your bases.
Here are some of the delivery driver car insurance options to opt for:
Business-use auto insurance
A business-use auto insurance policy is designed for people who use their car for specific and limited business purposes.
If you are involved in a collision that is your fault, the insurance company will take care of everything. Your provider will be there to ensure that your claim is processed as smoothly and quickly as possible. They will help handle any damages or provide rental cars if they are available on your policy.
Commercial policy
A commercial auto insurance policy may cost slightly more than a personal auto insurance policy. The price will also depend on your situation and your vehicle’s make and model. But with a commercial policy, you can rest easy knowing any incident will be covered.
Personal auto insurance
Before using your personal vehicle for food delivery, make sure you have the appropriate endorsements attached to your policy. If you’re at fault in an accident without the right amount of coverage, you might be on the hook for out of pocket damages.
Hired and non-owned auto insurance (HNOA)
If you drive a vehicle not owned by your employer to make deliveries, an HNOA policy can provide the coverage you need. For example, if you use your personal vehicle for business purposes, your employer’s HNOA policy may provide coverage after an accident.
This type of coverage may also help if your employer rents a vehicle for employees to make food deliveries.
Insurance options for food delivery drivers
As you begin your search, ask your employer and personal insurance company about their coverages and exclusions. Below is a closer look at some of the coverage options for different types of delivery drivers.
Insurance options for DoorDash, Uber Eats and Grubhub drivers
Insurers know that many delivery drivers work for companies like Uber, Lyft, Grubhub and DoorDash.
Your insurer offers coverage for delivering passengers or food under an endorsement. If your insurer doesn’t call it delivery driver insurance, they may refer to it as rideshare insurance coverage. So, if you deliver food or folks, you must add the rideshare endorsement to your policy.
Pizza delivery driver-specific insurance policies
“If you plan on using a personal or family vehicle to deliver pizza, then make sure to check your insurance policy for exclusions,” says attorney Thomas Ryan, Esq. “I would also check the employment agreement with the pizza company. There should be a specific provision in the employment agreement regarding whose vehicle will be used and/or who will be liable in the event of an accident.”
Can you use personal car insurance to deliver food?
Sometimes, you can add an endorsement to your existing personal car insurance policy to deliver food. But since some insurers don’t offer this additional coverage, you might have to switch insurers or buy a commercial policy instead.
How much does delivery driver insurance cost?
It varies. Adding rideshare coverage will increase your insurance rates by 15% to 20%. You could also get commercial auto coverage in addition to personal coverage.
Does being a delivery driver increase your insurance rates?
Delivery insurance can be a costly addition to your average car insurance. The cost will depend on your delivery type, the provider, and the type of coverage (business use endorsement or rideshare/delivery policy).
How much you pay depends on many factors – are you delivering somewhere in a big city or a rural town? Are you a 17-year-old looking for delivery driver insurance or a 49-year-old? You’ll pay more if you’re younger and working in a bigger city with higher auto theft rates.
What are the factors that determine your insurance premium?
Auto insurance companies consider multiple factors when determining your insurance premiums. Some of the factors include:
- Age: Younger drivers tend to pay more for car insurance than drivers with more experience behind the wheel.
- Driving record: A driver with multiple violations, like speeding tickets, can expect to pay more for car insurance.
- Location: Where you live, and the traffic you face impacts your car insurance costs.
- Usage: How you plan to use the vehicle matters. Generally, delivery drivers using their vehicles for work will pay more for coverage.
Additionally, the amount of coverage you buy impacts your costs. Of course, the minimum coverage requirements are the most affordable.
But in reality, you need more liability insurance protection than the state minimum requirements provide. Ideally, purchase 100/300/100 coverage limits — $100,000 for bodily injuries per person, up to $300,000 per accident and property damage coverage of $100,000.
Expert recommendations for finding the best and cheapest insurance for delivery drivers
“It starts with doing a little bit of research on your own,” says Jonathan Shaw, agency owner of Jonathan Shaw Agency. “All carriers are going to have their rules and regulations around delivery drivers. Some will not take you at all; some will cover you up to a certain extent (typically a certain amount of mileage for deliveries), while others will put you in a commercial policy to fully cover you as a delivery driver, so it’s important to understand your delivery risk.”
Shaw suggests taking a close look at your coverage needs.
Expert tips for teen delivery driver car insurance
Parents should be cautious about allowing a child to use a family vehicle for food delivery insurance. Even with a commercial policy, the car owner can be looked to for compensation once damages exceed the policy limits.
Parents with assets to protect, like a home or other vehicles, may want to place the car in the child’s name on a separate policy. In some cases, this layer of separation could protect you from liability if your child is in an accident while delivering food.
However, parents should check state liability laws to see if they could still be responsible for a child’s actions. If the child lives at home and is listed on the parent’s tax returns as a dependent, the parents could be liable even if the car is in the child’s name.
Parents of a teen who delivers food may also consider an umbrella insurance policy for increased liability protection.
“As a delivery driver, you are significantly more likely to be in an accident just from the amount of time you are on the road driving,” Shaw says. “State minimum coverage may sound great to save money, but that saved money will catch up to you. State minimums are not enough to cover if you are in a major accident. Get higher limits that will make sure you stay protected. I personally do not recommend anything lower than 100/300/100 with the same limits for the uninsured/underinsured coverage. This likely will be more expensive early on, but insurance carriers like to see people carry higher limits, so long term, you will start to see better rates because you will be tiered as a better customer.”
Compare and find your delivery driver insurance today
Delivery driver insurance is a necessary expense if you drive your car to deliver food. If you get into an accident while delivering food and don’t have delivery driver insurance, your insurance company could reject your claim because you’re using your vehicle for business purposes. Ultimately, delivering without the right insurance could be an expensive mistake for you to cover on your own.
Buy the additional coverage required to protect yourself against liabilities during your deliveries. Shop your policy every six months and update your insurer when your needs change, such as adding a rideshare endorsement.
Frequently asked questions about delivery driver insurance
Do delivery platforms like Uber Eats or DoorDash provide any insurance coverage?
Some companies, such as Uber Eats and DoorDash, offer coverage during deliveries. However, this depends on the company. In the case of DoorDash and Uber Eats, liability-only coverage is available during the delivery window. However, you might not have coverage before the ride or after you drop the package.
When signing up to deliver food for a platform, read the fine print to understand what’s covered and not covered.
How do you sign up for delivery driver insurance?
Start by reaching out to your current auto insurance company to determine if they offer the coverage you need. If they do, you’ll likely be able to add the extra coverage as an endorsement to your existing policy. If your current insurer doesn’t offer delivery driver coverage, shop around to find a new policy that suits your needs.
What should I do if I stop delivering food temporarily or permanently?
If you stop delivering food for more than a month, contact your auto insurance company to remove the rideshare endorsement from your personal auto insurance policy. If you decide to make deliveries again, don’t forget to call and reinstate the necessary endorsement before moving forward.
If a delivery driver has an accident, whose insurance covers it?
The driver’s policy is then tested, which may fail if the driver has gone for the cheapest state-minimum liability policy. Even a modest fender-bender can result in insurance claims that easily exceed limits as low as $15,000 per injured person and $5,000 in property damage.
“Victims are entitled to recovery from anyone who is negligent,” says attorney Bradford H. Bernstein of New York. “In most instances, it is preferable to put the claim in through the employer, but if they are not insured, a claim would be put in against the driver.”
An uninsured or underinsured employer can spell real trouble for a delivery driver.
In one lawsuit, attorney Thomas Ryan, Esq., of Cleveland, represented a woman rear-ended by a delivery driver reaching for his dropped phone. Her injuries were substantial, and the pizzeria had coverage limits of only $25,000. This amount didn’t cover the cost of her injuries. She eventually settled with the pizzeria.
A settlement with the business doesn’t necessarily leave the driver in the clear.
What do I do if I’m in an accident?
Start by moving your vehicle out of the road, checking for injuries, and making sure the others involved are okay. Make sure to document any injuries and property damage via photos. Exchange information with the other driver, inform the police and seek prompt medical care if you’re injured.
“If in an accident while delivering, contact your insurance company immediately,” says Vonda Copeland, owner of Copeland Insurance Agency in Kansas. “They will handle notifying other parties involved. Keep records like delivery info, mileage logs and dash cam footage – this evidence proves the accident occurred on the job.”
What do I do if my claim is denied?
You can appeal the decision with your insurance company if your claim is denied. Work with the company to determine why your claim was denied and clarify any questions they might have about the incident.
Why are delivery drivers’ insurance costs so high?
As a driver, you spend more time on the road than most. You are more likely to get in an accident with more time behind the wheel. The higher perceived risk leads to higher costs for most delivery drivers.
What are the common challenges of getting insurance for delivery drivers?
Unfortunately, getting car insurance as a delivery driver can be confusing. The biggest challenge for many drivers is sorting through the requirements for their situation and finding a policy that suits their needs. You’ll also deal with more expensive car insurance rates.
Can I add delivery coverage to my existing policy?
In some situations, you can add delivery coverage as an add-on to your existing policy. But this isn’t an option with every insurance company. Reach out to your insurance agent or contact them via phone to inquire about a rideshare endorsement.
Resources & Methodology
Sources
- CNN. “Pizza has a delivery problem.” Accessed January 2025.
- Grand View Research. “Global Online Food Delivery Market Size & Share Report, 2030.” Accessed January 2025.
- Insurance Information Institute. “What determines the price of an auto insurance policy?” Accessed January 2025.
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