Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Written by Sara Routhier
Director of Outreach

Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He also has an MBA from the University of South Florid...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Jun 24, 2022

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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

At a Glance

  • Delivery food drivers need extra insurance because their personal policies won’t cover accidents that happen while they’re working
  • Most major insurance companies offer commercial insurance plans, which act similarly to personal insurance
  • You can also find rideshare coverage as an add-on to an existing policy that can save you money on your monthly rates

With the rise of the food delivery app and people increasingly wanting to stay in, food delivery drivers are picking up a lot of business. With more and more delivery drivers on the street, it’s no wonder that the question of insurance arises.

Regardless of who they drive for, delivery drivers need insurance on their vehicles. You need more than a personal policy, too. To protect yourself while driving for work, you need commercial insurance.

Commercial insurance may sound expensive, but you’ll find affordable car insurance rates if you do some shopping. Most major insurance companies are willing to work with food delivery drivers to ensure that they can continue working safely.

To save money, you should shop around for quotes from the best auto insurance companies for delivery drivers. If you’re ready to see what quotes might look like for you, enter your ZIP code into our free tool today.

What is commercial insurance?

Commercial insurance works similarly to your personal policy. The key difference is that commercial plans protect you and your car while you’re working.

Commercial insurance covers both vehicles used exclusively for work purposes and your personal car while you’re working. You can get commercial insurance for a variety of vehicles:

  • Personal cars used for business
  • Work vans
  • Food trucks
  • Company cars
  • Box trucks
  • Delivery trucks and vans
  • Dump trucks
  • Service utility vehicles
  • Construction vehicles like forklifts

Like a personal policy, you can purchase liability and collision. Liability insurance covers the other driver in an accident for which you’re at fault. Collision coverage helps pay for damage to your car and any medical costs from injuries.

One benefit of a commercial policy is that you can usually write off your monthly bills as tax-deductible.

Do you really need commercial insurance?

It is highly recommended that you either purchase a commercial plan or find a company that will include a business use add-on into your personal policy.

Drivers are frequently listed among the top ten most dangerous jobs in America. In 2019, driving was the sixth deadliest job, while drivers had the most workplace fatalities in 2018. The main reason for the hazard is that delivery drivers spend more time on the road. And additional time on the road means more chances of getting into an accident.

Insurance companies understand this risk and will create your policy based on how often you drive. If you do your work under your personal policy and something happens, your insurance company will probably find out that you were working.

Because you weren’t up-front with them about using your vehicle for work, they’ll likely deny your claims. That leaves you to pay for damage to your car, the other person’s car, property damage, and medical bills after injuries.

While it’s tempting to drive under a personal policy, hopefully, you can see why it’s not the best decision for delivery drivers.

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The Best Auto Insurance Companies for Delivery Drivers

Since food delivery has become so popular, most major insurance companies offer a commercial plan for delivery drivers or a rideshare add-on for personal policies.

The best commercial auto insurance for delivery drivers will offer affordable rates, multiple discounts, and easy access to claims information. While you should still shop around for quotes, here are some of the highest-rated companies that offer delivery driver insurance:

USAA Food Delivery Insurance

USAA consistently ranks high for insurance. From customer service to discounts to prices, USAA is always a top contender.

However, there is a stipulation with USAA — they only offer coverage to active military, veterans, and their families. If you have no affiliation with the military, USAA won’t accept you as a customer.

If you already have a policy with USAA, you can add rideshare insurance to your plan. That add-on can be used for food delivery and other uses like rideshare driving for apps like Uber and Lyft.

The price of rideshare coverage isn’t posted online, nor do they specify the amount of coverage you can buy. However, USAA is well-known for how easy it is to obtain an online quote from your account. You can also file a claim on the web.

A final benefit of the USAA rideshare add-on is that you can get guaranteed repairs at any in-network mechanic.

Progressive Food Delivery Insurance

With Progressive, you can buy rideshare insurance that covers food delivery and any work you do that involves picking up passengers. Progressive ranks very high for car insurance for DoorDash drivers, Uber drivers, and other food delivery apps.

In fact, delivery drivers enjoy Progressive insurance because its plans specifically cover food delivery. You can also purchase add-ons like roadside assistance that work while you’re delivering food.

If you want rideshare coverage with Progressive, you need to have a personal policy with the company. However, every insurance option that you have on your personal policy applies to you while working.

Getting an online quote is easy with Progressive. All you have to do is select the option, “I also use this vehicle for Ridesharing,” when you fill out the form for a quote. If you already have a policy, you might be able to add rideshare to your plan online.

If you can’t get the rideshare option online, you can always call your agent. The only downside to Progressive delivery driver insurance is that it’s not available in every state. Currently, Progressive offers rideshare in 34 states.

If you happen to live in one of the 16 states in which Progressive doesn’t offer rideshare, you can still purchase a separate commercial policy.

Allstate Food Delivery Insurance

Like most other companies, you can purchase a rideshare add-on with an existing Allstate policy. As an added bonus, most of the add-ons from your personal policy will remain in effect while you work.

While Allstate is consistently ranked highly for insurance needs, the company doesn’t post information about coverage or deductibles online for rideshare or commercial insurance. One additional complaint is that you have to speak to an agent to buy a policy — there is no online option.

Allstate’s delivery insurance is called Ride for Hire and is available in 47 states. One downside of this insurance is that the Allstate website is unclear about what type of driving it covers. While it definitely covers drivers for Uber and Lyft, you should check with an agent concerning food delivery.

GEICO Food Delivery Insurance

GEICO is another company with a rideshare option for insurance, but GEICO does it differently.

What GEICO offers delivery drivers is actually a hybrid insurance. Hybrid insurance replaces your personal policy and remains active regardless of the reason why you’re driving. GEICO is the only company that offers a hybrid policy like this.

With the rideshare hybrid policy, you can simultaneously drive for as many companies as you desire. Another bonus is that your deductible can be as low as $250.

GEICO’s rideshare hybrid insurance is currently available in 40 states. When you request a quote, an agent can inform you if your state is eligible.

State Farm Food Delivery Insurance

While State Farm offers rideshare insurance, you don’t need it if you only deliver food.

Instead, State Farm allows you to put a “business use” notation on your policy. This is only for drivers that deliver food or packages. If you drive with passengers, you’ll need rideshare insurance.

Using State Farm’s business use notation is a cost-effective alternative to rideshare or commercial insurance. While your rates will increase, it’s typically only by 15-20%.

If you’re interested in adding a business use notation to your policy, it only takes a quick call to your agent.

How does commercial insurance work for delivery drivers?

Commercial car insurance (or a rideshare add-on) protects you, your car, the company you drive for, and other drivers in case you’re involved in an accident.

Since delivery drivers spend more time on the road than the average driver, you’re likely to see higher rates than you would with a personal policy. However, higher coverage limits will protect you from being sued.

Commercial car insurance can offer a lot more than merely liability and collision coverage. You can add additional coverage in the form of the following:

  • Comprehensive coverage to protect against weather, theft, and vandalism
  • Personal injury protection
  • Underinsured/uninsured motorist coverage
  • Rental coverage, in case you need a temporary replacement
  • Personal effects coverage

If you drive for a food delivery app, such as GrubHub, DoorDash, Postmates, or Uber Eats, your commercial car insurance will kick in as soon as you turn on the app. Commercial insurance goes into effect when you clock in if you deliver for a restaurant such as a pizza place.

Can I get insurance through my company?

While some companies offer insurance for their drivers, most do not. Companies will have insurance to protect themselves if you’re involved in an accident, but that probably doesn’t extend to you.

For pizza delivery drivers, some Domino’s Pizza restaurants offer coverage to their drivers. Since Domino’s Pizza is franchised, it’s up to the owner to decide what insurance to offer. Pizza Hut does not provide insurance.

As for delivery apps, insurance coverage can get a little tricky. DoorDash offers up to $1 million in liability coverage for their drivers. However, this insurance only works during an active delivery — you have to have an order in your car to be covered.

Additionally, DoorDash’s insurance will only begin covering you after your own insurance has been expended. If you don’t have insurance, DoorDash doesn’t protect you.

GrubHub and Instacart require you to provide your own insurance. You need to meet your state’s minimum requirement for insurance to drive for these companies.

Similar to DoorDash, Postmates offers liability of up to $1 million while you’re actively working. This is an excess policy, meaning your insurance needs to be exhausted before they’ll offer coverage.

Uber Eats offers a commercial plan to their drivers everywhere except in New York. Uber Eats’ insurance is active from when you pick up an order until you drop it off. If you have collision and comprehensive on your own policy, Uber Eats extends the same coverage during your deliveries.

One additional benefit of Uber’s insurance is that it can cover you between when you drop off an order and when you pick up your next one, in case your insurance doesn’t.

As you can see, even if a food delivery company offers insurance, you still need your own policy. In addition, you can’t legally drive without a policy, which means you won’t be hired without a plan.

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Find the Best Delivery Driver Insurance

With the rise of food delivery services in America, more and more people earn money by delivering food to people’s doorsteps. Driving for a delivery company can be a lucrative way to earn extra cash or a full-time job. If you plan on getting behind the wheel, you need to make sure you and your car are protected.

If you’re ready to see rates from the best auto insurance companies for delivery drivers, shopping around can save you money. To determine what quotes might look like for you, enter your ZIP code into our free tool.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.