If you are a delivery driver for services like GoPuff, Toast Takeout, and Postmates, then read this article to find out more about a special type of business insurance that delivery drivers should have and what it takes to get a policy.
If you use your personal vehicle to deliver food for GrubHub, UberEats, or other similar companies, then you are possibly aware of all the risks you face on the road. All it takes is one incident to not only ruin your day, but jeopardize your livelihood and health. Other drivers are probably not looking out for your well-being. The onus is on you to protect yourself from losses stemming from physical injuries and vehicle damage in the event of an incident. Even if you believe you are a safe driver, can you think the same about everyone else?
Insurance can help cover your losses so you can get back on your feet again and back on the road. However, you can not completely rely on your personal auto insurance policy. That type of coverage might not cover drivers who use their own vehicles for work. Since policies vary, you should check yours to see if you would be covered. Assuming you are covered can prove costly. For example, if you deliver for DoorDash and get in an accident while on the job, you might be responsible for paying for damages from your private assets because your personal auto policy does not cover you.
You should obtain delivery driver insurance to protect your hard-earned money. A type of commercial auto insurance, delivery driver insurance can cover losses that would normally devastate a driver's future.
What Is Delivery Driver Insurance?
Deliver driver insurance provides coverage for drivers who use their cars to make deliveries. Since personal auto insurance will probably not cover working drivers, delivery driver insurance guarantees coverage. Drivers that pay their premiums can file claims if they are involved in a vehicular incident that results in physical or property damage.
Who Needs Delivery Driver Insurance?
Anyone who delivers food and other goods should probably look into delivery driver insurance. Some companies will cover their delivery drivers if they are employees. However, if these companies consider their drivers to be independent contractors, then the drivers will probably need to obtain delivery driver insurance. For instance, if a restaurant hires you to be a delivery driver, then the restaurant might cover you if you are its employee. Alternately, if you deliver food for an on-demand delivery service, then the service will probably not cover you. You should assess the terms of employment whenever you begin working as a delivery driver.
Is Delivery Driver Insurance Worth It?
Although some companies and restaurants might cover you as an employed driver, some will not. For instance, a local restaurant will probably not be able to cover its drivers. Having delivery driver insurance can fill coverage gaps.
Plus, you should consider the alternative to not being sufficiently insured. What if you are uninsured and get into an incident while delivering a customer's meal? You could be responsible for paying for damages out of your pocket. What if you are judged to be at fault? You might have to pay for your personal damages and the injuries you caused. You could even be sued. Without delivery driver insurance, none of these expenses would be covered. Would you be able to financially rebound from all of these setbacks?
Delivery driver insurance is worth having if you are serious about protecting yourself against financial losses stemming from damaging auto incidents.
What Does Delivery Driver Insurance Cover?
This type of coverage typically covers you and the vehicle that you use for business. Deliver driver insurance usually covers incidents that occur when you are actively making a delivery. For example, if you are involved in an incident while you are in transit with a customer's food order, then you can file a delivery driver insurance claim if needed. However, if you complete the delivery and are on your way home and get into an incident, then your delivery driver insurance will probably not cover your losses. You can file a personal auto insurance claim if you own that coverage. Delivery driver insurance covers your losses when you are working.
How Much Does Delivery Driver Insurance Cost?
Delivery driver insurance rates might vary based on your coverage limits, location, and the annual total of miles you drive for business. You can expect to pay more for coverage if you want higher limits, drive in an area that experiences many auto incidents, and spend a lot of time on the road. The more you drive for business, the more likely you are to be involved in an auto incident. Conversely, you might pay less for delivery driver insurance if you want low limits, drive in a relatively safe area, and are not on the road much.
You should have the aforementioned information available before you begin to shop for coverage.
How Do I Shop for Delivery Driver Insurance?
Once you note the information suggested in the previous section of this article, you can begin shopping for a delivery driver insurance policy. You should compare multiple insurance providers to get affordable and appropriate coverage. Obtaining quotes from each provider can help you decide on the right policy. However, you should look beyond policy rates when shopping for insurance. For example, each insurance provider might offer a different amount of coverage from its competitors. You should keep this in mind if coverage limits are important to your decision-making process.
Checking to see if an insurance provider offers coverage in your area is a surefire way to rule out providers. You can not purchase a delivery driver insurance policy from a provider if they do not offer that. This can also come into play if you drive between states for business reasons. You might find a policy that is valid in one state, but not the other. Paying attention to availability can help you choose the provider that aligns with your specific demands.
How Do I Sign Up for Delivery Driver Insurance?
Since the delivery industry generally contains risks that result in more claims, getting a policy might be more difficult than obtaining a personal auto policy. Some insurance providers might ask you to contact an agent to get a quote as opposed to simply applying online. You might also be required to purchase delivery driver insurance from your personal auto insurance provider. You should ask prospective providers when you obtain quotes.
When you sign up for delivery driver insurance, you might be able to pick the date coverage becomes active. You should also be given or given instructions on how to download and print your insurance ID card, which is proof of coverage. From this point, you could probably use the provider's web portal to file claims or change your coverage. Again, talk to the provider's agent to learn about all you can and can not do on your own. Some providers even offer mobile apps to help you if you need assistance while on a delivery. You could even factor in these bonus features when choosing the provider you want to do business with. Accessibility should be included in the shopping process.
Get the Best Delivery Driver Insurance Today
If you use your own car to deliver food and other items, then you must understand all of the risks you face on every job. Your income and health could be at stake as soon as you get behind the wheel. You can drive safely, but other drivers might not be as conscientious. You have to protect yourself in any way you can. It's a good idea to get delivery driver insurance to protect your money and future.
Best Delivery Driver Insurance Frequently Asked Questions
Do I need delivery driver insurance if I have rideshare insurance?
Rideshare insurance covers drivers who drive passengers from one location to another. This type of coverage generally excludes the delivery of goods such as food and medications. You will probably need delivery driver insurance even if you have rideshare insurance.
I own a delivery company, business vehicles, and hire my drivers as full-time employees. Is delivery driver insurance the right type of insurance for me?
If your company owns delivery trucks, then you will probably be required to have commercial auto insurance. Even if you are not required to have commercial auto insurance, you should obtain a policy to protect your company from losses that originate from auto incidents even if your employees are not at fault.
What does commercial auto insurance cover?
Commercial auto insurance can cover physical damage for vehicles your company owns, leases, hires, or uses for business. It can also cover losses associated with bodily injuries and property damage. Losses can occur from traffic incidents, weather events, theft, and various non-collision cases.
What other types of insurance should delivery drivers and couriers have?
You might benefit from general liability insurance if you run your delivery business from your home. Your renter's or homeowner's insurance will probably not offer financial protection from claims and lawsuits that arise if a customer is injured on your property. If this does not apply to you, then you can skip this type of coverage.
Although self-employed delivery drivers are not required to have workers' compensation insurance, this type of coverage could provide additional financial protection for those dealing with work-related injuries or illnesses.
How can I lower my delivery driver insurance rates?
Having a clean driving record can help you pay less for insurance. However, if your driving history is less than stellar, you still might be able to reduce what you pay.
Shopping around for insurance instead of settling for the first policy you come across can prove cost-effective in the long term. Asking potential insurance providers if they have any discounts can lower your rates. Providers might offer you paid-in-full, multi-policy, and prior insurance discounts. You could also ask if a cheaper payment option exists. For instance, an Electronic Fund Transfer (EFT) option could yield savings.
Is delivery driver insurance tax deductible?
You should consult a tax attorney or accountant for tax advice. Generally, any business expenses can be deducted from your taxes. Your delivery driver insurance premiums could be considered business expenses. Again, you seek guidance from a tax expert to learn more.
What other professions need their own insurance?
Can I get into trouble if I do not tell my auto insurance provider that I am a delivery driver?
If you begin driving full or part-time and do not inform your auto insurance provider, then you might be responsible for covering damages out of your own pocket. Your insurance provider might deny your claims and cancel your existing policies. Contacting your provider and explaining your situation can connect you with a delivery driver insurance policy that can save you money.
About The Author
Edited by:
Bryan Huynh
•
Product Tester & Writer
