Best Car Insurance for Delivery Drivers


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Key Takeaways

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Personal car insurance usually excludes commercial activities like food delivery services (DoorDash, Postmates and UberEATS), potentially leaving you without coverage during delivery work.

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Progressive, USAA and GEICO are the top car insurance companies for delivery drivers.

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If you plan on using your vehicle for full-time business purposes, consider getting commercial car insurance.

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What is the Best Car Insurance for Delivery Drivers?

Progressive offers the best delivery driver insurance, with an average annual premium of $1,532 for full coverage (liability + comprehensive + collision). The company offers rideshare insurance coverage and provides exact cost estimates. USAA received a higher MoneyGeek score and has lower car insurance rates, averaging $835 per year. However, it only caters to military families.

Company logo for Progressive
Best Insurance for Delivery Service Drivers Overall: ProgressiveProgressive
MoneyGeek Score:
89/ of 100

Average Monthly Premium$128
Average Annual Premium$1,532
Overview

Progressive offers insurance for delivery drivers working with platforms like Uber Eats. Personal auto policies usually don’t cover delivery work, but Progressive’s rideshare add-on bridges the gap between personal coverage and the limited insurance from delivery companies.

The add-on provides flexible protection, letting drivers adjust coverage based on how often they drive. It’s usually more affordable than full commercial policies and keeps delivery drivers protected on the road.

Discounts for delivery drivers:

  • Multi-policy: For bundling policies, such as auto and home insurance, with Progressive
  • Continuous insurance: A discount based on how long you’ve maintained auto insurance, even with another company
  • Multi-car: For listing more than one vehicle on your Progressive policy
  • Pay in full: Save up to 15% or more by paying your premium in a lump sum.
  • Snapshot® program: Discounts with usage-based insurance that rewards safe driving habits
  • Paperless: For choosing electronic policy documents
  • EFT: Set up automatic payments with Electronic Funds Transfer to avoid fees and qualify for savings.
Company logo for USAA
Best Delivery Driver Insurance for Military Members, Veterans and Their Families: USAAUSAA
MoneyGeek Score:
95/ of 100

Average Monthly Premium$70
Average Annual Premium$835
Overview

USAA offers delivery driver insurance exclusively for military members, veterans and their families. Since most personal auto policies won’t cover food or package delivery, USAA provides business-use and rideshare endorsements to ensure coverage while driving for platforms like Uber Eats, DoorDash and Instacart. Existing USAA auto insurance customers can add this protection for as low as $6 monthly. 

Discounts for delivery drivers:

  • Safe driver: Rewards drivers with clean driving records, free of accidents and violations
  • Multi-policy: For bundling auto insurance with homeowners or renters insurance
  • Annual mileage: For drivers who log fewer miles annually
  • Defensive driving: For completing an approved course
  • Vehicle storage: Discounts for storing your car and not using it for an extended period

*Note: The rates above are for full coverage policies, which include 100/300/100 liability coverage limits with comprehensive and collision coverage at a $1,000 deductible.

Best Insurance Companies for Delivery Drivers

Not all personal auto policies cover delivery driving. In addition to Progressive and USAA, delivery drivers can get auto insurance from other providers. The table below compares top insurers offering rideshare, business-use or commercial coverage for delivery drivers.

Company
Availability
Best For
Not Ideal For

Progressive

All states, except Alaska and Hawaii

Delivery drivers seeking flexible rideshare and business-use coverage

Drivers who need exact cost estimates before getting a quote

State Farm

All states, except Hawaii and Massachusetts

Delivery drivers needing strong coverage with rideshare add-ons

Drivers needing full commercial insurance for 24/7 delivery use

GEICO

All states, except Michigan and Kentucky

Budget-conscious delivery drivers looking for affordable rideshare insurance

Drivers who need a commercial auto policy for full-time delivery

Allstate

California, Texas, Florida, Illinois and New York

Delivery drivers wanting accident forgiveness and perks

Drivers in states where coverage isn’t available

Farmers

All states, except Rhode Island, Vermont and Alaska

Hybrid and electric vehicle delivery drivers needing business-use endorsements

Drivers who don’t need business-use coverage

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MONEYGEEK EXPERT TIP

Rideshare insurance is an add-on offered by some insurers, but it’s not the only choice. You can also opt for commercial car insurance by registering as a commercial driver. Commercial car insurance covers vehicles for business activities like ridesharing, food delivery, contracting or trucking.

Cheapest Car Insurance Companies for Delivery Drivers

GEICO is the most affordable provider for delivery drivers, offering low rates, rideshare add-ons and strong customer service. However, other insurers also provide competitive options. See the table below for a comparison of costs by coverage.

Data filtered by:Results filtered by:
Select
Coverage:State Minimum Liability Only
Geico$43$522
Travelers$50$601
National General$50$605
State Farm$51$616
Amica$56$670
Chubb$61$728
Kemper$62$744
Progressive$67$802
AAA$69$822
Nationwide$71$852
Farmers$78$938
Allstate$81$971
AIG$81$972
UAIC$119$1,433
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Delivery Driver Car Insurance: Buying Guide

Most personal auto policies don’t cover delivery driving. This guide explains how to choose the right coverage, whether it’s a rideshare add-on, business-use policy or commercial insurance.

How to Get the Best Car Insurance for Delivery Drivers

Choosing the right insurance as a delivery driver ensures you’re covered in case of accidents or damage. Follow these steps to find the best policy for your needs:

  1. 1

    Review your current policy

    Most personal auto policies don’t cover delivery driving. Check with your insurer to confirm if you need additional coverage.

  2. 2

    Determine your coverage needs

    If you drive occasionally, a business-use endorsement may be enough. Full-time drivers may need a rideshare add-on or commercial auto policy.

  3. 3

    Compare insurance options

    Rates and coverage vary by provider. Get multiple quotes from insurers offering delivery driver or rideshare coverage.

  4. 4

    Check employer-provided coverage

    Some delivery platforms offer limited insurance, but it often covers only liability. Make sure you have the right financial protection for your vehicle.

  5. 5

    Look for discounts

    Many insurers offer savings for safe driving, bundling policies, low mileage and defensive driving courses.

  6. 6

    Understand coverage limitations

    Know when your policy applies and where gaps might leave you unprotected while making deliveries.

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MONEYGEEK EXPERT TIP

Getting the best insurance starts with honest disclosure about your delivery activities. Failing to inform your insurer about commercial use can void your coverage entirely.

Delivery Driver Insurance Discounts

Getting the best insurance starts with honest disclosure about your delivery activities. Failing to inform your insurer about commercial use can void your coverage entirely.

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    Safe driver discount

    Insurers reward drivers with clean records, often requiring 3-5 years without at-fault accidents or moving violations. This represents the largest single discount opportunity for delivery drivers who maintain clean records despite higher driving exposure.

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    Usage-based discount

    Telematics programs monitor driving habits through smartphone apps or devices, rewarding safe acceleration, braking and speed patterns. Delivery drivers can qualify despite higher mileage by demonstrating consistent safe driving behaviors. These programs often stack with other behavioral discounts.

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    Multi-policy discount

    Bundling auto insurance with renters, homeowners or life insurance provides significant savings. For delivery drivers, renters insurance offers the additional benefit of covering personal items during delivery work. Bundle discounts often exceed the cost of additional coverage.

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    Low-mileage discount

    Traditional low-mileage discounts don't benefit most active delivery drivers due to higher annual mileage requirements. However, pay-per-mile insurance can work for part-time delivery drivers with predictable, lower-mileage patterns.

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    Defensive driving course discount

    Completing approved driving safety courses can help lower premiums and may remove violations from your record. This discount is particularly valuable for delivery drivers looking to maintain or restore clean driving records.

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    Loyalty discount

    Long-term customers who renew policies often receive enhanced benefits and lower rates over time. Some insurers provide additional perks like accident forgiveness after maintaining coverage for several years.

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    Vehicle safety features discount

    Modern safety equipment qualifies for multiple discount levels. Anti-lock brakes, anti-theft systems, automatic emergency braking and collision avoidance features can stack for enhanced savings. Multiple safety features often combine for maximum premium reductions.

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    Affinity or employer discount

    Professional organizations, alumni associations, federal employment and military service often qualify for exclusive discounts. Some insurers partner with delivery platforms or professional groups to offer additional savings opportunities.

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DISCOUNT STACKING STRATEGIES

The most significant savings come from qualifying for multiple categories simultaneously. Safe driving records, vehicle safety features and policy bundling can combine for substantial premium reductions. Most carriers allow discount stacking, creating opportunities for significant savings compared to base rates.

Insurance Coverage for Delivery Drivers

Delivery drivers using personal vehicles often go through different coverage phases while working. Insurance companies categorize these phases to determine when personal, rideshare or commercial coverage applies. Below is a breakdown of these phases and the type of insurance covering each stage.

Phase
Status
Coverage

Phase 0

The app is off, and you’re using your car for personal driving.

Personal auto insurance applies.

Phase 1

The app is on, but you haven’t accepted a delivery request yet.

Rideshare or business-use endorsement is required since personal policies usually don’t cover this stage.

Phase 2

You’ve accepted a delivery request and are en route to pick up the order.

Limited coverage from the delivery platform may apply, but additional rideshare or business-use coverage is recommended.

Phase 3

The order is in your vehicle, and you’re delivering it to the customer.

Employer-provided liability coverage may apply, but you need collision and comprehensive insurance to cover your car.

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POTENTIAL COVERAGE GAP

The most critical coverage gap occurs in Phase 1, when you're available for deliveries but haven't accepted a request. Most personal auto policies exclude this period, leaving you potentially uninsured.

Delivery Driver Car Insurance Coverage by Platform

Understanding what insurance coverage each delivery platform provides helps you identify gaps and choose the right additional protection. Platform coverage varies between companies and delivery phases. 

Each delivery platform provides different levels of insurance coverage, with most offering liability protection during active deliveries but limited coverage during waiting periods. Here's how the major platforms compare:

Platform
Waiting for Orders
En Route to Pickup
Active Delivery

DoorDash

No coverage

Liability only

Liability + excess collision

Uber Eats

No coverage

Liability only

Liability + comprehensive

Grubhub

No coverage

Liability only

Liability + collision

Amazon Flex

No coverage

No coverage

Liability only

Instacart

No coverage

Liability only

Liability + excess collision

*NOTE: Platform coverage may vary by location and change without notice. Verify current coverage with your delivery platform.

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MONEYGEEK EXPERT TIP

Platform-provided coverage usually acts as secondary insurance, meaning your personal policy pays first. Additionally, most platforms don't provide coverage during the waiting period, highlighting the importance of rideshare or business-use endorsements.

Do You Need Different Insurance to be a Delivery Driver?

A personal car insurance policy may suffice for most drivers, but delivery drivers need delivery driver insurance. Some insurers offer a rideshare add-on for this purpose. Check with your provider to see if it’s available. If not, consider switching to an insurer that offers this coverage.

Commercial Car Insurance vs. Rideshare Insurance Add-On

Choosing between commercial car insurance and a rideshare insurance add-on depends on how you use your vehicle and how much you drive for delivery work. Understanding the coverage differences helps you select the most appropriate and cost-effective option.

Criteria
Rideshare Insurance Add-On
Commercial Car Insurance

Coverage Type

Extends your personal policy to cover delivery work

Replaces your personal policy entirely

Delivery Phase Coverage

Covers all delivery phases with same limits as personal policy

Provides broader business liability protection and higher limits

Policy Benefits

Maintains personal policy benefits and discounts

Required for vehicles used primarily for business purposes

Best For

Part-time drivers using vehicles primarily for personal use

Full-time drivers earning majority income from delivery

Weekly Driving Hours

Less than 30 hours weekly for delivery platforms

30+ hours weekly for delivery platforms

The rideshare insurance add-on assumes you’re using your car both personally and for business. Commercial car insurance may be a better option if you plan on using your vehicle entirely for business.

    rideshare icon

    UBER/LYFT drivers

    Standard car insurance usually doesn’t cover work with ridesharing companies. While ridesharing companies provide some insurance, it’s often less comprehensive than personal policies. If you primarily use your car for ridesharing, consider commercial car insurance. Otherwise, a rideshare add-on may be sufficient.

    foodDelivery icon

    Food delivery drivers

    Companies usually get commercial insurance for vehicles that their employees use for takeout deliveries. However, if you’re a full-time independent contractor, you’re responsible for your own commercial car insurance.

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    Truckers and bus drivers

    Truckers must have commercial car insurance. Trucking companies and bus fleet operators often insure their vehicles. You must buy commercial car insurance if you own a truck and plan to use it for business.

    houseRebuild icon

    Contractors or landscapers

    If you own a contracting or landscaping business and use your vehicle to haul supplies for your company.

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MONEYGEEK EXPERT TIP

Commercial auto insurance is usually more expensive than personal car insurance due to higher liability risks. Commercial vehicles often require higher liability limits, and insuring multiple vehicles or allowing multiple drivers increases the risk, leading to higher premiums.

Car Insurance for Part-Time and Seasonal Delivery Drivers

Many drivers work for delivery platforms only during busy seasons or as supplemental income. Understanding your insurance options helps you get proper coverage without overpaying for protection you don't need year-round.

  • Part-Time Delivery Driver Insurance: Part-time drivers face the same coverage gaps as full-time drivers. Even a single delivery trip without proper coverage could result in a denied claim if you're in an accident, since personal auto policies exclude commercial activities regardless of how often you drive.

    Most rideshare endorsements cost $15-30 monthly regardless of frequency, making them affordable protection for part-time drivers. Pay-per-mile insurance from some carriers adjusts with your driving patterns, while commercial coverage isn't cost-effective unless you drive more than 20 hours weekly.

  • Seasonal Delivery Driver Insurance: Holiday seasons create peak demand for delivery drivers, with many starting temporary delivery work. Seasonal drivers need coverage during active periods but may want to avoid year-round payments, especially during winter months when weather-related accidents increase. 

    Consider contacting your insurance company 7-10 days before starting delivery work, as most endorsements take 24-48 hours to activate. Keep coverage active for 30 days after your last delivery to protect against delayed claims from your delivery period.

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COST-EFFECTIVE STRATEGIES

Year-round endorsement works best for unpredictable delivery schedules and provides consistent coverage without administrative hassle. Seasonal endorsement suits drivers with predictable patterns like holiday-only work but requires discipline to add and remove coverage properly. Commercial policies only make sense for drivers working 30+ hours weekly during peak seasons.

Best Delivery Driver Insurance: The Bottom Line

Most drivers have personal car insurance, which doesn’t cover delivery work. Your insurer may deny your claim if you’re in an accident while delivering. This guide explains how delivery driver insurance works and outlines coverage options to help you choose the right policy. 

A rideshare insurance add-on is ideal for part-time or full-time food delivery drivers, as it covers you while using a delivery app. For full-time business use, commercial car insurance may be a better choice.

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Car Insurance for Delivery Drivers: FAQ

Below are answers to some frequently asked questions to help you better understand delivery driver insurance:

What is delivery driver insurance?

Will personal car insurance cover deliveries?

Where can I get delivery driver car insurance?

Do I need special insurance to drive for DoorDash, Uber Eats or other delivery platforms?

What happens if I get in an accident while waiting for delivery orders?

How do I file a claim when multiple insurance policies might apply?

Does Amazon Flex provide the same insurance coverage as other delivery platforms?

Will my insurance company cancel my policy if they find out I do delivery work?

Can I use my personal car insurance for occasional delivery work?

What's the difference between rideshare endorsements and commercial car insurance for delivery drivers?

How much does delivery driver insurance cost compared to regular car insurance?

Do I need different coverage for different delivery platforms?

What happens to my coverage when I switch between passenger rides and food delivery?

Can I get delivery driver insurance if I have a poor driving record?

Is gap insurance necessary for delivery drivers who finance their vehicles?

Best Auto Insurance for Delivery Drivers: Our Review Methodology

Finding affordable car insurance as a delivery driver feels like an uphill battle. You're putting more miles on your car than the average driver, which means higher rates. However, you also need reliable coverage that won't leave you stranded if something goes wrong. We designed our research to identify insurers that offer competitive rates and solid protection for drivers who spend their days on the road making deliveries.

Our Research Approach

We partnered with Quadrant Information Services to analyze 83,056 quotes from 46 companies across 473 ZIP codes nationwide. This comprehensive data set allowed us to identify patterns in how insurers price coverage for different driver profiles and locations. Rather than relying on advertised rates or limited regional data, we gathered real quotes to understand what delivery drivers actually pay.

Our analysis incorporated trusted industry sources, including J.D. Power customer satisfaction scores, AM Best financial stability ratings, and NAIC complaint data, to evaluate each company beyond just price. We selected companies based on their MoneyGeek scores across multiple states, ensuring our recommendations work whether you're delivering in Texas or Delaware. 

Sample Driver Profile

We used a standard profile that reflects many delivery drivers: a 40-year-old male with a clean driving record driving a 2010 Toyota Camry LE. The profile includes 100/300/100 liability coverage limits with comprehensive and collision coverage at a $1,000 deductible, covering 12,000 miles annually.

This baseline helps you understand how rates might differ based on your specific situation. Younger drivers pay more. At the same those with accidents or violations can expect higher premiums regardless of the insurer 

MoneyGeek Scoring System

We weighted our 5-point MoneyGeek scores to reflect what matters most to delivery drivers:

  • 30% Customer satisfaction:  Based on NAIC complaint ratios and J.D. Power scores
  • 30% Affordability:  Rate comparisons using our Quadrant data
  • 20% Claims handling:  J.D. Power Claims Study and CRASH Report Card analysis
  • 10% Coverage options:  Essential protection availability
  • 5% Financial stability: AM Best ratings for claim-paying ability

For delivery drivers prioritizing customer service over rock-bottom rates, we adjusted affordability weighting to zero and emphasized satisfaction scores. These modifications ensure our recommendations match different priorities within the delivery driver community. 

Learn more about MoneyGeek's car insurance methodology.

Delivery Driver Auto Insurance: Related Pages

About Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.


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