Insurance for Delivery Drivers 

Delivery drivers spend more time on the road, which increases the risk of accidents and vehicle damage. Auto insurance designed to meet the needs of delivery drivers may help cover claims after an accident.

Auto Insurance Options for Delivery Drivers

Standard personal auto insurance usually doesn’t cover accidents that occur while a vehicle is being used for delivery. Most policies have exclusions for business use, which could leave drivers responsible for damages. To avoid gaps in coverage, delivery drivers can explore a few insurance options:

• Personal auto insurance with endorsements—Some insurers offer endorsements that extend personal auto insurance to cover delivery activities. Two common types include:

• Rideshare insurance endorsement—Originally designed for rideshare drivers, this endorsement may also cover drivers delivering food for app-based food-ordering services. It typically covers the period when the app is on but before a delivery is accepted.

• Business use endorsement—This add-on is broader than a rideshare endorsement and may be required for regular delivery work. It indicates that the vehicle is used for business purposes and offers coverage beyond personal use.

• Commercial auto insurance—Commercial auto insurance may be more appropriate for drivers who deliver full-time or use larger vehicles. This policy may provide coverage during all phases of delivery, including while accepting a job and dropping off the order. Commercial policies may have higher liability limits, which may be necessary depending on the company you drive for.

Before starting delivery work, check with your insurance provider to ensure your coverage meets the job requirements and the platform you use. An insurance professional from Castillo Insurance & Income Tax Service can assess your situation and recommend optimal coverage. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.