If you plan to use a personal vehicle to deliver food, you may need a special insurance endorsement.
More and more drivers are using personal vehicles to deliver food for restaurants or as gig workers through companies like DoorDash®, Uber Eats, Grubhub, and Postmates. If you are using a personal vehicle to deliver food, make sure you have the proper food delivery insurance coverage.
In some cases, your employer may provide car insurance to cover you while out for deliveries, but in most cases, you will need to discuss coverage with your own car insurance provider. This article will help you figure out if you need food delivery insurance and, if so, how to get it.
We’ll also provide recommendations for the best car insurance companies for food delivery services. To see how much an auto policy with this specialty coverage may cost you, enter your zip code below or call our designated quotes team at 855-518-0148 to compare free quotes from top-rated providers.
In this article:
- What Is Food Delivery Insurance?
- Do I Need Food Delivery Insurance?
- What Happens If I Don’t Have Food Delivery Insurance?
- How To Get Food Delivery Insurance
- Our Recommendations For Food Delivery Insurance
What Is Food Delivery Insurance?
Food delivery insurance can mean a special insurance endorsement you get from your provider that covers your vehicle if an accident occurs while using it to deliver food.
Insurers can divide vehicle use into two categories: business use and personal use. While driving to work on a daily commute is not considered business use, any driving that is done as part of your job task is considered so. This means that if you use your personal vehicle to deliver food, packages, or as a rideshare service, it is considered business use.
In most cases, a business-use endorsement, such as a food delivery insurance distinction, can increase your premiums dramatically. Some providers, such as Geico, Progressive, and State Farm, offer business endorsements specifically for delivery drivers, which come with a lower premium increase than a full business endorsement or commercial auto insurance coverage.
Do I Need Food Delivery Insurance?
If you deliver food using a company vehicle, you do not need to purchase food delivery insurance. In this case, full responsibility lies with your employer. If you deliver food using your personal vehicle, you may need food delivery insurance, but it depends on the company for which you work.
When driving your own vehicle for deliveries, you will not be covered under your standard auto insurance policy and may need to speak with your provider about adding coverage for food service. However, some employers already provide this coverage for you.
In most cases, business owners will have a policy that covers their own assets for liability damages if you are in a car accident on the job. This policy may also cover your medical expenses, but is unlikely to cover the damages to your vehicle. Speak with your boss or read your employment contract carefully to learn how you are covered.
If you drive for a food delivery service like DoorDash, Postmates, Uber Eats, or Instacart, you are not covered for damage to your vehicle. Uber Eats provides general liability coverage for drivers, while DoorDash and Postmates provide liability auto insurance and bodily injury medical coverage. But none of these companies offers coverage to pay for repairs to your own vehicle should an accident occur.
If your employer does not provide you with food delivery insurance, you will need to add it to your own policy. A personal auto insurance coverage policy does not cover accidents that happen while using your car to deliver food.
There are exceptions for drivers in Colorado and Wisconsin, where state insurance commissioners have issued a COVID-19 mandate that requires insurers to expand personal coverage to cover food delivery drivers specifically. Even in states where expanding coverage has not been mandated by insurance commissioners, some auto insurance providers have done so anyway. Contact your provider to ask and be sure.
What Happens If I Don’t Have Food Delivery Insurance?
If you are in an accident while using your vehicle to deliver food and don’t have food delivery insurance, your repairs may not be covered. There is a good chance that damages to the other party’s property will be covered by your employer, but damages to your vehicle will not be covered if you’re not properly insured.
If you haven’t spoken to your provider about adding food delivery insurance or a business endorsement to your policy, your claim may be denied and you will be on the hook for your own repairs. You might even be removed from your policy or see rate hikes for misrepresenting your vehicle use to your policy provider.
How To Get Food Delivery Insurance
To add food delivery insurance to your existing coverage, contact your insurer and discuss your options. You may need to request a business-use endorsement be added to your policy. Or, your provider may offer a special food delivery add-on that is less expensive.
Geico, Progressive, and State Farm all offer food delivery add-ons. This endorsement is likely to increase your premiums by $20 to $40 a month, and rate hikes will depend on your car insurance provider and state.
Our Recommendations For Food Delivery Insurance
If you need to purchase food delivery insurance, the easiest thing to do is contact your current provider and speak with an insurance agent. If adding this endorsement is too expensive or if your insurer does not offer food delivery insurance, it may be time to switch providers.
We recommend considering two of our top-rated providers, Geico and Progressive, both of which offer food delivery insurance. The only way to find the best rates is to shop around and compare quotes. Use the tool below or call 855-518-0148 to get free auto insurance quotes from the industry’s best providers.
Geico: Best Overall
We rated Geico the Best Overall provider because of its nationwide availability, wide range of coverage options, high customer satisfaction scores, and excellent industry reputation. Geico is rated A+ by the Better Business Bureau and A++ in financial strength by AM Best. In our Geico auto insurance review, we scored the insurer 4.5 out of 5.0 stars.
Geico offers some of the lowest rates in the industry and is a good choice for drivers looking for food delivery insurance coverage. It offers what it calls rideshare coverage for those driving for companies like Uber, Lyft, Grubhub, or Postmates. This coverage is purchased as an add-on to your personal policy, and while it will increase your rates, it is unlikely to cause the same kind of increases other providers may charge for a business-use endorsement.
Progressive: Best For High-Risk Drivers
Progressive is one of the top insurers in the United States and a great choice for high-risk auto insurance. It offers several money-saving features and has an A+ financial strength rating from AM Best. We gave Progressive 4.5 out of 5.0 stars in our Progressive auto insurance review.
Those with Progressive policies can opt to add “pizza delivery insurance” to their personal auto insurance policies. Despite its name, this add-on covers drivers using their vehicles to deliver any type of food.