What to Look for When Choosing Car Insurance for Delivery Drivers

insurance company for delivery business

Whether you are a delivery driver or manage a team of delivery drivers, car insurance is crucial to your ongoing success. After all, accidents happen, and you need to be covered with the right type of insurance when they do. 

For example, say you want to become an Amazon driver. You may think it’s as easy as signing up and jumping in your car, but unfortunately, you may learn that this isn’t the case. You may be driving with the wrong type of insurance, which could cost you big time. 

Using a personal vehicle for business purposes without the proper coverage can be a costly mistake; here’s what you need to know and what to look for when searching for car insurance.

delivery driver insurance

What Is Delivery Driver Insurance?

First, is there “special” insurance that delivery drivers must seek?

The short answer is yes. Whether you are a courier or drive for a food delivery service, you require delivery driver insurance while on the road. 

This type of commercial auto insurance provides coverage when a vehicle is used for business purposes. Depending on your policy, it may cover everything from auto repair costs to medical expenses and lost wages if you need to take time off work following an accident. 

On that note, let’s compare — personal vs. commercial auto insurance.

  • Personal car insurance covers the personal use of your vehicle, compared to commercial car insurance, which covers you for business use. 
  • You need commercial insurance if you are transporting and delivering anything for money, even if it’s just a side hustle. If you don’t obtain this type of coverage and get in an accident, your personal car insurance won’t cover it. 
  • Since you will likely spend more time on the road as a delivery driver, commercial car insurance tends to be more expensive because you are at higher risk. 

Read more: Pros And Cons Of DIY Delivery

buying commercial car insurance

What to Look for When Shopping for Commercial Car Insurance

If you’re delivering anything, you need commercial car insurance; that much is certain. However, your policy can differ depending on where you’re located, what you want to be covered, etc. 

Whether you’re a business owner with employees or an independent contractor, searching for car insurance can be daunting. To simplify this process, be mindful of some of these key features.

  • Type of insurance — The majority of commercial insurance policies are customisable. The most common coverage points include liability insurance and collision. However, you can also get coverage for medical payments or loss of income following an injury. When shopping around, ask about your options and get a complete overview of what those options cover. That way, you can plan accordingly based on your needs and budget. 
  • Local requirements — Varying regions will have different requirements. Nearly all states will require you to have basic liability coverage. However, you’ll also need additional coverage in some states, such as uninsured motorist coverage (which matters when you’re in an accident with someone who isn’t insured).
  • Coverage gaps — If you’re working for a company and they offer you car insurance, you may think you’re all set. However, it may not be enough. For example, if you deliver food, your employer may provide coverage when you’re delivering a takeout order to a customer, but not while you’re driving to the restaurant to pick that order up. Review what your current policy covers, then seek a commercial car insurance policy that fills the gaps. 
  • Driver types — What you transport may influence your policy. For example, you will likely have a different policy than someone transporting hazardous goods if you’re delivering small packages or food. Large trucks may also require different insurance compared to small everyday vehicles. 

When you receive rates, read the fine print. What does the rate you were provided cover concerning deductibles, premiums, and benefits? Doing so will help you plan based on your current and ongoing budget, not just in terms of the finances you have available to you now, but will also help you better prepare for the future, just in case you have an accident. 

car insurance agent

Additional Tips When Seeking Commercial Car Insurance

  • Don’t wait — As soon as you start using your personal vehicle for commercial purposes, call your car insurance company. This step is important, even if an employer provides insurance for you, as discussed above. If you put this off and get into an accident, you could be stuck with a large bill. Even a fender bender can result in a bill that is thousands of dollars.

Speak with your business insurance agent — If you own a small business and rely on delivery drivers, you must ensure they are covered. Although you may think it’s each driver’s responsibility to insure their personal car, you may be liable if they get in an accident without the right insurance. For example, do you require non-owner insurance as a business owner? Call your business insurance agent to inquire.

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