Best Car Insurance for Delivery Drivers (2025)
USAA, Allstate, and State Farm offer some of the best car insurance for delivery drivers.
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Most personal auto insurance policies don’t provide coverage for delivery driving. If you drive for a ridesharing or delivery company, you’ll typically need additional insurance since you’re using your vehicle for business purposes.
Transportation network companies (TNCs) provide some coverage for drivers, but many delivery network platforms won’t cover you. Without purchasing commercial car insurance or a rideshare endorsement, your personal policy may not cover you if you need to file a claim for an incident that occurred while making a delivery.1
Best car insurance for delivery drivers
Before you start delivery driving, make sure you have the proper auto insurance coverage. Check out three of the best car insurance companies for delivery drivers based on Insurify’s research.
USAA: Best for military members
Allstate: Best for coverage options
State Farm: Best for customer claims satisfaction
To determine the best insurance for delivery drivers, we compared multiple factors including coverage options, customer service reviews, customer claims satisfaction, discounts offered, and Insurify Quality (IQ) Scores.
Do delivery companies cover you?
Many insurers won’t cover you while driving for a TNC or food delivery company. This is why it’s important to purchase a commercial insurance policy or rideshare endorsement. Transportation network companies like Uber and Lyft provide a certain amount of insurance, but some food delivery services don’t offer any additional coverage.
Lyft
As a Lyft driver, you must have your own auto insurance that meets the minimum requirements of your state. Lyft’s coverage depends on distinct periods:
App is off: Your personal auto insurance applies.
App is on and receiving requests: Lyft maintains third-party liability insurance for covered accidents, $50,000 per person for bodily injury, $100,000 per accident for bodily injury, and $25,000 per accident for property damage.
App is on, and you’re en route or driving: In most markets, you get $1 million for third-party liability insurance.
App is on, and ride in progress: Lyft maintains at least $1 million for third-party liability.
Note that Lyft doesn’t provide any liability insurance for drivers in the five boroughs of New York City.
Uber
Uber offers different coverage depending on when you’re offline, online, en route, or on a trip:
Offline: Your personal auto insurance applies.
Online: Uber’s third-party liability insurance covers the cost of injuries or damages up to $50,000 per person, $100,000 per accident for injuries, and $25,000 in property damage per accident.
En-route: Uber insurance provides at least $1 million in property damage and injuries to riders and third parties if you’re in an at-fault accident.
DoorDash
Doordash provides third-party auto liability insurance for drivers involved in an accident during the delivery service period. The delivery service period starts when you accept a delivery request on the DoorDash delivery app and ends when the order is marked as delivered, unassigned, or canceled.
You also have to maintain primary insurance that meets your state’s minimum requirements. Any damages sustained to your vehicle are your responsibility and need to go through your personal auto insurance. Drivers in North Dakota and Indiana are subject to slightly different terms.
Grubhub
To drive for Grubhub, you’re responsible for supplying your own auto insurance.
Postmates
Postmates recommends drivers have commercial car insurance. The company offers excess auto insurance for fleet drivers with $1 million in liability coverage for bodily injury and/or property damage of third parties. This only applies when you’re on an active delivery, which is from when you receive a request to the time your customer receives their order.
Amazon Flex
If you maintain personal auto insurance, Amazon Flex will provide coverage while you’re driving and delivering under the Amazon Commercial Auto Insurance Policy.
Amazon’s commercial insurance includes $1 million in liability coverage, uninsured/underinsured motorist, and contingent comprehensive and collision coverage. If you live in New York state, you may require additional commercial insurance.
Instacart
To drive for Instacart, you’re responsible for supplying your own insurance.
Coverage for delivery drivers
Delivery driving has become a popular way to earn money. What you might not realize is there’s often a gap in coverage between your standard car insurance and the insurance the rideshare company provides.
Delivery driver insurance fills that gap. It’s not a specific type of insurance but rather additional coverage delivery drivers may need — such as a commercial car insurance policy or a rideshare endorsement. Both options offer protection for your personal vehicle for business use, including delivery driving.2
To cover the added risks of using a vehicle for business activities, commercial car insurance and rideshare endorsements generally provide more robust coverage than standard car insurance. Some rideshare companies offer insurance for their drivers, but coverage typically only applies during active delivery time.
Like traditional auto insurance, delivery driver coverage may include the following:3
Coverage for delivery accidents can vary by insurer and location. It’s crucial to shop around and compare quotes to ensure you get the best deal for your needs.
Commercial car insurance vs. rideshare insurance
If you’re wondering how commercial car insurance and rideshare insurance differ, here’s an overview of the two types of insurance coverage.
Commercial car insurance
Commercial car insurance offers protection for vehicles you use for business purposes.
“Commercial auto insurance is designed for an individual or company who owns and uses their vehicles to conduct their business on a daily basis,” says Scott Henman, certified insurance counselor and owner of Michigan Insurance and Financial Services.
Commercial car insurance helps protect you from unforeseen incidents on the road and may include property damage, bodily injury liability, and uninsured motorist coverage. It offers the most protection for delivery drivers, but it comes at a high financial cost.
“A commercial insurance policy for delivery drivers is costly and unnecessary in most cases,” says Henman. “Unless it’s for a fleet of vehicles and is the company’s primary operation — for example, distributors or grocers who offer their own delivery services.”
Rideshare insurance
Rideshare insurance is an endorsement you add to your personal auto insurance and is typically more affordable than a separate commercial auto insurance policy. A rideshare endorsement helps bridge the coverage gap between your personal auto policy and the coverage your rideshare company provides. But rideshare insurance availability can be limited.
“Not all insurance companies offer rideshare endorsements, and some do on a state-by-state basis,” says Henman. “Small regional insurance companies are typically reluctant to offer rideshare coverage.”
If you’re considering becoming a rideshare driver, contact your insurance company to discuss your specific needs and explore the available rideshare insurance options. Make sure the policy covers you at all delivery stages and not just certain times.
Car insurance for delivery drivers FAQs
If you’re looking for more information about car insurance for delivery drivers, check out the additional information below.
What car insurance is best for delivery drivers?
As a delivery driver, you’ll likely need a commercial insurance policy or a rideshare endorsement to ensure you have adequate coverage. Some of the best car insurance companies for delivery drivers include USAA, Allstate, and State Farm. The insurance policy that’s right for you will depend on your specific needs and budget.
Do you need to tell your car insurance company if you start delivery driving?
Yes. You must inform your insurer if you start using your own car for deliveries. Ideally, you’ll want to notify your insurance company before using your vehicle for business purposes to avoid potential coverage gaps.
Failing to disclose your business activities could lead to policy cancellation and denial of claims for accidents that occur while you work.
What insurance should you have for DoorDash?
When delivering for DoorDash, you have to maintain personal insurance that meets your state’s minimum requirements. DoorDash does provide third-party commercial auto insurance that covers up to $1 million in bodily injury and/or property damage to third parties if you’re in an accident while on a delivery.
What insurance do you need to deliver pizza?
Speak with your insurance company to confirm what insurance you need to deliver pizza. You’ll either need a commercial auto insurance policy or an additional endorsement to ensure you’re properly covered. If you’re a company employee, your employer may give you a company vehicle that has commercial car insurance coverage.
What kind of insurance does GrubHub provide for its drivers?
GrubHub doesn’t provide any insurance for its drivers. To drive for Grubhub, you must have your own auto insurance.
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