Auto Insurance (Rates & Requirements)

Commercial auto insurance is the best auto insurance option to protect you while making deliveries. Average rates are $273.08/month but compare cheap auto insurance rates now to save.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Jul 15, 2021

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It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Things to remember...

  • Delivery drivers do not work for
  • Look for a ‘livery exclusion’ in your policy for the simplest answer
  • Beware misleading language in employment contracts
  • Understand the consequences of lacking, or insufficient, coverage
  • Seek insurance companies that offer affordable commercial policies or supplemental insurance to cover food delivery drivers who use their personal cars in the commission of their work

Will my car insurance cover an accident delivering food for You must have proper auto insurance coverage to be a driver, and that usually means a commercial auto insurance policy. In today’s shared economy, an increasing number of people are finding gigs as independent contractors. This often includes jobs like delivering food for shared merchant sites like or transporting riders for Uber.

Make sure you compare car insurance rates with our free quote tool above! Just enter your zip code and start comparing rates for the coverage you need today!

As a result, the question often arises as to whether or not their personal auto insurance would cover them in the event of an accident during the commission of their work. Unfortunately, the answer to that is both simple and complex.

Who do you work for when delivering orders taken on

First and foremost, the first step in determining whether or not your insurance will cover an accident is in understanding who you work for. It is imperative that you understand that you will not be working directly for is simply a website established as a place where consumers can order food online for delivery or pickup. In actuality, is an app offered in key market areas in which restaurants can widen their reach.

Consumers check out availability, order food through the app, and then each establishment becomes responsible for handling its own deliveries.

This is the place to start when seeking to find if your auto insurance for your personal vehicle will cover an accident making deliveries taken on

So then, who will you be working for? If you are delivering for a restaurant, the next step is to consider the owner of the vehicle you will be driving.

If it is a company owned vehicle, then obviously your insurance probably wouldn’t cover you because the restaurant is required to purchase commercial auto insurance. Even here, there are always exceptions to the rule. For example:

  • Have you purchased insurance covering you as the driver of that vehicle?
  • Does your employer expect you to buy your own auto insurance?

These are just a couple of points to ponder if you don’t own the vehicle. In most states, if not all, it isn’t necessary for you to be the owner of the vehicle to purchase insurance covering you to drive it. In fact, some companies require you to buy your own insurance covering you when driving their vehicles, especially if you are an independent contractor and not on their payroll.

Read your employment contract carefully because you may not be covered under the employer’s auto insurance. You would not be covered if an accident should occur.

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Stepping Into the Gray Zone between Commercial and Personal Coverage

Here is where you will find the simplest answer to your question. Does your personal auto insurance policy contain the ‘Livery Exclusion’? Until quite recently, this has been a standard exclusion on personal auto insurance policies.

However, in some states, big insurers like Geico are working to provide coverage for rideshare drivers which may, depending on the provider, also cover food delivery drivers. Be sure to get food delivery driver insurance coverage to be protected.

This puts you in the gray zone! Your automobile insurance could bounce back and forth between commercial, if being used to deliver food, and personal if driving to and from work or for personal purposes.

This is a whole new world within the insurance arena and one which is evolving by the day.

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Will your personal auto insurance cover you in a non-owned vehicle?

When food delivery drivers are required to use the company vehicle, it is important to realize that they will not be covered on their personal car insurance policy unless that vehicle is listed. Unfortunately, personal insurance wouldn’t allow them to add this vehicle for commercial use.

In fact, many restaurants prefer company-owned cars with their logo for instant visibility and general advertising purposes.

Whether you work for the company or are an independent contractor, you will most often be required to sign a contract if you will be using a company car. Again, read the fine print carefully.

Don’t assume that the restaurant’s commercial auto insurance will cover you in the event of an accident. If you are not listed as a driver, and the provider has not run your driving record, it is highly doubtful they will honor any claims against that policy if you were behind the wheel.

In a case like this, look at supplemental or gap insurance from companies like:

  • State Farm
  • Geico
  • Allstate
  • Progressive
  • Farmers Insurance

As mentioned above, Geico (a Berkshire Hathaway Company) is stepping ahead of the pack in researching and providing rideshare/delivery insurance, but each of the top five big insurers are also easing into the gray zone.

Commercial Coverage on Your Personal Auto Is Still Your Best and Safest Option

In the end, the rule of thumb still prevails. If you are going to be working as a delivery driver, you will need what has traditionally been considered commercial coverage. Even supplemental coverage sometimes referred to as gap insurance, falls technically within the realm of commercial insurance.

Remember that personal auto insurance policies typically exclude using the vehicle for work-related activities, but you may be able to purchase supplemental coverage.

However, this coverage puts you in a gray zone somewhere between commercial and personal automobile insurance and the cost may be a bit higher.

Finally, it is going to be imperative to review the ‘no-fault’ laws, if any, in your state as well as the conditions and exclusions on your own policy to ensure that you have adequate coverage within your delivery area.

Not all states implemented no-fault insurance options, but even so, no-fault could get sticky if you have the wrong coverage when using your vehicle in the commission of a day’s work.

Also, be aware of the fact that you must report to your insurance company that you will be using your vehicle to deliver food.

Failure to do so in an attempt to avoid higher premiums is considered to be insurance fraud which is punishable by the law, both civil and criminal. Don’t wait until you are involved in an accident to see what the consequences will be.

Being convicted of insurance fraud is much costlier than paying a slightly higher premium.

Many delivery drivers are amazed at just how affordable some commercial auto insurance policies are.

Prices vary from provider to provider, but if you look, you can find the right coverage for a good price. Make sure to use our free insurance comparison tool below! Just enter your zip code and get your free quote now!



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