Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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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 Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Jan 8, 2021

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Things to remember...

  • Your ordinary auto insurance won’t cover delivering for Postmates
  • Postmates offers it’s fleet an excess auto liability policy that covers property damage and bodily injury to third parties while you’re making deliveries using the Postmates app
  • Your insurance company could cancel your policy if you don’t inform them you’re driving for Postmates
  • Look for a small business delivery insurance policy if you want to drive for Postmates

Do you need auto insurance for Postmates? Where can you find the best Postmates auto insurance rates? You can make Postmates deliveries on foot, bicycle, scooter, or driving your car. But when it comes to Postmates, local auto insurance laws may differ from state-to-state.

Be sure to learn all about Postmates auto insurance requirements by reading this article and then shop around to find affordable Postmates auto insurance coverage online.

Ready to buy Postmates auto insurance? Compare Postmates auto insurance quotes online now. Enter your ZIP code above in our free tool to get quotes from multiple insurers.

What are the auto insurance requirements for Postmates?

You’ve decided to supplement your income by delivering for Postmates, but now you need to understand the auto insurance requirements for using your personal vehicle in a business capacity.

How does Postmates work? What kind of coverage do you need? Does Postmates offer coverage? Or do you need to purchase additional coverage? Keep reading for more.

Do you need special auto insurance coverage as a delivery driver?

Do you need special insurance for Postmates? Yes, you need special auto insurance to drive for Postmates, so if you’re wondering whether you can use a personal auto insurance policy to deliver food, the answer is probably not. Read the next section for more on specific kinds of auto insurance you’ll likely need to deliver food for Postmates.

What kind of auto insurance do you need for Postmates?

In addition to your personal auto insurance policy, you’ll probably need commercial coverage to protect you when you’re delivering for Postmates.

As you can see, when using your personal vehicle in the course of making money (in this case, delivering food for Postmates), your personal auto insurance policy may not be sufficient.

What insurance options do Postmates delivery drivers have?

Some insurance companies offer coverage specifically for food delivery, while others may require you to purchase a full commercial policy in addition to your personal auto insurance policy.

This table looks at an example of food delivery auto insurance quotes from Progressive so you can get an idea of how much your rates may be with both personal and business commercial coverage.

Monthly Progressive Rates for Personal and Food Delivery Auto Insurance
Type of Auto InsuranceProgressive
Monthly Rate
Rate Increase From Personal Auto Insurance Only
Personal Insurance (No Delivery)$105.83n/a
Personal Insurance (Delivery)Won't CoverWon't Cover
Food Delivery (Business & Personal Auto Insurance)$296.83180.47%
Food Delivery (Business Auto Insurance Only)$273.08158.03%
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But they’re certainly not the only insurer to offer this coverage. You may be able to get GEICO insurance for Postmates or State Farm food delivery insurance, along with most major insurers. Additionally, keep in mind this is an example from a single insurer, so your rates may vary based on your insurance company, as well as other factors like your age, driving history, where you live, etc.

Regardless of your insurance company or their specific requirements, you must notify your insurance company. You can get started comparing Postmates driver auto insurance rates today.

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What are the state requirements for Postmates delivery auto insurance?

Some drivers like to drive for Postmates because you can use any car, van, or truck to make deliveries.

Postmates driver requirements from the company are fairly simple. In most cases, you only need to ensure your insurance policy will cover the state minimum mandatory auto insurance requirements. However, as we already discussed, you probably should get additional coverage (something your insurance company may require).

Your name must be on the insurance policy, but you don’t need to be named on the car’s registration. You also won’t be required to have a vehicle inspection like you would driving for Uber or Lyft.

You will have to pass a background and driving record check. If you have any of the following during the past seven years, you probably won’t pass the background check:

  • Driving while under the influence (DUI)
  • Reckless driving
  • Driving with a suspended license

You also can’t have more than two moving violations (especially speeding tickets) during the past three years.

What are Postmates delivery method policies?

You can make deliveries for Postmates on foot, via bicycle, on a scooter, or in your car. You will be required to change the listed vehicle if you decide to use your bicycle one day and your car another day.

Postmates vehicle insurance coverage (a commercial policy on top of your personal one) is a must because Postmates’ insurance policy for its fleet is supplemental and designed to protect Postmates. It won’t cover your injuries and has a $2,500 deductible for damage to your car if an accident occurs.

Does Postmates ask if you have auto insurance?

Yes, Postmates requires that all drivers hold valid auto insurance to drive for them. The specific coverage amounts are not defined, however, so you’ll need to work with your insurance company to make sure you have the necessary personal and commercial coverage to drive for Postmates safely.

To find the best Postmates delivery driver auto insurance rates, you can start comparing right now using a free tool like the one on this page.

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Does Postmates raise your auto insurance rates?

Does Postmates make your insurance rates go up? In most cases, the answer is yes, because you’ll have to increase your coverage. As we’ve already discussed, you’ll need to buy special commercial auto insurance to drive for Postmates.

Do not attempt to hide your food delivery job from your auto insurance company. This can be considered a form of fraud and may result in your policy being dropped or claims being rejected. You can get started finding the cheapest Postmates auto insurance online now by entering your ZIP code in the free comparison tool on this page.

Does Postmates provide insurance coverage for its drivers?

Postmates will cover you with a general liability policy, also referred to as Postmates occupational insurance, that covers any injuries or property damage suffered by third parties while you’re making deliveries.

The company also offers excess auto liability coverage of $1 million for bodily injury or third party property damage.

Postmates’ insurance requirements are expected to supplement your insurance policy if you suffer an accident while making a delivery, as it will not cover any of the damages or injuries you suffer as a result.

Postmates occupational insurance is offered to delivery drivers from the moment they accept a delivery until they drop it off. However, as we’ll note later, Postmates occupational insurance does not cover you if you’re sitting in your vehicle with the app open but have not accepted a delivery yet.

When does Postmates auto insurance cover drivers?

Postmates schedules your deliveries via a smartphone app. You are responsible for arriving at the vendor, and in most cases, must place the order yourself.

Then, you must deliver the food or other items to the customer’s address. You do not have insurance coverage while you are waiting for the app to assign a delivery to you, only after you’ve accepted a delivery up until you drop it off at its destination. You will not be covered by Postmates after you drop off the order.

What do I do if I get into an accident while delivering for Postmates?

Does Postmates cover accidents? The company regards you as an independent contractor and tells fleet drivers they are responsible for all costs incurred while making deliveries.

You must get your own commercial auto insurance coverage for food to be properly covered with a food delivery auto insurance policy when you’re driving for Postmates.

As we described earlier, Postmates does offer a $1 million liability policy, but similar to the liability coverage on your personal policy, it only covers bodily injury and property damage for third parties.

Need to file a claim with Postmates for an accident that occurred while you were in the process of delivering food?

Postmates insurance claims must be reported immediately to their Postmates incident and accident report email: [email protected]

The company’s extensive legal documentation makes it clear you are an independent contractor, and your injuries and vehicle damages won’t be covered.

Insurance commissioners in California and other states report that you could have gaps in insurance coverage while driving for a company like Postmates, which is why an additional commercial policy you purchase is important.

But why doesn’t your personal auto policy cover accidents while you’re delivering food? Like most things, there are many reasons, but part of it is that being a delivery driver is considered a high-risk occupation.

The U.S. Bureau of Labor Statistics notes that delivery driving actually ranks as the fourth most dangerous job in America. For auto insurers, that translates to a much higher potential pay-out, which doesn’t correlate to the lower rates associated with a personal auto insurance policy.

Another reason is that delivery drivers are typically younger than the average driver. And in many cases, younger drivers are perceived as higher risk than their older, more experienced counterparts, which also translates to higher (and possibly more frequent) payouts on claims.

Crosley Law points out that delivery drivers usually have:

  • Less driving experience
  • High pressure to make fast deliveries
  • More driving with deliveries

All these reasons contribute to why a personal auto insurance policy is not sufficient coverage if you’re driving for Postmates, which helps explain why and when you need business auto insurance on top of your personal policy.

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Delivering for Postmates vs. Lyft or Uber

Many insurance companies and state insurance commissioners have worked to provide insurance products for rideshare drivers who carry passengers.

Services like Lyft and Uber that schedule drivers to pick up passengers are also called Transportation Network Companies (TNCs).

Insurers and state officials regard Postmates drivers differently because they pick up and deliver food or other items, not passengers. Postmates pays its fleet drivers per delivery, not by the hour.

When you’re looking for auto insurance for delivery drivers while driving for Postmates, you are most comparable to couriers or pizza delivery drivers. As a result, food delivery auto insurance coverage may be different than a commercial policy that protects drivers who transport people instead of food.

What are other risks if I drive for Postmates?

You shouldn’t try to make Postmates deliveries in your car without telling your insurance company. Insurance companies have the right to cancel your auto policy if they find out.

As we already noted, insurance companies consider Postmates delivery driving similar to pizza delivery drivers. Keeping your food delivery work secret from your car insurer is considered insurance fraud.

Auto insurance fraud is a punishable offense and can result in major fines and even jail time. Your insurance could be canceled, along with your drivers’ license and car registration.

You can find dozens of examples of Postmates insurance denials on Reddit for people who didn’t have the correct coverage.

Be Alert For New Insurance Types And Laws

Legislators know that businesses like Postmates are new. Some federal elected officials are working on laws to make it easier for delivery drivers to pay for auto insurance and earn more money. This means the laws are changing rapidly, and it’s important to keep up with updates as they occur because they may affect your coverage requirements.

You should also look for small business and delivery driver insurance offered through commercial insurers.

You may have to provide documentation on how and when you use your car to deliver for Postmates.

Frequently Asked Questions: Auto Insurance for Postmates Food Delivery

If you still have questions about auto insurance requirements for Postmates delivery drivers, take a minute to read these frequently asked questions from various Postmates reviews for more information.

#1 – How do I increase my delivery on Postmates?

If you’re working for Postmates and not getting enough orders, you may want to drive to a more heavily-populated area with more available orders. If you have the option, take bigger orders, which may lead to a bigger tip.

#2 – Can you get Postmates health insurance?

Like other contractor positions, Postmates doesn’t directly provide health insurance to its workers. However, one option is to work with Stride health to find coverage.

An affordable small business delivery policy could be available if you compare Postmates auto insurance companies and policies in your state.

Don’t miss out on our free insurance quote tool. Just enter your ZIP code below and compare free quotes for Postmates auto insurance now. The best way to find cheap Postmates auto insurance is to comparison shop.