What are the insurance requirements for independent delivery app drivers?

If you deliver for a service like DoorDash or InstaCart, you’ll be covered by several types of insurance.

Personal auto insurance (Legally required)

Auto insurance is required by law in nearly every state. However, insurance needs are different for delivery drivers.

Delivery drivers need to understand the basics of car insurance while working:

  • Must meet state minimums: Most states require at least a minimum amount of liability coverage.
  • Must disclose delivery use to insurer: Failing to do so may result in an insurer denying a claim or dropping coverage altogether.
  • Add a business-use endorsement: Driving for a delivery app counts as work and requires either a commercial auto policy or a business-use rider on your personal policy.

Platform-provided liability coverage 

Most major delivery platforms provide liability coverage during active delivery periods. However, this coverage only covers damages and injuries to others; you and your vehicle are typically not covered under the provided insurance.

How platform-provided car insurance works:

  • No coverage when not working
  • Limited coverage, if any at all, while logged in but waiting for an order
  • Coverage with higher liability limits kicks in when actively working - once an order is accepted, until it is delivered

Common coverage gaps for app drivers

Even if your company offers liability car insurance when you’re working, that doesn’t mean you are covered completely. You may find auto coverage lacking in ways you don’t expect.

Insurance gaps to watch for include:

  • Waiting for orders (app on, no active delivery): Most often, the company’s insurance doesn’t kick in until you’re actively on a delivery. And since your personal insurer may view it as a business-related accident, it may not cover you either. An endorsement on your personal policy can protect you.
  • Damage to your own vehicle: Liability insurance doesn’t cover damage to your car, whether it is your policy or the platform’s. You need collision and comprehensive coverage to pay for damage to your vehicle.
  • Policy cancellation due to undisclosed commercial use: If you don’t let your personal insurer know that you’re using your car for work, they can deny your claim or cancel coverage outright.

What are the insurance requirements for restaurant employee delivery drivers?

Insurance requirements for delivery drivers employed directly by a restaurant differ depending on the vehicle used. If it’s your vehicle, you need to get the right coverage, while a company car is insured by the restaurant.

Scenario 1: When an employee is using a personal vehicle

If you are a restaurant employee who delivers in your own car, you need the same car insurance as a contracted driver. Here’s what you need to know: 

  • Personal auto insurance typically isn’t enough. Most personal policies don’t allow you to use your car for work, so you would need either a business-use rider on your personal policy or a change to a commercial auto policy.
  • Your employer may carry additional liability coverage to protect their business. 
  • Hired or Non-Owners Auto (HNOA) coverage provides additional business liability coverage but doesn’t cover your vehicle or injuries. 
  • Restaurants may also carry commercial liability coverage to offer higher liability protection.
  • HNOA typically protects the business first, not your vehicle’s damage. 

Scenario 2: When an employee is driving a company-owned vehicle

If you are an employee and drive a company-owned vehicle to make deliveries, insurance works differently:

  • Your employer’s commercial auto policy applies. The company policy includes liability coverage to pay for injuries and damages to others, as well as coverage for the company vehicle.
  • The driver must be listed or authorized. Most insurers require a business to list each driver and run a driving record to ensure there are no risky drivers making deliveries.
  • Workers’ compensation may apply to injuries sustained while on a delivery. 

Do state minimum auto insurance requirements apply to delivery drivers? 

Regardless of employment type, all drivers must meet state minimum liability insurance requirements. Not only do delivery drivers need to meet the state car insurance minimum, but they also need to either add a business-use rider to their personal policy or opt for commercial driver insurance.

The required car insurance and premiums vary significantly by state. The table below shows the required liability insuranceLiability insurance covers sums that an insured becomes legally obligated to pay because of bodily injuries or property damage, or financial losses caused to other people. amounts in each state and the average rates.

StateState minimumLiability-only
Alabama$596$633
Alaska$681$700
Arizona$684$787
Arkansas$645$707
California$1,019$1,120
Colorado$692$799
Connecticut$1,112$1,201
Delaware$1,525$1,703
Florida$1,763$2,320
Georgia$982$1,094
Hawaii$475$546
Idaho$534$577
Illinois$752$827
Indiana$572$620
Iowa$450$491
Kansas$616$691
Kentucky$599$649
Louisiana$1,231$1,602
Maine$461$470
Maryland$1,428$1,621
Massachusetts$1,327$1,496
Michigan$1,577$1,682
Minnesota$1,099$1,171
Mississippi$599$667
Missouri$496$543
Montana$519$566
Nebraska$447$508
Nevada$1,746$2,036
New Hampshire$673$722
New Jersey$1,568$1,691
New Mexico$668$772
New York$2,546$2,902
North Carolina$693$693
North Dakota$462$498
Ohio$418$452
Oklahoma$613$667
Oregon$767$850
Pennsylvania$928$1,211
Rhode Island$1,054$1,300
South Carolina$832$915
South Dakota$490$534
Tennessee$658$698
Texas$1,006$1,112
Utah$1,011$1,088
Vermont$365$404
Virginia$689$702
Washington$668$729
Washington, D.C.$918$1,052
West Virginia$520$637
Wisconsin$743$888
Wyoming$326$354

tip iconExpert tipMeeting state minimum limits doesn’t mean you’re covered for delivery use. Consider adding a business-use rider or changing the commercial insurance for full protection.

Which insurance companies offer delivery-friendly car coverage for both independent & restaurant drivers?

Several major car insurance companies offer coverage for delivery drivers. As gig work becomes more common, insurers are creating innovative plans to cover drivers with multi-use vehicles.

Here are some of the options from top car insurance companies.

Progressive

Progressive offers pizza delivery insurance or commercial insurance for drivers who work for a restaurant but use their own vehicles for deliveries. Commercial coverage is more expensive but offers extensive coverage.

Delivery drivers who work for apps like Uber Eats or DoorDash can be covered under Progressive’s Rideshare insurance policy add-on in most states.

If an accident occurs, insurance provided by the business or app you're driving for kicks in before Progressive coverage kicks in.

GEICO

GEICO offers commercial auto insurance for personal vehicles used for business, including liability coverage and protection for your vehicle and injuries. While rates vary based on driver characteristics, commercial coverage is typically more expensive than a personal policy.

State Farm

State Farm offers business-use endorsements for food and goods delivery services such as DoorDash and Uber Eats by adding a "business use" notation to personal auto policies. While this is less expensive than adding commercial insurance, a business-use notation extends your personal coverage and limits to be used while working. If you add the notation, make sure your coverage and limits are sufficient.

Allstate 

Allstate considers ridesharing and delivery driving to be similar and offers the same coverage while you’re waiting for a gig and before the company’s insurance kicks in. Allstate’s rideshare insurance can either be an add-on to your personal policy or a separate policy. If you add coverage to your personal policy, your coverage and limits will be the same.

Farmers 

Farmers offers rideshare and delivery driver coverage as a policy add-on that covers you while you’re waiting to accept a delivery. Farmers also offers commercial auto insurance for more complete protection, but adding commercial insurance is more expensive than an add-on to your personal policy.

Which coverage options can reduce the risk of being underinsured for all delivery drivers?

Whether you’re an independent contractor driving for a delivery service or a restaurant employee making deliveries in your vehicle, having the necessary insurance coverage is essential. Consider adding these coverages to protect yourself and your vehicle:

  • Business-use endorsement on personal policy. This is added to your personal auto policy and allows you to use your vehicle for business purposes, such as deliveries.
  • Commercial auto insurance. Commercial insurance is more expensive than personal coverage but covers business use, offers higher limits and has more coverage options.
  • Increased liability limits. State minimum car insurance is typically liability only and has low coverage limits that may leave you financially exposed.
  • Uninsured/Underinsured motorist coverage. This helps pay for damages and injuries if you’re in an accident caused by a driver with little or no car insurance. Because delivery drivers are on the road a lot, there’s an increased risk.
  • Collision and comprehensive coverage. These pay for damages to your vehicle if you are at fault in an accident or if your car is damaged from fire, theft, vandalism, or other events. No liability coverage, regardless of who provides it, pays for your damages.
  • Medical payments or personal injury protection (PIP). Required in no-fault states, PIP may also be an option in other states to provide coverage for your injuries regardless of fault.

What are the common insurance mistakes delivery drivers make?

It can be challenging to understand exactly how insurance works for delivery drivers, and mistakes can be costly. Not having the correct coverage or not enough coverage can leave you with high out-of-pocket costs.

Common insurance mistakes to avoid include:

  • Not disclosing delivery activity to your insurer
  • Assuming platform/employer insurance replaces personal coverage
  • Not understanding the difference between commercial and personal insurance
  • Carrying only the state minimum liability limits
  • Not understanding primary vs. excess (or secondary) coverage
  • Driving under a policy that excludes commercial activity

FAQ: Delivery driver insurance  

Do independent delivery drivers need commercial auto insurance?

No, if they have a business use endorsementAn endorsement is a supplement or change to an insurance policy. It amends the original policy and can increase or decrease coverage, change names or update addresses. on their personal policy. Commercial insurance is more expensive but typically offers higher limits and more coverage options.

Does restaurant insurance automatically cover delivery drivers?

Not always. Restaurant insurance may cover delivery drivers, if that is part of their policy. However, certain requirements will be put in place, such as listing each driver and checking their driving record.

Is gig delivery insurance the same as being a pizza delivery employee?

Yes, if you drive your own car. In both cases, auto insurance is purchased by the driver and can be either a rider on a personal policy or a separate commercial policy. The business may choose to add HNOA liability coverage that covers the restaurant. If you work for a pizza restaurant and make deliveries in their vehicle, the company will carry the auto insurance.

Can my personal auto insurance cancel me for delivering food?

Yes. Most personal car insurance policies don’t allow business use, and the insurer can cancel your policy or deny a claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing. if they find out. Add a business-use rider or change to a commercial car insurance policy to be protected.

Tip iconHelpful auto insurance tools and calculators