Do Delivery Drivers Need Commercial Auto Insurance??

If you deliver food for a living or as a side job, you could need commercial auto insurance. This auto insurance is specifically designed to cover vehicles that are used for work purposes, which some personal auto insurance policies may not cover. 

Who Pays for Auto Insurance for Delivery Drivers?  

Say you run a product delivery business. Your employees share trucks to make deliveries. Since you own the business and the trucks, it is your responsibility to insure it with commercial auto insurance.  

Things are a little different when it comes to personal vehicles being used for work, however. If your employees use their own vehicles for work, you will need Hired and Non-Owned Auto Insurance. This insurance covers vehicles used, rented or borrowed but not owned by the business.  

Why Do I Need Commercial Auto Insurance?  

Commercial auto insurance covers expenses related to accidents that may occur involving your business’ vehicles. Even a single car accident can cost a heavy monetary loss in property damages, medical bills and even legal expenses.  

Say one of your employees causes an accident while delivering your projects. The employee, the other driver and their passengers are injured and must seek medical attention at the hospital. The other driver’s vehicle is totaled and your commercial vehicle needs substantial repairs.  

Because your employee caused the accident, you could face paying all of these expenses yourself. Liability insurance will only cover damages and injuries to others, so you need above minimum liability requirements if you are to have complete coverage on your commercial vehicles.  

Do You Need Commercial Auto Insurance for a Rideshare Service?  

If you are delivering for a rideshare service, insurance can be a little different. Drivers are technically independent contractors when driving for rideshare services and do not generally count as employees.  

While you are using your personal vehicle, you are delivering food, people and items in exchange for money, which is a business purpose. In some cases, you will need commercial auto insurance for your vehicle.  

Some rideshare services (Uber Eats, Door Dash, etc.) offer a limited amount of insurance, but only when the application is active. If you do not have the app active, you may not have coverage for your vehicle. Other services only cover your vehicle as long as you have passengers in the car. So if you are on your way to pick up a client and get in a wreck, you may not be covered under the limited insurance offered by your rideshare services.  

Speak with your insurance agent about how you use your vehicle and what type of insurance you need to stay safe while delivering.