Food Delivery Car Insurance: What to Know & How to Save (2023)

Everyone loves to earn extra money, and many of the popular car delivery driver jobs seem like a great way to do so. However, there is a big catch to this seemly easy job; food delivery car insurance.

If you are using your everyday car as a pizza car for a few hours every night, you may be driving uninsured. The vast majority of personal auto policies do not extend their coverage to using your car for work.

You may be wondering, what about DoorDash car insurance? Pizza Hut insurance? Don’t they keep me covered? In short, no.

If you plan to be a food delivery driver, learn how you can keep yourself insured and see what coverage the best insurance companies Want to look into different insurance providers for your food delivery insurance?

Why doesn’t personal car insurance cover me when I’m at work?

While delivery jobs may seem like easy money, they actually render a personal car insurance policy useless. The reason? If you are using your car for non-personal tasks, your personal coverage is no longer active.

This means that if you were to get into an accident while working, you would be on the hook for every penny of damages and medical bills. Not your employer. You.

What kind of insurance do I need for my delivery driver job?

So how do you keep personal vehicles covered when you want to do food delivery? The answer is simple; commercial auto coverage.

You may have heard of commercial auto insurance coverage before; usually referring to fleet vehicles. This type of coverage differs from personal auto insurance policies. Even if your personal insurance policy covers your liability,  you could still be held responsible for any auto accident damages while on the job.

Some auto insurance providers may provide insurance for food delivery drivers as additional coverage. However, learning what affordable options are out there may be ideal.

Do You Need a Commercial Auto Insurance Policy to Deliver Food?

The answer is usually yes. If you start driving as a job (whether full-time or as a side hustle) and don’t tell your auto insurance company, you could face a claim denial in the future if you cause an accident. Car insurance companies see business use as a higher risk than personal use, and may add an additional charge to your personal policy; or might not cover damages at all.

Commercial auto insurance policies aren’t only for food delivery. They also provide coverage for any type of work that could fall under business use, like delivering packages and driving customers. The two most common options are rideshare add-ons and full commercial coverage policies.

Is commercial car insurance affordable?

That depends on which type of insurance you are able to get. If you purchase a whole commercial policy separate from your existing personal policy, average rates run anywhere from $60 to $250 per month.

This can sometimes be an unreasonable amount to pay, depending on how much you make working deliveries.

If you can get a rideshare coverage add-on to your personal policy, the cost is much lower. Add-ons are generally less than $20 a month and are just folded into your existing monthly premium.

The only downside to add-ons is that they are not available everywhere. The best way to find out if you can get one is to contact your insurance agent or go online to view your policy.

Case Studies: Illustrating the Need for Food Delivery Car Insurance

Case Study 1: Jack’s Pizza Delivery Accident

Jack, a part-time delivery driver for a local pizzeria, was using his personal car to make deliveries. One evening, while on the job, he got into a car accident and caused significant damage to both his car and the other driver’s vehicle.

Unfortunately, Jack’s personal car insurance policy did not cover accidents that occur during work-related activities. As a result, Jack had to bear the financial burden of the damages and medical bills on his own.

Case Study 2: Sarah’s Package Delivery Mishap

Sarah started working as a package delivery driver for an e-commerce company. She used her personal vehicle to transport packages to customers’ homes. One day, while making a delivery, Sarah accidentally backed into another vehicle in a residential neighborhood.

Despite having personal auto insurance, her policy did not provide coverage for accidents that occur during commercial activities. Sarah had to pay for the damages and legal expenses out of her own pocket.

Case Study 3: Mike’s Rideshare Accident

Mike decided to supplement his income by becoming a rideshare driver. He used his personal car to provide transportation services to passengers. Unfortunately, while driving a passenger, Mike was involved in a collision with another vehicle.

His personal auto insurance policy did not cover accidents that happen during ridesharing activities. As a result, Mike had to face the financial consequences of the accident, including repair costs and medical expenses.

What is the best way to get food delivery insurance?

If you are dead set on pursing car delivery driver jobs, the best way to make sure you get the best deal on insurance is to shop around.

The more companies you compare, the better chance you will find affordable food delivery car insurance coverage that works in your budget.