The COVID-19 pandemic has created a growing demand for drivers to deliver groceries, medications and restaurant meals. Making deliveries means spending more time on the road, which increases your risk of an accident and your insurer’s risk of paying a claim.
Does my personal car insurance cover delivery trips?
- You use your car to provide a limousine or taxi service.
- Your employer leases or owns the vehicle, or it’s registered or titled to your employer.
- You use your car in a professional capacity to pick up and deliver any type of food or goods.
- You let a non-listed driver, like a co-worker or employee, drive your vehicle.
- You lease or rent your car to someone else.
- You own a truck, utility vehicle or van that exceeds 10,000 pounds or has a hauling capacity that exceeds 2,000 pounds.
- Your automobile is equipped with business-related gear, such as a hydraulic lift or cooking equipment.
What insurance types or add-ons will cover delivery services?
- Deliver goods or transport people for a fee
- Travel between more than one location or to remote areas for work
- Carry work equipment or tools for business purposes
- Visit clients in their homes or offices
- Transport clients, co-workers or employees
- Vehicles owned by the business
- Automobiles hired or leased
- Other vehicles that the business doesn’t hire, lease or own
- Bodily injury liability
- Property damage liability
- Medical payments (personal injury protection in some states)
- Uninsured and under insured motorist
Does every state have the same rule on food delivery insurance coverage?
- Amazon Flex requires all drivers to carry a personal auto insurance policy. Except for New York drivers, Amazon purchases all drivers an Amazon Commercial Auto Insurance Policy, which includes liability, collision, comprehensive and uninsured and under insured motorist coverage. The Amazon policy only covers the contracted driver and only covers accidents that occur while the driver is making deliveries.
- Instar doesn’t purchase auto insurance for its drivers but requires each driver to carry a personal auto policy with overages required by his or her state.
- Doordash covers its drivers with a commercial auto insurance policy that includes up to $1 million in bodily injury and property damage liability coverage. The Doordash policy only covers the driver’s vehicle while on an active delivery. All Doordash drivers much also carry a personal car insurance policy.
- Alabama and Montana have encouraged providers to expand personal auto insurance coverage to cover vehicles used to deliver food, medicine and when used to provide other essential business services.
- Colorado requested that insurers provide coverage for new, unnamed restaurant delivery drivers on existing commercial auto policies. The Mile High State also asked carriers to cover restaurant delivery drivers who hold a personal auto policy but aren’t covered by a commercial auto policy. The special pandemic allowance doesn’t apply to drivers who delivered food prior to the state’s COVID-19 public health order or to drivers whose delivery activities weren’t affected by legislated restaurant closures.
- Pennsylvania asked insurance companies to cover customers who hold a personal auto policy when using their vehicles to deliver restaurant food and life-sustaining medications.
- Rhode Island advised insurers to remove delivery exclusions on personal auto policies for all types of deliveries.
- Tennessee’s insurance commissioner requested that insurers allow restaurants to retroactively add new delivery drivers to their existing commercial auto policies and to make commercial auto insurance available to restaurants that hold a general liability policy.
- Insurers, employers and state laws determine the levels of coverage and type of auto insurance policy a delivery driver must carry.
- Businesses require delivery drivers to hold a valid personal auto insurance policy, but some also provide commercial auto insurance, which covers a driver’s vehicle while on the job.
- To accommodate the demand for more deliveries during the COVID-19 pandemic, some insurers have relaxed exclusions to cover delivery driver’s vehicles with existing personal auto insurance coverage.