Delivering With Your Own Car? Check Your Insurance First

Delivering food, groceries or packages is an easy way to earn extra money, and many drivers start within days. What they do not always check is their car insurance. Most personal auto policies are written for personal use, and delivery work often falls under a business-use exclusion.

That can leave you with a nasty surprise after an accident. The good news is that fixing it is usually simple, and often cheaper than people expect.

What The Delivery Apps Usually Cover

Many delivery platforms offer some insurance while you are on an active delivery, typically liability coverage. Several insurance sources note that any collision or comprehensive protection from the platform is usually contingent, meaning it only applies if you carry those coverages on your own policy.

Coverage can be limited to certain periods, such as after you accept an order, and it changes by company and state. One trade association blog also notes that some platforms offer little or no coverage in some places. Always read the current terms for the apps you use, and do not assume you are covered while you are simply waiting for an order.

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Ways To Close The Gap

Delivery endorsement
Some insurers add delivery or business use cover to your personal policy.
Rideshare add-on
A rideshare endorsement may also apply to delivery work, where the insurer allows it.
Commercial policy
If you deliver full time, a commercial or hybrid policy may fit better.
Check your current policy
A few insurers say their standard policy may extend to delivery, subject to terms. Confirm it in writing.

What Can It Cost?

Prices vary widely. Some sources say a business-use add-on can cost just a few dollars a month, while CarInsurance.com estimates that delivery driver insurance overall can cost roughly 15 to 50 percent more than a standard policy. Much depends on your state, driving record, vehicle and how much you deliver, so request quotes.

Questions To Ask Your Insurer

Does my policy exclude delivery or business use?
Do you offer a delivery endorsement or a hybrid policy in my state?
Which periods does it cover: waiting for an order, driving to the restaurant or customer, or all of them?
Will my claim be covered if my personal policy would normally deny it?
Could telling you about delivery work change my price or my policy?

Tell Your Insurer

It can feel tempting to say nothing and hope for the best. That is risky. If an insurer discovers undisclosed delivery work after an accident, it may deny the claim, and some will cancel the policy. A short phone call before you start is far cheaper than an unpaid claim.

Frequently Asked Questions

Is it the same as rideshare insurance?

They are similar and sometimes covered by the same endorsement, but the rules differ. See our page on rideshare insurance for how the coverage periods work.

What if I deliver only occasionally?

The exclusion usually applies whenever you are working, even part time, so occasional drivers should still check.

This is general information, not insurance or legal advice. Rules differ by company and state, and they change, so always confirm the details with your insurer and the delivery platform.

Related Guides

Commercial auto insurance if you deliver full time or for your own business
Rideshare insurance for how coverage periods work with driving apps
How to file a car insurance claim step by step after an accident
Auto insurance discounts that can help offset a higher premium