Professionals involved in the transport of goods are subject to strict regulations. This is the case of delivery drivers whose appropriate automobile insurance must cover practice legally and benefit from the best possible protection. Thus, we have highlighted all about auto insurance for delivery drivers below.
Furthermore, responsible for driving a light vehicle, the delivery person’s mission is to collect and deliver packages to recipients. He takes care of organizing the rounds and taking care of the loading and unloading of the transported goods.
A company operating in this sector can be a subcontractor for supermarkets, shopping and courier companies, or establishments selling furniture. Because of the heavy loads to carry and especially the traffic conditions on the road, the job presents many constraints.
It is imperative for the professional to respect delivery deadlines, to avoid damage to goods or even customer order errors. To secure the activity, membership in good auto insurance for delivery drivers is therefore required.
How does Auto Insurance for Delivery Drivers Work?
A company owner can insure a single car or a whole fleet of vehicles with commercial vehicle insurance. Before acquiring insurance, the company must determine what type of coverage it requires and to what extent it needs it. They will engage with an insurance company representative to select the following policy elements:
- Policy limit – the most significant amount of money that the insurer can be obliged to pay on the policy
- Coverage – the sorts of incidents, losses, and expenses that will cover
- Deductible – the business’s amount paid out of pocket before coverage for a claim is possible.
- Monthly premium – the expense of maintaining the coverage monthly.
Businesses should search for policies with a good balance of coverage and policy limits, reasonable deductibles, and monthly costs.
When a company buys commercial auto insurance, the policyholder starts paying monthly rates (and possibly some fees at the beginning of the contract term). In exchange, the insurance company undertakes to cover any losses, repairs, hospital, or legal expenditures incurred due to a covered incident, as specified in the policy terms.
The policyholder must contact the insurance carrier to “submit a claim” and describe the losses incurred after a collision, break-in, or other covered incident. All insurance firms require that you notify them within a few days of the event, and failing to do so could result in your claim being denied.
Best Auto Insurance for Delivery Drivers
As earlier highlighted, Auto insurance for delivery drivers is quite necessary. Thus, below is a highlight of some of the best:
For delivery drivers, Geico offers a hybrid car. Rather than being an add-on to current coverage, this substitutes a personal auto policy. Geico offers hybrid coverage, which covers you whether you’re driving for personal purposes or on the clock for various delivery businesses. Policyholders can drive for many firms simultaneously, and deductibles as low as $250 are possible. Geico’s delivery driver coverage is now available in 40 states across the United States.
For delivery drivers, Progressive insurance offers extensive coverage. This works as an add-on to your vehicle policy, so you won’t need a commercial policy unless the add-on isn’t available in your state. If Progressive insurance’s delivery driver coverage isn’t accessible where you reside, you can always get a business policy to make sure you’re covered.
Progressive’s ridesharing coverage allows drivers to preserve their existing policy limits and deductibles, whether commuting for personal purposes or delivering items for a platform.
It’s worth noting that if the delivery platform provides its insurance (which many do), you’ll be covered by that policy first in the event of an accident while driving on the job. The insurance provided by Progressive would thus be considered secondary. Progressive insurance coverage for delivery drivers is currently available in 35 American states.
People who drive for applications like Uber or Lyft can get coverage from State Farm. However, State Farm claims that all you need as a delivery driver is a “commercial usage” statement on your personal auto coverage. This only pertains to delivery drivers who only transport goods and cuisine and never transport passengers.
You must purchase Rideshare Driver Coverage if you also drive for hire with passengers. Adding a business-use remark to your insurance policy is usually less expensive than buying ridesharing coverage. According to State Farm, incorporating rideshare coverage into your policy will increase your 15-20% rate. For prices on adding business-use coverage, contact your State Farm agent. State Farm’s delivery driver coverage is currently offered in 48 states across the United States.
USAA has some of the top auto insurance policies for delivery drivers in the country. Gap coverage is also available as an add-on to your auto policy. This extra coverage is effective for an “unrivaled” amount of time. This relates to the amount of time you spend waiting for a request while logged into your delivery app.
You can add this coverage to your USAA account online or by contacting your local USAA agent. Various circumstances determine gap coverage costs, but USAA estimates that this inclusion will add as little as $6 per month to your premium. USAA’s coverage for delivery drivers is currently available in 39 American states.
Allstate’s delivery driver coverage is known as Ride for Hire, and it covers both delivery drivers and Uber and Lyft drivers. To protect its drivers, Allstate teamed with these companies. An existing personal auto policy can be supplemented with Ride for Hire coverage.
Pricing for this coverage varies depending on personal characteristics like age, operating history, and region. But according to Allstate, adding Ride for Hire coverage to your monthly policy will add around $30 to your monthly rate. Allstate’s coverage for delivery drivers is currently available in 35 American states.
How to Buy Auto Insurance for Delivery Drivers
So now you understand you’ll almost certainly need added protection for supplies as a chauffeur, it’s important to search for the best delivery vehicle insurance prices.
Delivery drivers in the United States earn an average of $ 14 hourly (as of January 2020). This isn’t much, considering the monthly expenses that we all face. Not to mention the additional miles and depreciation that delivery drivers place on their vehicles in order to make all of those services.
We recognize your aversion to spending your tough cash on vehicle insurance. However, it is a legal obligation in every state, and disobeying the law is the worst business blunder you can make. As a result, it is critical to check costs online before making a purchase. That’s the only way to confirm you’re getting the greatest deals.
Before you begin obtaining quotations, select the amount of coverage you require and double-check that you have all of the necessary car details.
The type of vehicle you drive has an impact on your delivery auto insurance. To receive the most precise delivery insurance rates, you’ll need the brand, version, and VIN of your car.
Frequently Asked Questions
What is auto insurance for delivery drivers?
Auto insurance for delivery drivers is a form of insurance that covers your car if you use it for work.
Is it necessary to have insurance to work as a delivery driver?
Yes. As a delivery driver, it’s better if you have particular automobile insurance. If you don’t have business automobile insurance, you won’t be able to deliver pizzas, drop off meals, or transport a product from one workplace to another.
Also, regardless of the sector of activity, a company must take out auto insurance for all its vehicles and drivers. This rule is even more valid when operating in the freight transport sector, as it is important to secure the vehicle and the cargo.
How bad is delivery driving for your car?
Drivers claim that the damage they do to their cars while working in delivery reduces their earnings greatly.
As a delivery driver, how do I take better care of my vehicle
You can take care of your car as a delivery driver in the following ways:
- Keep an Eye on Your Tires
- Replace your car’s oil
- Keep an eye on your lubrication system.
- Get a New Fuel Filter
- Run a Battery Check
- Check the Wipers on Your Windscreen
How much do delivery drivers make hourly?
Delivery Drivers usually make between $15 to $20 per hour.
In conclusion, commercial auto insurance is a type of vehicle insurance that covers cars utilized for business purposes. If you frequently use your vehicle for work or if your company owns a commercial vehicle, you can consider purchasing commercial auto insurance. From building to food delivery, people in all professions utilize commercial auto insurance to safeguard themselves, their cars, and their businesses.
This is quite valid, as personal automobile insurance does not cover vehicles used for work. To this end, the above guide covers all of the fundamentals of auto insurance for delivery drivers, including coverage, requirements, and pricing. Whether you’re looking for coverage for a fleet of construction vehicles, or a personal car used regularly for delivery, this guide will help you discover the correct coverage.
Nicholas J. Banks has been an expert in the Insurance industry for over 10 years. He is well-versed in all aspects of insurance, and he has worked on Allstate Ins Group since 2006.
He attended the University of Pennsylvania with an undergraduate degree in Business Administration, followed by a Master’s degree from the University of Southern California to further his career in Insurance Management.
His experience working with many different companies has helped him develop valuable insight into how to succeed in this exciting field, which he now shares through our blog “Pro Insurance Info.”