Best Auto Insurance Options For Postmates Drivers

If you're looking to become a Postmates driver, you'll need to get the right insurance. While Postmates does offer some insurance coverage to its couriers, it's not a comprehensive commercial insurance policy. This means that, as a driver, you'll need to purchase your own car insurance coverage that meets your state's minimum requirements.

There isn't a specific auto insurance for Postmates drivers, but there are insurance providers that specialise in offering coverage for Postmates drivers and other gig economy workers, such as Metromile, State Farm, Geico, Progressive, and Allstate.

It's important to note that personal auto insurance policies typically exclude coverage for commercial activities like food delivery. Therefore, if you're delivering for Postmates, you may need to get a commercial policy or a business-use add-on to your personal policy.

Before becoming a Postmates driver, it's recommended that you consult with your insurance company to determine the best option for you.

Commercial insurance policies

Commercial policies can be more expensive than personal policies, but the price will depend on your personal attributes and your vehicle. With a commercial policy, you can rest easy knowing that any incident you encounter will be covered.

It's important to note that using your vehicle for business and transportation of goods is typically not allowed under personal auto insurance policies. If you are involved in an accident while driving for a delivery service and only have a personal auto policy, you risk having any corresponding claim denied.

As a Postmates driver, you are required to have your state's minimum coverage to pay for any potential damages to your vehicle. Postmates has a universal liability policy for its driving partners, but this only covers damages to another person's vehicle.

• Progressive
• Farmers
• Geico
• Metromile
• State Farm
• Allstate

Business-use add-ons

If you're a Postmates driver, it's important to have the right insurance coverage. While Postmates does offer some insurance, it's not comprehensive, and you'll need to make sure you're covered in the event of an accident or incident.

Most personal auto insurance policies do not provide coverage for business-related accidents and incidents. Therefore, if you're using your vehicle for commercial purposes, such as delivering food for Postmates, you may need to add a business-use endorsement to your personal policy. This type of add-on is designed for minimal business use and can be helpful if you're only delivering for Postmates on a part-time or seasonal basis. It's important to note that if you're a full-time Postmates contractor, you may not qualify for this type of coverage.

• Repair bills: Coverage for repair costs in the event of a collision with another vehicle or an object.
• Medical bills: Coverage for medical expenses for you or your passengers if injured in an accident.
• Lost wages: Coverage for income lost while your vehicle is out of commission.
• Legal fees: Coverage for legal fees if you or your employee are at fault in an accident.
• Pending lease payments: If you're leasing your vehicle and it's damaged beyond repair, insurance may cover the remaining payments.
• Funeral expenses: Coverage for funeral costs in the event of a fatal accident.

It's important to note that business-use add-ons may not cover all risks, and you may need to purchase additional coverage for certain situations. For example, if you operate in an area with poor air quality, you may want to consider adding pollution insurance to protect against injuries resulting from automotive pollution.

Before adding a business-use endorsement to your personal policy, be sure to speak with an insurance agent to ensure you're getting the coverage you need. It's also important to be honest about your occupation as a delivery driver, as failing to disclose this information could result in your coverage being denied or cancelled.

Personal auto insurance policies

If you are a Postmates driver, you are required to have a personal auto insurance policy that covers the commercial use of your car. The insurance limit must be equal to or greater than the minimum requirements for the state where you are driving.

If you are involved in an accident while driving for a delivery service and only have a personal auto policy, you risk having any corresponding claim denied. However, you can add a business-use endorsement to your personal auto insurance policy to cover the period of time that you will be driving for delivery. This endorsement costs extra, but it will protect you and your vehicle with the right coverage.

It is important to note that failing to report your occupation as a delivery driver to your insurance company has its risks. Your coverage may be canceled, or you may have subsequent insurance claims denied.

Rideshare insurance

If you're a Postmates driver, it's important to have the right insurance. While Postmates does offer insurance to its drivers, it's not always enough to cover all eventualities.

Postmates Insurance

Postmates offers two types of insurance:

• Excess Auto Insurance for Fleet Drivers: This provides up to $1 million in coverage for accidents with third parties, including bodily injury and/or property damage.
• Occupational Insurance for Fleet Drivers: This provides coverage for medical expenses and lost income, with benefits including accident medical expenses, an accidental death benefit, a survivors benefit, temporary total disability, permanent total disability, and accidental dismemberment.

Personal Insurance

Postmates requires its drivers to have personal auto insurance that meets or exceeds the minimum requirements of the state in which they operate. This is because, while driving for Postmates is considered a commercial activity, most personal car insurance policies contain a clause that specifically excludes using your vehicle for commercial activities. Therefore, if you have an accident while driving for Postmates, your insurance company may tell you that you're not covered and that using your vehicle for commercial purposes invalidates your policy, even for personal use.

Commercial Insurance

Commercial insurance is specifically geared toward businesses, and as a Postmates driver, your vehicle is your business. While it can be more expensive than personal insurance, it will cover you for any incidents that occur while driving for Postmates.

Some insurance companies, such as Progressive and Mercury, offer rideshare insurance, which is designed to cover drivers who work for companies like Postmates, Uber, and Lyft. This type of insurance can be added to your personal auto insurance policy and will protect you while you're waiting to receive a ride request, as well as when you're driving for a ridesharing company.

As a Postmates driver, it's important to have the correct insurance to protect yourself and your vehicle. While Postmates does offer some insurance, it may not be sufficient, and you may need to purchase additional commercial or rideshare insurance to ensure you're fully covered.

Insurance company quotes

Insurance companies such as Metromile, State Farm, Geico, Progressive, and Allstate specialize in offering coverage tailored for Postmates drivers and other gig economy workers.

• Progressive: Progressive offers affordable rates for high-risk drivers and full coverage for Postmates delivery drivers, with rates starting as low as $60 per month. Their Name Your Price tool allows drivers to balance cost with coverage needs, and their Snapshot Program can benefit drivers who maintain safe driving habits with potential discounts.
• Farmers: Farmers offers extensive coverage and discount options, including specialized coverage for motorcycles and scooters used for deliveries. Their Signal app helps drivers earn discounts based on safe driving habits, and their Incident Forgiveness feature prevents rate increases after the first at-fault accident or minor violation.
• Geico: Geico provides affordable rates for safe drivers and high customer satisfaction. Their DriveEasy Program offers usage-based insurance options, and their Prime Time Contract allows couriers to adjust coverage based on delivery schedules, reducing costs during inactive periods.
• Allstate: Allstate's Milewise Program is advantageous for part-time Postmates drivers as it allows them to pay based on actual miles driven. They also offer specific coverage for rideshare and delivery drivers, ensuring protection during both personal and delivery use.
• Nationwide: Nationwide's Plenti Rewards Program allows couriers to earn points and potentially offset fuel and delivery-related expenses. They offer deductible savings, reducing collision deductibles by $100 for each year of safe driving, and waive the total loss deductible if a vehicle is deemed a total loss.
• State Farm: State Farm's optional Personal Injury Protection covers medical expenses and lost wages, regardless of fault in an accident. They also cover rental cars and travel expenses if a vehicle is disabled due to a covered loss, minimizing delivery work disruption.
• Liberty Mutual: Liberty Mutual's Better Car Replacement feature provides a replacement vehicle with a newer model year and lower mileage if a courier's car is totaled during a delivery. Their Rate Lock Guarantee maintains stable insurance costs, and their Violation-Free Discount rewards drivers who maintain a clean driving record.
• USAA: USAA offers flexible mileage options and reduced rates for long-term members who drive for Postmates. Their Auto Insurance Calculator helps couriers estimate appropriate coverage levels based on their specific delivery patterns.
• Travelers: Travelers' Premier New Car Replacement option provides a brand new car of the same make and model if a courier's vehicle is totaled within five years of purchase. Their Accident Forgiveness feature prevents rate increases after the first at-fault accident, even if it occurs during a delivery. They also offer optional Delivery Equipment Coverage, protecting items like food delivery bags and phone mounts.

It is important to note that insurance requirements and rates can vary depending on your location, driving record, vehicle type, coverage limits, and deductible. It is recommended to research and compare quotes from different providers to find the most suitable and affordable coverage for your needs.

Frequently asked questions