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Food Delivery Insurance for Delivery Drivers

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Delivery guy giving the order

Nowadays, the food delivery market is booming and expected to be worth $12 billion at the end of 2022.

In the United States, the market doubled due to the COVID-19 pandemic. As of 2020, it was estimated that food delivery services made at least $26.5 billion. This significant growth is attributed to the high demand for food delivery services from businesses like coffee shops .

A lot of people earn money through food delivery gigs and are looking for protection against risks. The best protection is available in the form of a specialized insurance for delivery drivers, and this discussion will answer all questions about it.

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delivery man with a basket of vegetables

Food Delivery Insurance Cost

Food delivery insurance cost is $40 per month or $480 a year. It is important to note that several factors influence the cost of food delivery insurance. For instance, the cost  may be affected by your location. Some states have laws regulating the minimum amount of insurance that food delivery businesses should have. Those living in states that require more must expect pricier premiums. 

Given that food delivery involves vehicles, your driving record also plays a vital role in determining food delivery insurance price. If you have a history of impaired driving and are prone to causing accidents, your insurance policy will be more expensive. 

It is also worth noting that food delivery insurance policies come with varying coverage limits and deductibles, which affect the cost of your insurance package. Therefore, you must consider all these factors when budgeting for food delivery insurance

Keep in mind that business insurance coverage is more costly than the standard personal insurance plan. When you ask a carrier to add food delivery insurance or a business policy to your personal plan, the cost of your existing insurance policy might rise as well. 

Food Delivery Car Insurance Cost

The price of a car insurance delivery driver is approximately $62.5 per month or $750 per year. However, keep in mind that food delivery car insurance cost is determined by a variety of factors. 

For instance, the type of vehicle you use for food delivery affects the cost of insurance. Insuring a mini-van is less costly than insuring a hatchback. Other considerations are location and driving record.

Here is a summary of how much top insurance companies charge monthly and annually to give you an accurate estimate of the cost of hot food delivery insurance.

Company Monthly Yearly
State Farm Insurance $80 $900
Axa Insurance $58 $600
UberEats $55 $660
Geico $36 $432

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What Is Food Delivery Insurance?

Food delivery insurance is a specialized policy for food delivery drivers.  Food delivery drivers cannot be covered by standard food business insurance , restaurant insurance , catering insurance and other similar policies. And so,  carriers now offer food delivery insurance as a go-to protection. 

It’s important to know that food delivery insurance is available as a short-term policy.  Customers can opt to get insured for hours, days, or months if they don’t want to have coverage that lasts for a year.  Companies that offer short-term-food delivery insurance are Thimble and Zego. 

There are a lot of risks that food delivery insurance shields the policyholder from. The functions of a food delivery insurance are:

  • Provides money if the policyholder  faces a lawsuit because of causing an accident and injuring someone

  • Provides money if the policyholder faces a lawsuit because of causing an accident and destroying someone’s property

  • Provides money for the repair and maintenance of delivery vehicle

  • Provide money if the policyholder becomes injured because of an accident

Food Delivery Insurance Coverage

These two are the most common food delivery insurance coverage:

  • Liability coverage

  • Commercial auto insurance

Food Delivery Liability Coverage

Food delivery liability coverage in food delivery insurance offers protection from lawsuits compelling the policyholder to be responsible for any personal injuries or property damages of the concerned party.  The most common liability coverages food delivery men get are:

  • Public liability insurance 

  • Products and completed operations insurance

  • General liability

Food delivery men do things quickly. Though employers train them to avoid harming people while doing so, accidents can still happen. For example, while delivering food, a delivery man can bump into someone and cause injuries. Public liability insurance becomes useful in this situation by providing money if ever the injured person asks for compensation. 

On the other hand, products and completed operations become useful if a customer accuses a food delivery man of eating their food. Accusations of tampering with a customer’s food is common and 1 in 4 delivery men have admitted that they’ve done this.

Products and completed operations helps by providing the money the policyholder needs to compensate the aggrieved person’s damages.  Usually,  accusations of food tampering cost food delivery men $1,442 and hot food delivery insurance can help to pay this amount. 

Also read: Limousine Insurance: Limo Insurance Cost & Quotes From $11

Commercial Car Insurance for Delivery Drivers

As the name implies, commercial car insurance for food delivery drivers protects the car used for bringing food to customers.  However, note that in practice, carriers don’t only insure a car but any other 4-wheeled vehicles used for delivering food such as minivans, pick up trucks, and many more except taxis and other specialized vehicles. 

Food delivery commercial car insurance has the following functions:

  • Provide money if the policyholder is responsible for a road accident while making a delivery and needs to pay compensation to the victims’ personal injuries and property damage

  • Provide money if the policyholder needs money for hospitalization after getting involved in a road accident while using the vehicle for making deliveries

  • Provide money if the policyholder’s vehicle got damaged because of vandalism, theft, hail, falling object, or hitting an animal

This policy in b usiness insurance for food delivery  is important as food delivery accidents are very common. > Research from the Workers Justice Project provides evidence of this. Accordingly,  245 out of 500 food delivery men crashed on the road or experienced other accidents while on their way to a customer. Also, if someone else gets injured as a result, most delivery men need to pay $2,462 as compensation for personal injuries and other damages. 

But still, four-wheeled vehicles aren’t the only ones used for delivering food today. In fact, motorcycles and electric scooters are more popular modes of making deliveries. Does commercial car insurance cover these?  The answer is no.  What provides coverage are motorcycle food delivery insurance and scooter food delivery insurance, which have the same coverages as food delivery commercial auto insurance. 

Does Food Delivery Driver Insurance Come with Workers Comp? 

No, food delivery driver insurance only offers liability and commercial auto coverages in most cases.  Food delivery drivers who want to get protection from work-related injuries can opt to get stand-alone workers compensation insurance. Doing so is a smart choice because food delivery companies like UberEats, Postmates, and Doordash treat their delivery drivers as independent contractors and don't provide coverage using their worker’s compensation policies.  

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Best Food Delivery Insurance Companies

Given the significance of food delivery insurance, you might fancy purchasing a policy for your business. Given its demand, many insurance companies offer food delivery insurance. However, not all of these companies provide excellent service. To help you out, we have reviewed some of the best food delivery insurance companies.

State Farm Food Delivery Insurance

Insuranks rating 9/10
Best for Best overall
Average cost $60
Year Founded 1922
CEO Michael L. Tipsord
Headquarters Bloomington, Illinois, United States
Customer Support 800-782-8332 and  customer service portal
AM Best Rating A++  ( superior)
BBB Rating B
Number of Complaints  538

Why Get Food Delivery Insurance from State Farm?

  • Offers discounts to food delivery drivers with clean driving records

  • Generous rates for commercial auto insurance

  • Available in all 50 states

  • Immediate claims response

Why Take State Farm with a Grain of Salt?
  • Online quoting works well but may assign an agent who’s not nearby

State Farm Insurance is one of the oldest insurance companies in the United States. Its policies have considerably improved over the course of its many years of service. This insurance company offers a wide range of policies that protect food delivery drivers from various liabilities. Furthermore, State Farm offers tailored food delivery auto insurance that suits the needs of delivery drivers from UberEats, Doordash, Grubhub, Seamless, and more. 

Uber Eats Food Delivery Insurance

Insuranks rating 7/10
Best for UberEats delivery drivers
Average cost $55
Year Founded 2014
CEO Dara Khosrowshahi
Headquarters 1455 Market Street, San Francisco, CA, United States, 94103
Customer Support Done through the UberEats app
AM Best Rating N/A
BBB Rating N/A
Number of Complaints  N/A

Why Get UberEats Food Delivery Insurance?

  • Policy limit is set to a minimum of $1,000,000

  • Offers protection while the driver is available in the Uber app even if not making any deliveries

  • Offers contingent collision and comprehensive coverage, auto liability coverage, and underinsured/uninsured motorist coverage

  • UberEats’ food delivery insurance can be added to personal auto insurance

  • Comprehensive and contingent collision coverage applies regardless of who is at fault

  • $2,500 deductible

Why Take UberEats with a Grain of Salt?

  • Only available for UberEats food delivery drivers

  • Not an insurance company so it’s insurance for delivery  drivers might be underwritten by a third party 

  • Offers insurance for bikes and scooters but only for delivery drivers in Canada

UberEats isn’t an insurance company. However, it has commercial auto insurance with contingent collision and comprehensive coverage, auto liability coverage, and underinsured/uninsured motorist coverage having a minimum policy limit of $1,000,000. Though only available for UberEats delivery drivers, UberEats’s food delivery car insurance is great as it provides protection even if the policyholder isn’t working so long as they’re online on the UberEats app and waiting for gigs. 

AXA Food Delivery Insurance

Insuranks rating 8/10
Best for Lowest minimum policy  for food delivery insurance
Average cost $58
Year Founded 1986
CEO Scott Gunter
Headquarters Stanford, Connecticut, United States
Customer Support 800-227-8533
AM Best Rating A+
BBB Rating N/A
Number of Complaints  N/A

Why Get AXA Food Delivery Insurance?

  • Provides the most minimum coverage possible for food delivery drivers

  • Premiums are based on the distance traveled by the policyholder or per third party claims

  • Offers food delivery insurance in partnership with Marsh and analytics company, Arity

Why Take AXA with a Grain of Salt?

  • Food delivery insurance isn’t offered by AXA but by it’s branch company AXA XL

AXA XL’s food delivery insurance fits the needs of food delivery drivers working for restaurants, caterings, pizza shops , and other similar businesses. The company offers a $500,000 minimum policy limit on its insurance for food delivery drivers, which have property damage, auto liability and third-party bodily injury coverages. Customers can also get AXA XL’s food delivery insurance from its partner, Marsh. 

Geico Food Delivery Insurance

Insuranks rating 8/10
Best for Commercial auto - rideshare
Average cost $55
Year Founded 1963
CEO Todd Combs
Headquarters Chevy Chase, Maryland, United States
Customer Support (800) 841-2964 and  customer service portal
AM Best Rating A++  ( superior)
BBB Rating A+
Number of Complaints  178
Why Get Geico Food Delivery Insurance?
  • Cheap rates

  • Offers insurance discount for safe driving habit and installation of accident prevention systems

  • Works with UberEats, Lyft, Grubhub, and Postmates delivery drivers

  • Available in all 50 states

  • Offers specialized food delivery insurance for scooters, motorcycles, e-bikes, and commuter bikes

Why Take Geico with a Grain of Salt?

  • Rates can be very expensive for people with bad driving records 

Geico is good because it offers cheap food delivery insurance by providing customers with numerous discount options. The best thing about Geico is that it’s insurance for food delivery drivers can be endorsed to personal insurance policies without causing any significant increase in rates. 

What’s The Easiest Way to Have Food Delivery Insurance Quotes from All Companies?

Use our online quotation tool. Look for the “Get Quotes” button on this page, click on it, provide the necessary details, and compare food delivery insurance quotes online easily. Don’t worry, you won’t get spammed and the quotes you’ll receive will only come from the top accredited carriers in the United States. 



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Get all the best quotes from leading providers in a click of a button!

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