Because of delivery driving’s unique risks, insurers are sometimes reluctant to provide commercial auto coverage. The type of policy you need depends on who owns the vehicle.
Which type of commercial car insurance is right for a delivery driver?
Commercial auto insurance or hired and non-owned auto insurance might be right for your business, especially as carriers expand these policies to cover delivery driving. The policy that's best for you depends on who owns the vehicles in question: your business or your employees.
Commercial auto insurance
Commercial auto insurance provides liability protection when your drivers get into an accident while driving a company-owned vehicle. It can pay for property damage or physical injuries your driver causes, plus related legal expenses. It can also cover medical expenses if your driver is injured in the accident.
Commercial auto insurance doesn't provide coverage for drivers involved in an accident while driving their personal vehicles. In that case, a hired and non-owned auto insurance policy would provide coverage.
Hired and non-owned auto insurance
Hired and non-owned auto insurance can cover accidents that happen while business owners and employees are using their personal vehicles for business errands. This coverage can also apply to vehicles your business rents or leases.
What kind of delivery drivers can be covered by commercial auto insurance?
Insurance carriers are often reluctant to cover delivery driving because of its unique risks. That could include:
- Young or inexperienced drivers
- High driver turnover
- Reckless driving caused by pressure to deliver quickly
The lack of coverage options can be frustrating, especially as more businesses offer apps to help customers get take-out meals, groceries, or other items delivered to their home within hours. If you can't obtain commercial car insurance for your delivery drivers, it leaves your business exposed when a driver gets into an accident.
We understand this challenge and we're working hard to find carriers that can provide policies that include delivery driver coverage.
Save money by comparing quotes with Insureon
Complete Insureon’s easy online application today to compare quotes for commercial auto insurance and hired and non-owned auto insurance from top-rated U.S. companies. Once you find the right policy for your small business, you can begin coverage in less than 24 hours.