Over the last couple of years, there has been an ever increasing demand for delivery drivers which most notably stems from the growth of apps like DoorDash, Uber Eats, Instacart, etc. These side hustle opportunities are amazing for college students, young drivers, or parents needing extra income but there is one area that often seems to stand out—affordable car insurance.
If you are already a delivery driver or thinking of becoming one, you would have surely noticed that normal insurance policies do not suffice when you are delivering food, groceries or other items instead they either increase in unaffordable prices or do not give the cover you are looking for. This, however, is where this guide comes into play as its aim is to assist you in seeking out reliable options of cheap car insurance policies as a delivery driver. This applies irrespective of the context, whether you are a student looking for insurance as a young driver or a parent seeking to help your teenage child secure coverage, as there is targeted advice, practical guidance and trusted materials at hand.
Why do Delivery Drivers have a Different car Insurance?
Most insurance policies are aimed at an individual’s use such as work commutes, a weekend road trip, or just general everyday driving. But commercial driving creates a drastic change in the situation, for instance, being a delivery driver for a service.
Insurers deem anything to do with delivery driving as a “higher risk” because most of the time drivers are out for longer and are required to fulfill their delivery in a certain time period. This increases the likelihood of accidents occurring which then translates to higher premiums for the policy. Unfortunately, many young drivers and students who are starting out and are on a budget find it difficult to get any insurance coverage.
Challenges in Finding an Affordable Coverage
To students in college or a young driver or even a parent of a young teen finding low rates for insurance for delivery driving seems like an endless loop. here is why people tend to switch to higher coverage for this group of demographic:
- Age and Driving Experience
Drivers who are younger tend to be more prone to accidents due to their relative inexperience when compared with older drivers. Because of this fact, insurance providers have to charge a higher premium for those who are below the age of 25.
- Vehicle Type and Condition
The cost to insure your vehicle depends on its make, model and condition.
The most recent and costly automobiles seem to be expensive by insurance standards as there is a cost incurred during their replacement and repair.
- Need for Commercial Use
As a standard, a delivery driver policy cannot even cover the driving of a food delivery service. They have no cheap options available other than switching to a commercial policy, which drives up costs.
- Driving History
Paying a speeding fine or history has sometimes caused your premiums to lock up. The most ideal solution would be to pay for a coverage plan without engaging in a lot of loss incidents.
Some of the Workarounds or Suggestions in order to Save Money as Car Insurance as a Delivery Driver Notice
There is still a lot that could be done to negotiate your rates to a comfortable level, though there are several hurdles along the way. That being said, this is what you should aim to do to stay in the coverage range while avoiding extortionate rates:
- The Type of Vehicle to Consider
The make and model of an vehicle can bring a much cheaper premium. With that in consideration, utilizing an inexpensive, older, eco friendly and easy to repair vehicle might be good tools to saving money.
- Policy add-ons for delivery drivers
Contact your insurer before transitioning to a commercial policy, find if they provide delivery driver recommendations or gig insurance as it is a better alternative.
- Consolidate Your Insurance Policies
Consolidating your auto insurance with other forms of insurance such as homeowner insurances is an opportunity worth taking.
As a rule of thumb, insurers endorse policies that are simple to understand and enable economies of scale.
- Get your speeding, DUI and any type of violation down and out
Last but not least, a clean record assists you in keeping those premiums down in future deliveries. Make sure you don’t engage yourself in any activity that could later compel you to pay a higher premium.
- Discounts, Discounts and More Discounts
Some schools of thought dictate to the insurance providers that certain categories of young drivers, students or people enrolled in defensive driving courses should be charged less, and a variety of categories benefit from that. Although, many residential areas provide good student discounts as well for achieving and maintaining certain grades.
- It Would Be Wisest to Seek Out the Best Deals Regardless of Insurance Rate
Keywords or factors to look in will be the cost of the policies as they vary across plans and regions, minimum age of the participant, and even their geography. Use this opportunity in comparing different companies. You may find good ones around you by simply searching along the lines of ‘delivery driver insurance near me”.
Insurance Providers Targeting Delivery Drivers Needs
There are some companies who understand the requirements of the expanding demographic and assist delivery drivers in getting more appropriate plans. Here are a few:
GEICO
GEICO simply offers an extension of your existing policy where the only reason you take the extension out is if you are engaged in commercial use, such as being a delivery or a rideshare driver for instance. It is a great option for those who only do food deliveries occasionally and want to cut costs.
Progressive
Progressive’s Policies cover delivery earning drivers while providing great flexibility and options for standard plans, inclusive of ease of combining policies for families enhancing their affordability.
State Farm
Both parents and young drivers can buy inexpensive insurance through State Farm, with parents buying it for their children specific coverages for young drivers
Allstate
Allstate offers the DriveWise scheme which discounts drivers who are safe. This is very suitable for delivery drivers who drive frequently.
Though these providers are worth looking into, it is extremely important to ascertain what each policy contains. Some might just provide simple gig coverage while others might demand additional commercial insurance.
Read the line and don’t miss it. Choosing a relevant policy is of utmost significance.
Getting the insurance for the delivery drivers could be daunting because there is legal jargon involved and also a lot to read through. Before you go about underwriting a policy, make these answers clear to yourself:
Does your existing auto policy cover delivery applications sufficiently? Strong response is required as a low or average response will not do.
Is there any dispatch related extension available for you and is it in your financial range?
What is the excess amount for the policy and do you have it in your pockets in case of a mishap?
Are medical and commercial liability and other expenses paid in order to be able to make the business work?
This would ensure that you won’t have to pay for extra costs later on. In addition to that, more states also require a certain level of coverage for delivery drivers so check with your plan to make sure it follows the states’ rules and records.
Have the additional assistance and resources at hand.
We know that figuring out how to plan out your car insurance can be very frustrating but the good thing is there is no need to worry! Be sure to utilize assets that have been designed just for you, which include:
Defensive Driver Class
A number of states and several insurers offer such short-term classes which enable drivers to enhance their skills and pull their rates low.
Gig Community Forum
Reddit and related Facebook groups are great in that they allow other delivery drivers to share their experiences and advise.
Apps for Insurance
The Zebra or NerdWallet mobile applications allow for a quick and easy comparison of the insurance plans available.
Spending time in research and utilizing these tools is going to ensure you get the best deal possible with the least coverage being cut off.
Delivery Isn’t as Expensive as it Tends to be Perceived
Whether you are a college attending student needing a source of sporadic income, a young driver on his/her first employment or even a parent who’s helping his/ her teenager to get behind the wheel, finding the best car insurance for a delivery driver is doable.
Begin by familiarizing yourself with the various aspects impacting your rates and searching for delivery specific insurances that would be more accommodating. Do try to get multiple quotes and look at websites of different companies to review their range of discounts and policies thoroughly.
A little bit more effort on your part right now will ensure that you save a couple hundred dollars year after year and grant you the level of comfort that every driver needs before listening in to the purr of an engine.
Are you on the hunt for even more advice? Starting your research today can also be the most rewarding, so explore our recommended resources or reach out to an insurance provider!
