Companies that own delivery vehicles usually carry a commercial insurance policy that covers personal injury to delivery drivers and damage to company vehicles. Delivery drivers who use their own cars in order to deliver items such as pizzas, flowers and gift baskets for a fee will need to obtain their own commercial or business car insurance in addition to the personal car insurance that they already carry. This is because insurance companies do not pay insurance claims for a standard policy if the vehicle was being used for commercial reasons at the time of the incident. Furthermore, state laws require that delivery drivers carry commercial car insurance coverage in addition to their regular car insurance.
Here are some tips for obtaining car insurance for delivery drivers:
1. Contact the current car insurance company. Contact your insurance company and let them know that your vehicle will be used for commercial delivery of goods and/or people for a fee. Most insurance companies offer commercial/business insurance plans that can even be bundled with regular (non-commercial) car insurance plans. However, if your insurance company does not offer such coverage, you will need to start looking elsewhere
2. Specify your expected mileage. If your car insurance company does offer commercial car insurance, they will need specific information from you before they can cover you. The most commonly required information is how many miles you plan to drive your car for delivery service. Other information that may be requested is at what time of the day you plan to drive and how often. Likewise, some insurance companies will want to know what territories/cities you will be covering.
3. Install an anti-theft device in your car. Insurance companies often charge significantly more for commercial auto insurance, because not only does the vehicle have an increased risk of being involved in an accident, it also is more likely to be stolen. By installing an anti-theft or other security system in your car, you may be able to lower your insurance premium (as well as reduce the risk of theft).
4. Consider minimum coverage during periods of inactivity. If your delivery service operates on a seasonal basis, such as only during a given sports season or holiday, then you may want to ask about obtaining minimal insurance coverage during periods of inactivity. This could greatly reduce your commercial insurance costs.
5. Shop around. Contact as many insurance companies as possible and inquire about their commercial insurance rates before you commit to any one of them. You may even wish to mention that you are actively shopping around for the best insurance rate.