Postmates Car Insurance

What type of auto insurance is best for Postmates drivers?

Car insurance for Postmates drivers

If you're driving for Postmates, it's important to remember one of the key rules of auto insurance: using your vehicle for business and the transportation of goods is typically not allowed

While most Americans have personal auto insurance policies, driving for Postmates may require a commercial car insurance policy. This begs the question: how should you insure your vehicle as a Postmates driver?

  1. Do you need car insurance to drive for Postmates?
  2. Does Postmates provide auto insurance?
  3. Can I use my personal insurance policy for Postmates?
  4. Postmates car insurance options


Do you need car insurance to drive for Postmates?

Any vehicle driven or parked on public roadways must be insured with state-minimum liability insurance. Failure to maintain active insurance may result in a ticket or license suspension, along with a lack of coverage in the event of an accident. Within its onboarding process, Postmates states all drivers must maintain or exceed their state’s liability insurance limits.

Does Postmates provide insurance coverage for drivers?

It depends. Postmates states responsibility for all vehicular damages falls on the driver. However, Postmates may step in when a driver's coverage does not cover the damage inflicted on third-party vehicles.

Postmates car insurance assistance includes:

  • Excess auto liability — $1M: per-accident limit for bodily injury and/or property damage to third parties.
  • General liability — $1M: applies to Postmates couriers who make deliveries by foot or bicycle, covering damage caused to others or their property.

Postmates does not cover a driver's vehicle or bicycle, and the company doesn't offer workers' compensation. Postmates outlines drivers must use their own coverage to cover vehicular damage. This can be complicated, as working for Postmates may require a commercial insurance policy.


Can you use a personal car insurance policy for Postmates?

Because Postmates drivers use their vehicles to transport goods, i.e., food, making deliveries for Postmates falls outside typical personal auto insurance guidelines. If you are involved in an accident while driving for Postmates and only have a personal auto policy, you risk having any corresponding claim denied. Two insurance coverage options could work for Postmates:

  • Business-use: an add-on option for a personal policy, designed for minimal business use.
  • Commercial policy: designed to cover businesses and their vehicles.

Commercial and business-use policies are designed to cover the risks associated with food delivery and other commercial uses. Working as an independent contractor for Postmates creates some unique circumstances that most insurance companies will not cover under a personal policy.

Postmates car insurance options

As a Postmates driver, you can get a commercial car insurance policy, ask whether your provider will provide coverage via a business-use personal policy, or simply not report your Postmates occupation to your insurance company.

Commercial policy

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

Business-use policy

A business-use policy is for drivers who use their vehicles for limited business use. If you’re a full-time Postmates contractor, you might not qualify for this coverage. If you’re curious, speak to an insurance agent.

Personal auto insurance policy

Failing to report your occupation as a delivery driver has its risks. You risk having your coverage canceled, along with risking denial of subsequent insurance claims. Honesty is always the best policy — don't get caught uninsured!

Your best option is to speak directly to an agent. The emergence of on-demand delivery services has created a unique situation for insurance companies. If you’re interested in speaking to a local agent or have other questions about insurance, call (888) 444-2833 or click below.


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