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How to Choose the Best Delivery Car Insurance in Michigan

September 28, 2022 Auto Insurance

Did you ever consider that package, grocery, and food delivery drivers who use their personal vehicle for work need separate delivery car insurance to cover the gaps in their personal auto policies?

If you’re a Michigan delivery driver for DoorDash, Uber, InstaCart, or Amazon Flex, be sure to buy adequate commercial delivery driver insurance to protect your personal vehicle in case of an accident while working.

In this post, our experienced car insurance agents with Encore Insurance Group in Michigan explain commercial policies for delivery drivers. Read on to learn more about differences in coverage and cost—and what to look for when choosing your delivery car insurance.

What Is the Difference Between Personal Auto Policies and Commercial Policies?

The primary difference between a personal auto insurance policy and insurance for delivery drivers is when the policy is effective. It depends upon your purpose for driving.

You know that when using your personal vehicle for personal use, your personal auto insurance policy is effective in the event of an accident.

However, if you’re in the process of making a delivery and have an accident, your personal insurance will not cover the costs of injuries and damages. Instead, you need commercial delivery car insurance.

The other key difference is cost. Because you’re working in delivery, your insurance company knows you’re spending more time on the road. More road hours make you more likely to have an accident and file a claim. Because of this, commercial auto insurance is often more expensive.

What Does Insurance for Delivery Drivers Cover?

Typically, delivery car insurance covers vehicle repairs, medical expenses, and lost wages if you have an accident while working for your delivery job. You also likely need bodily injury liability coverage for your delivery insurance.

In Michigan, drivers must have commercial policies or ensure that their personal auto policies do not include language that excludes business use that could void coverage in an accident during a delivery. Exclusions are common and can leave drivers on the hook for damages and injuries that occur during a delivery.

What to Look for in Delivery Car Insurance

Some delivery services offer drivers their own delivery car insurance, including Uber Eats and Amazon Flex. However, if you work for a local restaurant like a small mom-and-pop pizza place, they likely don’t offer their own delivery insurance plan for drivers.

Even if your delivery service does offer insurance for delivery drivers, it may only be the minimum required by the state. The minimum requirement is often insufficient to cover severe injuries or damages if you cause an accident during a delivery. Below are some things to look for when researching commercial policies to protect your personal vehicle.

Gaps in Coverage

If you get the coverage your delivery service offers, review the policy’s coverage for gaps. Is there a cap on the possible payout if you suffer injuries in an accident?

Type of Coverage

What will the plan cover? Will it cover lost wages, collision insurance, and physical therapy for severe injuries?

Local Coverage Requirements

Learn what your city, county, and state require for coverage. Do you need add-on protection like uninsured motorist protection?

Affordable Rates

Compare rates between companies to make sure you’re getting the best deal for the coverage you want. If you want extra protection for personal injury protection and bodily injury liability, know that it will cost more than getting the minimum state-required coverage.

Commercial Driver Coverage

Commercial policies can vary based on the type of vehicle you drive and what you carry. Coverage for a pizza delivery driver will be more affordable than for a driver who moves potentially volatile or hazardous substances.

Protecting Your Personal Vehicle for Work

Investopedia rated the best delivery car insurance companies in four categories for 2022. The best overall was USAA, although drivers can only qualify under specific conditions. If you don’t qualify for USAA, consider the other categories.

Erie Insurance was the best for small businesses, while Progressive took the title for best for food delivery. Allstate provided the best coverage options, offering the same add-ons as a personal auto insurance policy, including rental car reimbursement and accident forgiveness.

Contact Our Independent Car Insurance Agents at Encore Insurance Group in Michigan

To compare delivery car insurance rates and coverage in Michigan, contact one of our knowledgeable commercial car insurance agents at Encore Insurance Group. Since we’re independent of any one company, we can help you choose the best coverage to fit your needs and find affordable rates in a few minutes.

Call us at Encore Insurance Group at 248-260-4259 or contact us online for a free quote.