Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

Full Bio →

Written by

Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

Full Bio →

Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Sep 7, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right car insurance coverage choices.

Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.

Our car insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different car insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Key takeaways...

  • Fast food delivery drivers using their private vehicles need to have a commercial car insurance cover in addition to their personal policy. The driver is responsible for his insurance coverage although some restaurant provides them
  • Fast food restaurants with their means of transport have their vehicles insured with either a commercial insurance policy or business auto policy
  • The standard insurance company may deny you an insurance claim in the case of an accident where the driver was carrying items for compensation purposes

As fast-food deliveries increase, most restaurants have also raised the number of delivery drivers. The insurance companies have also increased fast food delivery insurance premiums.

Therefore, most drivers who happen to be teenagers and college kids end up taking the wrong insurance policies for their work.

They have in turn faced various challenges while filing the claim with insurance providers who end up denying them payments.

Additionally, the delivery drivers risk losing their vehicles as well as getting their driving license and car registration suspended.

If you are a food delivery driver in need of better auto insurance coverage, start comparison shopping by entering your ZIP code above!

Risks That Lead to High Insurance Premiums

The insurance companies understand the risks involved in delivery jobs, which lead them to increase the premium rates.

Among the factors that contribute to high premiums, include:

  • Most of the delivery drivers are teenagers and college students who have a high probability of causing an accident.
  • The drivers have exposure to high risks such as theft, injuries, and accidents.
  • The delivery workers have pressure from hungry customers and tight deadlines to meet, which increases their chances of speeding.
  • They make deliveries in places that they do not know so well, meaning the chances of attacks are so high.
  • They are always on the move which increases the likelihood of an accident.

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption

Various Delivery Means

In the fast food delivery, the restaurants may have a company-owned delivery system where they use vans, motorbikes, or scooters.

On the other hand, the restaurants may not have an available means of transport, which calls for the drivers to use their vehicles (some teenagers use their parents’ cars).

Most of the personal vehicles have the standard motor insurance policies that do not cover the usage of vehicles for commercial purposes. Therefore, the drivers would require getting the commercial auto insurance coverage at their expense.

Commercial Coverage

In the case of an accident and you were using a personal vehicle to run the commercial errands, then the insurance companies will deny you claim.

Therefore, it is important to acquire a commercial insurance policy, which is more expensive than the personal insurance coverage.

A combination of the high premium rates, type of the vehicle, driving record, and other contributing factors may increase the rates for a fast food delivery driver.

Ensure that your employer includes you in their insurance policy if you do not have a commercial coverage and the insurance company does not provide auto coverage.

Compare Car Insurance Companies

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption

Non-Owned Auto Insurance

Non-owned auto insurance is an insurance policy covering the vehicles owned by drivers.

However, some of them may be reluctant to add the new employees who are not aware of the coverage. If a worker gets into an auto accident during work while under this policy, then the insurance company provides protection for the business, injuries, and the damages caused.

The insurance policy covers the business only when the person’s auto policy denies the claim or cannot afford enough limits to cover the claim or the damages.

Every restaurant employer should consider purchasing this insurance coverage to protect the business in case of an accident.

Multi-unit fast food restaurants may take into account getting the business auto policy.

The drivers operating under these restaurants undergo a semi-annual screening process to ensure they meet the eligibility criteria of the insurer. The insurance company carries out the selection process on behalf of the restaurant.

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption

Absence of Commercial Car Insurance Policy

While hiring new drivers, most of the employers expect the workers to have an insurance policy and more than one year of experience. However, they do not get clarification of what insurance cover is required for them to operate.

In the case of an accident and the insurance company gets to learn that the driver was involved in an accident that required compensations, then the company does not honor the claim.

In such a situation, the employer is also risking his business since the injured party will most of the times go for the restaurant employer for compensations.

Alternatively, the delivery driver may be liable for his actions, and he has to compensate the third party liability.

Why do most fast food restaurants deny insurance coverage?

Restaurants refuse insurance coverage for their delivery drivers since they do not want involvement in any lawsuits when the personal insurance providers fail to cover the damages.

The employers have the immunity since there is no law stating that a restaurant requires providing the non-owned auto coverage for their workers. Therefore, the drivers should ensure that they have the proper insurance policies.

Providing Insurance to the Personal Owned Vehicles

  • Fair Prices – Providing only insurance and other related costs are cheaper compared to having to take care of the vehicles services and also the fact that more driving results to increased wear and tear.
  • Responsibility – Delivery drivers take good care of a car they own than the company one. Minimal accidents are equal to lower premium rates for the restaurants.
  • Low maintenance cost – The company is not liable for the maintenance costs related to the use of vehicles since that remains to the personal insurance policy and the car owner.

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption

Ask the Right Questions

Before taking a job in a fast food joint as a delivery driver, it is important to ask the employer about the car insurance policy that they have to avoid denial of claims.

You may consider insuring an older car rather than a new one since the personal insurance policy has a keen eye for the vehicle’s mileage. Other factors to consider include your age, driving history, and personal demographic.

Start comparison shopping today to make sure you are adequately covered while delivering food! Enter your ZIP code below to begin comparing auto insurance rates!