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Tips for Business Car Insurance for Delivery Drivers

If you’re working as a delivery driver, you will need adequate insurance to protect you against damages or injuries you can incur in a car accident. The best way to cover yourself against these possibilities is to buy a business car insurance policy.
However, with so many options on the market, you may be at a loss on how to pick the most suitable insurance. Thankfully, we’re here to help. We’ll provide you with some tips for choosing the policy that best fits your needs. Let’s get started!

What Type of Car Insurance Do Delivery Drivers Need?

In Canada, everyone driving a car must maintain at least a third-party liability policy, but the requirements of the minimum coverage can vary between provinces. This applies to delivery drivers, too. Moreover, some delivery companies require drivers to have additional coverage.
Comprehensive coverage on your personal car insurance policy can be a viable option in some cases, but this has limited protection. To acquire the most protection, it’s a good idea to purchase a separate commercial vehicle insurance policy.
Personal policies don’t cover business liability, such as if you own your own delivery company and it gets sued. Also, it will only apply to specific types of business-driver engagements and often has exclusions regarding non-personal use.

Business Car Insurance

Business car insurance policies are excellent options for delivery drivers who aren’t provided adequate coverage by their employer and own the company they’re driving for.
Some insurers offer policies with standard coverage designed specifically for deliveries. Or, if you have partial coverage from your employer, you may be able to get additional coverage for whatever is excluded from your employer’s policy.
Here is what to look for when obtaining a business car insurance:
Uninsured Motorist Coverage – This applies to no-fault accidents when the motorist who caused the accident doesn’t have adequate coverage or is not insured at all.
Property Damage Liability – A coverage mandatory by law, to which liability limitations are determined by the province regulations.
Medical Liability – Delivery businesses often require higher medical liability coverage due to the higher risk of injuries.
Accident Benefits – In case you get into an accident while driving your delivery vehicle, this protection will cover your healthcare costs, including ambulance, physical therapy, and lost income.
Hire Auto – Also known as non-owned vehicle coverage, hired auto insurance provides liability coverage when using your personal vehicle or any other car that’s not owned by the delivery company.
Comprehensive – Provides protection for damages that aren’t caused by a collision, including vandalism, theft, natural disasters, or animals.
Collision – Offers coverage for physical damages to your vehicle after you are involved in an at-fault accident.
Delivery Driver Packages – A specific delivery driver policy offered by some commercial insurers.

business car insurance policies

How to Get Full Coverage Car Insurance as a Delivery Driver?

Many delivery service companies provide some level of coverage to their drivers. However, this may not be enough to meet your needs.
Before hitting the road as a delivery driver, it’s a good idea to find out how much coverage your company provides (if any) and look for any additional coverage you may need beyond that. Here is how to find the right coverage:

Step 1: Learn What Your Employer Covers

Inquire at the company you work for about how their commercial car insurance works and how much coverage you’ll get in case you get into an accident while driving for them. If you’re working for multiple delivery companies, ask for each one’s specific types of coverage they have to cover their drivers.

Step 2: Look Into the Available Additions for Personal Policies

If you’re only working as a delivery driver on the weekends or a few hours during weeknights, you may only need a commercial coverage add-on to your personal car insurance policy. Ask your insurer or insurance broker whether this is available to you, but only if the primary use of your car isn’t making deliveries. If it is, inquire about commercial car insurance instead.

Step 3: Find Adequate Commercial Coverage

Whether you need it to fill in the gaps or obtain coverage at all, look for a business car insurance policy that provides the right amount of coverage. Feel free to use the tips provided above. Insuring a car for business use is generally more expensive, but that extra protection is going to be worth it. However, there are always ways to reduce the insurance premium you’ll pay.

Step 4: Include The Preferred Extras

Consider probable situations that may not be covered by your company’s insurance or your basic commercial insurance. For example, rental reimbursement or roadside assistance can both be a lifesaver for delivery drivers because they’ll help you save money and potentially your livelihood.
Even if your employer provides extensive coverage, these are often excluded. However, if you get into an accident with your own car you use for deliveries, you’ll be able to rent a car or get assistance for minor issues and won’t have to miss out on making deliveries.

include the preferred extras

Final Thoughts

While many delivery companies offer some protection for their employees, delivery drivers can benefit from having their own business car insurance.
With the right insurance policy, you can protect your vehicle or property, obtain coverage for the expenses you may incur during an accident, and, of course, the mandatory liability coverage.
If you’re looking for business car insurance, then contact Marathon Insurance today. We’ll walk you through all of the steps above to ensure you get the exact coverage you need. With the right policy, you can make your delivers with peace of mind knowing you’re fully protected.

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