Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: Apr 3, 2022

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The lowdown...

  • Whether you are the owner of a pizza delivery business or you drive for one, it is important to apply for commercial insurance coverage
  • Pizza delivery is considered high-risk and may attract high insurance premiums
  • Even though some insurance companies will not be willing to insure pizza delivery drivers, one can still find this kind of insurance by shopping around and comparing different rates

If your work is to deliver pizza fast and while it is still hot, then your business is considered inherently risky. You want to understand your auto insurance so that you have the required services necessary to protect you while you’re on the road. Most personal auto insurance policies will not cover commercial use of a vehicle, which includes delivery driving.

Young delivery drivers are not always the safest drivers as they are ever in a hurry to earn big tips and therefore more likely to cause an accident.

The unfavorable odds of employees getting in accident creates liability concerns for the business owner. This has led to more options regarding insurance for delivery drivers to be on the rise.

Having the correct pizza delivery car insurance in place will protect you financially in case you or one of the workers causes:

  • A car accident
  • Property damage
  • An injury while working

To achieve this, you need to customize your policy so that it can match the number of assets you want protecting, the number of drivers, and the amount of risks you face.

Talk to an agent who will show you several quotes and choose the best one for you and your business.

If you are in need of better auto insurance rates as a pizza delivery owner or driver, start comparison shopping today by entering your ZIP code above.

Are you covered as a food delivery driver?

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Do you work for Pizza Hut, Domino’s Pizza, or Papa John’s? Maybe a small mom-and-pop pizza restaurant that delivers around town? If so, you’re going to need pizza delivery insurance. Remember that our personal insurance policy won’t be enough.

In the world of pizza delivery, there are two types of people who need to make sure they are protected. Let’s discuss the employer and the employed and what they both should expect when it comes to being insured while on the job.

As a pizza delivery driver, it is good to ask your employer if you are covered by the company’s commercial auto insurance and to what extent.

Does your employer’s insurance only cover you when you are not considered at fault or does it also cover you when you cause an accident?

If your employer does not offer you coverage, check with your insurer to confirm whether you are sufficiently covered while on the job.

Most auto insurers do not provide coverage to delivery drivers and the few that do often charge a hefty premium for it.

Pizza delivery is among America’s most dangerous jobs as ranked by the Bureau of Labor Statistics, posing a high risk to the insurance companies.

If you notify your insurer that you have been hired to deliver pizza, you should expect a premium increase of 50% or more. Sadly, you are legally mandated to inform your insurer that you will be utilizing your personal vehicle to perform a commercial duty.

Technically, failure to do so constitutes insurance fraud which is a serious offense punishable by court-ordered probation, hefty fines and jail time.

If you fail to notify your insurer of your delivery job, you are bound to lose your coverage in the future. Your insurance company might not know about your new job immediately, but this information will get revealed in case an accident occurs while using your car for business.

Even if the crash doesn’t yield a formal police report, the other person involved will likely say that the accident involved a delivery driver. Your insurer will refuse to cover any charges associated with the crash. They may even nullify your insurance policy on the spot.

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What are the differences between commercial and personal auto insurance?

To avoid future financial constraints, let your insurance provider know about your job and request to shift to a commercial auto policy. Just like the personal auto policy, a commercial auto policy is aimed to protect policyholders from unexpected incidents involving their vehicles. There are usually policy limits in place, so make sure you get the required amount of coverage there as well.

The differences between the two may include:

  • Definitions
  • Coverage
  • Eligibility
  • Limits

Commercial car insurance policies differ, but the type of coverage offered includes:

  • Collision
  • Comprehensive
  • Medical payment
  • Uninsured motorist
  • Liability coverage

What are your options for pizza delivery auto insurance?

There is more than just one option on the market for you if you work for a delivery company. Commercial policies are not the only option when it comes to getting insurance as a food delivery driver. In fact, buying a separate commercial auto insurance policy may be the most expensive way to go about getting the coverage you need.

Buying a commercial endorsement rider from your insurance company is usually the cheapest way to get commercial coverage. The rider will still raise your insurance premium, but only by around $5-$20 per month. With the commercial endorsement rider attached to your personal policy, you’ll be covered for both personal driving and work driving. This will include food delivery services.

What if you’re a pizza delivery shop owner?

Owners of pizza restaurants must confirm that the pizza delivery drivers they employ have clean driving records as well as adequate auto insurance coverage before hiring them. This protects the business and the individuals that are employed, which can cut down on the amount of insurance claims that are filed.

If you’re a pizza delivery shop owner, inform your workers about getting a rider for commercial purposes, or switching to a commercial policy if that’s easier. This will help in case your workers weren’t aware that their personal policy wouldn’t cover them while they were at work and will allow them to get adequate coverage.

If you intend to provide your employees with vehicles, then you should buy commercial auto insurance for them.

Without this coverage, you are bound to face hefty out-of-pocket charges if anyone, including your employee, files a complaint against your company in case a work-related accident involving your company vehicle occurs.

Many delivery-related businesses rely on their drivers’ personal auto insurance policies. While the employee insurance might be enough to cover their vehicles, your business could ultimately be held responsible for the car accidents they might cause while working.

If your business relies on employees using their personal vehicles for delivery, then you might consider buying the non-owned auto insurance. If your employee gets involved in an auto accident while working with his vehicle, this coverage will provide liability protection for your company for damages or injuries caused by accident.

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What types of liabilities are covered?

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As stated above, pizza delivery restaurants require two kinds of auto insurance. Here is further information below.

Company-Owned Auto Policy

The business owner is required to list every driver on the company-owned auto policy.

Listing employees on a company-owned auto policy increases its cost, but auto insurance providers are somehow favorable towards these policies since they know the exact number of cars that your employees are using for pizza delivery.

Hired or Non-Owned Auto Coverage

This insurance plan covers drivers while they use their cars to deliver pizza. Non-owned auto coverage is necessary since most personal car insurance policies do not offer coverage to accidents caused by your driver while driving his/her vehicle for business purposes.

Both of these types of coverage provide liability insurance for the business owner in the event that a driver is involved in an accident.

What’s the bottom line?

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A good auto insurance policy for your pizza business will give you a peace of mind while you carry out your business activities.

Unfortunately, some personal car insurance policies contain a “no pizza delivery” clause. This means a pizza delivery driver will need more than just personal auto insurance coverage in order to be covered for an accident that happens on the job.

Since pizza drivers are categorized as high-risk, these insurance companies want to avoid them.

Insurance companies have come to the conclusion that a car’s high annual mileage equals more duration on the road and further exposure to accidents. It doesn’t help that many pizza deliverers are college students or teenagers who are at a high risk to cause accidents.

Both of these factors are considered when buying commercial auto insurance, and this translates into higher premiums. But you can shop around for a more favorable quote!

If you are in the pizza delivery service and are in need of better auto insurance rates, start comparison shopping by entering your ZIP code below.