Do you need auto insurance for postal workers? [2021 Guide]
Thousands of people have started making on-demand deliveries for Postmates as a full-time job or to generate a little extra cash. While it can be a lucrative business, you may want to consider Postmates auto insurance to protect yourself and your vehicle.
Below, we’ll answer common questions about Postmates auto insurance. We will also give our expert opinion on some of the biggest insurance companies in the country. If you want to go ahead and start getting free quotes for your vehicle, enter your zip code below.
Car insurance for postal workers: what you need to know
Many drivers do not realize that their personal insurance policy does not cover them when making deliveries for postal workers and other businesses. As the name suggests, your “personal” automobile policy covers you only when you use your vehicle for “personal use” activities.
When you start using your vehicle to generate income, a standard policy no longer offers adequate protection. While it will always cover accidents that occur while you are driving to the store or picking up a friend from the airport, a standard policy will not protect you from delivery incidents. When making official deliveries with your personal vehicle, you fall into the same category as independent contractors.
This means that if you are planning to drive your personal vehicle for work related activities, you may want to consider a special insurance policy. You have several options, including a commercial auto insurance policy or carpooling insurance.
With the growing popularity of on-demand delivery apps like Postmates, many large insurers have started offering ridesharing insurance as an add-on option. For example, companies like GEICO, State Farm, and Progressive will often allow you to upgrade your existing policy for an additional fee. This option makes it easy to get the protection you need.
Do postmates provide insurance for drivers?
Technically, Postmates provides insurance for its drivers. However, the coverage is minimal. Specifically, Postmates offers what is known as “workers’ compensation insurance”. This insurance provides disability, medical, death, dismemberment and survivor benefits for any injury caused during an active childbirth.
On its website, Postmates explains that this coverage is active from the time you “accept” an order until you drop it off with the customer.
Postmates offers this type of coverage in all states except California. The State of California requires postal workers to provide drivers with personal injury protection insurance. Coverage is similar to the workers’ compensation insurance described above, but the specific limits and payment amounts vary slightly.
As you can see, Postmates offers their drivers some protection. Unfortunately, this basic protection does little to protect your vehicle and focuses primarily on medical expenses related to a catastrophic car accident. If you are involved in an accident that results in your vehicle being totaled, Postmates insurance will not help cover repair costs. If you don’t have proper auto insurance coverage, you will likely have to pay out of pocket for the repairs.
Do I have to declare that I am driving for fellow workers?
You must report your driving activities to your insurer. If you are in a car accident during an official Postmates delivery, you need to be honest about the circumstances surrounding the accident. Lying to your insurance company in an attempt to collect benefits is a form of insurance fraud.
Even if you are not involved in an accident, it is important that you let your supplier know that you work for Postmates. If your supplier finds out that you are making deliveries, the company may abandon your policy altogether. The best approach is to speak to an insurance agent and find out what type of on-demand delivery coverage the company offers.
Auto insurance requirements for postal drivers
Postmates require all drivers to maintain valid auto insurance. When you apply to work for Postmates, you must present a valid insurance card.
Before you start making deliveries, you should consider switching to commercial insurance or carpooling coverage. Without it, you will be left unprotected in the event of a responsible accident. As noted above, your insurance company may drop you off if they find out that you are making deliveries for postal workers without proper coverage.
When looking for Postmates auto insurance, you will have a choice between commercial coverage or specialty food delivery insurance. A commercial policy is more comprehensive and offers maximum protection, but is more expensive than traditional coverage.
Carpool or food delivery insurance can be very profitable. It will provide you with round-the-clock protection whether you are making deliveries or using your vehicle for personal pleasure. Coverage limits will also be lower than commercial coverage.
Whichever option you choose, you can lower your overall costs by opting for a higher deductible. Your provider may also offer discounts, which may lower your premium.
Our recommendations for auto insurance
Now that you know how important it is to have Postmates auto insurance coverage, it’s time to find a reputable provider. As stated above, our experts have reviewed the industry leaders so you can buy with confidence. We’ve analyzed companies like USAA, Progressive, and Nationwide to find out which providers offer the best rates and the best customer experience.
In our industry-wide review, GEICO and State Farm stood out when it comes to carpooling coverage. Read on to find out what our experts had to say about these two industry giants, or enter your zip code to start getting free quotes from multiple insurers in your area.
GEICO: better overall
For decades, GEICO has been known as one of the country’s leading insurance companies. The company got our # 1 spot among major insurance providers and received a total score of 9.5 out of 10.0 in our review. The auto insurer offers a variety of discounts and plan options. Whether you need full coverage auto insurance or basic personal injury and liability coverage, GEICO has options.
State Farm: Ideal for student drivers
In our review of the best insurance companies in the market, we ranked State Farm as the best choice for student drivers. State Farm offers grade-based discounts, flexible plans, and more. The insurer has rideshare and delivery service coverage for drivers looking to make money delivering for companies like Postmates, Uber Eats, and Doordash.
FAQ: Car insurance for postal workers
How does Postmates work?
Postmates is an on-demand delivery service. Drivers are paid a base fee of $ 1.35 per order. They are paid per minute for pending orders and per kilometer for deliveries. Customers can also leave a tip, which will be paid to the driver.
Do you need special auto insurance coverage as a delivery driver?
Yes, rideshare and delivery drivers need special auto insurance coverage if they want to be covered while they are working. Without it, your insurance company will likely deny a claim if you are involved in an accident during a delivery. Your insurer might even drop your policy altogether if you don’t disclose that you work as a delivery driver.
Does working for Postmates increase your auto insurance rates?
Working for Postmates will not automatically increase your insurance rates. However, upgrading to carpooling coverage will result in higher premium payments. The reason for this price increase is that your risk of being involved in an accident increases when you spend more time on the road.
What should I do if I have an accident during delivery to Postmates?
Postmates requires you to refer to your personal liability policy if you are involved in an accident during deliveries. After you have resolved all immediate medical issues and other concerns, you should then send an email to Postmates to notify the company that your accident occurred during an active delivery.
The Detroit Bureau collects data from all of the major auto insurance providers to formulate rankings of the best insurers. Our in-depth rating system takes into account market share, coverage, pricing, customer satisfaction, and industry expert ratings. Each insurer is assigned a weighted score in four categories, as well as an overall score out of 10.0.
We recommend auto insurance companies based on these rankings, but we also encourage you to do your own research and compare quotes to find the best coverage.