Do I Need Insurance as an Independent Courier? What You Should Know
As an independent courier, your vehicle is your business — and one major accident or claim can seriously derail your income. But what kind of insurance do you actually need? And is your personal policy enough?
In this post, we’ll walk through the types of insurance every courier should consider, what’s legally required, and how to protect yourself as a self-employed driver.
Is Personal Auto Insurance Enough?
No — not if you’re using your vehicle for commercial purposes.
Most personal auto insurance policies don’t cover accidents that happen while you're working. If you’re using your car for paid deliveries and get into a wreck, your insurer may deny your claim.
This includes:
Courier routes
App-based delivery (Uber Eats, Instacart, etc.)
Scheduled contract jobs
To be protected, you need a policy that covers commercial use.
Types of Insurance Couriers Should Know
1. Personal Auto Insurance
Required by law, but doesn’t cover work-related use unless specifically stated.
2. Commercial Auto Insurance
Covers vehicles used for business purposes. Often required if you:
Drive a cargo van or box truck
Transport large quantities of goods
Work under a business name or LLC
Have vehicle signage or hire other drivers
Note: Premiums are higher but offer broader coverage.
3. Rideshare or Delivery Add-Ons
Some personal policies offer low-cost “gig use” endorsements. These can fill coverage gaps during:
App-based delivery shifts
Occasional contract driving
Part-time work
Ask your insurer if they offer this type of policy.
4. Cargo Insurance (Optional)
Protects the goods you're transporting in case of damage, theft, or loss. Some high-value routes or clients may require it.
5. General Liability Insurance (Optional but smart)
Covers non-vehicle-related incidents — like accidentally damaging a client’s property during a delivery.
When Is Commercial Auto Insurance Required?
You likely need it if:
You're under contract with a courier company (not just an app)
You’re delivering items for law firms, medical offices, or businesses
Your van is registered commercially or wrapped
You operate under a company or business name
Your deliveries are scheduled, not on-demand
Always check the agreement from your client or dispatch platform — some routes require proof of commercial insurance before assigning jobs.
How Much Does It Cost?
Commercial policies range depending on:
Your driving history
Type of vehicle
Zip code
Estimated annual mileage
Average range:
Personal with gig add-on: $75–$150/month
Commercial auto insurance: $150–$300/month
Cargo or general liability: Varies ($25–$75/month)
Shop around — local and national providers (GEICO, Progressive, State Farm, commercial brokers) often offer courier-specific packages.
What Happens If You're Uninsured?
If you’re in an accident while on a delivery and your insurer finds out it was work-related:
Your claim may be denied
Your policy may be canceled
You may be held personally liable for damages or injuries
You may be unable to work temporarily if your vehicle is totaled
The risk isn’t worth it. If you’re using your vehicle for business, make sure your insurance reflects that.
Final Thoughts
Courier work can be a reliable income stream — but like any business, it comes with risk. Getting the right insurance isn't just about following the rules — it’s about protecting your earnings and your future.
Make one phone call to your insurance provider today. Ask what options they offer for delivery or courier work. It’s one of the smartest business moves you can make as an independent contractor.
Recommended Resources
Progressive Commercial Auto
GEICO Delivery & Rideshare Insurance
State Farm Gig Worker Insurance
