Best Auto Insurance for Instacart Delivery Drivers in 2024 (Your Guide to the Top 10 Companies)

Find the best auto insurance for Instacart delivery drivers from top providers such as USAA, Travelers, and Geico. which rates as low as $86 per month. USAA is the best option for delivery drivers due to its low rates and comprehensive coverage.

Does Instacart require insurance? You must carry auto insurance coverage to meet the Instacart insurance requirements. All you need is liability auto insurance, though some companies may want you to add rideshare coverage.

Our Top 10 Company Picks: Best Auto Insurance for InstaCart Delivery Drivers

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#1 – USAA: Top Overall Pick

Pros

• Military-Friendly Delivery Coverage: USAA’s specialized policies may offer unique protections for Instacart Delivery Drivers with military backgrounds, addressing specific risks associated with food delivery. Gain more insights in our detailed USAA auto insurance review.
• Strong Financial Stability: With an A++ rating from A.M. Best, USAA demonstrates excellent financial strength, ensuring Instacart Delivery Drivers can rely on the company to pay out claims promptly.
• Vehicle Replacement Assistance: USAA could offer enhanced vehicle replacement coverage, crucial for Instacart Delivery Drivers who rely on their cars for income.

Cons

• Lack of Local Agents: Unlike some competitors, USAA doesn’t have local agents, which might be inconvenient for Instacart Delivery Drivers who prefer in-person assistance with their insurance needs.
• Strict Eligibility Requirements: Many Instacart Delivery Drivers without military connections may not qualify for USAA’s services, limiting access to their specialized coverage.

#2 – Travelers: Best for Bundling Policies

Pros

• Umbrella Policy Benefits: Instacart drivers looking for extra liability protection can bundle an umbrella policy with their auto insurance, providing added coverage for unforeseen incidents at a reduced cost. Access further details in our comprehensive Travelers auto insurance review.
• Bundling opportunities: Travelers is noted as best for bundling policies, potentially offering Instacart Delivery Drivers significant savings when combining auto insurance with other coverage types.
• Bundling Flexibility Across States: Travelers offers bundling options across multiple states, making it easier for Instacart drivers who frequently travel or relocate to maintain continuous coverage and savings.

Cons

• Slightly Higher Rates Than USAA: Instacart Delivery Drivers may pay slightly more with Travelers compared to USAA, which could add up over time for frequent drivers.
• Fewer Perks for Delivery Drivers: Travelers may not offer delivery-specific perks or benefits that other insurers provide, potentially making it less attractive for Instacart drivers who need more tailored support.

#3 – Geico: Best for Affordable Rates

Pros

• Best for Affordable Rates: Ranked as best for affordable rates, Geico may offer Instacart Delivery Drivers additional ways to save on their auto insurance beyond the base rate. Understand the specifics in our in-depth Geico auto insurance review.
• Strong Financial Stability: With an A++ rating from A.M. Best, Geico provides Instacart Delivery Drivers with the assurance of a financially stable insurer capable of handling claims efficiently.
• Rideshare Coverage Available: Geico offers rideshare coverage ranging from $7 to $14/month, which could be beneficial for Instacart Delivery Drivers seeking additional protection during deliveries.

Cons

• Potential Coverage Gaps: Instacart Delivery Drivers need to ensure Geico’s rideshare coverage fully protects them during deliveries, as specific delivery driver coverage isn’t detailed in the provided information.
• Possible Limitations on Bundling: While Geico offers various insurance products, it may not provide as many bundling opportunities as some competitors, potentially limiting savings for Instacart Delivery Drivers with multiple insurance needs.

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#4 – Nationwide: Best for Vanishing Deductible

Pros

• Vanishing Deductible Feature: Ranked as best for vanishing deductible, this unique feature could benefit Instacart Delivery Drivers by reducing their out-of-pocket expenses in the event of a claim. Investigate the details in our extensive Nationwide auto insurance review.
• Benefit Retention After Switching: Instacart drivers who switch vehicles or adjust their policies within Nationwide can still retain their accumulated vanishing deductible benefit, ensuring continuous savings.
• Enhanced Financial Security: With a lower deductible, Instacart delivery drivers can feel more secure financially, knowing they have to pay less in case of an accident during deliveries.

Cons

• Delayed Deductible Reduction: Instacart drivers may find the rate at which the deductible vanishes too slow, especially if they are in need of quicker savings due to frequent delivery-related claims.
• Higher Costs for New Drivers: New Instacart drivers with limited driving history may face higher initial costs with Nationwide, making it less appealing despite the vanishing deductible benefit.

#5 – American Family: Best for Loyalty Rewards

Pros

• Loyalty Rewards Program: Ranked as best for loyalty rewards, this feature could benefit long-term Instacart Delivery Drivers by providing additional perks or discounts over time. Delve into our full American Family auto insurance review for more insights.
• Priority Claim Handling: Long-term Instacart drivers might receive prioritized claim processing as part of American Family’s loyalty rewards, ensuring faster resolution of issues that could impact their delivery schedules.
• Enhanced Renewal Benefits: Loyalty rewards could include benefits like reduced rates or waived fees at renewal time, providing Instacart drivers with financial incentives to maintain continuous coverage with American Family.

Cons

• Slow Accumulation of Benefits: The time it takes to accumulate meaningful rewards through American Family’s loyalty program might be too long for Instacart drivers who need immediate savings or benefits.
• Potential Penalties for Switching: Instacart drivers who switch policies or vehicles may lose accrued loyalty rewards, making it less advantageous to make changes as their delivery needs evolve.

#6 – State Farm: Best for Personalized Policies

Pros

• Customizable Coverage Options: State Farm’s personalized policies allow Instacart delivery drivers to select specific coverage options, such as mileage-based insurance, which can adjust premiums based on actual delivery distances driven. Navigate through our State Farm auto insurance review for a closer look.
• Tailored Liability Limits: Instacart drivers can work with State Farm to set liability limits that match their delivery routes and traffic patterns, ensuring they have the appropriate level of protection based on their unique driving environment.
• Inclusion of Delivery-Related Coverage: State Farm may allow Instacart drivers to add endorsements or riders to their policies that specifically cover delivery-related risks, such as damage to goods in transit or additional liability coverage during work hours.

Cons

• Lower A.M. Best Rating: State Farm’s B rating, while still good, is lower than many competitors, which may concern some Instacart Delivery Drivers about the company’s financial stability compared to other options.
• Higher Rideshare Coverage Cost: At 20% of the policy cost, State Farm’s rideshare coverage may be more expensive than some competitors, potentially increasing overall costs for Instacart Delivery Drivers.

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#7 – Allstate: Best for Local Agents

Pros

• Local Agent Network: Ranked as best for local agents, Allstate offers Instacart Delivery Drivers the benefit of personalized, face-to-face assistance with their insurance needs, which can be valuable for complex coverage questions. Examine the complete analysis in our Allstate auto insurance review.
• Localized Knowledge of Regulations: Allstate’s local agents are well-versed in state and local insurance regulations, offering Instacart drivers accurate guidance on required coverages and potential legal concerns in their specific delivery area.
• Proactive Policy Reviews: Allstate’s local agents often conduct regular policy reviews, helping Instacart delivery drivers stay informed about new discounts or coverage options that might better suit their evolving needs, particularly as their delivery business grows.

Cons

• Complex Policy Structure: Allstate’s policies and discount structures can be complex, potentially making it challenging for Instacart Delivery Drivers to fully understand their coverage and maximize savings.
• Potential for Upselling: With a strong local agent network, Instacart Delivery Drivers may face more pressure to purchase additional coverage or products they may not necessarily need for their delivery work.

#8 – Progressive: Best for Competitive Rates

Pros

• Competitive Rates Focus: Ranked as best for competitive rates, Progressive may offer Instacart Delivery Drivers various opportunities to save on their auto insurance through discounts and pricing strategies. Read the full breakdown in our Progressive auto insurance review.
• Telematics-Based Pricing: Progressive leverages telematics data to offer Instacart drivers more personalized and potentially lower rates based on their delivery driving patterns, ensuring they only pay for the coverage they need.
• Customizable Deductibles: Progressive offers the flexibility to adjust deductibles, enabling Instacart drivers to tailor their insurance costs to better match their delivery income, further enhancing affordability.

Cons

• Potential for Rate Fluctuations: Instacart Delivery Drivers should be aware that Progressive’s initially competitive rates may change more frequently than other insurers, potentially leading to unexpected increases.
• Potential for Inadequate Coverage: The focus on competitive rates and the Name Your Price tool may lead some Instacart Delivery Drivers to choose policies with insufficient coverage for their delivery work needs.

#9 – Farmers: Best for Safe Drivers

Pros

• Focus on Safe Drivers: Ranked as best for safe drivers, Farmers may offer Instacart Delivery Drivers with clean records additional benefits or savings opportunities beyond the standard safe driver discount. Check the details in our  Farmers auto insurance review analysis.
• No Claim Discount: Instacart drivers who maintain a claims-free record with Farmers over time may be eligible for additional discounts, enhancing savings for those who consistently drive safely during deliveries.
• Multiple Safety Course Discounts: Farmers offers discounts for completing defensive driving and other safety courses, allowing Instacart drivers to lower their premiums by demonstrating ongoing commitment to safe driving practices.

Cons

• Higher Premiums for Urban Areas: Farmers tends to charge higher premiums in densely populated urban areas where many Instacart drivers operate, potentially increasing overall costs for city-based delivery drivers.
• Limited Mobile App Functionality: Instacart drivers who rely on mobile tools may find Farmers’ app lacking in features compared to competitors, potentially complicating policy management and claims filing on the go.

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#10 – Liberty Mutual: Best for 24/7 Support

Pros:

• 24/7 Claims Support for Night Deliveries: Instacart Delivery Drivers working late shifts might appreciate Liberty Mutual’s round-the-clock claims assistance, ensuring help is available even during odd hours. Browse through our in-depth Liberty Mutual auto insurance review for more details.
• Coverage for Varying Delivery Volumes: Liberty Mutual may offer flexible policies that Instacart Delivery Drivers can adjust based on their fluctuating delivery workloads, from occasional to full-time.
• Accident Forgiveness Incidents: Instacart Delivery Drivers might benefit from Liberty Mutual’s potential accident forgiveness program specifically tailored for delivery-related mishaps.

Cons:

• Newer Delivery Drivers Premiums: Liberty Mutual might charge more for Instacart Delivery Drivers with less experience, potentially making it costly for those new to the gig.
• Coverage for Delivery in Extreme Weather: Instacart Delivery Drivers working in areas prone to severe weather might find gaps in Liberty Mutual’s coverage during challenging conditions.

Understanding Commercial Insurance for Instacart Drivers

Commercial auto insurance provides coverage for individuals who utilize their personal vehicles for work purposes. If you are employed part-time with Instacart and are using your own car rather than a company vehicle, you have the option to enhance your insurance policy with a business use add-on, which could result in cost savings.

You might be asking yourself, “Do I need commercial insurance for Instacart?” Well, Instacart doesn’t specifically ask for commercial coverage on your personal policy, but it’s a good idea to check with your car insurance company about what you should have as a delivery driver.

Commercial auto insurance can cost much more than a personal policy, so ensure you need the coverage before buying it. Also, let your insurance company know if you have any questions about your current coverage and get quotes to compare options.

Comparing Insurance Coverage Rates for Instacart Drivers

Picking the right auto insurance as an Instacart delivery driver can really affect how much money you keep in your pocket. To make things easier for you, we’ve put together a comparison of monthly rates for basic and full coverage from top insurance companies.

Instacart Delivery Driver Auto Insurance Monthly Rates by Provider & Coverage Level

Whether you’re looking for something affordable or a more comprehensive plan, check out which company gives you the best coverage for your needs and driving style. The details above help you make a smart choice and ensure your deliveries go off without a hitch.

Adding coverage to your liability insurance will cost you more in premiums. But when the accident happens, that extra protection could mean everything. While incorporating additional coverages into your liability insurance may result in elevated auto insurance premiums, this enhanced protection can prove to be vital in the event of an accident.

Is commercial insurance necessary for Instacart? While Instacart mandates proof of insurance, commercial coverage is only required if your personal insurance policy does not extend to include delivery services, as assessed by your insurance provider.

As an Instacart driver, your automobile insurance premiums are affected by a variety of factors, including your age, gender, marital status, the make and model of your vehicle, credit score, driving history, the types of coverage you select, and your ZIP code. For more information on how these factors impact your rates, see our guide on auto insurance for different types of drivers.

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Affordable Car Insurance Options for Instacart Drivers

If you drive for Instacart, you need insurance. A liability policy that meets your state’s needs will suffice. But it’s wise to have more coverage. Better to be safe. You can buy a full coverage policy that covers both comprehensive and collision auto insurance.

But do you need commercial insurance for Instacart? That depends on your insurance company. If they don’t cover business use of your car, you’ll have to get a commercial or rideshare auto insurance policy.

Instacart Insurance for Drivers: Consider Getting Extra Coverage

One of the most common questions we get is, “Do I need any special insurance for Instacart besides liability?” Well, Instacart doesn’t require you to have extra coverage like full coverage. But if you’re driving for work often, especially for deliveries, it might be a good idea to look into getting some extra auto insurance for your car to make sure you’re fully protected.

Getting full coverage car insurance, which combines collision and comprehensive insurance with liability, is a popular way to enhance your policy.

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It keeps you and your car safe in case of an accident or if something happens to your vehicle while it’s parked. Collision car insurance kicks in when you get into an accident. It helps cover the costs to fix your car, while liability coverage is just for damage you cause to others and their vehicles. Comprehensive insurance is different from collision coverage because it protects your car from things that aren’t accidents.

Does auto insurance cover vandalism? If your car gets vandalized, stolen, damaged by a flood, or has a broken windshield, comprehensive insurance coverage has you covered. Full coverage has your back while you’re driving, but your insurance might have some rules about using your car for work. If your personal policy doesn’t cover that, think about getting commercial auto insurance.

If you’re an Instacart delivery driver, scoring the right auto insurance can be a breeze with some discounts. Explore these companies and the deals they offer to help you save on your premiums.

Check out these discounts to save some cash on your insurance and still get the coverage you need. Just compare the offers to find the best fit for you.

Instacart Auto Insurance: Requirements for Driving and Insurance

Instacart does not offer insurance for its drivers, which sets it apart from other delivery services that do provide auto insurance. You might be curious, “Is car insurance necessary for Instacart?” The answer is yes; Instacart drivers must have car insurance.

All couriers working for Instacart need to maintain liability auto insurance that complies with their state’s regulations. Many top auto insurance providers mandate that their drivers have rideshare insurance. Here is a summary of the extra driving requirements for Instacart.

To become an Instacart driver, you need to meet the following criteria: be at least 18 years old, be eligible to work in the U.S., have a vehicle and a smartphone, and be capable of lifting 50 pounds. The requirements are not very strict; the primary condition is having consistent access to a car, along with the age requirement of being 18 or older.

Yes, Instacart requires you to provide proof of insurance before you can start delivering for them. As Instacart does not offer insurance, it is your responsibility to select a suitable auto insurance policy that fulfills your requirements.

Read More: How to Get Instant Proof of Your Auto Insurance Policy Online

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State-Specific Insurance Requirements for Instacart Drivers

So, do you need insurance for Instacart? Instacart’s rules about the required car insurance coverage are vague, and for a good reason. Each state has laws regarding auto insurance coverage, and each company has exclusions regarding the business use of a personal vehicle.

To get coverage meeting state car insurance requirements, you need to know how much you’re required to carry based on where you live. The table below shows each state’s coverage requirements:

Liability Auto Insurance Coverage Requirements by State

Most states require bodily injury liability insurance and property damage insurance, but some require additional coverage for personal injury protection insurance, medical payments coverage, and uninsured or underinsured drivers.

Even with all the coverages above, you only have minimal coverage in the event of an accident because liability only pays for injuries or damages you cause to other people or their vehicles. You’ll need more Instacart car insurance coverage to ensure adequate protection when driving.

Explore your auto insurance options by entering your ZIP code into our free comparison tool below today.

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