Shipt Car Insurance: How Does it Work?

Posted on May 24, 2021 in Insurance

Over the past year, delivery services have become commonplace. Many people prefer ordering food, groceries, and other goods online in order to have them delivered to their door. Driving for these delivery services can be a great side hustle to make money and work on your own schedule. Shipt is a popular household essentials and grocery delivery service that is consistently hiring drivers in most areas. Anyone that wants to drive for Shipt must meet a handful of requirements, including having and showing proof of car insurance. Here’s what you need to know about Shipt car insurance if you’re considering driving for this delivery service company:

Shipt Shopper Car Insurance

As a shopper for Shipt, you are required to have car insurance but there is no specific type of car insurance that you need to have. However, you do need to pay attention to the minimum requirements of your state and make sure that you have the coverage required.

The FTC also requires that people who use their vehicles for business purposes, including delivering goods, need to have commercial car insurance on top of their regular state-required insurance. This is because people who use their cars for their business are on the road more often, putting them at higher risk for accidents and driving infractions.

Obtaining commercial car insurance tends to greatly raise insurance rates, yet the higher cost is better than the consequences of not having the right coverage. Not only that, if you don’t inform your insurance company that you are using your car for work, they could end up kicking you off their policy.

Shipt Auto Insurance Rates and Requirements

There is no specific auto insurance coverage rate when you drive with Shipt. Your costs will depend on your state’s requirements and your unique circumstances. Although it will likely raise your rates, you will also want to make sure and obtain commercial auto insurance.

Take a look at the average auto insurance rates for an adult male, comparing personal and commercial insurance:

  • Average monthly rate for personal insurance for an adult male: $105.83
  • Average monthly rate for food delivery personal/business insurance for an adult male: $296.83
  • Average monthly rate for food delivery business insurance for an adult male: $273.08
  • Average monthly rate for catering personal/business insurance for an adult male: $235.08
  • Average monthly rate for catering business insurance for an adult male: $216.92
  • Average monthly rate for food truck personal/business insurance for an adult male: $235.08
  • Average monthly rate for food truck business insurance for an adult male: $216.92

The rate discrepancy between insurance for only commercial purposes and insurance for the combined use of commercial and personal is minimal. Whatever you choose, make sure you buy commercial insurance when you drive for Shipt.

Car Insurance Policy for Shipt Drivers

As a driver in your state, you should already have personal car insurance. Each state has its own minimum requirements for drivers, which typically includes coverage liability of around $20,000 per person in case of injury and $15,000 in case of property damage. Delivery service such as Shipt have rapidly grown in popularity and necessity, making it essential for drivers to have the appropriate coverage.

Shipt requires that drivers have auto insurance. While no specific amount of coverage is required, drivers should obtain commercial insurance that meets the requirements in their state.

FAQs About Shipt Auto Insurance

Does Shipt Affect Car Insurance?

When you drive for Shipt, you need to add commercial coverage to your insurance policy. While the change does not affect your personal coverage, it will provide additional coverage at a higher price.

Do You Need Special Insurance for Shipt?

While there is no specific Shipt car insurance, you will need to obtain commercial insurance to work as a Shipt driver.

Does Shipt Increase Car Insurance?

Yes. When you drive for Shipt, you need to add commercial coverage to your insurance policy. Commercial coverage costs more than just personal coverage, adding an additional cost to your policy.

Does Shipt Provide Benefits?

As a company, Shipt offers health benefits to their employees. However, this does not include drivers.

Does Shipt Require Car Insurance?

Yes, Shipt drivers must have care insurance in order to work as a delivery driver.

Does Shipt Verify Car Insurance?

Yes, Shipt will need to verify your auto coverage before you can work as a driver. Keep in mind that in order to have your application accepted by Shipt, you will need to have coverage before applying. If Shipt cannot verify your coverage, they will not accept your application.

Do Shipt Employees Get Insurance?

Shipt does not provide car insurance for their drivers. It is up to each driver to obtain their own commercial and personal auto insurance.

What Kind of Car Insurance Do You Need for Shipt?

While there are no specific coverage requirements to drive Shipt, you will need to at least have the minimum coverage for your state. You will also need to obtain commercial insurance to work as a driver. If you get in an accident while driving for Shipt and you do not have commercial car insurance, your insurance will not cover the accident. Save yourself the expense and hassle by getting commercial insurance when you drive Shipt.

  • Will my rate go up when I submit insurance information to Shipt?

No, your auto rate will not go up after you submit your information to Shipt.

  • How do I submit my car insurance information to Shipt?

When you are ready to submit your car insurance information to Shipt, use the application on the Shipt website. It is a fast and convenient way to submit your Shipt car insurance information.

Get Shipt Vehicle Insurance Today!

If you’re ready to get commercial auto insurance in order to drive for Shipt, you’ll want to look for an affordable policy that meets your needs.

To save money on costs, find an insurance company that allows you to bundle your personal and commercial insurance costs. You will also want to make sure and obtain all coverage that you think you’ll need, to ensure you’re not left without coverage when you need it.

Before settling on an insurance company, compare car insurance quotes online from several places, or speak with insurance agents to make sure you’re getting the best coverage at the best price. Not sure if your getting a good a price for Shipt car insurance? See our guide on how to get a discount on your car insurance.

Related blog posts

Need expert financial advice?

Let TurboFinance connect you with the best consulting services and resources to help you take control of your finances and find a path to build wealth.

TAKE CONTROL OF YOUR DEBT