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It is quite popular amongst youngsters to earn some pocket money easily by using available resources. For some, it might be the first step towards financial freedom. The problem starts if the ‘resource’ happens to be the family car insured by personal insurance. Delivering fast food is a common part-time job for some young adults who may use a personal car for this purpose. However, the effects of doing so on the car insurance may be serious. In Ontario, if you use a vehicle for fast food delivery you are required to purchase commercial insurance.

How Much Does Car Insurance Cost For Fast Food Delivery Driver

The onus of getting commercial insurance for the vehicle is on the delivery driver and not the employer. They may just inform the driver but not enforce to buy or check the type of insurance. Some established fast food companies have their own fleet of vehicles with liability coverage. This is to cover damages to the other vehicle in case of an accident. This coverage will protect their reputation when their delivery driver gets sued in a messy collision for driving without proper insurance.

Commercial auto insurance is more expensive than personal auto insurance. Again, it is calculated on the basis of the type of vehicle, the driver records, claims history etc. It is also recommended to have third party liability coverage of a minimum of $200,000 or more as lawsuits could be very costly. By comparing offers on quote finder, a one-stop store for multiple providers, you may be able to get a good deal on commercial insurance.

The Obligations Of Fast Food Employers Towards Delivery Drivers

As per law, the fast food employers have to register with WSIB or Workplace Safety and Insurance Board of Ontario that provides no-fault collective liability health insurance to delivery drivers. These employers have some obligations in covering their delivery drivers as follows.

  • They must register with the WSIB within ten days as an employer of the first worker.
  • They have to report and pay premiums to the WSIB on total gross earnings.
  • WSIB staff could access employee information that needs to be maintained by the employers.
  • Any work-related injuries to delivery drivers need to be reported.

However, WSIB may not provide any kind of auto insurance coverage to the drivers. 

Are Food Delivery Vehicles Covered By Personal Auto Insurance

Food delivery vehicles require commercial insurance as they are used for commercial purposes. Some insurance companies may add endorsements to the personal auto insurance to offer some coverage. However, this may not suffice and the motor regulations in Ontario may not stipulate such coverage. It is rather cumbersome to find an insurer who may provide personal auto insurance with commercial endorsements. Insurance companies are not obligated to provide commercial coverage under personal auto insurance.

The kilometers driven on a car increases drastically when used commercially. The likelihood of a collision is higher with more exposure on the roads. Most fast food delivery services have strict deadlines. This pressurizes the delivery driver to drive at insane speeds fostering unsafe driving habits. So, it comes as no surprise that accidents are quite common with fast food delivery drivers. Thus it becomes all the more significant that they carry the specified commercial coverage for the vehicle.

Insurance Issues of A Delivery Driver Using A Personal Vehicle

denied claim


The insurance company may deny a claim if they were not informed that the vehicle was being used for commercial purposes. The vehicle that was being used for fast food delivery has a status change from personal use to commercial use. It is very crucial to notify this to the insurance provider. Not doing so would be a violation of the agreement between the policyholder and the insurer. It is just not enough to put a plastic pizza company signage on the car roof and you go about delivering pizza all around the town.

So, when a claim is declined, the losses are borne by the driver and not the employer. One small accident is all it takes to let the insurance company know that you were using a family car for fast food delivery. If as a food delivery driver you do not carry the commercial coverage for your car, you may be considered as an offender under premeditated insurance fraud. This is due to the fact that you have not disclosed changes to conditions of use of your vehicle that is insured by only personal auto insurance [1].


About the Author: Robert Davis

He is an insurance content professional with vast knowledge and a special aptitude and interest in imparting insurance education. He has authored many articles on insurance.

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