Driveaway services have become a booming industry—whether you’re transporting cars for dealerships, relocating vehicles for clients, or delivering fleet units across states. But with long-distance driving, high-value vehicles, and unpredictable road conditions, one thing becomes essential: driveaway insurance.
This guide explains everything about driveaway insurance—what it is, how it works, who needs it, and how to get the best coverage at an affordable price. Let’s dive in.
Understanding Driveaway Insurance
What Is Driveaway Insurance?
Driveaway insurance is a type of auto transport coverage that protects drivers and companies when they deliver someone else’s vehicle from one location to another. Since the transported vehicles don’t belong to the driver, normal personal auto insurance does not apply.
It covers:
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Damage to the vehicle being transported
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Liability for accidents
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Injuries and property damage
In short, it acts as a safety net during vehicle delivery operations.
How Driveaway Insurance Works
When you’re assigned a driveaway job, you’re responsible for the vehicle the moment you pick it up. If something happens—accident, theft, vandalism—you’re financially liable unless you have coverage.
Driveaway insurance:
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Activates during transportation
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Protects drivers and the vehicle owner
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Ends once the vehicle is delivered
Who Needs Driveaway Insurance?
Driveaway insurance is essential for:
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Independent driveaway contractors
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Car haulers
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Auto dealership transport drivers
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Companies delivering fleet vehicles
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Auction vehicle movers
If you’re transporting a car that isn’t yours, you need this insurance.
Types of Driveaway Insurance Coverage
Liability Coverage
This covers damage you cause to others while driving the client’s vehicle.
Bodily Injury Liability
Covers injuries to other drivers or pedestrians in an accident.
Property Damage Liability
Covers damage to other vehicles, buildings, or road structures.
Physical Damage Coverage
Protects the vehicle you’re delivering.
Collision Coverage
Covers collision-related damage—regardless of fault.
Comprehensive Coverage
Covers:
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Theft
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Fire
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Vandalism
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Natural disasters
Cargo & Vehicle Protection
Covers damage to extra items that come with the transported vehicle.
Non-Owned Auto Coverage
Protects you when you drive a vehicle you don’t own—perfect for driveaway contractors.
Why Driveaway Insurance Is Important
Protection Against Accidents
Accidents happen—even to great drivers. This coverage saves you from financial ruin.
Prevents Costly Out-of-Pocket Expenses
Repairing high-value vehicles can cost thousands. Insurance cushions the blow.
Required for Commercial Contracts
Most dealerships and transport companies won’t hire drivers without driveaway insurance.
Who Requires Driveaway Insurance?
Independent Contractors
They must carry their own coverage to get consistent work.
Auto Dealership Transporters
Dealerships transport new and used vehicles daily—coverage is essential.
Fleet Delivery Drivers
Companies moving multiple vehicles need commercial coverage.
Professional Car Haulers
Anyone delivering cars across states must have proper protection.
Key Benefits of Driveaway Insurance
Financial Protection
You avoid heavy repair or liability costs.
Legal Compliance
Many states and employers mandate driveaway coverage.
Peace of Mind
Drive stress-free knowing you’re protected.
How Much Does Driveaway Insurance Cost?
Factors Affecting Cost
Premiums vary depending on:
Driver’s Age & Experience
Experienced drivers pay less.
Type of Vehicles Transported
Luxury and exotic vehicles increase costs.
Distance Traveled
Longer routes = higher premiums.
Coverage Limits
More coverage equals higher costs.
Average Monthly and Annual Premiums
On average:
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$150–$350/month for individual contractors
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$2,000–$5,000/year for commercial businesses
Tips to Save Money on Driveaway Insurance
Maintain a Clean Driving History
No tickets or accidents = lower premiums.
Increase Your Deductible
Higher deductibles reduce monthly payments.
Bundle Policies
Transport companies can combine multiple coverages to save.
Work With Specialized Transport Insurers
Niche insurers offer better rates for driveaway services.
How to Choose the Best Driveaway Insurance Company
What to Look For in Insurers
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Good claim settlement history
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Customizable plans
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Affordable rates
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Coverage for long-distance transport
Questions to Ask Before Buying
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What’s the maximum coverage limit?
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Are there restrictions on vehicle types?
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Does it cover theft and vandalism?
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Is roadside assistance included?
Red Flags to Avoid
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Extremely cheap policies
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Low coverage limits
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Poor customer reviews
Step-by-Step: How to Get Driveaway Insurance
1. Gather Required Information
Such as:
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Driving license
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Experience details
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Job requirements
2. Compare Quotes
Use online tools or contact insurers directly.
3. Customize Your Coverage
Choose the right liability and physical damage options.
4. Finalize the Policy
Read the contract, sign, and start driving confidently.
Common Mistakes to Avoid
Ignoring Physical Damage Coverage
Without it, you may pay thousands out-of-pocket.
Choosing the Cheapest Policy
Cheap often means little protection.
Not Reading the Contract Carefully
Hidden clauses can affect claims.
Conclusion
Driveaway insurance is a must-have for anyone transporting vehicles professionally. It protects your financial security, gives you peace of mind, and ensures you meet commercial requirements. Whether you’re a contractor or a transport company, investing in strong coverage is the smartest decision you can make.
FAQs
1. Is driveaway insurance required by law?
Not everywhere, but most employers and dealerships require it.
2. Does personal auto insurance cover driveaway jobs?
No, personal insurance doesn’t apply when driving vehicles you don’t own.
3. How much coverage do I need?
At least $1 million liability is recommended for commercial contracts.
4. Can new drivers get driveaway insurance?
Yes, but premiums may be higher.
5. Is theft covered under driveaway insurance?
Only if you have comprehensive coverage. must read the previous post : Towing Company Insurance