Rideshare Auto Insurance (2024)
Rideshare auto insurance is cheap, only raising rates around 15%. Many delivery companies require specialized insurance for rideshare vehicles, so shopping around for quotes is vital. Below, you can compare rideshare auto insurance coverage types and find an affordable rideshare insurance policy in your area.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
UPDATED: Oct 13, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Oct 13, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Insurance companies don’t allow your personal policy to cover you during your work hours, so you need rideshare coverage
- Most rideshare companies provide free coverage to their drivers, but coverage is limited, and deductibles are often high
- Rideshare auto insurance fills insurance gaps, giving your car protection, but coverage can be difficult to find
Rideshare auto insurance is vital when driving for a rideshare company, such as Uber or Lyft. Rideshare companies usually offer free insurance, but it leaves gaps that could end with you paying the bill after an accident. With rideshare auto insurance, your personal liability auto insurance, comprehensive coverage, and collision auto insurance extends to your work.
The good news is that you can find affordable rideshare insurance rates with a bit of searching. Read on to learn more about rideshare driver insurance and where to find specialized insurance for rideshare vehicles. Then, enter your ZIP code above to compare rideshare insurance quotes from the top companies.
Understanding Rideshare Auto Insurance
When you buy insurance for your car, it’s considered a personal policy — the company only agrees to cover you when you use your vehicle for personal reasons. It doesn’t cover you when you use your car for business purposes.
In fact, if you try to file a claim with your personal insurance when you were actually working, your claim will likely get denied — you might also be dropped as a customer. So, that’s why rideshare auto insurance is important. The best car insurance for Lyft and Uber drivers covers you whether you drive for work or personal reasons.
Insurance companies require rideshare auto insurance coverage when working for a rideshare company because of the higher risk. Professional driving is one of the most dangerous jobs in America because of the increased time on the road, so your personal policy won’t cover your work hours.
When driving for companies like Lyft or Uber, you’ll get a bit of insurance for free. However, this provided coverage only covers you when you have a passenger and might not cover your car at all. Rideshare auto insurance coverage is valuable because it makes sure you’re always covered.
Unfortunately, rideshare insurance isn’t available in every state. A commercial auto insurance policy is the next best thing if you can’t buy rideshare coverage.
Rideshare Auto Insurance Coverages
Although every company is different, rideshare insurance typically extends a driver’s personal policy to their working hours.
So, if you have collision and comprehensive auto insurance on your personal policy, it extends to your working hours. Since collision insurance pays for repairs after a car accident, and comprehensive handles almost everything else, having it for your work could save you thousands.
The insurance provided by Uber and Lyft is little more than liability auto insurance, which protects the companies from getting sued by your passengers if something happens. If you add rideshare insurance to your policy, your car will have much better protection.
Difference Between Rideshare and Commercial Auto Insurance
Rideshare auto insurance isn’t usually a separate, standalone policy. Instead, it’s either an add-on or an endorsement for your personal policy.
Commercial auto insurance is a separate policy that usually covers vehicles exclusively used for business purposes. Since most rideshare drivers use their personal car for working, you’d need to buy two policies if you’re interested in commercial auto.
Commercial auto insurance offers valuable protection for working vehicles, but it’s more expensive than a simple rideshare add-on. If you have a choice, choosing specialized insurance for rideshare vehicles is your best bet.
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The Best Rideshare Auto Insurance Companies
Although rideshare services are popular, not every insurance company offers rideshare vehicle coverage. If you’re interested in rideshare insurance, consider the following companies:
- Geico: Geico auto insurance for rideshare drivers is an excellent choice because the deductible can be as low as $250. Rather than offer an add-on, Geico has a hybrid policy that combines rideshare insurance with personal coverage.
- Progressive: While it’s only available in 34 states, Progressive auto insurance pays the difference between your deductible from your rideshare company, so you’re not stuck with it. The only downside is that Progressive rideshare insurance costs a little more than others.
- Travelers: Travelers auto insurance ranks as some of the best car insurance for Lyft drivers because it’s one of the most affordable options. However, it’s only available in Colorado and Illinois.
- Esurance: Like Progressive, Esurance covers your rideshare company deductible, so you have nothing to worry about.
- Mercury: Mercury auto insurance costs about $1 a day for rideshare insurance, but it’s only available in 11 states.
- Allstate: While offering solid rideshare insurance, Allstate auto insurance has some of the best auto insurance for rideshare drivers because they’ve partnered together to make a special policy.
- State Farm: For a 15% increase on your insurance bill, State Farm auto insurance makes it easy to drive for multiple companies at once.
While these are some of the best auto insurance companies for rideshare drivers, they’re not your only options. Comparing rideshare insurance quotes with as many companies as possible is the best way to find affordable coverage.
Rideshare Auto Insurance Cost
There is much variation in how companies offer coverage for rideshare drivers. Some offer a tidy bundle for a set amount, which can easily be added to a policy. Others create hybrid policies that include everything you need to drive.
Due to this difference, comparing rates is difficult. For example, buying a hybrid policy will likely cost between 15% and 20% more than what you would pay for a standard plan. To get an idea of what you might pay for rideshare insurance, check below:
Rideshare Auto Insurance Average Rates
| Insurance Company | Monthly Rates |
|---|---|
| Allstate | Under $2 per month |
| Erie | $9 to $15 per month |
| Farmers | $13 to $20 per month |
| Geico | $7 to $14 per month |
| Liberty Mutual | $12 to $19 per month |
| Mercury | $27 per month |
| Nationwide | $11 to $18 per month |
| Progressive | $8 to $15 per month |
| Safeco | $10 per month |
| State Farm | 15% - 20% of auto insurance policy |
| USAA | $6 per month |
However, if you’re wondering how to get an Uber driver auto insurance discount, you should ask your insurance company about its list of auto insurance discounts.
Is auto insurance eating up precious dollars in your budget?💰At https://t.co/27f1xf131D, we've got a full list of discounts available, so you can stop overpaying and start saving!🙌Find out what discounts you qualify for here👉: https://t.co/JEnTbtVlQv pic.twitter.com/XHkZyAdqwO
— AutoInsurance.org (@AutoInsurance) April 28, 2023
Another factor affecting the price of your rideshare insurance is how much coverage your personal policy has. A minimum auto insurance policy will cost much less than a full coverage policy because it has more coverage.
How to Get Rideshare Auto Insurance Coverage
If you want to buy rideshare insurance, you’ll need to do it with your current company. If that’s not an option, you can always compare rideshare insurance quotes and get an entirely new policy.
To get a rideshare policy, let your company know what your plans are. You’ll need to inform them always since you won’t be able to make a claim during work hours with your personal insurance, and a representative can help you pick the right coverage.
If rideshare is available at your company, the representative will help you sign up for a plan. If your current company doesn’t offer rideshare coverage, you’ll know it’s time to find new insurance.
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How Rideshare Auto Insurance From Uber or Lyft Works
There are four phases during your work hours as a rideshare driver, and understanding these is crucial to ensuring you have the right insurance.
- Phase 0: Off duty — App is off. Your personal policy covers you.
- Phase 1: Available — App is on, but you’re waiting for a customer. Your personal policy and company liability doesn’t cover you.
- Phase 2: En route — You’ve accepted a customer and are on your way. Your company insurance covers you.
- Phase 3: On Trip — The customer is in your car. The company insurance is in full effect.
As you can see, there is a gap in phase 1 when you’re waiting for your next customer. This crucial gap is protected through rideshare car insurance.
When you’re ready to buy, car insurance companies that cover ridesharing protect more than just the gap in phase 1. They also protect you when your company-provided liability runs out. Most importantly, it protects you if you need medical attention.
Find the Best Auto Insurance for Rideshare Drivers Today
No matter which company you drive for, rideshare insurance offers valuable protection for your car so you can keep running customers without having to worry. It’s easy to get cheap auto insurance if you need to add rideshare, but it’s not available in every state.
Now that you better understand rideshare insurance, your next step is to evaluate auto insurance quotes. Unless you already have a policy and want to add rideshare insurance, looking at multiple companies is the best way to find affordable coverage.
Frequently Asked Questions
What is rideshare auto insurance?
Rideshare insurance is a specialty add-on or hybrid policy that allows rideshare drivers to work without missing coverage. Compared to other add-ons, rideshare insurance can be difficult to find since availability is limited. However, coverage is generally cheap.
Do you need rideshare auto insurance?
Technically speaking, you probably don’t need rideshare insurance if you drive for a company that provides free coverage. However, rideshare insurance offers valuable protection during your working hours. Most companies that have rideshare insurance offer it at an affordable rate, so it’s usually worth buying.
How much does rideshare insurance cost?
The price of rideshare insurance varies by company. For example, State Farm says rates will increase by about 15%, while Allstate offers a flat rate of about $20 a year. The price you pay for rideshare insurance also depends on how much coverage you have in your personal policy.
How much is Progressive rideshare insurance?
Progressive rideshare auto insurance costs around $8 to $15 monthly. However, you should compare rideshare insurance quotes from the top companies to find your best deal.
Does your personal insurance cover rideshare jobs?
Unfortunately, your personal policy does not cover rideshare jobs. Insurance companies know that the more time you spend on the road, the more likely you’ll get into an accident. Due to this increased risk, insurance companies do not allow you to use your personal insurance to make a claim.
Will driving for rideshare companies affect your insurance rates?
They’re all different, but you might see a slight increase once your insurance company knows you’re driving for a rideshare company. Your rates might increase simply because you’re spending too much time on the road.
Is rideshare auto insurance required?
Since rideshare companies usually provide liability and occasionally uninsured motorist coverage to their drivers, you won’t legally be required to buy additional coverage.
However, getting it is still worth the price, especially since finding affordable rideshare insurance isn’t difficult. You’ll still need to meet your local insurance laws for your personal policy, even if you don’t buy rideshare coverage.
Is rideshare auto insurance more expensive than standard insurance?
Rideshare auto insurance isn’t more expensive than standard insurance, and you’ll usually only pay up to $20 more monthly for it.
Can I add rideshare auto insurance to my existing policy?
Yes, to buy rideshare auto insurance, you must have an existing auto insurance policy.
What are the pros of rideshare auto insurance?
- Ensures you are adequately covered during all stages of driving for a rideshare company, including when the app is on and you are waiting for a ride request.
- Provides additional liability coverage to supplement the limited coverage offered by rideshare companies during periods 2 and 3.
- Protects your personal auto insurance policy from potential coverage gaps or exclusions related to rideshare activities.
Are there any cons to consider when getting rideshare auto insurance?
- Rideshare auto insurance may come at an additional cost compared to personal auto insurance policies.
- Availability of rideshare auto insurance can vary by state and insurance provider, so it may require some research and comparison shopping to find the right policy.
- The specific coverage limits and details of rideshare auto insurance policies may differ between insurance companies, so it’s important to carefully review the terms and conditions to ensure you have the coverage you need.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.