Rideshare insurance offers protection during the gaps in employer-provided auto insurance coverage from rideshare companies like Uber, Lyft, Doordash, and UberEats—it’s essential, and often required, for rideshare drivers.
What is rideshare insurance?
Rideshare insurance coverage protects rideshare drivers and their vehicles during times their company-provided insurance might not.
Most states mandate Transportation Network Companies (TNCs) to offer limited commercial insurance coverage for drivers using their personal vehicle for the TNC’s business.1 This means you’ll be covered during the times you’re en route to pick up a customer or when you have a passenger in your vehicle.
However, during times when you’re technically working, but not driving—like, when you’re waiting to match with a rider—the TNC’s coverage is limited. Since personal policies don’t cover your car for business use, you need a rideshare endorsement to help fill this coverage gap.
Do you need rideshare insurance?
Yes, you need rideshare insurance if you drive for a company like Lyft, Uber, Uber Eats, or Grubhub.
Since personal auto policies expressly prohibit using your personal vehicle for business purposes, most insurers require you to purchase rideshare coverage to maintain your current policy while driving for a TNC. This is true whether it’s a full-time job or just a side hustle.
How much does rideshare insurance cost?
Depending on your location, your provider, and the type of coverage you choose, rideshare insurance could cost anywhere from $9 to $30 per month, or around $108 to $360 per year.
In most cases, you’ll purchase rideshare insurance from your existing insurance provider. To add this type of coverage to an existing policy, contact your local insurance agent and ask about your options.
Rideshare insurance doesn’t always come cheap, but it’s well worth it in the event of an accident. If you’re worried about the cost of this new addition to your insurance bill, use Jerry to be sure you’re getting the best rates on your base insurance policy. Jerry allows you to compare car insurance quotes in a matter of minutes so you can be sure that you’re getting the best deal.
The best auto insurance companies for rideshare insurance
Here are some of the most popular rideshare insurance providers:
| Insurance provider | Average cost of rideshare insurance | States that aren’t covered |
|---|---|---|
| GEICO | 15 to 20% of your current premium | AK, GA, HI, KY, MI, NC, NJ, NY, TX, and UT |
| State Farm | 15 to 20% of your current premium | AK, HI, IL, MA, NY, RI, SD |
| Allstate | $15 to $20 per year | FL, MI, NY |
| Progressive | $130 per year | AL, AR, AZ, CO, CT, DC, FL, GA, IA, ID, IL, IN, KY, LA, MA, ME, MI, MN, MO, MS, ND, NE, NM, OH, OK, PA, RI, SD, TN, TX, UT, VA, WA, WI, WV, WY |
GEICO’s rideshare insurance
Geico’s rideshare insurance works in tandem with your personal car insurance policy. One of the benefits of GEICO’s rideshare package is that it doesn’t include mileage restrictions, great for those who make a living driving for a rideshare app.2
State Farm’s rideshare insurance
State Farm offers an add-on policy option to existing policyholders. It’s also available in most states, making it one of the farther-reaching rideshare auto insurance policies.3
Allstate’s Ride-for-Hire package
At Allstate, rideshare insurance comes in the form of the Ride-for-Hire package. This is a great option for people concerned about the $2,500 deductible charged by Uber and Lyft, as Allstate’s program covers that deductible gap.4
Progressive’s rideshare insurance
The rideshare package from Progressive offers customizable coverage for rideshare drivers, making it a great option for delivery drivers with very specific coverage needs. However, Progressive’s rideshare program is only available in a limited number of states.5
How does insurance work for Uber and Lyft drivers?
Companies like Uber and Lyft require drivers to carry a personal car insurance policy in addition to the company-provided insurance that covers you once you sign up. When the app is off, you’ll be covered by your own insurance. When you’re driving on a job or waiting for a ride, you’ll be partially covered by company-provided liability insurance.
While you’re waiting for a ride request
In most states, both Uber and Lyft offer the same liability car insurance coverage while the app is on and you’re waiting for a ride request:
- $50,000/person for bodily injury
- $100,000/accident for bodily injury
- $25,000/accident for property damage
Bodily injury liability (BIL) insurance is responsible for treatments for anybody you injured while driving, including their medical expenses and funeral expenses, while property damage liability insurance covers repairs or replacements to any property damaged by your driving, including vehicles, buildings, and signs.
However, neither of these types of coverage will protect you or your vehicle in the event of an at-fault accident. After an at-fault accident during this stage, you’ll be fully responsible for covering your personal medical and property damage expenses and any other bills or damages that surpass the company coverage limits.
While you’re transporting a rider
Auto insurance coverage for Uber and Lyft drivers changes drastically once a rider gets into the vehicle. Both companies offer at least $1,000,000 of third-party third-party auto liability coverage. Depending on state laws, Uber and Lyft may also provide their drivers with other protections, such as personal injury protection (PIP), uninsured motorist/underinsured motorist (UM/UIM) coverage, or even medical payments (MedPay) insurance.
Uber and Lyft drivers may also receive contingent comprehensive coverage insurance and collision coverage insurance during their trips. This coverage will only apply if the driver has full coverage on their personal policy, so not everyone will have this kind of coverage from Uber and Lyft.
Coverage for this policy will be up to the actual cash value (ACV) of the driver’s vehicle, and the driver will be responsible for the deductible of $2,500 in the event of an accident.
How does delivery insurance work?
For delivery drivers, rideshare insurance can fill some of the scary gaps in coverage when working for a delivery service like DoorDash, GrubHub, UberEats, or GoPuff.
What to do if you’re in an accident while driving for an app
If you get into an accident involving a rideshare, you’ll need to follow these steps to file a claim.
- Call the police as soon as the accident occurs. You’ll need a police report to file your claim. Have your information ready when the police arrive, including any relevant Rideshare company certificate, a copy of the Rideshare company rules, and proof of your personal insurance.
- Exchange information with the other driver, including your legal name, contact info, and insurance information.
- Contact your personal insurance company. Even if the accident will be fully covered by your employer’s insurance, it’s important to tell your provider about your accident.
- Contact the rideshare company. If company coverage applies, this is where you’ll get more information about moving your claims process forward.
When driving for companies like Uber and Lyft, you’ll be fully covered by the company policy up to $1 million for medical expenses and property damages you cause. This coverage only applies to Period 2 and Period 3 while the app is on and you are working.
When you make your claim, you will also be subject to a deductible that is likely to be upwards of $2500, and you will not be covered if you are hit by an uninsured driver. If you are in Period 0 or 1 when you get into your accident, you’ll need to file a claim with your own insurance company.
FAQ
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What happens if you get into an accident while driving for an app?
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Should you tell your car insurance about a rideshare job?
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Is rideshare insurance required?
Sources
- https://content.naic.org/consumer/sharing-economy.htm ↩︎
- https://www.geico.com/knowledge/vehicle-types/ ↩︎
- https://www.statefarm.com/insurance/auto/coverage-options/rideshare-coverage ↩︎
- https://www.allstate.com/auto-insurance/ride-for-hire ↩︎
- https://www.progressive.com/auto/insurance-coverages/rideshare/ ↩︎
Liz Jenson is an insurance writer who specializes in general automotive and insurance topics. Liz’s mission is to produce informative and useful content to help car owners make smart choices when buying cars and car insurance. Since joining Jerry in 2021, Liz has written nearly 4,000 long- and short-form articles on topics including state-specific insurance recommendations, common car insurance questions, and deep dives into vehicle model details. Before they came to Jerry, Liz was a full-time student at Indiana University, Bloomington working on a double major in English and French.
Sarah Gray is an insurance writer with nearly a decade of experience in publishing and writing. Sarah specializes in writing articles that educate car owners and buyers on the full scope of car ownership—from shopping for and buying a new car to scrapping one that’s breathed its last and everything in between. Sarah has authored over 1,500 articles for Jerry on topics ranging from first-time buyer programs to how to get a salvage title for a totaled car. Prior to joining Jerry, Sarah was a full-time professor of English literature and composition with multiple academic writing publications.
