If you’re like most people, you use ridesharing services like Lyft or Uber to get around town. And while doing so, you probably don’t think about insurance.
But what happens if you’re in an accident while riding in a rideshare car? Do you have rideshare insurance coverage? And if not, what will happen to your finances?
While ridesharing is a great way to get around, it can also be expensive, especially if the right insurance does not cover you.
So, today, we’re going to take a look at what rideshare auto coverage is, why it’s so important, and check out the best rideshare auto coverage companies. Stay tuned.
What Is Rideshare Insurance?
Suppose you’re thinking of taking part in the ridesharing industry and driving for a rideshare company like Lyft or Uber. In that case, you might be wondering if you need to purchase additional insurance.
Even though Uber and Lyft offer their drivers insurance of up to $1 million, rideshare auto coverage is designed to fill the coverage gaps that can occur when you’re using your personal vehicle for commercial purposes.
In most cases, your personal auto insurance policy will exclude any damages while you’re working for a rideshare company. Then again, rideshare auto coverage can provide the coverage you need to protect yourself financially in the event of an accident.
Do I Need Rideshare Insurance?
If you’re thinking about becoming a rideshare driver, you might be wondering whether you need to get additional insurance. The answer is maybe.
In fact, it depends on what kind of insurance your personal auto policy has and if your rideshare company offers insurance. Namely, if you have enough coverage under your personal auto policy, you may not need to get additional insurance.
But if you lack coverage or your rideshare company doesn’t offer insurance, you may want to consider getting rideshare auto coverage.
Top Rideshare Insurance Companies
Many companies offer rideshare auto coverage policies. As per our expert opinion, here are the top five companies offering rideshare auto coverage:
- GEICO
- Farmers
- Mercury
- Progressive
- Allstate
Check with your insurer to see if they offer a rideshare auto coverage policy, or shop around for a policy that meets your needs. Make sure you’re adequately covered before you hit the road.
GEICO Rideshare Insurance
If you’re a GEICO customer and drive for any rideshare service, you’ll need to convert your personal policy to a rideshare policy to be covered by the same insurance.
What you will like is that a rideshare policy from GEICO covers you whether you’re off or on the job, doesn’t restrict your mileage, and covers delivery service shifts.
Moreover, you can get this coverage for as low as $6 per month. The only disadvantage of this rideshare car insurance is that it’s not available in every state.
If you’re an Uber or Lyft driver, you know there are three different periods of operation:
- the app is on and you’re waiting for a customer (period 1)
- you’re en route to pick up a customer (period 2)
- customers are in your car (period 3)
We are glad to inform you that GEICO’s rideshare auto coverage has you covered no matter which period you’re in.
Pros:
- covers you on and off the job
- covers all three Uber/Lyft periods
- doesn’t restrict your mileage
Cons:
- not available in every state
Farmers Rideshare Insurance
Our team found that Farmers is one of the top-rated insurance companies regarding claim satisfaction. In fact, in J.D. Power’s 2020 U.S. Auto Claim Satisfaction Study, the company ranked above average for overall claim satisfaction.
Furthermore, we like that you can file a claim by calling an agent or via the mobile app. You can also follow the status of your existing claim from your computer or phone.
All in all, if you’re a rideshare driver, Farmers has you covered. The company offers rideshare auto coverage to most gig economy drivers, such as:
- Lyft
- Uber
- Amazon Flex
- DoorDash
- Grubhub
- other delivery services
On the downside, Farmers rideshare insurance is available in only 36 states.
Pros:
- above-average rating for overall claim satisfaction
- coverage for most drivers in the gig economy
- tracking your existing claim status from your phone
Cons:
- available only in 36 states
Mercury Rideshare Auto Coverage
We highly recommend Mercury, as it offers excellent coverage for Uber and Lyft drivers. In fact, you’re covered for everything from driving one passenger to multiple passengers through Uber Pool.
Also, we can assure you that this rideshare auto insurance is very affordable. In other words, coverage starts at just $0.90 per day.
In general, we believe that the company offers simple, straightforward coverage that can protect you in the event of an accident.
However, one downside we’d like to mention is that Mercury rideshare auto coverage is not available in all states.
Currently, apart from the company offering rideshare insurance in California, it also offers it in:
- Nebraska
- Oklahoma
- Arizona
- New Mexico
- Arkansas
- Nevada
While we were a little disappointed that Mercury doesn’t support online or mobile claims, we assure you that filing a claim is still easy to do over the phone. Once you’ve filed a claim, you can keep track of its status through your customer account.
Pros:
- excellent for Uber drivers
- very affordable
- online info about what the policy covers
Cons:
- no online or mobile claims
Progressive Rideshare Coverage
You will like that, with Progressive’s rideshare auto coverage, any endorsements you’ve added to your personal policy, like rental car reimbursement or roadside assistance, apply when you drive for a TNC like Lyft or Uber.
To add the rideshare endorsement, you must have Progressive’s existing auto insurance policy. Also, when reviewing the company, we found that you get full coverage during trips.
In addition, our team was delighted with the cost, which is somewhere around $6 a month, making it a cheap rideshare insurance option for those who want to be covered without spending a lot of money.
In order to get a quote, you will need to contact an agent directly. So, drive with peace of mind knowing you’re fully covered with Progressive.
Pros:
- keeping the same add-on coverages you have
- full coverage during trips
- a wide coverage area
Cons:
- can’t buy a policy online
Allstate Rideshare Insurance
If you’re an Uber or Lyft driver, you know that your personal auto insurance policy likely doesn’t cover you for rideshare driving. So, that’s where Allstate’s Ride for Hire insurance comes in.
Our team found that Ride for Hire is a policy specifically designed to cover rideshare drivers, and it can help fill in the gaps that your TNC insurance may leave behind.
Moreover, we were thrilled that this Lyft/Uber rideshare insurance is available for only $20 a year. Also, remember that the policy has several great benefits, including expense gap coverage and deductible gap coverage.
If you need to file a claim, Allstate has great claim handling:
- online
- through the company’s mobile app
- over the phone
So, if you’re looking for rideshare auto coverage, be sure to check out Allstate.
Pros:
- great claim handling
- deductible gap coverage
- expense gap coverage
Cons:
- unavailable in New York
Rideshare Car Insurance Cost Per State
Generally, these insurance costs vary depending on the state you’re driving in and the provider. Therefore, let’s find out more about this:
| Insurance Company | States where rideshare policy exists | Cost |
GEICO | GEICO offers this policy in Connecticut, Georgia, Illinois, Louisiana, Oregon, Nebraska, New Mexico, District of Columbia, Ohio, Maryland, Oklahoma, Pennsylvania, Texas, South Carolina, Virginia, and West Virginia. | a minimum of $6 per month |
Farmers | Farmers offers rideshare insurance in Texas, Arizona, Ohio, California, Utah, Colorado, Illinois, Kansas, Alaska, Minnesota, Oklahoma, Nebraska, Nevada, New Mexico, Tennessee, and Wisconsin. | N/A |
Mercury | Mercury provides a rideshare policy in Nebraska, California, Oklahoma, Arizona, New Mexico, Arkansas, and Nevada. | $0.90 per day |
Allstate | Allstate provides rideshare auto coverage in Washington, Michigan, New Jersey, Wyoming, Alabama, New York, Oregon, Minnesota, Wisconsin, Utah, New Mexico, Idaho, Illinois, Nevada, and Montana. | $20 per year |
Progressive | Progressive offers rideshare insurance in Florida, Tennessee, Iowa, Washington, Pennsylvania, Alabama, Missouri, Ohio, New Mexico, Colorado, Mississippi, Utah, Texas, District of Columbia, West Virginia, South Dakota, Nebraska, Idaho, Illinois, Rhode Island, Arkansas, Maine, Michigan, Arizona, Wyoming, Connecticut, North Dakota, Wisconsin, Kentucky, Louisiana, Virginia, Massachusetts, Oklahoma, Georgia, Minnesota, and Indiana. | around $6 a month |
As we can see, Progressive has the most expansive coverage area. Thus, when it comes to the rideshare auto coverage companies available in your state, Progressive is likely to be the best option.
However, it is always best to compare rates and coverage options from all the above companies to ensure you get the best possible deal.
Best Rideshare Insurance—Key Results
We hope this article has helped you better understand what rideshare auto coverage is, how much it costs, and which companies offer it in your area.
While the cost of rideshare auto coverage policies varies depending on the company and state, it is a necessary expense for anyone who uses their vehicle for ridesharing. Considering that 40% of Lyft rides start or end in low-income areas which sometimes have high crime rates, it is recomended to have aditional insurance.
Now it’s time for you to decide which insurance company is best for you. Be sure to shop around and compare rates before choosing one. And remember, whether you’re a rideshare driver or passenger, always be safe and buckle up.
FAQ
Does Uber affect your car insurance?
Yes, driving for Uber can affect your car insurance rates. This is because you are driving more often and are more likely to file a claim, at least in the eyes of insurers. As a result, your car insurance premiums may increase.
In addition, you may need coverage for rideshare, which is a type of insurance that covers you while you are chauffeuring passengers around. This may cover situations that your regular car insurance does not.
Do I need to tell my insurance company that I drive for Uber Eats?
If you’re driving for Uber Eats, you will need to inform your insurance company so that they can provide you with the appropriate coverage.
So, depending on your policy, you may need to purchase additional insurance or adjust your existing coverage. However, be sure to speak with your agent to determine what is best for you.
As a general rule, it’s always best to disclose any and all relevant information to your insurance company. This way, you can be sure that you’re fully covered in the event of an accident or other incident.
Will USAA cancel my insurance if I drive for Uber?
No, USAA will not cancel your insurance if you drive for Uber. In fact, you can add their ridesharing gap coverage onto your personal auto policy. This will cover the gap between your personal policy and the rideshare app’s coverage.
So, if you’re already insured with USAA, there’s no need to worry about losing your coverage if you start driving for Uber.
What is the purpose of rideshare insurance?
Generally speaking, rideshare auto coverage is a type of insurance coverage that helps protect drivers who use their personal vehicles to provide ridesharing services.
Moreover, this coverage can help fill in the gaps between the driver’s personal auto insurance and the coverage provided by the rideshare company.
Rideshare insurance can help cover expenses related to accidents, vehicle damage, and injuries that occur while a driver is providing ridesharing services.
