What You Should Know
- The majority of major car insurance companies offer rideshare coverage
- Uber offers its drivers certain car insurance coverage when they are on the clock
- You may want to purchase gap coverage, a personal coverage extension, or a hybrid plan to ensure you're covered while driving for Uber
More and more people are driving for rideshare companies. Whether it's for a part-time job or a full-time profession, a lot of people drive for companies like Uber and Lyft.
If you drive for a rideshare company, you may be wondering if there are car insurance companies that cover Uber.
Rideshare insurance is a trendy option among car insurance companies. Many companies claim to be the best rideshare insurance company, offering the most flexible options with the lowest car insurance rates.
But finding the most affordable car insurance that covers Uber means comparing car insurance rates from a lot of car insurance companies at once instead of just trusting that one company will always be the cheapest.
As you compare car insurance quotes that cover Uber online, you'll narrow down the choices and find out how to get cheap car insurance as an Uber driver. We can help you do that.
Before you decide to buy car insurance that covers Uber from anyone, be sure to use our free tool above to compare rates and find exactly what you need.
Which insurance companies cover rideshare?
A lot of of car insurance companies now offer rideshare coverage to policyholders. Typically, larger insurance companies are better-known for covering individuals who drive for companies like Lyft and Uber.
Along with other insurance companies, some of the most popular options for car insurance coverage as an Uber driver include:
- State Farm rideshare insurance
- GEICO rideshare insurance
- Farmers rideshare insurance
- USAA rideshare insurance
- Mercury rideshare insurance
- Allstate rideshare insurance
- Progressive rideshare insurance
As an Uber driver, you may find that one of these companies works better than any of the others when it comes to car insurance for your job. But your best bet is to compare many car insurance companies that cover Uber at once to see for sure.
It's also important to remember that, while many car insurance companies offer coverage for rideshare services, there are still car insurance companies that don't cover Uber. So don't get discouraged if a few of the companies you're considering don't offer you coverage.
How does rideshare car insurance work?
Some rideshare services offer their drivers a measure of commercial protection when they are on the job.
For example, Uber and Lyft both provide their drivers with liability, uninsured/underinsured motorist, and comprehensive and collision coverage when they are on their way to pick up a passenger or when they're driving that passenger to the destination.
This type of coverage is extremely helpful and helps Uber drivers know they have support if they ever wind up in an accident.
But Uber, Lyft, and other rideshare companies have their limits when it comes to car insurance coverage.
While Uber offers a great deal of protection when drivers are headed to a passenger or on their way to the designated location, Uber only offers liability coverage for drivers who are on the clock but do not yet have any passengers.
Because of this low level of coverage, many car insurance companies offer Uber and Lyft drivers unique policies that will help them remain fully covered regardless of what stage of the process they are in.
Are there different types of rideshare car insurance policies?
If you drive for Uber, you have a few options with most car insurance companies when it comes to adequate coverage on the job.
Your first option is additional protection. An additional protection plan—typically considered a type of gap insurance—will account for much of what is not covered by your rideshare company while you are working.
Next, you can choose a personal insurance extension plan. You would purchase a plan like this with your existing car insurance provider and simply extend some of the coverages you already have to keep you safe and fully covered on the road during personal or business use of your vehicle.
Lastly, there are hybrid policies that take the place of your personal car insurance plan. Hybrid policies offer coverage that is rideshare-friendly but is also useful when you're not on the job.
What does my state require for rideshare insurance?
Depending on where you live, there may be different requirements when it comes to rideshare services.
For most states, you can legally drive for a rideshare company as long as you meet your state's requirements for car insurance coverage to drive in general.
Rideshare insurance in California, for example, simply requires that you carry personal car insurance that includes:
- $15,000 bodily injury coverage per person injured in an accident
- $30,000 of bodily injury coverage per accident
- $5,000 of property damage coverage per accident
Meeting these requirements may not help you find the best car insurance in California, and they will not help you if you're in an accident and need to pay for damage to your car or if your car is parked and someone runs into it.
Because state requirements are typically quite low, most people choose to purchase additional car insurance coverage to make sure they're taken care of.
Should I buy rideshare car insurance?
Depending on how much you drive for Uber, you may not need to buy additional car insurance, but it's never a bad idea to shop around and compare rates to see how much it would cost.
As you shop around online, be sure to compare multiple companies and pay attention to different coverage options and how much you would end up paying.
You can use our free tool below to compare car insurance rates that cover Uber and see how much you could save.