Carrier vs. Carrier Comparisons
Do you currently or plan to drive for Uber, Lyft or another similar ridesharing company? If so, you need to make sure you have rideshare insurance.
If you don’t inform your car insurance company that you’re driving for a rideshare company, also known as a transportation network company (TNC), it has the power to drop you.
Rideshare insurance is there to protect you during the gap when your own car insurance policy and the rideshare company’s insurance won’t cover you. Read on to find out more about what rideshare insurance covers, who offers it, the cost and more.
What is rideshare insurance?
Rideshare insurance is a type of car insurance coverage that is available to people who drive for a ridesharing company, such as Uber or Lyft. It protects you in the event you’re in an accident while you’re driving for the rideshare app but you aren’t in the process of giving a ride or driving to a passenger.
You may be thinking, aren’t I always doing one of those two things while I’m working for the app? The answer is no. There’s a period of time when you turn on the app, and you’re in the car, but you haven’t found a passenger to pick up and deliver to their destination. This may be a relatively small period of time, but it’s critical you have coverage for it. If you don’t, you have an uninsured gap.
Rideshare insurance isn’t demanded by the company you work for, but your personal car insurance company may drop you if you’re driving for a rideshare company and you don’t have rideshare insurance.
How insurance covers the different periods of driving
Car insurance coverage as it relates to ridesharing can be complicated, but it’s helpful to understand how it applies to the different scenarios you may be driving in. There are essentially four different periods to consider — three that your rideshare drive is broken up into.
- Period 0: Your rideshare app is off while you’re in your car. Your personal insurance policy covers you. This is essentially any personal driving that you do.
- Period 1: You’re in your car and your rideshare app is on, but you have not accepted a ride yet. This is where rideshare insurance provides coverage; the company you drive for doesn’t offer collision coverage during this period. You’re responsible for paying your personal auto insurance and rideshare insurance deductible in the event of a collision claim during this period.
- Period 2: You accepted a ride request and you’re en route to pick up a passenger. The company you drive for covers you during this period.
- Period 3: You have passengers in your car and you’re driving to their destination. Your employer’s insurance policy is implemented and you will only have to pay the deductible in the event of a collision.
Which companies offer rideshare insurance?
|Company||Rating||States it is offered in|
|USAA*||4.74||AL, AR, AZ, CA, CO, GA, DC DE, IA, ID, IL, IN, KS, KY, MA, MD, ME, MN, MO, MS, ND, NE, NH, NJ, NV, OH, OK, OR, TN, TX, UT, VT, WA, WV, WY|
|Erie Insurance||4.29||DC, IL, IN, KY, MD, OH, PA, TN, VA, WI, WV|
|American Family||4.13||AZ, CO, GA, IN, KS, MO, ND, NE, Nv, OH, OR, SD, UT, WA, WI|
|Geico||4.11||AL, AR, AZ, CA, CO, CT, DC, DE, FL, IA, ID, IL, IN, KS, LA, MA, MD, ME, MN, MO, MS, MT, ND, NE, NH, NM, OH, OK, OR, PA, RI, SC, SD, TN, VA, VT, WA, WI, WV, WY|
|Safeco||4.10||AZ, CO, IL, IN, KS, MN, MS, OK, OR, TN, UT, WA, WI|
|State Farm||4.09||AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, IA, ID, IN, KS, KY, LA, MD, ME, MI, MN, MO, MS, MT, ND, NE, NH, NJ, NM, NV, OH, OK, OR, PA, SC, TN, TX, UT, VA, VT, WA, WI, WV, WY|
|Progressive||4.06||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|
|MetLife||4.03||CA, CO, IL, TX & WA|
|Allstate||4.01||AK, AL, AR, AZ, CA, CO, CT, DC, DE, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY|
|Farmers||3.98||AL, AR, AZ, CA, CO, GA, IA, ID, IL, IN, KS, MD, MI, MN, MO, MT, ND, NE, NJ, NM, NV, OH, OK, OR, PA, SD, TN, TX, UT, VA, WA, WI, WY|
|Mercury||3.75||AZ, CA, GA, IL, NV, OK, TX|
*USAA is only available to active and former military members and their families.
What if rideshare insurance isn’t offered by my car insurance company in my state?
Rideshare insurance isn’t offered from every insurance carrier or in every state. If your current auto insurance company doesn’t offer rideshare insurance, they may offer you a commercial insurance policy. Commercial insurance covers vehicles that are used for business purposes where you’re being paid to drive, this ranges from ice cream trucks to delivery vehicles.
However, keep in mind that commercial insurance is much more expensive when compared to rideshare insurance. You may want to look into switching auto insurance companies to a company that offers rideshare insurance to protect you at an affordable cost.
How much does rideshare insurance cost and how do I buy it?
Rideshare insurance is an affordable add on to your existing personal auto insurance policy. Rideshare insurance prices vary on many different factors, such as your coverage policy, the make, and model of your vehicle, your driving record, the area you live in and the company you select.
The average cost for rideshare insurance is typically around $15-$20 per month, but it varies by company and by driver. Rideshare insurance is usually either a hybrid policy or an add on to your personal auto policy, not stand-alone coverage.
|Company||Price on top of standard policy|
|Allstate||$15-20 per year|
|American Family||Not listed on website|
|Erie Insurance||$9-15 per month|
|Esurance||Not listed on website|
|Farmers||Not listed on website|
|Geico||$13 per month|
|Mercury||$0.20 per day|
|MetLife||Based on mileage|
|Progressive||Not listed on website|
|Safeco||$10 per month|
|State Farm||15 to 20 percent addition to personal policy|
|Travelers||Not listed on website|
|USAA*||$6 per month|
Pricing according to insurers' websites. Actual price will vary by customer and policy.
What to do if you’re involved in an accident while driving for Uber or Lyft?
If an accident happens while driving for Uber or Lyft, you should make sure all parties involved are okay, if you’re able to. The next step you should take is to call 911 and collect all contact and insurance information from all parties involved, including contact information from any witnesses.
You should contact the company you drive for and also your rideshare insurance provider to inform them about the situation and to file a claim.
As mentioned above, the period when the accident occurred will determine which company will cover the accident. If an accident happened during period one, you’d likely need to file a claim with your rideshare insurance provider.
If an accident were to happen during periods two or three, the company you work for will cover you. Uber and Lyft’s insurance policies will cover medical expenses and other damages caused up to $1 million, which is much higher than most drivers need. These companies have high deductibles for collision coverage, so if you drive for these companies, you should make sure you have enough set aside in the event you’re involved in an at-fault accident on the job.
Rideshare insurance helps ensure you have complete protection on the road while driving for Uber, Lyft or another rideshare company.
If your current car insurance provider doesn’t offer rideshare insurance you should consider switching companies or obtaining commercial insurance on top of your standard auto insurance since you are making a profit for driving passengers. Don’t risk your coverage — make sure you inform your personal auto insurer that you’re a rideshare driver. You wouldn’t want to have to pay the cost of an accident if Uber or Lyft doesn’t cover you in that period.
See which companies other drivers recommend on our rankings of the best car insurance companies. You can use the filters to see companies that provide rideshare insurance.
The content on this site is offered only as a public service to the web community and does not constitute solicitation or provision of legal advice. This site should not be used as a substitute for obtaining legal advice from an insurance company or an attorney licensed or authorized to practice in your jurisdiction. You should always consult a suitably qualified attorney regarding any specific legal problem or matter. The comments and opinions expressed on this site are of the individual author and may not reflect the opinions of the insurance company or any individual attorney.