Rideshare Insurance Options for Uber and Lyft Drivers

The rideshare industry has become a popular way for anyone with a car to generate additional income or create a freestanding career. In fact, full-time drivers made around $36,525 on average in 2018.

[Read: How to Make Money Driving for Uber]

While the extra cash alone is enticing for many, it’s important to consider all the factors before diving into a career with Uber or Lyft. These rideshare companies provide drivers with insurance coverage, but many drivers don’t realize that they aren’t fully covered from the time they get in their car to the time they hang up the keys.

Rideshare insurance, typically purchased as an add-on to a personal auto policy, can help to protect drivers from potential gaps in coverage. However, rideshare insurance bridges these gaps in coverage and keeps drivers protected even before they begin their first trip.

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    In this article

      The 6 best rideshare insurers of 2020

      • Best for Cheap Rideshare Insurance: Geico
      • Best for Industry Experience: Farmers
      • Best for Military Members: USAA
      • Best for Reliable Coverage: State Farm
      • Best for Add-on Coverage Erie
      • Best Customer Service: Allstate

      The best rideshare insurance companies at a glance

      Insurance CompanyAverage Cost of Rideshare InsuranceJ.D. PowerSimpleScore
      Geico$12.50/month3/54/5
      Farmers$150/month3/54.2/5
      USAA$6/month5/54.6/5
      State Farm15%–20% added to premium3/54.4/5
      Erie$9–$15/month3/54/5
      Allstate$15–$20/month3/54.2/4

      *These rates were collected from company websites and may vary based on location and coverage

      Best for cheap rideshare insurance – Geico

      Geico is a great choice for affordable rideshare insurance, and the gecko or caveman will tell you it’s pretty easy to sign up.

      J.D. Power Rating
      3/5
      AM Best Rating
      A++
      Standard & Poor’s
      AA+
      SimpleScore
      4.2 / 5.0
      close
      SimpleScore GEICO 4.2
      Discounts 4
      Coverage Options 4
      Customer Satisfaction 4
      Support 4
      Accessibility 5

      Geico’s rideshare insurance is perfect for Uber and Lyft drivers that are looking for an affordable premium. The company offers coverage in almost every state, so there’s a good chance that Geico rideshare insurance is available in your area. Geico’s website has lots of helpful information about rideshare insurance, including what it covers, what it costs and how you can file a claim.

      Best for industry experience – Farmers

      If you’re already an auto insurance customer with Farmers, adding a rideshare endorsement can give you the added protection and coverage you need while you’re working.

      J.D. Power Rating
      2/5
      AM Best Rating
      A
      Standard & Poor’s
      A
      SimpleScore
      4.2 / 5.0
      close
      SimpleScore Farmers 4.2
      Discounts 4
      Coverage Options 5
      Customer Satisfaction 3
      Support 4
      Accessibility 5

      Farmers is one of the original providers of rideshare insurance, so the company’s expertise is top-notch.
      Farmers rideshare insurance is more limited because the company only sells coverage in 29 states. But if you live in an area where Farmers is available, it’s a good option. Although rideshare insurance is fairly new, Farmers was one of the first companies to offer it. It also provides commercial insurance to Uber in some states.

      Best for military members – USAA

      If you’re an active or retired military member, you can’t beat a rideshare insurance policy from USAA.

      J.D. Power Rating
      5/5
      AM Best Rating
      A++
      Standard & Poor’s
      AA+
      SimpleScore
      4.6 / 5.0
      close
      SimpleScore USAA 4.6
      Discounts 3
      Coverage Options 5
      Customer Satisfaction 5
      Support 5
      Accessibility 5

      USAA is widely considered to be the best insurance company across the board. It offers great auto insurance policies, including a rideshare endorsement. However, the one downside is that USAA only insures military members and their immediate family members. But if you qualify for a policy through USAA, it’s definitely your best option.

      Best for reliable coverage – State Farm

      With State Farm rideshare insurance, you can drive with peace of mind knowing that you have the best coverage for the worst case scenario.

      J.D. Power Rating
      3/5
      AM Best Rating
      A++
      Standard & Poor’s
      AA
      SimpleScore
      4.4 / 5.0
      close
      SimpleScore State Farm 4.4
      Affordability 4
      Coverage Options 5
      Customer Satisfaction 3
      Support 5
      Accessibility 5

      State Farm is the largest auto insurance provider, and the company gets great reviews from customers. With a rideshare insurance policy, you get medical, emergency roadside assistance and rental car reimbursement coverage while you’re driving for Uber or Lyft. Additionally, if your personal car insurance deductible is lower than your rideshare insurance deductible, State Farm will allow you to pay the lesser cost.

      Best for add-on coverage – Erie

      If you have an Erie auto insurance policy, you can customize your policy with a variety of add-ons, including rideshare coverage.

      J.D. Power Rating
      2/5
      AM Best Rating
      A+
      Standard & Poor’s
      AA
      SimpleScore
      4.2 / 5.0
      close
      SimpleScore Erie 4.2
      Discounts 3
      Coverage Options 5
      Customer Satisfaction 4
      Support 5
      Accessibility 4

      If you’re looking for a car insurance company that offers rideshare coverage, consider Erie. The company sells a rideshare endorsement, plus a variety of add-on policies, like new and better car protection and rental car reimbursement. Erie customers can add a “business use” designation on their policy, which offers extra protection while you’re driving for Uber or Lyft. Erie’s rideshare coverage isn’t available everywhere, so we recommend speaking to an agent to see if you qualify for coverage in your state.

      Best for customer service – Allstate

      Choose Allstate rideshare insurance if you care about all-around good customer service and easy claims handling.

      J.D. Power Rating
      5/5
      AM Best Rating
      A+
      Standard & Poor’s
      AA-
      SimpleScore
      4.2 / 5.0
      close
      SimpleScore Allstate 4.2
      Discounts 3
      Coverage Options 5
      Customer Satisfaction 3
      Support 5
      Accessibility 5

      Depending on where you live, Allstate offers a Ride for Hire insurance policy, or a TNC endorsement for existing customers. The company is known for offering good customer service, with an A+ rating from BBB and a 3-star rating from J.D. Power. If you have questions about your rideshare insurance or need help filing a claim, you’re covered.

      What is rideshare insurance and why do I need it?

      Rideshare insurance is a type of insurance coverage, typically purchased in addition to a personal auto policy. When driving for a rideshare company like Uber or Lyft, drivers may be left uninsured during particular times of their drive.

      Rideshare companies divide the duration of a ride into three phases or periods:

      • Period 0: The app is off and the driver is not logged in. A personal auto policy covers the driver.
      • Period 1: The app is on and the driver is waiting for a request. Uber and Lyft offer limited liability coverage. Personal auto policy without rideshare insurance does not cover the driver. During this period, the driver may be without full coverage.
      • Period 2: The driver has accepted a request from a passenger and is en route to pickup. Uber insurance and Lyft insurance provide full coverage.
      • Period 3: The driver transports passengers from pickup to drop-off. Uber insurance and Lyft insurance provide full coverage.

      [Read more: How Much Car Insurance Do I Need?]

      Uber and Lyft provide coverage for certain periods, but do not provide full coverage for the entire duration of the drive. As a result, a gap in coverage during Period 1 could leave drivers vulnerable. Additionally, a personal auto policy does not provide the necessary coverage to protect drivers in these coverage gaps.

      Rideshare insurance purchased as an add-on to a personal auto policy offers the protection drivers need during gaps in coverage, particularly during Period 1. While Period 1 may be brief, a collision during this window could be costly to an uninsured driver.

      While rideshare insurance covers the gap when drivers may be unprotected, there are other benefits to purchasing a rideshare insurance policy. Drivers may be able to write these expenses off when filing their taxes, recover the cost of any property damaged in an accident, and enjoy additional benefits provided by the company offering rideshare insurance like roadside assistance, safe-driving discounts, and insurance bundles.

      [Read: Your Assets and the Sharing Economy: The Ultimate Guide ]

      Rideshare insurance provider availability

      Allstate rideshare insurance availability

      *Allstate rideshare insurance not available in Michigan and Florida.

      Erie Insurance rideshare availability

      *Erie rideshare insurance only available in Ohio, Illinois, Indiana, Kentucky, Tennessee, West Virginia, Virginia, Pennsylvania, District of Columbia and Maryland.

      Farmers rideshare insurance availability

      *Farmers rideshare insurance not available in Alaska, Florida, Louisiana, Wyoming, Wisconsin, Oklahoma, Missouri, Kentucky, South Carolina, North Carolina, West Virginia, Delaware, New York, Massachusetts, Connecticut, Vermont, Hawaii and Maine

      Geico rideshare insurance availability

      *Geico rideshare insurance not available in Alaska, Hawaii, Texas, Utah, North Dakota, Georgia, Kentucky, Michigan, North Carolina, New York and New Jersey

      Progressive rideshare insurance availability

      *Progressive rideshare insurance not available in Alaska, Hawaii, California, South Dakota, Illinois, North Carolina, New York and Massachusetts.

      State Farm rideshare insurance availability

      *State Farm rideshare insurance not available in Alaska, Hawaii, South Dakota, Illinois, North Carolina, New York, Rhode Island and Massachusetts

      Travelers rideshare insurance availability


      *Travelers rideshare insurance only available in Colorado and Illinois

      USAA rideshare insurance availability


      *USAA rideshare insurance not available in Alaska, Hawaii, Florida, Montana, New Mexico, South Dakota, Wisconsin, Michigan, Louisiana, Florida, South Carolina, North Carolina, Virginia, Pennsylvania, New York, Connecticut and Rhode Island.

      What if my area doesn’t have rideshare insurance?

      Insurance for Uber drivers (or those driving for similar rideshare companies) may not be available in every state through a current personal auto policy provider, but it’s still possible to get additional coverage. Consider switching to a provider that offers a rideshare policy add-on, or go commercial. Commercial insurance provides protection for any vehicle used for business, including a car driven for Uber or Lyft.

      [Read: Ridesharing Privacy and Auto Insurance]

      While commercial auto insurance offers coverage to drivers without access to rideshare insurance, the cost of insurance may be significantly higher. According to TrustedChoice, the average commercial policy for a passenger car is $1,200 to $2,400 annually.

      How to purchase rideshare insurance

      Rideshare insurance is not a stand-alone policy. It is either an addition to an existing personal auto policy or a hybrid policy. Because it must be purchased as an add-on, rideshare insurance must come from the company providing personal auto coverage.

      Before applying for rideshare insurance, collect this information:

      • Make, model and year of the vehicle
      • Rideshare you work for (if applicable)
      • Average number of monthly rideshare drives (if applicable)
      • Average number of miles driven per trip (if applicable)
      • Copy of valid driver’s license
      • Copy of vehicle registration
      • Copy of vehicle title
      • Policy number for current personal auto policy

      Most major insurance companies offer a version of rideshare insurance, though coverage may not be available in every state.

      Approach the company providing personal auto insurance coverage to learn more about their rideshare insurance options.

      6 steps to get rideshare ready

      If you’re interested in driving for a rideshare company, here are some tips for getting started:

      1. Make sure you meet driver’s requirements: Most rideshare insurance companies require drivers to be at least 21 years old, have one to three years of driving experience, have a clean driving record, show vehicle registration and proof of insurance.
      2. Make sure your car meets requirements: Your car must pass inspection, have four working doors,no cosmetic damage, five working seat belts, and be within the vehicle make and model age range.
      3. Collect necessary documents: This include a copy of your driver’s license, vehicle registration, and proof of insurance.
      4. Submit your application
      5. Get your vehicle inspected
      6. Wait for application acceptance: Most drivers are approved within one week of submitting their application.

      What happens if I’m in an accident while driving for Uber or Lyft?

      During Period 2 and 3 (from the time the driver matches with a passenger until the driver drops the passenger off), coverage offered by Uber insurance and Lyft insurance varies depending on the scenario:

      • For rideshare drivers who cause an accident, both Uber and Lyft provide coverage up to $1 million in total damages.
      • For rideshare drivers who are in an accident caused by another driver with little or no insurance, insurance for Uber drivers covers damages and injuries up to $1 million. Lyft insurance coverage varies by state.

      [Read: Coronavirus and Rideshare Insurance: Everything You Need to Know]

      It is also possible to draw on comprehensive and collision coverage from Uber and Lyft insurance as long as the personal auto policy includes the same coverage. However, the deductible may be high and the policy only applies once a ride request has been accepted or when there are passengers in the car.

      During Period 1 (when a driver is waiting for a ride request), a personal auto policy is most likely responsible for coverage. For rideshare drivers who cause an accident during this period, a claim should be filed with their personal auto insurance company unless state law or the rideshare company’s policy states otherwise. If the personal claim is denied or only partially reimbursed, the rideshare company’s coverage begins. However, coverage from the company in this scenario is limited and may not cover drivers fully.

      In the event of an accident while driving for Lyft

      Lyft insurance covers rideshare drivers in Periods 2 and 3 of the drive. During Period 1, drivers could be at risk of limited or no coverage if they do not have a personal rideshare insurance policy.

      While Period 1 may leave rideshare drivers at risk of uninsured damages, a separate rideshare insurance policy gives drivers the protection they need.

      In the event of an accident while driving for Uber

      Insurance for Uber drivers offers slightly more coverage than Lyft, though drivers are still at risk during certain periods of the drive.

      For those considering a career or side job (ride-hustle) as a rideshare driver, having full coverage through an insurance policy is key to avoiding costly damages in the event of an accident. While rideshare companies like Uber and Lyft offer their own insurance, these policies do not fully cover a driver at all times.

      A separate rideshare insurance policy added to a personal auto insurance policy provides the protection drivers need, from the time they log onto the rideshare app to the time they drop off their final passengers.

      Methodology

      SimpleScore

      The SimpleScore is a proprietary scoring metric we use to objectively compare products and services at The Simple Dollar.

      For every review, our editorial team:

      • Identifies five measurable aspects to compare across each brand
      • Determines the rating criteria for each aspect score
      • Averages the five aspect scores to produce a single SimpleScore

      Here’s a breakdown of the five aspect scores and their rating criteria for our review of the best personal lines of credit of 2020.

      Why do some brands have different SimpleScores on different pages?

      To ensure the SimpleScore is as helpful and accurate as possible, we developed unique criteria for every category we compare at The Simple Dollar. Since most brands offer a variety of financial solutions, their products and services will score differently depending on what we’re scoring on a given page.

      It’s possible that one brand will have different SimpleScores across our site. For example, when we compare PNC Bank’s personal loans under the SimpleScore methodology, it scores a 4 out of 5. However, when we apply the personal line of credit methodology to PNC’s line of credit offering, it scores a 3.4 out of 5. We use unique metrics and measuring systems for each category to include industry standards.

      Questions about our methodology?

      Email Hayley Armstrong at hayley@thesimpledollar.com.

      Rates

      We review the rates for each personal line of credit and the brands with lower rates score higher.

      Limit

      Credit limits are the maximum amount people can draw from their lines of credit. We rewarded brands that offer higher limit amount with better SimpleScores in this aspect.

      Draw period

      How long can you use the line of credit? If it’s a shorter term, like a year, the brand scores lower. The SimpleScore rewards brands that allow customers to draw for extended periods of time.

      Fees

      The SimpleScore rewards brands that impose fewer fees on customers using a personal line of credit. The fewer the fees, the higher the score.

      Minimum initial draw

      Some lines of credit require a minimum amount to be drawn from the line initially. This methodology rewards brands that impose no minimum draw amount or lower amounts in general.

      Elizabeth Rivelli

      Contributing Writer

      Elizabeth is a contributor to The Simple Dollar, where she reviews insurance providers and policies. She has more than three years of experience writing for top online insurance and finance publications, including Bankrate, Coverage.com and Reviews.com.

      Reviewed by

      • Courtney Mihocik
        Courtney Mihocik

        Courtney Mihocik is an editor at The Simple Dollar who specializes in insurance, personal finance, and loans. Previously, she wrote and edited for Interest.com, PersonalLoans.org, Ballantyne Magazine, Thread Magazine, The Post, ACRN, The New Political, Columbus Alive and the Institute for International Journalism.