The Best Rideshare Insurance Companies
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If you have a vehicle, signing up to drive for a rideshare service can boost your income while allowing you to maintain a flexible schedule. But before picking up passengers, you must ensure you have the necessary insurance coverage for your car.
Not all insurance companies offer rideshare insurance, and the ones that do vary in quality. Luckily, we’ve compiled a list of the best rideshare insurance companies on the market.
- As a rideshare driver, you’ll need to find a policy that offers appropriate coverage whether or not you have a passenger in the vehicle.
- Some insurance companies offer rideshare-friendly policies.
- Shopping for the best rideshare-friendly policy can help you save on your premium.
The Best Car Insurance Companies that Offer Rideshare Insurance Policies
When rideshare driving first hit the scene, few car insurance companies offered combined personal and rideshare coverage policies. As rideshare driving becomes a popular side hustle or full-time income, more insurers offer policies that suit your needs.
If you are looking for a rideshare insurance policy, here’s a look at some of the best companies that can offer protection.
State Farm Insurance
As one of the largest auto insurance companies in the nation, it’s not surprising that State Farm offers most drivers a rideshare insurance option. The extensive resources of this company give it a high level of financial stability.
In terms of customer satisfaction, the J.D. Power 2022 Auto Insurance Study found it ranked above average in most regions. However, the company shined in the Southwest region, scoring the top spot for customer satisfaction.
Typically, securing this type of coverage will add between 15% and 20% to your State Farm insurance premiums. The exact coverage details and costs will vary based on your state. But most drivers should find the coverage they need through State Farm. You can utilize your personal policy’s full coverage even when your rideshare app is on.
Progressive offers drivers in most states a rideshare endorsement option. With that, you would have the coverage you need when driving on personal time and when you’re on the clock.
Progressive didn’t earn top marks for customer satisfaction in the J.D. Power U.S. Auto Insurance Study. However, it scored close to average in most regions. Considering the company has also earned 3.8 out of 5 stars with over 1,800 ratings on Consumer Affairs, expect a reasonably good experience.
Regarding its financial strength, Progressive earned an A+ rating from A.M., a good indicator of longevity.
When you secure Progressive insurance, you’ll have a deductible reimbursement option. That can be a big deal for your wallet after an accident while on the clock. For example, if the policy you have through your rideshare company is $1,000, but your Progressive policy has a $500 deductible, Progressive would pay you $500 to cover the difference.
Mercury is a car insurance company that offers policies in 11 states. These states include Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas, and Virginia. Rideshare drivers in these states can add rideshare insurance to their personal auto policy.
It’s worth noting that Mercury scored on the lower end for customer stratification in the J.D. Power U.S. Auto Insurance study. However, the reports of relatively affordable premiums might make up for the potential delays in the claims filing process.
Allstate offers a Ride for Hire insurance plan.
Its coverage is helpful for rideshare drivers because the policy includes deductible gap coverage. In other words, Allstate will cover the deductible from your Lyft or Uber insurance policy, so you don’t have to pay out-of-pocket.
How Much Does Rideshare Insurance Cost?
When an insurance company determines your premium costs, it considers many factors. Your location, driving record, and the vehicle will significantly impact how much you pay.
But in general, you can find relatively affordable rideshare insurance options. Some companies advertise rates as low as $6 per month. But in other cases, you might pay closer to 20% of your current premium to add on rideshare coverage.
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Do Uber and Lyft Offer Ridesharing Insurance?
You might assume that your rideshare company, like Uber or Lyft, will provide you with all the coverage you need. But this isn’t the case. Before signing into the app to pick up passengers, you want to ensure you know what coverage these companies offer.
First, Uber and Lyft offer liability coverage for injuries or damage you cause to others while transporting rideshare passengers or traveling to pick up a passenger.
With the liability coverage provided, the company may make payments on your behalf if you injure someone or cause property damage to others on the job.
The coverage breaks down into two parts: when the app is on and when the driver has accepted a passenger.
Here’s what’s covered when the rideshare app is on:
- Uber: $50,000 in bodily liability coverage per person, $100,000 in bodily injury per accident, $25,000 in property damage liability
- Lyft: $50,000 in bodily liability coverage per person, $100,000 in bodily injury per accident, $25,000 in property damage liability
Here’s what’s covered when you’ve accepted a passenger:
- Uber: $1,000,000 in third-party auto liability, uninsured/underinsured motorist bodily injury insurance, contingent comprehensive and collision insurance with a deductible of up to $2,500
- Lyft: At least $1,000,000 in third-party auto liability, possible uninsured/underinsured motorist bodily injury insurance, possible PIP, MedPay of Occupational Accident coverage, contingent comprehensive and collision insurance with a deductible of up to $2,500
The contingent comprehensive and collision insurance means that Uber or Lyft will cover up to the cash value of your vehicle if you maintain your own comprehensive and collision insurance. However, if you skip comprehensive and collision insurance on your personal policy, these companies won’t carry this level of insurance for your vehicle. Also, both companies have a $2,500 deductible for drivers tied to their comprehensive and collision policies.
Additionally, you can opt for additional coverage through a rideshare plan with your insurer for the time when you have passengers in the car. In this case, the rideshare company’s insurance policy will pay out a claim if the company’s insurance policy pays a share if your vehicle needs repairs after a mishap while transporting a passenger. However, you’ll need to pay a $2,500 deductible before receiving an insurance payout.
Importantly, this coverage only kicks in after you have accepted a request and have passengers in your vehicle.
Why Rideshare Drivers Must Purchase Insurance
Insurance coverage while ridesharing is very tricky. Having the app on and passengers in the vehicle impacts your insurance coverage in case of an accident.
|Your rideshare app is off||Your personal insurance policy is in effect|
|Your rideshare app is on, and you’re waiting for a passenger||Your personal rideshare coverage or commercial insurance policy is in effect|
|You accept a ride request and are heading to pick up the passenger, or the passenger is in your car||Your insurance coverage through Uber or Lyft kicks in.|
The only type your insurance through Uber or Lyft kicks in is when you’re actively heading to a passenger or with a passenger. That’s why you need rideshare insurance. Otherwise, you leave yourself open to financial liability if you’re involved in an accident or another event that damages your car.
Tips for Purchasing Rideshare Insurance from the Best Companies
As a rideshare driver, getting the best car insurance coverage is essential. Here are some strategies to ensure you find the right insurer for your needs.
Consider Your Coverage Needs
Before diving into the different companies, it’s essential to consider your coverage needs. As a rideshare driver, your coverage needs will differ from someone exclusively using their vehicle for personal use. In many cases, with the right insurer, you can add rideshare coverage to your existing insurance policy.
Determine Your Personal Use Insurance Coverage Needs
Start by determining how much car insurance you want for your personal use. At a minimum, you’ll need to get a policy that meets the minimum liability requirements set by your state. If you get in an accident, this liability coverage will help pay for the injuries and damages you cause to others.
However, many drivers purchase a full coverage policy, including comprehensive and collision coverage. If you have this more robust policy, the insurer will help you cover the costs to replace or repair your own vehicle after an incident on personal time.
Determine Your Rideshare Insurance Coverage Needs
Once you’ve determined the right amount of insurance for your personal driving time, it’s time to consider your rideshare coverage needs. The rules vary from state to state. But as a rideshare driver, there are many times when the rideshare company’s policy does not cover you. One example is when your app is on without an accepted ride request. Thus, you’ll need coverage for that in-between time; that’s a gray area between personal and rideshare use.
Additionally, you should look closely at the rideshare company’s insurance policy. If you’re facing a high deductible through that policy, you might want to pay for one that would cover the deductible.
For example, Allstate offers a ridesharing endorsement that might help cover the rideshare company’s insurance policy deductible.
Take a Look at Reviews
Not all insurance companies offer top-notch service. As a rideshare driver, you spend a lot of time behind the wheel. With all that time on the road, finding an insurance company that will be there when you need them is priceless.
Although it’s tempting to opt for the cheapest coverage option, take a minute to take a look at the reviews before signing on the dotted line. You don’t want to get stuck with an insurance company that’s slow to process claims or that offers an inconvenient claims filing process.
Of course, we all want to lock in the lowest rates. However, paying more for an insurance company with an excellent reputation can sometimes pay off in the long run. The Better Business Bureau and Trustpilot are helpful places to determine how well a company treats its policyholders.
Regarding car insurance, finding the best deal on the market can feel like finding a needle in a haystack. That’s especially true if you plan on shopping around by calling individual companies for quotes.
Luckily, you don’t have to spend all day seeking the best deal. Instead, you can compare quotes from several companies online. In minutes, you can track down which insurance company offers the lowest premiums for your unique situation.
At Compare.com, we make it easy to find low rates. Use our auto insurance comparison tool, and we’ll look at our 65+ carrier partners to find the most affordable options for you. The process is simple and takes about 5 minutes.
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FAQs About Rideshare Insurance Coverage
Are commercial and rideshare insurance the same thing?
Commercial and rideshare coverage are similar insurance products. Rideshare insurance is less comprehensive than commercial insurance. But as a driver, rideshare insurance should cover your needs. If you have the choice, rideshare coverage is generally more affordable than commercial insurance.
What does rideshare insurance cover?
The details of a rideshare insurance policy vary based on the same policy. In general, rideshare insurance offers protection that your personal and company-sponsored policies don’t.
Why do rideshare drivers need insurance?
Rideshare drivers need specialized insurance because they use their vehicles for commercial activity.
As a rideshare driver, coverage gaps exist between your personal and ridesharing company insurance policies. With that, getting the insurance you need to limit the potential financial fallout after an accident is critical.
Does personal car insurance cover ridesharing?
In general, personal car insurance doesn’t cover ridesharing. However, you can often purchase a ridesharing endorsement on your policy to get the coverage you need through your current insurance company.
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