Best Rideshare Insurance

Don’t risk your personal policy if you’re driving for Uber or Lyft

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Driving for rideshare companies violates the terms and conditions of most personal auto policies, and insurers may cancel your policy if you don’t let them know. While Transportation Network Companies (TNCs) like Uber and Lyft provide some insurance for drivers, coverage is limited while you’re on the app waiting for a ride request, and may also leave some gaps even while you’re on the clock. 

When you’re driving for a rideshare company, your time fits into three coverage periods (sometimes called phases): 

  • Period 1: When you’re logged in to your app and waiting for a match with a rider. 
  • Period 2: When you’ve been matched with a rider and you’re on your way to pick them up.
  • Period 3: When you’re driving the rider to their destination

Later on (in the “TNC Coverage vs. Rideshare Insurance Coverage” section), we’ll go into more specifics on what exactly TNC coverage provides during all three periods. Rideshare insurance fills in gaps left by TNC coverage to give you more protection at all stages of the job. Here are our picks for the best rideshare insurance companies for different needs, as well as what you need to know about rideshare insurance. 

In this article, we’ve focused on rideshare coverage you buy as an endorsement on your personal policy, which is generally more affordable than a commercial car insurance policy and may be a better fit if you’re only driving a couple of hours or days each week. If rideshare driving is your full-time focus, you may be interested in more comprehensive coverage (see “Are There Different Types of Rideshare Insurance?” below for more information).

Best Rideshare Insurance 2021

Best Overall : State Farm


State Farm

State Farm’s Rideshare Driver Coverage endorsement bolsters personal auto insurance policies by extending your coverage to TNC exposure periods 1 through 3, including damage to your car, medical payments, emergency roadside assistance, and rental car reimbursement. State Farms also pays the difference between your deductible and the TNC’s deductible.

Type of insurance offered: Personal auto policy endorsement

Estimated cost: About 15%–20% of your current premium

Insurer reputation: State Farm ranked average or better in many of J.D. Power’s surveys of customer satisfaction, but didn’t take home any top prizes.

What We Like
  • Extends your personal auto coverage and add-ons to ridesharing

  • Allows you to pay whichever deductible is lower (yours or the TNC’s)

  • Deals directly with you for accident claims, not through the ridesharing company

What We Don't Like
  • Could be expensive, but you’ll need to get a quote to know for sure

Best for Affordability : Allstate


Allstate

Allstate is an excellent choice if you’re happy with your TNC’s driver-partner insurance and only want to fill insurance gaps while you’re waiting for a ride request. It’s also a great choice if you think you’ll need help paying your TNC’s deductible (up to $2,500). At about $20 per year, it’s supremely affordable and adds a missing layer of protection to your personal auto policy. 

Type of insurance offered: Personal auto policy endorsement

Estimated cost: $15 to $20 per year

Insurer reputation: Allstate gets an A+ rating for its financial strength from AM Best , so you can be sure of its ability to pay out claims. Allstate was also selected as one of Fortune’s World’s Most Admired Companies for 2020, based on criteria such as social responsibility, innovation and financial soundness. 

Allstate scored seventh place on J.D. Power’s U.S. Insurance Digital Experience Study for its quality customer service in 2021. It took first place in J.D. Power’s 2020 U.S. Auto Insurance Satisfaction Study for the Florida region for its superior service, offerings, and price; scored about average in most other regions; and was ranked below average in New England, the Mid-Atlantic, and the Northwest.

What We Like
  • Easy to add to personal car insurance

  • Lowers out-of-pocket costs through deductible gap coverage for periods 2–3

  • Partners with Lyft

What We Don't Like
  • Only covers you fully during period 1

Best for Multi-Platform Drivers : Progressive


Progressive

If you work on ridesharing apps like Uber and Lyft, but also on food-delivery apps like DoorDash, your Progressive rideshare endorsement covers you for both. Coverage applies when you’re logged in and waiting for passengers (period 1) or while driving on a delivery service platform. As soon as you accept a ride request, you’re covered by your TNC’s policy instead. Progressive’s rideshare insurance also reimburses you for the difference between your personal auto deductible and your TNC’s. 

Type of insurance offered: Personal auto policy endorsement

Estimated cost: Varies; we recommend getting a quote based on your information and driving history

Insurer reputation: Progressive’s customer satisfaction scores are generally average to below average on various J.D. Power Studies, including those relating to claims. And based on AM Best’s A+ rating, Progressive is a financially strong company with a superior ability to pay out claims.

What We Like
  • Deductible gap coverage for periods 2–3

  • Policies include roadside assistance and rental car reimbursement

  • Partners with Lyft

What We Don't Like
  • Only covers you fully during period 1

Best for Military Members : USAA


USAA

USAA’s average rideshare insurance cost ($6 per month) is exceptionally affordable for drivers. However, USAA rideshare insurance only provides coverage while you’re waiting for a ride request (period 1).

You can only buy USAA coverage if you qualify to be a USAA member as a current or former member of the military, or the spouse or child of one. 

Type of insurance offered: Personal auto policy endorsement

Estimated cost: About $6 a month

Insurer reputation: If USAA’s membership restriction didn’t keep it from officially ranking against other insurers, it would take the top spot in nearly all the J.D. Power consumer satisfaction studies in which it appears. USAA also has the highest financial strength rating (A++) from AM Best as of October 2021.

What We Like
  • Affordable rideshare coverage

  • Auto policyholders qualify for USAA membership perks like annual distributions

  • Excellent customer satisfaction rankings

What We Don't Like
  • Only available to eligible members

  • Requires you to create an account and qualify for membership just to get a quote

  • Only covers you fully during period 1

Best Included Policy Extras : Erie Insurance


Erie Insurance

Erie’s rideshare insurance adds a “business use” designation to your personal car insurance policy. It’s similar to State Farm’s endorsement in that it covers all three periods of rideshare driving, and the gap between your personal policy’s deductible and that of your TNC’s coverage. It also comes with roadside assistance and rental car reimbursement. 

But Erie’s personal insurance policies include a slew of benefits that are often paid extras with other insurers, like first-accident forgiveness after three years of driving safely, in some states. Your comprehensive coverage includes free locksmith services (up to $75) and waived deductibles for glass repairs. And your collision insurance covers personal items (up to $350) in an accident. 

Type of insurance offered: Personal auto policy endorsement 

Estimated cost: About 30% of the cost of a personal policy, although a rep told us it may be closer to 20–25%, depending on your state.

Insurer reputation: Erie’s reputation is mostly solid. AM Best’s “A+” rating shows Erie to be a financially stable company as of Oct. 2021. In J.D. Power’s 2020 Auto Insurance Satisfaction Study, Erie won second place in the Mid-Atlantic and Southeast regions (out of 14 and 17 insurers, respectively), and third place out of 20 companies in the North Central Region. It was also ranked third out of 12 mid-size insurers in the 2021 Insurance Shopping Study. However, Erie finished almost last for service among 19 insurers in J.D. Power’s 2021 Insurance Digital Experience Study, although it finished 15 of 22 companies for its shopping experience.

What We Like
  • Covers all phases of ridesharing and includes deductible gap coverage

  • Personal policy includes perks that often cost extra with other insurers

  • Overall good ratings with AM Best and J.D. Power

What We Don't Like
  • Must call an agent for ridesharing quote

  • Only available in 12 states and DC

Compare Providers

Insurance Company Why We Picked It Period 1 Coverage? Period 2 & 3 Coverage? Deductible Gap Coverage?
State Farm Best Overall Yes Yes Yes
Allstate Best for Affordability Yes No Yes
Progressive Best for Multi-Platform Drivers Yes No Yes
USAA Best for Military Members Yes No No
Erie Insurance Best Included Policy Extras Yes Yes Yes

FAQs

What Is Rideshare Insurance?

To recap, rideshare coverage falls into three time periods defined by what you’re doing during that time:

  • Period 1: Logged in to your app and waiting for a match with a rider 
  • Period 2: Matched with a rider and you’re on your way to pick them up
  • Period 3: Driving the rider to their destination

TNC companies like Uber and Lyft have insurance, including liability coverage, for their drivers. These policies often have good coverage limits during periods 2 and 3, although their comprehensive and collision coverages are contingent on you having those coverages on your own personal policy. If your personal policy doesn’t include comprehensive or collision coverages, the TNC will not cover damage to your vehicle during period 3.

TNC policies also typically include much lower, liability-only coverage during period 1 when you’re waiting for a match. That means that if your car is damaged in some way while you’re parked and waiting for a ride request, the damage isn’t covered by your TNC’s insurance — which is why it’s important to have your own rideshare insurance.

Basic rideshare insurance extends your personal auto coverage to protect you in case you get into an accident during period 1. More comprehensive rideshare insurance adds coverage to periods 2 and 3, or provides additional benefits like paying the difference between your personal policy’s deductible and the TNC’s deductible, which may be higher. 

TNC Coverage Vs. Rideshare Insurance Coverage

Here are the phases and typical coverage limits offered by ridesharing companies (may vary based on state laws) versus rideshare insurance coverage:

Coverage Period What It Means Example of TNC Driver-Partner Insurance Coverage Example of Rideshare Insurance Coverage
Period 1 App is on, awaiting rider request

TNC provides limited third-party liability coverage:

$50,000/person for bodily injury
$100,000/accident for bodily injury
$25,000/accident for property damage

This coverage does not include damage to your own car if you’re at fault for an accident. It also may not include uninsured/underinsured damage or driver medical expenses

May include: 

  • Damage to your own car

  • Liability (bodily injury and property damage you cause to others)

  • Uninsured/underinsured motorist

  • Medical payments for yourself and any passengers

  • Losses due to non-collision reasons (e.g. fire, animals, flood)

  • Reimbursement for roadside assistance or towing

  • Rental car reimbursement

Period 2 En route to pick up matched rider

Liability coverage up to $1,000,000. 

Comprehensive and collision, if your personal policy has comprehensive and collision coverage, with a deductible of $1,000 (Uber) or $2,500 (Lyft)

Uninsured/underinsured motorist protection varies by state

May not cover driver medical expenses

All period 1 coverages, except for potentially liability (bodily injury and property damage you cause to others)

Helps bridge any gap between your usual deductible and the TNC’s deductible ($1,000–$2,500)

Period 3 Driving with rider in the car Same as period 2

All period 1 coverages, excluding liability

Helps bridge any gap between your usual deductible and the TNC’s deductible ($1,000–$2,500)

Do I Need Rideshare Insurance?

Rideshare insurance is a must when you’re using your personal car to drive for rideshare services like Uber and Lyft. On-demand delivery drivers for companies like UberEats, Grubhub, Instacart, and Amazon Flex also need rideshare insurance to fill coverage gaps and avoid breaching their personal auto policies.

If you drive for a ridesharing or on-demand delivery company on your personal insurance without rideshare coverage, your insurer could cancel your coverage. Not all insurers include on-demand delivery drivers in their rideshare insurance, so check the fine print. 

Are There Different Types of Rideshare Insurance?

Rideshare insurance adds or replaces protections offered by your personal auto policy, specifically when you’re using your car for ridesharing services. You can buy rideshare insurance through: 

  • An endorsement (optional add-on coverage) on your personal policy
  • A for-hire livery policy
  • A hybrid commercial policy
  • A separate commercial policy

Hybrid and commercial policies are generally more comprehensive than personal auto policy endorsements, and traditional commercial policies are usually much more expensive. However, Uber Black and Uber Black SUV drivers need commercial insurance. You can’t just use a ridesharing add-on to your personal policy if you want to drive for these services.

What Coverage Does Rideshare Insurance Provide?

Rideshare insurance: 

  • Extends your existing personal auto policy to cover accidents that might happen during period 1 while you’re waiting for a match.
  • May add comprehensive rideshare insurance coverage to periods 2 and 3.
  • May pay the difference between your personal policy’s deductible and the TNC’s deductible

Not all major insurers offer rideshare insurance in all states. Some states and cities, such as New York City, require rideshare drivers to have commercial policies. Depending where you live and want to drive, you might have to go with a costlier, standard commercial policy.

Are There Gaps in Rideshare Insurance?

Coverage gaps depend on how comprehensive your rideshare insurance is. Consider your TNC driver-partner insurance carefully when you’re choosing rideshare insurance to supplement it. 

  • You may only be covered for comprehensive and collision if you have those coverages on your personal auto policy.
  • Comprehensive and collision deductibles may be as high as $2,500. You can pay less with rideshare insurance that covers the deductible gap, like coverage from State Farm and Progressive.
  • Essential coverage like medical expenses and other coverages like roadside assistance and rental car reimbursements aren’t typically included in your TNC’s insurance. A rideshare endorsement may provide them.

How to Buy Rideshare Insurance

Step 1: Look into rideshare insurance before you start driving for a TNC, so you’re not at risk of having your personal policy canceled. If you already have a personal policy, check with your current insurer. Tell them you want to start driving for a TNC and ask about their rideshare insurance options. 

Step 2: Look at rideshare insurance offerings from other reputable insurers with positive customer reviews, strong financial strength ratings and good scores from independent rating agencies. 

Step 3: Narrow down your options by considering these questions:

  • Does the company offer rideshare insurance in my state? 
  • How much liability, comprehensive and collision coverage is offered for period 1?
  • What additional coverages are offered for periods 2 and 3?
  • Does the policy have any exclusions?
  • How much will each option cost? 
  • Are there any additional benefits for policyholders?

Step 4: Compare the policies to decide whether you’d prefer to add your current insurer’s rideshare coverage to your personal policy, or whether you’d prefer to switch your whole policy to a different insurer.

How We Chose the Best Rideshare Insurance

We looked at 16 companies that offer rideshare insurance, and compared their rideshare offerings, other auto policy coverages and pricing. We also analyzed independent ratings from J.D. Power and AM Best to determine customer satisfaction and financial strength. 

From the data, we evaluated which five companies rose to the top in terms of overall value for their rates, service, and rideshare and auto insurance coverages.

Article Sources

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