State Farm Rideshare Insurance: Reviews, Cost, Availability, and More

Your auto insurance policy covers driving for personal reasons, but it usually doesn’t cover driving for transportation network companies (TNCs) like Uber or Lyft. Luckily, some insurers offer a rideshare endorsement you can add to your personal policy to protect you while you’re driving for a rideshare service, including State Farm.

In fact, State Farm offers the most affordable rideshare insurance of the companies we analyzed. It’s a good option if you’re looking for cheap auto coverage that bridges the gap between your personal policy and the rideshare company’s insurance.

Here’s what you need to know about State Farm rideshare insurance, including its coverage, customer reviews, and cost.

Key Takeaways:

• The average additional cost of adding rideshare coverage to your State Farm policy is $28 per month.
• Your State Farm rideshare driver coverage kicks in while you’re logged into a TNC’s app, waiting for passengers, and driving them to their destination.
• You must be a current State Farm policyholder to add rideshare insurance coverage to your policy.

State Farm Rideshare Insurance: The Basics

Rideshare insurance works differently than a standard personal car insurance policy. If you drive for a rideshare company, you’ll usually need to include additional coverage to ensure you have protection throughout the rideshare process if you get into a car accident.

Here’s the most important information to know about State Farm’s rideshare insurance coverage.

Does normal car insurance cover you while driving for ridesharing services?

Your personal State Farm car insurance policy will only cover you until you turn the app on for ridesharing services. Once the rideshare app is on, you’re driving for business purposes (i.e., to make money), which a standard policy doesn’t cover.

You’ll need a special rideshare endorsement on your personal policy to cover you from when you turn the TNC app on until you turn it off. State Farm’s rideshare driver insurance extends important coverages like liability insurance, collision, and comprehensive insurance to ridesharing activities.

Does State Farm Offer Rideshare Insurance?

Yes, State Farm offers rideshare insurance in 46 states and Washington, D.C. Additionally, the company works exclusively with Lyft to provide drivers with direct coverage in the following states:

• Alabama
• Arizona
• Georgia
• Louisiana
• Mississippi
• Oklahoma
• South Carolina
• Tennessee
• Texas

In most other states, State Farm offers a rideshare endorsement for current policyholders. The coverage applies when you turn the app on, while you’re waiting for a ride request, and when you’re picking up a passenger and driving them to their destination.

In the next section, we’ll look at the cost of rideshare insurance with State Farm and how it stacks up to the rest of the industry.

How Much Does State Farm Rideshare Insurance Cost?

Adding rideshare coverage to your policy will increase your current State Farm premium. Your additional costs will depend on factors like your age, vehicle type, driving history, and location.

The table below shows how State Farm compares to other car insurance companies. It shows each insurer’s average monthly rate, the average cost to add rideshare coverage, and the total monthly cost for a policy with rideshare coverage, according to Compare.com data.

We found that State Farm ties with USAA for the cheapest rideshare insurance add-on at $23 per month. But its average monthly premium of $85 is lower than USAA’s — and the industry average. That makes State Farm the cheapest option if you want to add rideshare coverage to your policy.

A simple way to determine which company offers the best rideshare coverage is to compare quotes from several insurers. Comparing base premiums and the additional cost for rideshare insurance can ensure you get the most affordable policy to meet your unique needs and driver profile.

How to Add Rideshare Coverage to a State Farm Car Insurance Policy

Adding rideshare coverage to your current State Farm policy is easy and takes just a few steps:

1. Contact your agent: Call your local State Farm agent or contact the company directly at 1 (800) 782-8332. Ask to add rideshare insurance to your current car insurance plan.
2. Ask how it works: Discuss how rideshare coverage works with your State Farm agent and how it will affect your current policy. It may be worth increasing your liability coverage limits to provide more bodily injury and property damage coverage if you cause an accident. You can also add or increase coverage for medical expenses to cover potential accident injuries.
3. Think about your deductibles: If something or someone damages your vehicle and you need to file a claim, you’ll pay your comprehensive or collision coverage deductible before State Farm pays its share. Lowering your deductible also reduces your out-of-pocket cost but will raise your premium.
4. Discuss your new premium and next bill: Adding rideshare coverage and making other changes will affect your policy premium. Make sure you understand your new bill amount and how much more it will be to reflect the changes.

State Farm Rideshare Insurance Reviews: What Drivers Are Saying

It’s a good idea to check out customer reviews before you choose a car insurance company. The good news is State Farm is a common suggestion among rideshare drivers for its affordability. Many Reddit users are happy with the cost of adding rideshare coverage to their State Farm policies.

For example, the Reddit user below asked what insurance other rideshare drivers use because theirs quoted a six-month premium of $2,700. Several commenters say they pay much less and recommend the user get a quote from State Farm.

Others say it’s a good idea to verify your mileage if you’re driving more than part-time for a rideshare company. As one Reddit user states below, you can’t drive more than 50% of your miles as a rideshare driver.

On the other hand, the agent below pointed out that if you strictly drive for food delivery services and don’t transport passengers, you might not need a TNC endorsement if you have State Farm.

State Farm Rideshare Insurance Alternatives

Though State Farm is typically the best choice for affordability, it’s not the only rideshare option available. Here are a few alternatives to consider:

• Allstate: Similar to State Farm, you can get ride-for-hire coverage if you’re a current Allstate policyholder. Still, our research shows it’s one of the most expensive options, averaging $38 more per month on top of your monthly premium.
• American Family: Existing American Family policyholders can add rideshare insurance coverage to their policy if they drive for companies like Lyft or Uber. The endorsement adds an average of $29 to your policy premiums, according to our data. But it isn’t available for delivery drivers.
• USAA: Current USAA policyholders who drive passengers in their personal vehicles can get rideshare insurance coverage for $23 per month, according to our data. But it isn’t available in Hawaii, Michigan, Montana, New Mexico, New York, North Carolina, South Carolina, or Virginia.

How Does State Farm Rideshare Insurance Work?

State Farm rideshare insurance works alongside the rideshare company’s insurance. Adding the endorsement to your State Farm policy bridges the gap between your personal policy and the TNC coverage.

With the rideshare endorsement, State Farm will extend some policy coverages — such as liability insurance, comprehensive insurance, collision insurance, medical payments (MedPay) coverage, personal injury protection (PIP), and uninsured/underinsured motorist coverages — if you get into an accident while driving for a TNC.

Here’s how the different rideshare policies work.

What type of coverage do you need for Uber and Lyft?

Lyft and Uber offer some coverage with the following limits during period one, when you have the app on and are waiting for a passenger:

• $50,000 in bodily injury (BI) liability per person
• $100,000 in BI coverage per accident
• $25,000 in property damage (PD) liability per accident

When you’re driving to pick up a rider (period two) and taking them to their destination (period three), Uber and Lyft provide the following:

• $1 million in liability insurance
• First-party coverages, such as MedPay and uninsured motorist
• Collision and comprehensive coverage with a $2,500 deductible, as long as you have the coverages on your personal policy

Though the rideshare insurance policy is a start, it may not be enough to protect you financially after a car accident. Purchasing higher liability limits can ensure you have enough coverage if you cause an accident or if someone sues you. And choosing lower comprehensive and collision deductibles on your personal policy means you pay less out of pocket if you file a claim.

Learn about when rideshare coverage applies in the next section.

When does rideshare coverage kick in?

Rideshare coverage starts when you turn on the TNC app or log into the online platform. It continues while you’re driving to pick up a passenger and during trips. Coverage ends when you turn the rideshare app off, and your personal coverage takes over.

State Farm Rideshare Insurance FAQs

If you still have questions about State Farm rideshare insurance coverage, check out our answers to the most commonly asked questions.

Is State Farm rideshare insurance worth it?

It depends. State Farm offers the cheapest average rideshare insurance rates of the companies we reviewed. It costs an average of $23 per month to add the rideshare endorsement to your personal auto policy, according to our data. But no single rideshare insurance company is the best fit for everyone, so it’s a good idea to compare multiple companies to get the best rate.

What’s the best insurance company for Uber drivers?

The best rideshare insurance company for Uber drivers depends on factors like your age, driving record, ZIP code, and coverage needs. Comparing car insurance quotes from several insurers offering rideshare coverage can help you find the best fit for your specific needs and budget.

Does rideshare insurance cover DoorDash?

State Farm’s rideshare insurance covers DoorDash, as do most car insurance companies offering rideshare coverage. If you plan to drive for a transportation network company, it’s a good idea to check which insurers offer rideshare coverage, how much it’ll cost, and if it covers DoorDash before you start Dashing.

Do you need to tell your insurance company if you drive for rideshare?

Yes. You should always tell your insurance company if you drive for a rideshare service, whether you deliver goods, riders, or other services. Your insurer may not cover your claim if you get into an accident while ridesharing if you didn’t inform them beforehand or don’t have rideshare coverage on your policy.

What is rideshare gap protection?

Rideshare gap protection is the same thing as rideshare insurance coverage. It can protect your finances if you get into an accident by filling the coverage gap between your personal auto insurance coverage and the rideshare company’s insurance policy.

Data Methodology:

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.

Sources:

1. Reddit, “I’m a new driver. I called my insurance to get a quote for Rideshare,” accessed August 28, 2024.
2. Reddit, “Ride share add on for state farm,” accessed August 28, 2024.
3. Lyft, “Insurance coverage while driving with Lyft,” accessed August 28, 2024.
4. Uber, “Insurance to help protect you,” accessed August 28, 2024.
5. Insurance Information Institute, “Ride-sharing and insurance: Q&A,” accessed August 28, 2024.
6. National Association of Insurance Commissioners, “Uber or Lyft? Protect Yourself When Ridesharing,” accessed August 28, 2024.