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If you drive for a rideshare service, you need the right type of insurance to ensure you always have adequate coverage. Your personal car insurance policy doesn’t cover you after picking up passengers, and rideshare companies like Uber and Lyft provide only a limited amount of added coverage.
To have coverage when actively transporting rideshare passengers, you’ll need to add a rideshare endorsement to your personal auto insurance policy.
Many insurance companies offer rideshare insurance endorsements, but like regular car insurance, premiums can vary. Currently, State Farm, USAA, and Clearcover have the cheapest average rates for rideshare insurance, according to our research.
We’ll cover everything you need to know about rideshare insurance — including how it works, what types of coverage you need, and how much you can expect to pay — in the sections below.
Key Takeaways:
- Rideshare coverage kicks in when you turn the app on and are available for ride requests.
- The average rideshare driver pays an additional $34 per month for a rideshare endorsement.
- If you don’t have a rideshare endorsement and you get into an accident while working, your insurer could deny the claim.
In This Article:
- How Rideshare Insurance Works
- How Much Rideshare Insurance Costs
- Cheapest Companies for Rideshare Insurance
- Where to Buy Rideshare Insurance
- Best Insurers for Rideshare Coverage
- How to Get Cheaper Rideshare Insurance
- Frequently Asked Questions
Rideshare Insurance: The Basics
Rideshare insurance is slightly different from personal auto insurance. It protects you and your vehicle if you get into an accident while driving passengers for transportation network companies (TNCs), like Uber or Lyft. During trips, your personal car insurance policy doesn’t apply, so you’ll need to supplement your coverage with a specialized rideshare endorsement.
Here are some of the most important things to know about rideshare insurance.
Does normal car insurance cover rideshare drivers?
Normal car insurance doesn’t cover rideshare drivers during every phase of the trip — typically only when you’re not working. When you drive for Uber or Lyft, you’re using your vehicle for business purposes, which your personal auto insurance policy doesn’t cover.
Your personal car insurance policy only provides complete coverage before you turn the app on. Some companies may provide limited coverage while you’re waiting to accept a trip, but once you accept a trip and start driving to the pickup location, your personal car insurance no longer covers you.
Do Uber and Lyft provide additional coverage?
To fill the gaps in your personal car insurance policy, Uber and Lyft provide some coverage for rideshare drivers, but it’s generally not enough to provide full protection. The TNC insurance policy kicks in once you turn the app on and are able to accept a ride. During this phase, Uber and Lyft provide liability insurance with the following coverage limits:
- $50,000 per person in bodily injury liability (BI) insurance
- $100,000 per accident in BI coverage
- $25,000 per accident in property damage liability (PD) insurance
Uber and Lyft also provide coverage when you’re en route to a pickup and when you’re actively driving a passenger. For these two phases, the coverage types and coverage limits include:
- $1,000,000 in bodily injury and property damage liability coverage for your passengers and other drivers
- First-party coverages, such as uninsured/underinsured motorist coverage, personal injury protection (PIP), and medical payments (MedPay) coverage.
- Collision insurance and comprehensive insurance with a $2,500 deductible — but only if you already have these coverages on your personal car insurance policy.
While this added Uber and Lyft insurance is beneficial, it doesn’t provide enough coverage on its own. For example, your personal car insurance policy and the rideshare company’s insurance policy provide minimal coverage when you’re between rides. Getting specialized third-party rideshare insurance fills the coverage gap and provides more complete protection.
Ensure You’re Protected by Comparing Personalized Quotes
What type of insurance do you need to drive for a ridesharing service?
To drive for a rideshare service, you’ll need a personal car insurance policy and, ideally, a rideshare endorsement. A rideshare insurance endorsement typically includes the same coverages you have on your personal policy, like third-party liability, collision, comprehensive, and uninsured/underinsured motorist insurance.
Uber’s and Lyft’s rideshare insurance policies provide liability insurance and some first-party coverages (policies that cover the driver). But you can get collision and comprehensive insurance from the rideshare company only if you already have those coverages on your personal auto policy.
How Does Rideshare Insurance Work?
Rideshare insurance provides financial protection if you get into an accident while driving for Uber, Lyft, or other rideshare services. If you hit another driver or if someone hits your vehicle, you can file a claim with your rideshare insurance company.
The insurer will investigate the claim and determine an appropriate settlement for you and the other driver. You might be required to pay a deductible — which is the portion of the claim you pay out of pocket — but your insurance company will cover the rest of the damages.
Rideshare insurance works in conjunction with your personal car insurance and the rideshare company’s insurance — but the rideshare endorsement only applies during certain phases of the trip.
When does rideshare coverage kick in?
Your rideshare insurance kicks in when you turn the app on and are waiting to accept a ride request. It also provides coverage when you accept a ride request and are driving to pick up the passenger and when you’re actively driving a passenger to their drop-off location.
Rideshare insurance doesn’t provide any coverage when the app is turned off. During this time, your personal car insurance policy applies.
How Much Does Rideshare Insurance Cost?
Adding a rideshare endorsement to your personal car insurance policy will raise your premium, but the extra cost is usually relatively small. That said, the cost of rideshare insurance depends on many factors, including your location, insurance company, vehicle type, coverage limits, and deductibles.
In the table below, you can see the national average rideshare insurance premium for standard policies and the average total monthly cost for personal car insurance with rideshare insurance, according to Compare.com data.
| Average Monthly Premium Without Rideshare Coverage | Average Monthly Cost to Add Rideshare Coverage | Total Monthly Cost |
|---|---|---|
| $145 | $34 | $179 |
On average, U.S. drivers pay $145 per month for personal car insurance, according to our research. The average monthly cost of rideshare insurance is an additional $34 for standard coverage. Together, the average premium for personal car insurance with an additional rideshare endorsement is $179 per month — or about $2,148 per year.
At the end of the day, adding rideshare coverage to your auto insurance policy will increase your premium by roughly $400 per year.
The Cheapest Companies for Rideshare Insurance in 2024
Personal car insurance rates can vary significantly between insurance companies, and rideshare insurance is no different. Some insurance companies offer much more affordable rates than others.
Below, you can see the cheapest companies for rideshare insurance, including the average base premium, average rideshare premium, and the total monthly cost of personal car insurance with rideshare insurance, according to Compare.com data.
| Insurance Company | Average Monthly Base Premium | Average Monthly Cost to Add Rideshare Coverage | Total Monthly Cost |
|---|---|---|---|
| State Farm | $85 | $23 | $108 |
| USAA | $91 | $23 | $114 |
| Clearcover | $101 | $17 | $118 |
| GEICO | $97 | $24 | $121 |
| Safeco | $103 | $19 | $122 |
We found that the cheapest company for rideshare insurance is State Farm. Its average monthly car insurance premium is $85, and the average rideshare endorsement costs an additional $23 per month, according to our data. Together, the total monthly cost of State Farm car insurance with rideshare insurance is $108 per month — or $1,296 per year.
Because rideshare insurance premiums vary, it’s important to compare personalized rate quotes from several insurers. Comparing premiums will help you find the most affordable rideshare insurance for your unique driver profile and coverage needs.
Compare Personalized Quotes from America’s Top Insurers
Where to Buy Rideshare Insurance
You can purchase rideshare insurance from many of the most popular car insurance companies, but not all companies offer rideshare endorsements. If your current insurer doesn’t offer rideshare insurance, you’ll need to find another company that can give you the coverage you need.
Some insurance-comparison sites, including Compare.com and Insurify, allow you to compare personalized car insurance quotes that include rideshare coverage so you can find the best deal.
Which insurance companies offer rideshare endorsements?
Many reputable insurance companies sell rideshare endorsements. Here are some of the most popular companies that offer these types of endorsements to existing policyholders:
How to add rideshare coverage to an existing car insurance policy
Most insurance companies that sell rideshare insurance offer it only to existing policyholders. If your current car insurance company doesn’t offer a rideshare endorsement, you’ll need to find one that does. Here are the general steps you should follow to add rideshare coverage to your car insurance policy:
- Contact your car insurance company: Notify your car insurance company that you’re driving for a rideshare service and want to add rideshare coverage to your existing policy. Keep in mind that many car insurance companies don’t provide rideshare quotes online, so you’ll probably have to call an agent.
- Get a quote: Get a personalized rate quote online or over the phone. Select your policy limits for individual coverages and choose your deductible amounts. And don’t forget to ask the agent about any discounts you might qualify for. If you’re satisfied with the quoted premium, the agent can add the endorsement to your current policy.
- Pay the first premium: Before your rideshare endorsement takes effect, you must pay the first month’s premium. If you choose to pay the annual premium up front and in full, you might qualify for a small discount.
The Best Rideshare Insurance Companies of 2024
Many reputable insurance companies sell rideshare endorsements, but there isn’t a single insurance company that’s the best option for all rideshare drivers. The cost of coverage differs from one driver to another, and every driver has unique coverage needs and preferences.
The following insurance companies are some of the best options for rideshare insurance, according to our research. We chose these insurers based on factors like average rideshare insurance rates, coverage options, and online reviews from existing customers.
#1: USAA
- Average rideshare endorsement cost: $23 per month
- Compare.com Rating: 4.91 out of 5
USAA sells rideshare insurance to active-duty and retired military members and their immediate family members. The company consistently ranks among the top car insurers for overall customer satisfaction in J.D. Power’s annual auto insurance survey.
Existing USAA customers can get rideshare insurance in every state besides Hawaii, North Carolina, Michigan, Montana, New Mexico, New York, South Carolina, and Virginia.
#2: State Farm
- Average rideshare endorsement cost: $23 per month
- Compare.com Rating: 4.90 out of 5
State Farm is the largest car insurance company in the U.S., and it offers highly rated rideshare coverage to current car insurance customers. State Farm’s rideshare endorsement — which the company calls Transportation Network Company Driver Coverage — provides third-party liability coverage, physical damage coverage, and first-party medical payments coverage on top of your existing policy.
You can get rideshare insurance from State Farm in every state where the company offers auto insurance policies.
#3: Clearcover
- Average rideshare endorsement cost: $17 per month
- Compare.com Rating: 3.37 out of 5
Clearcover rideshare insurance is available to current car insurance policyholders who drive for companies like Uber or Lyft. Clearcover’s average rideshare endorsement rate is $17 per month, which makes it the cheapest rideshare insurance company in America, according to Compare.com data.
If you want to add a rideshare endorsement to your existing Clearcover insurance policy, reach out to your agent.
How to Get Cheaper Rideshare Insurance
No matter which insurance company you choose, you can still find ways to reduce your rideshare insurance premium. Here are some tips for getting cheaper rideshare coverage:
- Pay your annual rideshare insurance premium up front and in full.
- Choose a higher deductible for coverages like collision and comprehensive insurance (as long as you can afford the extra cost if you file a claim).
- Take a defensive driving course.
- Maintain a clean driving record free of accidents and traffic violations.
- Shop around and compare quotes from multiple insurance companies.
Find the Best Rideshare Insurer for You
Rideshare Insurance FAQs
If you still have questions about rideshare insurance, check out these questions and answers to learn more.
Do you need to tell your insurance company if you’re a rideshare driver?
Yes, you should tell your insurance company if you sign up to drive for Uber, Lyft, or an on-demand delivery service. If you don’t, your insurance company may not cover accidents that happen while ridesharing.
What’s the best insurance company for Uber drivers?
It depends — the best car insurance company for Uber drivers is different for everyone. Choose a rideshare insurance company that offers the best coverage at an affordable price. Comparing quotes from multiple insurers can help you find the cheapest and best rideshare insurance.
Does rideshare insurance cover DoorDash?
Most rideshare insurance policies cover DoorDash drivers when using their personal vehicles to make deliveries. Similar to Uber and Lyft drivers, rideshare insurance covers DoorDash drivers when they’re waiting to accept a delivery request, when driving to the pickup location, and when they’re en route to the drop-off.
How much is rideshare insurance in California?
Rideshare insurance premiums in California depend on many factors, including your vehicle type, age, insurance company, and coverage limits. That said, we found that the average California rideshare driver pays an additional $17 per month to add a rideshare endorsement to their policy. To get the cheapest coverage in California, you should compare rideshare insurance premiums from several insurance companies.
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.
Rating Methodology:
Compare.com’s mission is to help our readers make more informed decisions about their personal finances. Our editorial staff has crafted a proprietary, objective rating formula — the Compare.com Rating — to make it easier for our readers to analyze and compare many of the industry’s most well-known insurers. The score you see referenced in this article is based on several factors, including:
- Cost: How the insurer’s average rates compare to its direct competitors and the industry as a whole. This includes available savings opportunities, such as discounts and other factors.
- Customer satisfaction: How satisfied existing customers are with the service they receive. This includes the insurer’s scores among various third-party studies, such as the J.D. Power U.S. Insurance Shopping and Claims Satisfaction studies, and the National Association of Insurance Commissioners (NAIC) Complaint Index, among others.
- Ease of use: How easy it is for policyholders to utilize their policies. This includes mobile app availability, customer service availability, payment flexibility, and other related factors.
- Availability: The overall scope of the company’s insurance offerings. This includes available coverage types, national footprint, and other related factors.
- Industry reputation: A measure of the insurer’s overall standing within the industry. This includes its AM Best Financial Strength rating, BBB accreditation, and other related factors.
Sources:
- National Association of Insurance Commissioners, “Uber or Lyft? Protect Yourself When Ridesharing,” accessed August 6, 2024.
- Insurance Information Institute, “Ride-sharing and insurance: Q&A,” accessed August 6, 2024.
- Lyft, “All things insurance, all in one place,” accessed August 6, 2024.
- Uber, “Insurance to help protect you,” accessed August 6, 2024.
- J.D. Power, “Trust Emerges as Top Driver of Customer Satisfaction with Auto Insurance as Prices Continue to Surge, J.D. Power Finds,” accessed August 6, 2024.
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