Best Rideshare Insurance – Coverage for Your Gig (original) (raw)

If you drive, you’re already aware of auto insurance policies. But did you know that you might need another type of coverage if you drive for a ridesharing company? Fortunately, it isn’t difficult to get, especially if you already have a personal auto insurance policy. You can check with your current insurer to see if it offers an endorsement or rider for rideshare insurance coverage. Or, you might want to look for a full rideshare insurance policy that combines personal and business coverage into a single policy. Either way, there are plenty of options out there. Here are some of the best companies to turn to for rideshare insurance.

If you drive for a TNC — even if it’s infrequent — you need to know that your personal auto insurance policy will not cover claims related to your rideshare services. The insurance that comes from the TNC’s is good, but even that doesn’t cover everything. As with any insurance, there are several options to consider. Fortunately, several top insurers offer rideshare insurance as an add-on to a standard personal auto policy.

Insurance company Best for
Allstate Personalized assistance from agents
Farmers Discounts for students
Geico Partnership with Lyft
Lyft Insurance Lyft-specific coverages
Mercury Coverage for rideshare drivers who also use their vehicle for food delivery
Progressive Savings programs
State Farm Savings on deductibles
Transportation Network Company (TNC) Basic coverages
Uber Insurance Uber and Uber Eats drivers
USAA Benefits for military members

Allstate

Allstate is a well-known insurance provider known for its affordable policies. Fortunately for rideshare drivers, Allstate Ride for Hire® can enhance a personal auto insurance policy by filling in the gaps for situations that a traditional personal auto insurance policy doesn’t cover.

Auto policies from Allstate offer all of the traditional coverages that you would expect. This includes collision, comprehensive, liability, medical payments coverage for medical expenses, and uninsured & underinsured motorist coverages. In addition to the standard coverages, you can customize an Allstate policy to include rental reimbursement coverage, roadside coverage, custom equipment coverages, and more.

No matter what your needs are, an Allstate agent can help you determine which types of coverages you need as well as the amount of coverage you need. Before you even speak with an agent, though, you can learn all about the coverages on the Allstate website. It even lays out the situations in which your personal auto policy might have exclusions.

Since you’ll be adding extra coverage to your policy if you need rideshare insurance, there will be an additional cost. But Allstate can still help you out because it offers several different types of discounts. If you bundle your car insurance policy with a home or renters insurance policy, this can earn you a discount. There are also discounts for new cars, being a good student, paying your premium in full, and having safety features on your car. Chances are, you’ll qualify for one or more of the available discounts.

Farmers

Farmers in a major insurer with products that include business, life, home, and auto insurance. If you have a boat, RV, or another mode of transportation that needs coverage, chances are Farmers can help you with that, too.

To get rideshare insurance from Farmers, you can either add it to an existing auto insurance policy or switch to Farmers to create a new policy. According to Farmers, you can save an average of $441 by changing from your current auto insurer to Farmers.

One of the most significant benefits of Farmers is how easy they make figuring out your coverage. Each state has its requirements as far as auto insurance goes. Farmers have all of this information ready for you to understand the minimum coverage you are required to have by law.

Farmers also employs agents whose job is to help you find the right policy. While you can get a quote and purchase your policy 100% online, you can also call up an agent for guidance. A Farmers agent can explain the different types of coverage, make recommendations, and even help you purchase your policy. If you’re already a Farmers customer and need help filing a claim, your agent can also help you with that.

GEICO

Though it’s most commonly known for its auto insurance, GEICO offers a variety of products, including homeowners insurance, flood insurance, and many types of business insurance. The insurer even offers life event planning, which genuinely allows GEICO to be your insurance partner for many years to come.

GEICO is an attractive option for rideshare insurance because it offers a rideshare policy that can completely replace your personal auto insurance policy. This is different from many competitors since most only offer add-on endorsements instead of a standalone rideshare policy.

Another significant benefit of this insurer is that GEICO has a partnership with Lyft that can allow you to earn extra money on your rides. If you have a rideshare policy from GEICO, you could be eligible for $0.25 on every qualifying ride you complete using Lyft. This incentive acts as a credit against Lyft Fees.

If you’re a military member, federal employee, or qualify through another employer, you could also automatically earn a discount from GEICO. To see if you are eligible, you can search using GEICO’s website. Alternatively, you can call an agent to learn more about these special discounts and premium reductions. These discounts are in addition to the standard policy discounts for things like your car’s safety features and holding multiple policies.

Lyft Insurance

Lyft offers insurance policies for both rideshare and delivery services performed for the company. Instead of going to a third-party insurer to add on a rideshare endorsement, this allows you to keep your rideshare coverage separately. Lyft insurance only applies when you are actively using the app to provide rideshare services, so you’ll still need to have a personal auto insurance policy to cover you when you’re driving for any other reason.

Lyft Insurance includes several parts, including liability insurance, 3rd-party auto liability, uninsured/underinsured motorist bodily injury, and contingent comprehensive and collision. If you have an auto policy that already covers rideshare coverage, Lyft’s policy acts as excess coverage to your personal coverage or commercial auto insurance policy. The contingent collision coverage covers physical damage to your vehicle, but only if you have collision coverage on your personal auto insurance policy. The contingent comprehensive coverage will also only be usable if you have comprehensive coverage on your personal auto policy.

Since Lyft Insurance only offers coverage when you’re using the app, it’s important to understand when it will or will not apply. The coverage applies when you are waiting for a ride request within the app. It also applies when you’re on your way to pick up passengers or during rides where you’re transporting passengers to their destinations. If you are involved in an accident at any time outside of when you’re using the app, Lyft Insurance coverage does not apply.

Lyft also offers coverage for its Express Drive program. This program allows you to rent a car from a Lyft partner to use for rideshare purposes. Express Drive coverage is different from the traditional rideshare policy because it provides coverage when you’re “offline” and driving for personal use. Of course, it offers coverage when you’re waiting for a ride request, on your way to pick up a passenger, or you’re on the way to the passenger’s destination.

Additionally, Lyft has partnerships with other insurance providers so you can get both personal auto and rideshare coverage at a discounted rate. Currently, Lyft partners with GEICO, Buckle, and Mobilitas. Claims filed through Lyft Insurance are processed via outside insurance providers, including Allstate and Progressive.

Mercury

Mercury offers a variety of insurance products, including homeowners and some business insurances, making it another option if you’re looking to bundle insurance policies. When you choose Mercury, you’ll have access to its independent agents. These agents are unbiased experts in the insurance world and can help you decide which coverage options are appropriate based on your needs.

This insurer offers a combination of personal auto protection and rideshare insurance, and it claims to do so for as little as $0.90 per day. The rideshare portion of the insurance comes as an endorsement with your personal auto insurance policy, ensuring no gaps in your coverage.

By this point, you know that you need to have rideshare-specific coverage if you’re driving for a company like Uber or Lyft. Mercury makes sure that its customers understand that depending on the full extent of the work you perform using your vehicle, you could still be left vulnerable. It advises that if you also use your car to drive for a food delivery company like DoorDash and Grubhub, a business auto insurance policy might offer the best coverage.

Mercury offers many of the same discounts as its competitors. This includes discounts for your car’s safety features, auto-pay, e-signatures, multi-policy, and more. Additionally, Mercury offers its RealDrive ® program to help you save even more. This program uses the number of miles that you drive to determine your insurance rate. You can get a 5% discount just for signing up and keep it for as long as you’re in the RealDrive ® program. All you need to do is report your mileage when Mercury requests it.

Progressive

Progressive offers rideshare coverage as an option that you can add to your personal auto insurance policy. If you’re a Progressive customer and drive for a rideshare company, Progressive requires you to have it.

The fine line between covered and not covered is confusing for ridesharing, and Progressive knows this. That’s why it explicitly explains its rideshare endorsement compared to Transport Network Provider (TNC) coverage. You can use Progressive’s ridesharing resources for details about who covers what and when.

Progressive’s rideshare insurance also covers drivers who deliver for services like Uber Eats in most states. If you’re a driver for a food delivery service as well as a rideshare company, you can call 1-855-347-3939 for more information.

As a national insurance provider, Progressive can offer a lot of benefits to its customers. One thing that helps it stand out as far as rideshare insurance goes is its deductible reimbursement. If you have to file a claim, this allows you to lower your costs by reimbursing you the difference between your personal auto policy and your company-issued rideshare policy deductibles. If the insurance provided by the ridesharing company has a deductible of 1,000andyourProgressivepersonalautopolicy’sdeductibleis1,000 and your Progressive personal auto policy’s deductible is 1,000andyourProgressivepersonalautopolicy’sdeductibleis500, Progressive will pay you the difference of $500 in the event of an accident.

State Farm

State Farm offers rideshare insurance that you can add to an existing personal auto insurance policy in most states. According to the insurer, adding rideshare driver coverage typically adds 15% to 20% to your current auto insurance premium. To see if rideshare coverage is available in your state and get a quote, you have to talk to a State Farm agent.

Rideshare driver coverage from State Farm extends all of the coverages from your personal auto policy. However, the types of coverages that are available can vary based on the situation. For example, when you’re matched with and/or transporting a rideshare passenger, you’ll have all of the coverages of your policy except for liability for property damage and bodily injury. State Farm shares these details on its website, and a State Farm agent can walk you through it as well.

There are several benefits to purchasing rideshare coverage from State Farm. First off, its agents are available to help you understand your state’s requirements and how they may affect the availability of the coverages. If you have a claim or a claim is filed against you, State Farm communicates with you directly, eliminating the need to go through the rideshare company you drive for. State Farm also allows you to put your personal auto policy’s deductible in effect even if you’re driving for a ridesharing service. This means that if your personal auto policy’s deductible is lower than the TNC’s deductible, you’ll pay the lower amount.

No matter what coverages your State Farm personal auto policy has, you can be sure that there are benefits and savings available to you. Additionally, State Farm provides customized services and autopay solutions through its network of agents nationwide.

Transportation Network Company (TNC)

Transportation Network Company is a broad term that describes ridesharing companies such as Uber and Lyft. Officially speaking, it’s any licensed entity that exclusively uses a smartphone application or other digital network to connect passengers with drivers.

To understand TNC coverage, it’s important to know when drivers are considered to be operating their vehicle as a TNC vehicle. A vehicle is considered a TNC vehicle when the driver is logged into the TNC’s digital network (such as when waiting for a ride request) and when the driver is driving to pick up and transport a passenger.

TNC insurance is offered through the company that you’re driving for. Lyft and Uber both offer these policies. The rideshare insurance policy has to be issued by an insurer authorized to do business in the state you reside in. The company that you drive for can help point you in the right direction.

There are minimum coverage requirements for a TNC policy, just as for other auto insurance policies. Some states also require any TNC to maintain a group policy for the vehicles using its digital network, even if the vehicle driver has other insurance that satisfies the state’s requirements.

Uber Insurance

If you drive for Uber, you’ll have Uber auto insurance. Uber partners with some of the leading insurance providers to offer this coverage. Insurance partners include Allstate, Farmers, and Progressive.

Uber makes it easy to understand when its insurance does and does not cover you. These insurance policies offer third-party liability coverage if your personal auto insurance policy doesn’t apply to rideshare-related claims. It also provides contingent comprehensive and collision as well as uninsured/underinsured motorist bodily injury. The exact coverage types vary depending on whether you are logged in and waiting for a ride request or if you’re en route to pick up or drop off a passenger.

Since Uber includes Uber Eats, you may be wondering if the coverage differs based on whether you’re delivery driving or rideshare driving. Fortunately, Uber’s insurance policies offer the same coverages for both services. However, coverages for delivery drivers may have exclusions based on the state that you live in.

Even though Uber does offer auto insurance that can cover you while you’re online on the rideshare app, it does suggest that drivers look into additional coverage. It recommends looking to insurance providers such as Allstate to expand your personal auto policy to include rideshare and/or delivery insurance coverage.

USAA

USAA insurance policies are available exclusively to its members. To become a member of USAA, you must either be a U.S. military member or the spouse or child of a military member. In addition to insurance products, USAA offers banking and investment products to its members. It also provides financial advice, so USAA can be very beneficial for you if you qualify for membership.

If you’re a member with a USAA auto policy, you can add rideshare insurance to the policy to extend your coverage. According to USAA, “ridesharing jobs have become especially popular among military,” so it’s no wonder that it would want to offer this type of coverage. Rideshare gap coverage from USAA is available in most states and the District of Columbia.

With an auto insurance policy and rideshare gap coverage from USAA, you’re guaranteed repairs at more than 2,900 USAA-approved locations nationwide. You’ll also be able to customize your coverage limits and deductibles to ensure that you have the coverage you need within your budget.

USAA offers many of the discounts you would expect from an insurer, including multi-vehicle deals and safe driver discounts. It also offers discounts that are specifically related to your membership. This includes the family discount, which can help you save up to 10% on your policy if your parents also hold an auto insurance policy. There’s also a discount of up to 15% on comprehensive coverage when you garage your vehicle on base for military members.

Insurance company Discounts and benefits Online Quote?
Allstate New car discount, multiple policy discount, smart student discount, safety equipment discount, responsible payer discount, EZ pay plan discount, Allstate eSmart® discount, FullPay® discount, safe driving club Yes
Farmers Multiline discount, multi-car discount, ePolicy discount good payer discount, safe driver discount, distant student discount, youthful driver discount, good student discount, shared family car discount, senior driver discount, defensive driver discount, homeowner discount, pay-in-full discount, alternative fuel discount, safety features discounts, monthly automatic payments discount Yes
Geico Good driver, safety features, multi-policy, senior driver, military discounts, federal employees discounts, student driver discounts, member & employee discounts Yes
Lyft Insurance N/A No
Mercury Anti-theft feature discount, auto pay discount, e-signature discount, good driver discount, good student discount, multi-car discount, multi-policy discount, pay-in-full discount, RealDrive ® program Yes
Progressive Deductible reimbursement, Snapshot program, name your price tool, multi-policy discount, multi-car discount, continuous insurance discount, teen driver discount, good student discount, distant student discount, homeowner discount, online quote discount, sign online discount, paperless discount, pay-in-full discount, auto payment discount Yes
State Farm Drive Safe & Save program, Steer Clear® discount, accident-free discount, defensive driving course discount, good student discount, good driving discount, driver training discount, student away at school discount, safety features discounts, multiple auto discount, multiple line discount Yes
Transportation Network Company (TNC) N/A No
Uber Insurance N/A No
USAA Safe driver discount, defensive driving discount, driver training discount, good student discount, new vehicle discount, multi-vehicle discount, annual mileage savings, vehicle storage savings, family discount, bundled policies discount Yes

FAQs

Can I use my leased or finance vehicle as a TNC vehicle?

It depends. Some leasing and financial agreements might prohibit using the vehicle for ridesharing purposes. If you lease or finance your vehicle, you should review the terms of your agreement and/or reach out to your lease or loan issuer.

How do I get an insurance quote?

You can get an insurance quote by visiting an insurance company's website or using a comparison tool like The Zebra. You’ll receive estimated insurance rates and coverages based on the type of insurance you’re looking for and factors such as your age and history.

Is rideshare insurance required?

The rideshare company that you drive for most likely will not require you to carry rideshare insurance. However, it’s strongly recommended to do so.

The bottom line

A standard personal auto insurance policy is great, but it doesn’t cover everything. Most insurance providers offer optional add-on coverages that you can use based on your needs. For rideshare drivers, add-on coverage for rideshare insurance is recommended.

Fortunately, the number of insurance providers now offering this type of coverage means that you can take your pick. If you’re interested in driving for a TNC, you can start by asking your current auto insurance provider if it offers any rideshare coverage. Whether your current insurance provider offers this coverage or not, it’s a good idea to get quotes from multiple insurers to see where you can get the best coverage for your budget.