Does American Family offer rideshare insurance?

Yes, American Family offers rideshare insurance as an optional add-on to personal car insurance policies. American Family’s rideshare endorsement typically costs an average of $9 per month, depending on your state, and it provides more coverage than the insurance offered by Uber and Lyft.

American Family Rideshare Insurance Coverage

• You are covered by your personal auto policy while the app is on but before you accept a ride request
• No coverage is provided once you have accepted a ride request

Rideshare insurance varies by state, so check with American Family to see if their rideshare coverage is available in your location.

Why You Need Rideshare Insurance

In general, rideshare policies are important because the coverage provided by Lyft and Uber varies depending on where the driver is in the process of a ride. For starters, Uber and Lyft don’t provide any coverage for drivers when the app is not on. When a driver is online and waiting for a ride request, Uber and Lyft provide liability-only insurance.

Once the driver has accepted a ride request, Uber and Lyft provide up to $1 million in liability insurance, plus any other type of coverage required in the state. Both companies also provide collision and comprehensive insurance during this period, but only for drivers who have these types of coverage on their personal policy. However, Uber and Lyft both have a $2,500 deductible. This deductible is significantly more expensive than the average car insurance deductible of $500. Uber and Lyft provide no coverage at all if the app is not on.

Finally, if you plan on using your vehicle for Uber or Lyft rides, American Family requires you to add rideshare coverage to your policy. For more information, check out WalletHub’s complete guide to rideshare insurance.