Do you need special insurance to drive for Instacart?

Yes, Geico offers rideshare insurance. Geico rideshare insurance is available as part of a hybrid policy that covers both rideshare driving and non-business driving, replacing your personal car insurance policy. A Geico rideshare policy typically costs only slightly more than a personal-use policy, and it provides more coverage and a lower deductible than the insurance offered by Uber and Lyft.… read full answer

Geico Rideshare Insurance Coverage

• Deductible gap coverage, so you can choose your own Geico deductible rather than paying Lyft’s or Uber’s
• Coverage for damage to your car, medical expenses, liability, and more while the app is on but before you accept a ride request
• Comprehensive, collision, liability, and more (depending on the coverage you purchase with your policy) once you have accepted a ride request

Rideshare insurance varies by state, so check with Geico to see if their rideshare coverage is available in your location. It’s also worth noting that Geico rideshare insurance excludes large buses, vans, and limousines.

Other Key Things to Know About 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. 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’s deductible is $1,000 and Lyft’s is $2,500. These are significantly more expensive than the average car insurance deductible of $500.

For more information, check out WalletHub’s complete guide to rideshare insurance.

Commercial auto insurance for Uber drivers can cost $1,200 to $2,400 or more per year. A cheaper alternative is rideshare insurance, for $10 to $350 per year, depending on your location and insurer. Rideshare coverage is a specialized kind of insurance that bridges the gap between your personal auto policy and the coverage that Uber and other rideshare companies provide for drivers.… read full answer

Your personal auto insurance is unlikely to cover accidents you’re involved in while driving for Uber. Your insurer can even cancel your policy if you haven’t disclosed that you use your car for business. You should inform your insurance company of your plans before you begin driving for Uber and find out what you need to do to keep your personal policy valid.

Uber provides its drivers with some level of commercial insurance whenever their app is on. When you’ve accepted a ride request and while you’re carrying passengers, you are under Uber’s full insurance coverage. This includes $1 million in liability coverage as well as uninsured/underinsured motorist coverage. It also includes comprehensive and collision coverage, if you carry comprehensive and collision on your personal policy.

However, Uber’s coverage is minimal while you’re waiting for a request. During wait times, you’re covered by liability insurance only, and it’s limited to $100,000 for bodily injury and $25,000 for property damage per accident.

Rideshare insurance offers the additional coverage you really should have to protect your car, yourself and your savings from anything that could happen as you’re waiting for ride requests. Almost all of the major carriers offer rideshare insurance, but some states, like Michigan, don’t recognize it yet. If it isn’t available to you, you may have to buy more expensive full commercial auto insurance to be sure you’re adequately protected at all times.

Yes, Allstate does offer rideshare insurance as an add-on option. Allstate’s rideshare insurance is called Ride For Hire, and it helps fill the gaps in coverage between a customer’s personal auto insurance policy and the coverage provided by a transportation network company (TNC) such as Uber or Lyft. Ride for Hire from Allstate typically costs about $15 to $20 per year.… read full answer

Allstate Rideshare Insurance Applies in Two Situations:

1. When a customer has the rideshare app turned on but does not have a passenger or an accepted assignment.

In this scenario, a customer’s personal insurance policy won’t apply, and the commercial liability coverage provided by the rideshare company is usually liability-only at this point. Allstate’s Ride for Hire insurance can help by providing additional coverage that is not available through the rideshare company, like collision insurance. Depending on your policy details, Allstate rideshare coverage might also increase your liability limits.

2. When a customer is driving a passenger or on the way to pick up a passenger.

In this scenario, Ride for Hire provides up to $2,500 in deductible gap coverage, which helps keep out-of-pocket expenses low for the Allstate customer. Deductible gap coverage is similar to traditional gap insurance, except it’s designed specifically for paying a large insurance deductible rather than the remaining balance on a loan or lease.

Ultimately, Allstate’s rideshare insurance is worth investigating if you’re a rideshare driver. Most personal car insurance policies won’t cover costs that result from an accident if the customer was using their vehicle for business purposes. But rideshare insurance, also known as ride-hailing insurance, will keep you from having to pay for vehicle repairs or medical bills out of pocket.

However, it is important to note that Ride for Hire from Allstate isn’t available in New York. Terms for this insurance coverage vary by state.