Merrill Burchell, Car Insurance Writer
@merrill_burchell
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.
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.
People also ask
Does Progressive offer rideshare insurance?
Yes, Progressive offers rideshare insurance as an optional add-on to a personal car insurance policy for customers who use their personal vehicle to drive for a rideshare company. Progressive rideshare insurance provides more coverage and has a lower deductible than the insurance offered by Uber and Lyft.
Progressive does not disclose how much its rideshare endorsement costs, but other companies typically charge 15% - 20% of a driver's personal premium.
Progressive Rideshare Insurance Coverage
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How much does rideshare insurance cost?
For customers with a personal auto policy, the additional costs quoted by companies like Farmers and Erie for rideshare insurance are usually from $6 to $25 per month. Allstate offers its rideshare coverage for only $15 to $20 per year.
Rideshare insurance costs less than many drivers would think, making it well worth the price. However, prices vary and it’s important to look carefully at what each company covers. Costs often vary because companies...
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