Yes, State Farm offers rideshare insurance as an optional add-on to personal car insurance policies. State Farm’s rideshare endorsement typically adds about 15% to 20% to your current auto insurance premium, and it provides more coverage and a lower deductible than the insurance offered by Uber and Lyft.
State Farm Rideshare Insurance Coverage
- Deductible gap coverage, so you can choose your own State Farm deductible rather than paying Lyft’s or Uber’s
- All the coverage that is on your personal policy while the app is on but before you accept a ride request
- All the coverage on your personal policy besides liability insurance once you have accepted a ride request
Rideshare insurance varies by state, so check with State Farm to see if their rideshare coverage is available in your location.
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.
Finally, Uber and Lyft don’t provide any coverage for drivers when the app is not on. For more information, check out WalletHub’s complete guide to rideshare insurance.
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