Best Rideshare Insurance

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 their 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 structure this relatively new type of policy in very different ways.

Rideshare coverage is based on four periods of activity. In Period 0, you are driving your car for personal use. In Period 1, you have turned on your ridesharing app and are waiting for a ride request. Period 2 covers your drive to the location where you will pick up your passengers. Period 3 covers the time when passengers are in your car. The major rideshare companies like Uber and Lyft provide their drivers with coverage whenever their app is on (Periods 1-3). However, the coverage is minimal in Period 1.

Insurance companies are developing rideshare policies to fill in the gaps between your personal coverage and your rideshare company's coverage. They fill the gaps differently.

Rideshare Insurance Coverage by Company & Situation

Most other companies that offer rideshare insurance cover Period 1 only. State Farm is one of the few that enables you to increase your coverage for all three ridesharing periods. Their policy also allows you to bypass the insurance company hired by your rideshare company if you have a claim. There have been many complaints about the customer claims service from these insurers.

Allstate's Period 2 and 3 coverage doesn't increase your coverage types or limits, but it does help with the high deductibles in your Uber or Lyft coverage. Uber's insurance comes with a $1,000 deductible. Lyft's is even higher—$2,500. If you get into an accident during periods 2 or 3, Allstate pays you the difference between these deductibles and those on your personal auto policy. So, if your personal deductible is $500, Allstate will give you $500 if you drive for Uber or $2,000 if you drive for Lyft to help pay your bills.

You must have your personal auto and rideshare insurance with the same insurer. Rideshare is add-on coverage, not a stand-alone policy. If you like your current auto insurance company and their rideshare insurance seems reasonable and gives you a comfortable level of coverage, buy from them. If you're not satisfied with what you're offered, consider switching companies. Comparison shop for the best overall deal—personal and ridesharing—that you can get.

Progressive offers rideshare insurance in two ways: as an addition to your standard insurance policy or as a commercial policy in states that do not offer standard policy additions. Progressive allows a ridesharing driver to purchase additional coverage to their personal policy in 35 states, including Florida, Texas and Colorado.

Rideshare companies offer some insurance for their drivers, but that coverage might be limited. For example, many ridesharing companies do not offer medical payments insurance, so if a passenger were to sustain injuries in your car, their medical payments would not be covered. Adding Progressive rideshare insurance to your personal policy would provide coverage in places where Uber or Lyft's coverage doesn't, such as medical payments.

In some states, including California, Oregon and Nevada, adding ridesharing coverage to your standard Progressive policy might not be possible. In such situations, Progressive provides clients with the opportunity to get commercial insurance coverage that can be used when driving for ridesharing or delivery platforms. This coverage is designed for people who provide transportation services, such as taxi or limo businesses, and can be extended to rideshare drivers. Adding this type of coverage to your policy will also fill in the gaps left by Uber or Lyft's insurance and provide additional protection for you on the road.

The cost of rideshare coverage through Progressive is similar to policies from most other major companies. The coverage is available for both new and existing customers.

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.

Geico Rideshare Insurance Coverage 

• Deductible gap coverage, so you can choose your own Geico deductible rather than paying Lyft's or Uber's

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.

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.

Yes, you need special car insurance for delivery driving unless you are driving a company vehicle. If you drive your own car for a delivery company like Uber Eats, Grubhub or DoorDash, the company will not provide enough car insurance to protect you, so you'll need to buy a rideshare or business add-on for your personal car insurance policy.

Without the proper add-on, most personal car insurance policies specifically exclude coverage when you are driving for business purposes. Your personal insurance company can deny your claim or drop you as a customer if you lie about using your car to make deliveries. You might even be charged with insurance fraud.

In addition, delivery companies treat drivers as independent contractors, so they do not have to provide extensive insurance coverage, either. Consequently, delivery drivers often face significant gaps in coverage.

Delivery Driver Insurance Provided by Popular Delivery Companies

Note: Comprehensive and collision coverage from Uber Eats and Amazon Flex are only available to customers who have these coverage options on their personal car insurance policy. Additionally, delivery companies are restricted by state laws in New York, so be sure to ask your employer for your coverage details if you work in that state.

If you rely on a delivery company's insurance, you will not have coverage for yourself or your car while you are waiting for an order request. And for companies like Instacart and Grubhub, the company does not provide insurance coverage for any point in the process. It is also important to note your personal car insurance will not provide coverage while your delivery app is on, whether you are waiting for a request or actively picking up or delivering. 

Best Insurance for Delivery Drivers

• State Farm
• Allstate
• Farmers

The best car insurance company for delivery drivers is State Farm because the company's traditional car insurance policies cover delivery driving. That means State Farm customers who drive for delivery services can skip the added expense of a business policy or rideshare add-on.

If you don't have a policy with State Farm and don't want to switch, the next best way to get delivery insurance coverage is by purchasing a rideshare add-on that covers delivery driving as well.

The best car insurance companies for a rideshare add-on are Allstate and Farmers because their add-ons provide protection for delivery drivers in addition to rideshare drivers, unlike most companies. Allstate provides broad “Ride for Hire” insurance that can help plug coverage gaps and even reimburse you for part of a delivery company's deductible. Similarly, Farmers rideshare insurance extends to Grubhub and Uber Eats, among others, though it is only designed to cover drivers waiting for a request.  

Add-ons typically cost 15% to 20% of a driver's annual premium, so they're usually less expensive than purchasing a commercial policy.

Tips for Choosing Delivery Driver Insurance

Bear in mind that some insurance companies treat certain delivery services differently, so be sure to mention which one you drive for. For example, Geico's rideshare policies cover Lyft and Uber but not delivery services like Uber Eats.

It's also worth noting that most personal rideshare insurance policies are designed to supplement the insurance provided by the company itself, so they usually do not provide any liability coverage while delivery items are in the car. Consequently, you might need a commercial policy if your delivery company does not provide any liability coverage during this period.

For example, if you drive for Instacart or Grubhub, be sure to purchase a policy that will cover you regardless of whether you have food in the car. Commercial policies are typically more expensive, but it's better to pay extra for the right coverage than to face the financial consequences of an accident that is not covered by your insurance.

The main options for rideshare insurance in California are Farmers Insurance, Mercury Insurance, Allstate, Esurance and State Farm. Of these, State Farm and Allstate are the only ones to protect drivers throughout the rideshare process.

Several other companies offer rideshare coverage to limited markets. MetLife is available to Lyft drivers only. USAA offers rideshare policies in California to its eligible group of customers—military members and their families. GEICO has a hybrid personal/rideshare policy that is available to anyone but has a mileage cap that may make it unsuitable for high-mileage drivers. GEICO says the majority of drivers qualify for their policy, even frequent rideshare drivers. But some full-time rideshare drivers may need GEICO's commercial vehicle insurance.

Whichever company you choose, you'll only be able to get rideshare insurance from them if they also handle your personal auto insurance policy. That may limit your options or require you to change your existing insurance.

You need insurance, in California and elsewhere, to cover you during the four stages of the rideshare experience – when you're: offline, available for a ride request, en route to a pickup, and on a trip with passengers in the car. California requires rideshare companies to insure their drivers whenever their rideshare app is on. Uber and Lyft provide their drivers with the minimum coverages required by law. Private rideshare insurance is designed to increase your coverage in one or more of the four stages.

If the rideshare app is on, but you haven't accepted a ride request, California law mandates:

• $50,000 in bodily injury liability coverage per person/$100,000 in bodily injury liability coverage per accident
• $30,000 in property damage liability coverage per accident
• $200,000 in excess liability coverage

While you are en route to pick up passengers or have passengers in your car, California requires the rideshare company to protect you and your passengers with $1 million in liability coverage.

Rideshare insurance is much less expensive than the commercial insurance required in other driving jobs. Across the country, a rideshare policy ranges from about $15 to $300 per year ($1.25 to $25 per month) in addition to the cost of your personal policy. Costs vary because policies cover different rideshare stages.

Insurance companies can increase your coverage limits during the available-for-request stage only or during all the online stages. Or, they can combine personal and rideshare coverages into a hybrid policy that covers you full-time.

California Rideshare Insurance Coverage by Company and Situation

The rideshare insurance laws in California are clear, and they do ensure that the company you're driving for gives you some insurance. But that may not be enough coverage to protect you financially if you are involved in an accident.

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.

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.

Yes, Mercury offers rideshare insurance as an optional add-on to personal car insurance policies. Mercury's rideshare endorsement typically costs as little as $0.90 a day, and it provides more coverage than the insurance offered by Uber and Lyft.

Mercury Rideshare Insurance Coverage 

• All the coverage that is on your personal policy

Rideshare insurance varies by state, so check with Mercury 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.

Rideshare insurance in Texas costs $6-$20 per month in addition to the cost of a personal auto insurance policy, in most cases. This is consistent with the national average price of ridesharing insurance. Unlike most types of personal auto insurance, the cost of rideshare coverage does not vary widely by location.

Currently, eight major insurance companies offer rideshare insurance in Texas: Allstate, GEICO, Farmers, Progressive, USAA, State Farm and Mercury, plus MetLife but just for Lyft drivers. Liberty Mutual does not offer policies labelled as “rideshare insurance” in Texas but will extend your personal auto insurance to cover you while driving for a rideshare company. You must tell them you will be driving for a rideshare company and estimate the additional mileage you will be putting on your car as a result.

The minimum coverage amounts you need and what your rideshare company may provide change through the four standard “periods” of a rideshare driver's experience — when you're offline, available for a ride request, en route to a pickup, and on a trip with passengers in the car.

While your rideshare app is off, you need at least Texas's minimum insurance coverage: $30,000 of bodily injury liability coverage per person, up to $60,000 per accident, plus $25,000 of property damage liability coverage per accident. But Texas law requires ridesharing drivers to carry additional liability coverage whenever their rideshare app is on, whether they have passengers or not.

While your ridesharing app is on and you are waiting to accept a ride request, Texas law mandates:

• $50,000 of bodily injury liability coverage per person/$100,000 per accident
• $25,000 of liability coverage for property damage per accident

You may need to buy this increased coverage yourself, or your rideshare company may provide it. In Texas, both Uber and Lyft provide "contingent" driver coverage for this period. That means you're required to purchase coverage on your own, but if your insurer rejects your claim, their insurance will pay.

While you are on your way to pick up passengers or have passengers in your car, Texas requires that you have a total of $1 million in coverage for death, bodily injury and property damage per accident. This coverage is generally provided by the rideshare company you work with. In Texas, Uber and Lyft also provide $1 million in uninsured/underinsured motorist coverage per accident during trips. Uber even gives contingent collision and comprehensive coverage while you are carrying passengers. This coverage kicks in if your insurer does not cover damage to your car.

You can purchase rideshare insurance to cover gaps between what you need and what your personal auto policy and rideshare company will provide. Allstate and Mercury tend to have the cheapest policies in Texas. Progressive and State Farm tend to be the most expensive, but price isn't the only factor to consider. Be aware that providers differ in how they structure these rideshare policies. Find the right coverage for your needs.

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.

MetLife has offered rideshare insurance in the past, but it is unclear whether MetLife rideshare insurance coverage is still available. The MetLife website does not have any up-to-date information about rideshare insurance, and customer service representatives have provided contradictory information on the subject.

Current MetLife policyholders can reach out to their agent to ask about rideshare coverage.  Potential customers can see if the company will provide a rideshare insurance quote in their area by calling 1 (844)-887-1795, or they can consider options from other insurers.