What Is Rideshare Insurance and Who Needs It? (2024 Guide) (2024)

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The list below lays out some key characteristics that are typically specific to rideshare insurance coverage, which we’ll discuss in the following section:

• May not be required by law
• Different than standard commercial coverage
• Fills a gap in standard coverage
• Addresses specific coverage needs of rideshare drivers

How Does Rideshare Insurance Work?

Rideshare insurance functions as a form of commercial insurance. It fills in coverage gaps that are specific to the needs of those who work in the rideshare industry.

Rideshare Company Insurance

Many rideshare companies (including Uber and Lyft) provide the following insurance coverages for their drivers:

• Bodily injury liability
• Property damage liability
• Underinsured/uninsured motorist coverage
• Comprehensive coverage
• Collision coverage

Is Rideshare Insurance Required?

This means that you may not be legally required to purchase rideshare insurance, as you will already have the state-required minimums while driving for one of these services.

Rideshare Commercial Insurance

That said, since minimum liability coverage does not apply during the “app on” period spent working in the rideshare industry, rideshare drivers need commercial coverage. Standard commercial auto insurance policies are usually reserved for larger businesses. Such policies are designed to cover a fleet of vehicles or vehicles that are used exclusively for commercial purposes. As such, it doesn’t typically make sense for someone who occasionally drives for Uber to purchase this type of policy.

What Does Rideshare Insurance Cover?

Rideshare insurance, which often comes in the form of an endorsem*nt to one’s existing car insurance policy, addresses the coverage gaps that are left by existing holes in minimal liability insurance, rideshare company insurance, and standard commercial insurance. Rideshare insurance extends specific coverages on the personal policies of rideshare drivers so drivers are covered during the “app on” period.

Because of the potential consequences of driving without rideshare insurance, you will need a commercial insurance policy if you use your car to earn an income (beyond driving to and from your place of work).

When driving for personal use, a standard liability, comprehensive or collision insurance policy is in effect. As soon as you turn on the Uber or Lyft app to start accepting passengers, a standard personal auto insurance policy will no longer cover you for damages.

If you are involved in an accident while driving for a rideshare service, the rideshare company’s commercial policy should cover damages to the other driver’s vehicle. In accidents where you are the at-fault driver, your own insurance provider may not cover the cost of damage to your vehicle, even if you have comprehensive insurance and collision insurance policies.

The rideshare company may have a collision policy that pays to repair your vehicle, but it is likely to come with a high deductible. Uber and Lyft drivers, for example, are provided with comprehensive coverage while en route to a ride request and while transporting a customer. But this coverage includes a whopping $2,500 deductible. Uber coverage also does not apply while parked, so if a tree branch falls on your hood and smashes your car while you’re waiting to pick up a customer, you’ll be out of luck. If you are parked and have the Uber app turned on, neither your own standard comprehensive policy nor Uber’s coverage will pay for repairs.

In the worst-case scenario, you may lose your insurance coverage or see a premium hike if you are found to have used your car for commercial purposes without informing your insurer. Getting re-insured after an occurrence like this will be significantly more expensive than paying for rideshare coverage each month.

Companies like Geico, Progressive, USAA and Allstate all offer rideshare insurance for as low as $6 per month. Your own car insurance quotes will vary depending on your insurance profile, but for most drivers, the cost is under $30 per month for rideshare auto insurance.

Rideshare insurance is significantly less expensive than commercial auto insurance. That’s because it is intended for people who may be using their personal vehicles for commercial use only part time.

Adding Rideshare Insurance

Because rideshare insurance is usually offered as a form of gap or supplemental coverage, the process of obtaining rideshare insurance is somewhat different than purchasing standard personal or commercial insurance. This process is discussed in detail in the sections below.

Can I Buy Just Rideshare Insurance?

Since most providers do not offer rideshare-only auto insurance coverage, you will most likely be unable to purchase rideshare insurance as a stand-alone policy.

Supplemental Rideshare Insurance

Some insurers sell rideshare coverage as a policy add-on or endorsem*nt to an existing policy. This provides coverage for one particular type of commercial use to drivers who are not necessarily running a full-scale business.

Rideshare Insurance Companies

Here are some of the best rideshare insurance companies:

• Geico rideshare insurance
• Progressive rideshare insurance
• USAA rideshare insurance
• Allstate rideshare insurance
• State Farm rideshare insurance
• Farmers rideshare insurance

How To Compare Rideshare Insurance Quotes

To get rideshare insurance, simply contact your insurer and ask about coverage. Many providers will allow you to add rideshare coverage to your existing policy for a low monthly cost. Use the tool below to compare car insurance cost options from several top insurers in your area.

In this article, we discussed the ins and outs of rideshare insurance. Along with the legal requirements, we explained the unique characteristics of the cost, coverage and buying process of rideshare coverage.

Best Rideshare Insurance

If you are happy with your existing auto insurer, contact an agent to ask about rideshare insurance. The easiest way to get coverage is to add it to your existing policy. If you do not yet have insurance or your insurer does not provide rideshare coverage, you might consider switching providers.

Geico Rideshare Insurance

Geico offers rideshare insurance coverage that replaces your existing Geico policy. By converting your personal policy to a rideshare policy, you will be covered by the same insurance whether the rideshare app is on or off. This is required for Geico customers who drive for any rideshare service.

USAA Rideshare Insurance

USAA offers what it calls “Ridesharing Gap Coverage.” This is a policy add-on that provides protection for the coverage gaps between your personal auto policy and the coverage provided by an app-based transportation network company (TNC) such as Uber or Lyft. Most TNC insurance does not provide coverage for your vehicle while the app is on, but when you are parked and waiting for ride requests. This policy may also help cover the high deductible in the TNC-sponsored policy.

Compare USAA with Geico head to head in our USAA vs. Geico review.

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

Here are the factors our ratings take into account:

• Cost: Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
• Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
• Reputation and experience: Our research team considered market share, ratings from industry experts and years in business when giving this score.
• Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
• Customer experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.

Our credentials:

• 800 hours researched
• 45 companies reviewed
• 8,500+ consumers surveyed

*Data accurate at time of publication.