Rideshare Insurance (Cost, Companies, & Quotes)

Rideshare insurance consists of different insurance types that cover drivers during every state of their shift, from waiting for a passenger to driving to pick up a new customer. Rideshare drivers must notify their insurance company that they are rideshare drivers, although this could result in drivers losing their insurance policy. To combat this, more and more insurance companies are creating policies specific to rideshare drivers.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Oct 18, 2021

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Things to remember...

  • Ridesharing is a popular way to get around in some cities, and every driver needs rideshare insurance
  • Many ridesharing companies have their own rules and regulations regarding auto insurance
  • If you are a rideshare driver or are thinking about it, notify your insurance company

It’s very important to find the best rideshare insurance company for your needs. Not every auto insurance company will cover you while driving for a rideshare company. Uber rideshare insurance has a $1 million policy to protect drivers with passengers in the car. Be sure to compare rideshare insurance quotes online to find the best rideshare insurance coverage for your needs.

Transportation has always been an essential part of life. Throughout history, the modes of transportation have evolved, particularly public transportation.

Today, we have buses, subways, and taxis. And the newest addition to public transportation is ridesharing.

Ridesharing takes advantage of a major tool of the 21st century — the internet. Ridesharing services are provided through three main technologies: GPS, social networks, and smartphones.

By using a ridesharing smartphone app, riders can quickly arrange a one-time shared ride with a nearby driver.

Three companies have already made a significant mark in the world of ridesharing and are considered the best in the industry: Uber, Lyft, and Sidecar (which has since shut down).

There are plenty of perks for those looking to work for any of these rideshare companies.

A student can make some extra cash, or a parent can do the same for the holidays. Or a person may just need the extra income and have the vehicle to do so. Having flexible hours is also a major draw. A rideshare driver could also simply be an extrovert who’s not afraid to talk and enjoys the idea of sharing a ride with strangers.

Ridesharing is an appealing alternative to the age-old cab, but keep in mind that ridesharing is still fairly new and is not available in all cities and states.

For many rideshare drivers, their regular auto insurance policy will cover the risks of rideshare driving. To get the best auto insurance quote, enter your ZIP code into our online quote generator above. It’ll give you the best auto insurance rates for you and your area.

Another option is heading to our page about the different types of auto insurance coverage to see how rideshare insurance compares to regular types of insurance like liability and collision.

In this article, we’ll also answer the question, “Do I need rideshare insurance if I’m a driver?” Now, let’s get started.

Companies that Offer Rideshare Insurance

Interested in finding out what the major auto insurance companies offer rideshare insurance in your state? Check out the table below which covers all states and the District of Columbia.

In some states, the major auto insurance companies offer numerous options. In some states, none of the major auto insurance companies offer rideshare insurance at this time.

STATEINSURERS
AlabamaFarmers, Geico, State Farm, USAA
AlaskaNone Listed
ArizonaAllstate, Farmers, Geico, Mercury, USAA
ArkansasFarmers
CaliforniaAllstate, Farmers, Liberty Mutual, Mercury, Metlife, Metromile, State Farm, USAA
ColoradoAllstate, Farmers, Geico, Metlife, Safeco, State Farm, USAA
ConnecticutGeico, Liberty Mutual, State Farm
DelawareNone Listed
District of ColumbiaAllstate, Geico, Liberty Mutual
FloridaForemost, Prime
GeorgiaAllstate, Farmers, Geico, State Farm, USAA
HawaiiNone Listed
IdahoFarmers, State Farm
IllinoisAllstate, Erie, Farmers, Geico, Mercury, Metlife, Metromile, Safeco, USAA
IndianaAllstate, Erie, Farmers, Geico, Safeco, State Farm, USAA
IowaFarmers, State Farm, USAA
KansasFarmers, Geico, USAA
KentuckyAllstate, Erie, State Farm, USAA
LouisianaState Farm, USAA
MaineGeico, State Farm
MarylandAllstate, Erie, Farmers, Geico, Liberty Mutual, USAA
MassachusettsLiberty Mutual, USAA
MichiganFarmers
MinnesotaAllstate, Farmers, Geico
MississippiState Farm
MissouriUSAA
MontanaFarmers
NebraskaFarmers, Geico, State Farm, USAA
NevadaAllstate, Mercury, State Farm,
New HampshireUSAA
New JerseyFarmers, USAA
New MexicoFarmers, Geico
New YorkNone Listed
North CarolinaFarmers, Liberty Mutual
North DakotaNone Listed
OhioAllstate, Erie, Farmers, Geico, State Farm, USAA
OklahomaAllstate, Farmers, Geico, Mercury, State Farm, USAA
OregonState Farm, USAA
PennsylvaniaErie, Geico, Liberty Mutual, Progressive
Rhode IslandGeico, Liberty Mutual
South CarolinaGeico
South DakotaNone Listed
TennesseeAllstate, Erie, Farmers, Geico, Liberty Mutual, State Farm, USAA
TexasAllstate, Farmers, Geico, Liberty Mutual, Metlife, Progressive, USAA
UtahNone Listed
VermontNone Listed
VirginiaAllstate, Erie, Geico, Liberty Mutual
WashingtonAllstate, Metlife, Metromile, State Farm, USAA
West VirginiaState Farm
WisconsinAllstate, Erie, Farmers, Geico, State Farm
WyomingUSAA
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Allstate, Farmers, and Geico are three of the major auto insurance companies you see often in the table above. They are often clustered together in a single state or are the sole option in some states.

Now, let’s answer the question, “Do I need to tell my auto insurance company that I am a rideshare driver?”

Do I need to tell my auto insurance company I am a rideshare driver?

Yes! Do not delay. Tell your insurance company immediately, or compare rideshare insurance rates now to get a policy.

Can I buy just ridesharing auto insurance?

Unfortunately, every state except for New Hampshire and Virginia requires personal auto insurance, so if you have an active vehicle that you drive, you need to have a personal auto insurance policy. Often, companies that offer personal auto insurance policies also offer rideshare insurance, which can make getting them both at the same time easier for the driver.

Who has the cheapest rideshare auto insurance rates?

Get started comparing free rideshare insurance quotes online now to find out who has the cheapest rideshare insurance in your area.

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Ridesharing by City

Take a look at the two interactive graphs below that show the cities where Lyft and Uber ridesharing programs are available. Sometimes, both companies are not available due to the legal restrictions on rideshare driving in those cities or fights with taxicab unions in those cities.

Here is the interactive graph for Lyft ridesharing:

Here is the interactive graph with the availability of Uber for both drivers and passengers throughout the country. Though both companies are spread throughout cities in America, Uber appears to be operating in more states just by looking at the graph.

Also, it may be helpful to note that Uber and Lyft are not the only ridesharing programs, although those two are the most popular. A number of other ridesharing or even food delivery companies compete in the same area.

Ridesharing Insurance Driver Policies

Every ridesharing company must have a policy in place for every driver.

There are three possible stages for a rideshare driver during a work shift. These three stages are called Period 1, Period 2, and Period 3:

  • Period 1 – The ridesharing app is open, but the driver has not accepted a request, is not on his/her way to a passenger, and does not have a passenger in his/her car
  • Period 2 – Begins when the driver accepts a request and is on his/her way to pick someone up
  • Period 3 – Begins when his/her passenger(s) get into the car

For every period, there should be insurance coverage to protect the driver and passengers. Uber and Lyft have easily spelled out what an individual would need with regard to auto insurance coverage when considering becoming a rideshare driver.

Lyft’s Rideshare Auto Insurance Requirements

Lyft has listed four insurance coverages included in their driver policies:

  • Contingent Liability (i.e., coverage only while waiting for a ride request)
  • Contingent Comprehensive and Collision
  • Uninsured/Underinsured Motorist
  • Primary Automobile Liability

The last three coverages are only in effect from the time a driver accepts a ride request until the time the ride has ended in the smartphone app.

If you’re thinking of driving for Lyft or are already a driver and want more detail, visit our “Does my auto insurance cover me driving for Lyft?” page, which includes insights into what coverages Lyft offers as well as commercial driving insurance.

Uber’s Rideshare Auto Insurance Requirements

Uber offers an even more detailed description of which insurance coverage applies to which period. The company broke rideshare insurance into three categories:

#1 – On a Trip

Uber has a $1 million insurance policy that will cover a driver’s liability and what might happen between Point A to Point B. Uber has 3 million active drivers and 15 million rides a day, so their insurance policy is sure to include these three coverages:

  • $1 Million Liability – A commercial insurance policy that covers injuries or damages to third parties and their property. It protects the driver financially and takes precedence over any personal auto coverage the rideshare driver might have.>
  • $1 Million Uninsured/Underinsured Motorist Injury – If another driver is at fault for a car accident and does not have adequate insurance, those who were bodily injured in the rideshare vehicle will be taken care of.
  • Contingent Collision and Comprehensive – Any physical damage that occurs during a trip is covered and is treated as long as the rideshare driver has personal collision and comprehensive coverage.

#2 – Between a Trip

Uber provides a third party liability plan that meets or exceeds the third party liability insurance requirements of every U.S. state.

The liability covers bodily injury up to $50,000 with a total of $100,000 for the accident and up to $25,000 for property damage. Technically, the coverage ratio would be listed as $50,000/$100,000/$25,000.

#3 – Offline

Since it was already established earlier that insurance is required while on a trip, a rideshare driver must have personal auto insurance and is still required to meet state regulations.

For more in-depth analysis, check out our article about Uber insurance to learn about coverages and rates.

Auto Insurance for Rideshare Drivers

Every ridesharing driver needs to have auto insurance in place. If you are already driving for a ridesharing company but your insurance company does not know, you need to make your insurance provider aware. 

Otherwise, there may be repercussions:

  • Your insurance provider could choose not to cover you in an accident
  • Your insurance provider could cancel your policy and refuse coverage

It’s better to be dropped from an insurance company for providing honest and accurate information about rideshare services than to keep the information from a company and then get in an accident.

Not informing your insurance company that you are a rideshare driver makes you liable for any accident-related costs.

On the other hand, if your insurance company cancels your policy due to being a ridesharing driver, you are free to find an insurance company that will provide coverage to meet your needs.

View our table above to find insurance companies offering ridesharing insurance by state. Take notice, though, that some companies offer policies for only Period 1 and others offer policies from Periods 1 to 3.

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Frequently Asked Questions: Regular vs. Rideshare Insurance

Now that we’ve covered the basics of rideshare insurance, let’s get to your frequently asked questions. Some include:

  • Will driving for Uber affect my car insurance?
  • Can I buy just rideshare insurance?
  • How much does it cost to add rideshare insurance?

Let’s jump right in.

#1 – How does Uber insurance work?

Rideshare insurance — including Uber insurance — works by protecting the driver during different parts of the work shift. For instance, there are often three periods for rideshare insurance: when a person is waiting for a passenger or “trip,” when they are on the way to pick up the client, and then while transporting that client to their destination.

Uber, like many rideshare companies, offers rideshare auto insurance through a third-party auto insurance provider and makes its policies available directly to drivers. Like with all ridesharing auto insurance policies, the coverages are different depending on what period of the trip process you are in. It is not mandatory but can help protect you financially if there is a problem.

#2 – Who offers the best insurance for Uber and Lyft drivers?

The difference between the two is that, as of this moment, Lyft doesn’t have specific coverage limits that you need to hit. Uber, on the other hand, has specific dollar amounts you need to be covered while you drive. Both are created with those periods covered above in mind — idling while waiting for a trip, on the way to a client, and then while the client is in the car.

#3 – Will driving for Uber affect my car insurance?

Yes, your personal auto insurance will be affected if you choose to drive for rideshare companies. Whether or not you decide to tell them you are driving for rideshare is your personal choice.

An insurance company may deny your claim if you file one for something that happened on a rideshare shift, as it may violate the terms of your policy.

However, more and more companies are offering specific rideshare insurance that you can purchase in addition to your personal auto insurance policy. This can keep you protected while you are driving for the rideshare company while protecting the insurance company as well.

#4 – Do you need rideshare insurance for Uber?

Currently, you do not need rideshare insurance to drive for Uber. While Uber offers a third-party rideshare insurance plan and many companies offer specific rideshare insurance, you are not obligated to purchase them.

However, if you do not and decide to just use your personal auto insurance policy while driving for Uber or another rideshare company, your claim might be denied if you have to file one for something that occurred while you were driving for that rideshare company.

#5 – How much does it cost to add rideshare insurance?

Rideshare insurance is generally cheap and costs much less money than buying certain parts of a personal auto insurance policy like collision or liability coverage. The monthly rate is often $15 or more, which amounts to $180 per year.

Of course, a lot depends on the company you’re talking to about rideshare insurance as well as your personal driving history.

#6 – How does rideshare insurance work?

Rideshare insurance is generally similar for all rideshare companies: three periods of time for when you are waiting for a trip, going to pick up the customer or client, then transporting that customer or client to their destination. Each period might have different insurance specifications depending on the rideshare or insurance company.

It can be helpful to note that rideshare auto insurance is a work in progress and will likely change moving forward, especially if states force rideshare companies to categorize their drivers as employees versus independent contractors.

Methodology: Analyzing Rideshare Auto Insurance

Considering that the following two companies are the largest ridesharing service providers, this study is based on information we collected from Uber and Lyft’s city lists.

Along with other companies wanting to make a name for themselves in this business, it appears that Tesla — the company responsible for the new technology to create auto-piloted cars — has hopped on the bandwagon and has plans to break into the ridesharing market.

There used to be a question of whether ridesharing should be legalized, but thanks to state-level legislative bills most states now allow it, but not all states are onboard as of yet.

Currently, there are no state-wide level bans as Nevada recently overturned its ruling, thanks to Uber.

So far, Alaska, Wyoming, and South Dakota are excluded from the ridesharing services of Uber and Lyft for various reasons:

  • Alaska – Uber may return to Anchorage soon, but there was a dispute on city and state level
  • Wyoming – A law needs to change in order for the state to support the companies associated with ridesharing
  • South Dakota – A bill was passed in May to allow Uber, but Uber had not yet opened operations in the state

Though more cities are in favor of ridesharing opportunities, some cities are pushing back. Contention exists on both sides — state law and the ridesharing companies — as to what should or should not be included in ridesharing regulations.

The major cities caught in the crossfire of this debate are:

  • Newark, New Jersey
  • Tampa Bay and Miami, Florida
  • New York City, New York
  • Boston and Cambridge, Massachusetts
  • Chicago, Illinois
  • Austin (Seven Ridesharing alternatives), Houston, Galveston, and Corpus Christi, Texas – (Proposed legislature may put an end to any bans)

With a constant discourse concerning the laws and regulations on ridesharing, it is increasingly important that individuals understand the laws regarding auto insurance and rideshare services.

Of course, government and company policies have changed in light of the coronavirus pandemic, which has disrupted the rideshare industry. Learn more in our article about how the coronavirus is affecting the rideshare industry and other alternative gigs.

Find Cheap Rideshare Insurance Quotes

If you are a rideshare driver or plan to be one soon, you need to inform your insurance company. That way, you have time to look for a company that will cover you as a ridesharing driver in case your current insurance company refuses to do so.

If your current insurance policy does allow for ridesharing, make sure your existing insurance policy covers the gap. If it doesn’t, find a policy that will work for you as a rideshare driver.

Some of the options include rideshare auto insurance policies from major auto insurance companies. For instance, the following companies (and more) offer rideshare auto insurance for drivers:

  • Allstate rideshare insurance
  • Progressive rideshare insurance
  • Geico rideshare insurance

While this article has been about rideshare driving, there are additional insurance questions for someone who delivers food for a living. Our food delivery auto insurance guide goes into detail about what insurance you need as a delivery driver and whether companies like GrubHub or DoorDash offer insurance for their drivers.

Searching for an auto insurance policy to cover you being a rideshare driver or food delivery driver is a little tricky, though auto insurance companies have been making it easier throughout the past few years. Many of them will have a specific section where you can share if you’re a rideshare driver or not.

Unfortunately, that leads to submitting individual quotes to numerous auto insurance companies, which can take a great deal of time. Using our online quote comparison tool, you can get multiple auto insurance rates from different companies at once. Enter your ZIP code below to get started.

References:

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