Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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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 exis...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Jul 16, 2020

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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. Uber 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 (who 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.

Table of Contents

Which insurance companies offer rideshare insurance?

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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Better yet, if you already know that ridesharing is available in your area and also want to make sure you are adequately covered, start comparison shopping for rideshare insurance quotes today! Enter your ZIP code above to compare the best auto insurance rates for ridesharing!

If you are interested in trying out ridesharing, you view this interactive map and see a table of the ridesharing options available near you.

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Do I need to tell my 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 insurance?

Your personal auto insurance policy will not cover ridesharing automatically, so compare rideshare insurance quotes and be sure to notify your company directly for available options. Typically, rideshare insurance will be an add on.

Who has the cheapest rideshare 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


Methodology

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.

Ridesharing 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 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.

Uber’s 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 included 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.

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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.

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.

Start comparison shopping today for the best rideshare auto insurance rates. Enter your ZIP code below to get started!

References:

  1. https://rideshareapps.com/ride-sharing-companies/
  2. http://www.sfgate.com/business/article/Ride-sharing-pioneer-Sidecar-to-shut-down-ride-6726144.php
  3. https://www.uber.com/cities/
  4. https://www.lyft.com/cities
  5. https://electrek.co/2016/10/19/teslas-new-self-driving-car-can-only-make-you-money-on-the-ride-sharing-tesla-network-not-uber-or-lyft/
  6. http://www.rstreet.org/tnc-map/
  7. http://www.latimes.com/business/la-fi-uber-nevada-20150528-story.html
  8. https://www.adn.com/business-economy/2016/09/22/uber-plans-a-return-to-alaska-and-this-time-its-sights-are-set-on-more-than-just-anchorage/
  9. http://www.wyomingnews.com/news/uber-seeks-to-operate-in-wyoming/article_a7d40a2c-b14a-11e6-ac92-2bdfd88765fb.html
  10. http://www.kdlt.com/news/local-news/governor-signs-uber-bill-into-law-effective-july-1/38723004
  11. http://www.cnbc.com/2016/09/02/uber-and-lyft-are-getting-pushback-from-municipalities-all-over-the-us.html
  12. https://www.thrillist.com/lifestyle/austin/lyft-uber-alternative-rideshare-apps-austin-texas
  13. http://www.curbed.com/2016/12/7/13828514/uber-lyft-ride-austin-rideshare-get-me
  14. https://help.lyft.com/hc/en-us/articles/115013080548
  15. https://www.uber.com/drive/insurance/
  16. https://docs.google.com/spreadsheets/d/1pVB8z-aboj_Nc4HQkFnlf92sHLIEzWor-gprKg7hMus/edit#gid=397790302