Rideshare insurance protects rideshare drivers in case of an accident, and covers expenses such as vehicle damage or medical bills. Some of these costs are covered by the rideshare company’s policy, but not all companies provide insurance.
Rideshare car insurance comes into play for drivers who work for companies like Uber or Lyft. It has grown more popular in recent years due to the rising number of such companies. If you work for a rideshare company, you may need additional coverage that your standard personal car insurance won’t provide.
Enter your ZIP code into our free quote comparison tool above to find the rideshare car insurance quotes that best suit your needs.
What is rideshare insurance, and what does it cover?
Drivers in the rideshare sector — such as Uber and Lyft drivers — are covered or should be covered by rideshare insurance. If the company provides rideshare insurance, the driver’s personal car insurance is replaced with rideshare insurance.
However, accidents that happen while you’re commuting may leave you with coverage gaps. The rideshare company may offer insurance that covers responsibility for physical injury and property damage, but it depends on the insurance policy.
It may also include uninsured/underinsured driver’s bodily injury coverage and coverage for material damage to your car.
Many company-provided insurance policies have coverage limits, and you will be responsible for the costs of any damage or injuries once these limits are reached.
Your personal car insurance may also not cover these expenses, especially if you have not disclosed that you use your vehicle for work purposes.
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How much is rideshare insurance?
You’ll discover a wide variety of prices for adding a rideshare endorsement to your policy, as with other types of insurance. However, affordable rideshare car insurance rates are becoming easier to obtain.
Some companies offer rideshare policies that are less than $10 per month added on to your personal policy. However, an individual policy can get up to around $25 per month.
Your rate will depend on traditional factors, such as age and driving history, as well as what stages of the rideshare process the policy covers.
If you think the policy you’ve been quoted is too expensive, you may want to compare quotes from other companies. You may also explore lower coverage limits that still give you a reasonable amount of protection.
When you buy rideshare car insurance, there may be extra fees. Your state’s minimum for vehicle insurance will not include collision and comprehensive insurance, which you must have in order to use Uber and Lyft’s contingent coverage.
Most rideshare firms will not insure your vehicle at higher coverage levels for business driving unless you get the same coverage for your personal policy.
Where can I get rideshare insurance?
Most major car insurance companies now provide a rideshare insurance endorsement, or you may be able to purchase one from your provider, but if neither of these is an option, search around.
You may get estimates directly from providers or via our free quote calculator, and the procedure for applying should be similar to searching for vehicle insurance in general.
Buckle, for example, is a new rideshare insurance company that offers specialized coverage for rideshare drivers without duplicating coverage.
Keep in mind, though, that rideshare insurance is still a new product, so it may take some time to figure out precisely what you need and where you can obtain it. The industry is constantly evolving. Here are the most popular rideshare insurance companies available in the U.S.
Geico
Geico offers some of the best rideshare insurance. Its hybrid plan covers both business and personal travels, unlike most other insurance providers.
In other words, you’re protected while the app is turned off and there are no passengers, as well as when you’re actively transporting passengers to their chosen location.
Mercury Insurance
Mercury Insurance may be for you if you’re searching for the most affordable rideshare insurance. Mercury Insurance says that for “as little as 90 cents a day,” they can offer peace of mind to Lyft, Uber, and other transportation network company drivers.
State Farm
An add-on policy for current personal vehicle insurance policies may be a more affordable alternative for drivers who do not want to invest in a hybrid or full business coverage plan.
State Farm‘s Rideshare Driver coverage is designed to bridge the gap between a personal policy and liability coverage provided by a transportation network business such as Uber or Lyft.
Allstate
Drivers who use any of the most popular rideshare apps may get Allstate‘s “Ride for Hire” coverage. It’s particularly advantageous for Lyft drivers, who tend to pay higher rates for their company coverage.
Progressive
While most drivers understand the need for having adequate insurance coverage while carrying passengers, many delivery drivers, such as those who work for UberEats, Postmates, or Doordash, are unaware that they, too, require extra protection.
When delivering food, most personal vehicle insurance plans do not protect you.
Under the scope of its rideshare insurance, Progressive provides insurance options for delivery drivers. Progressive not only bridges the gap between your insurance and the delivery business but also allows clients to tailor their delivery driver plan to account for on- and off-season travel.
This insurance is typically considerably less expensive than a complete rideshare policy, but it offers coverage for delivery drivers throughout the whole transportation process.
Who needs rideshare insurance?
Insurance for Uber and Lyft drivers has improved, and drivers should be able to find cost-effective and flexible options. While some rideshare companies do not need you to have private insurance, Uber and Lyft do require this.
However, most personal automobile insurance policies exclude commercial usage of the vehicle, which includes carrying people or products for a fee. If you’re caught driving for hire without a rideshare insurance policy, your auto policy may be canceled entirely.
If you drive for a rideshare company, it’s critical to make sure you’re not putting yourself in danger by using normal personal car insurance.
Before you switch on that app, contact your insurer and inquire about your choices and the insurance costs connected with rideshare driving. Adding rideshare coverage to existing insurance is the simplest way to obtain it.
If you don’t have insurance or your current carrier doesn’t cover rideshare, you may want to consider switching. Enter your ZIP code into our free quote comparison tool below to find a rideshare car insurance company that works for you.