How To Compare Car Insurance

    As rideshare drivers, having the right car insurance is a must. If you’re wondering how to compare car insurance options the most effective way, we’ve got you covered. Below, we’ll break down how to compare car insurance, what the difference between rideshare and commercial insurance is, and how you can quickly compare the best car insurance rates.

    While insurance is a must, when you’re a rideshare driver, more factors may come into play. You’ll want to make sure you have the right coverage to limit your risks while driving. The number of hours you drive per week (or per month) and your desired budget are also worth considering as well.


    According to the Insurance Information Institute, the countrywide average auto insurance expenditure increased 6.4% to $1,004.68 in 2017 from $944.36 in 2016. In 2017 (the most recent data available), rates were highest in states like Louisiana ($1,443.72), Michigan ($1358.62), and Florida ($1,356.90).

    Despite the costs, it’s important to compare car insurance options and know what your rideshare insurance covers.

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    Difference Between Rideshare Insurance and Commercial Insurance

    If you want to compare car insurance and you’re wondering what the difference between rideshare insurance and commercial insurance is? We break it down in the video below: What’s the difference between rideshare insurance and commercial insurance?

    Before you do anything, determine whether you prefer rideshare insurance or commercial insurance. Some people use the two terms interchangeably, but they actually represent two completely different types of coverage.

    In order to sign up as a rideshare driver, all you need is a regular personal insurance policy. Uber and Lyft offer coverage but only during periods 2 and 3 (when you’re going to pick a passenger up and when they’re in your car).

    However, Uber and Lyft’s insurance won’t cover you during period 1, which is when you’re waiting on a passenger to book a ride. Plus, your personal insurance company probably won’t provide coverage either since you’re technically logged into the Uber or Lyft app during period 1.

    Rideshare insurance is a little more expensive, but it fills in that gap and can be added to your personal insurance policy as an endorsement.

    Commercial insurance is a 24/7 insurance policy that covers you and your car. A commercial insurance policy can have multiple drivers on a vehicle and you can give rides through the app to people you know and still have coverage. The only catch is it can cost you anywhere from $3,000 to $5,000, so it’s a much more expensive option and best for only full-time rideshare drivers.

    How to Compare Car Insurance Quotes

    Insurance is an investment you can’t afford not to make. However, this doesn’t mean that you shouldn’t try to get more bang for your buck when getting rideshare insurance.The average driver should compare car insurance quotes at least every 1-2 years.

    Here are 4 key steps to take when comparing car insurance quotes as a rideshare driver:

    How to Compare Car Insurance

    Step 1. Gather Your Information

    To compare car insurance, make sure you have all your necessary documents on hand before you start requesting auto insurance quotes. You will likely need your driver’s license number, license plate number, specific details about your vehicle, and other personal information on hand to get an in-depth quote. If you plan to have someone else covered on the insurance policy, you’ll need their driver’s license information as well.

    Take a few minutes to prepare everything you need so you’re not scrambling around while you’re on the phone with an insurance company or filling out a quote form online.

    Step 2. Choose the Right Car Insurance Coverage Levels

    The next step is to choose your coverage level. Auto insurance can cover everything from damage to your car and medical bills resulting in personal injuries to damage to property. This all depends on the level of risk you’re willing to take on.

    For example, liability-only coverage will cover you in the event that you are involved in an accident that is determined to be the other person’s fault. However, if the accident is your fault, liability insurance will provide little to no coverage or relief.

    50/100/50 stands for a lower level of auto insurance coverage which means your insurance company would pay a maximum of $50,000 per person for injuries, $100,000 for injuries total per accident, and $50,000 per accident for damage you do to the property of others. You can also do higher levels of coverage like a 100/300/100 policy but that is going to cost more.

    According to the National Association of Insurance Commissioners (NAIC), the primary coverage types in an auto insurance policy include:

    • Bodily injury: pays for costs related to another person’s injuries when the driver is at fault
    • Property damage: pays for damage done by the driver to another person’s property while driving
    • Uninsured motorist: pays for costs incurred by driver if injured by someone without auto insurance
    • Collision: pays for damage to the driver’s vehicle from colliding with another vehicle or object
    • Comprehensive: pays for damage to the driver’s vehicle for most other causes (fire, weather, theft)
    • Medical payments: pays to treat the injuries of the driver and passengers
    • PIP: pays medical payments, lost wages and funeral costs
    • Excess Medical Payments: pays for medical costs exceeding PIP benefits

    Step 3. Decide if You Even Need Full Coverage Car Insurance

    Determine whether you need full coverage car insurance or partial coverage so you can accurately compare car insurance quotes. Collision coverage will cover your vehicle if you total it during a collision along with any lesser repairs.

    Comprehensive coverage is what most rideshare drivers should consider as it can help cover all your bases. Whether you’re in a collision, you hit an object, an animal hits your vehicle, or if it gets stolen, you’ll still have some level of coverage and protection.

    However, if your car is older and paid off, you may not feel like you need full coverage. Typically, you’ll want comprehensive coverage if you still owe money on your car, but some people choose to carry comprehensive coverage regardless of the age or paid-off status of their car for peace of mind.

    Managing Editor Melissa Berry has a fully paid off, older Toyota Prius but chooses to keep comprehensive coverage because of all of the ‘other than collision’ things that could happen to her car, like theft or damage from trees or hail. Given how much she drives and where, theft or tree damage is not unlikely, plus the coverage itself is very cheap.

    It’s important to realize that liability insurance coverage won’t provide you with a payout to repair or replace your car. This could slow down your chances of getting back on the road and earning money from rideshare driving. Some insurance companies may only allow you to add on rideshare insurance to a full coverage policy and it’s understandable seeing how much additional coverage you’ll get.

    Step 4. Collect and Compare Car Insurance Quotes

    Now it’s time for the fun part – shopping around! Aim to get at least 5 quotes from different auto insurance companies. You can find a list of insurance companies by state at our Rideshare Insurance Marketplace.

    Consider some of the big names like State Farm, Allstate, and Progressive to see what they offer. Don’t forget to look at regional insurers too.

    Check out our list of rideshare insurance companies here to help you start your search.
    Instead of filling out a quote form with each company one by one, you may want to use a quote from a car insurance comparison site. That way, you can get several quotes all in one place and at the same time.

    Pro-tip: The lowest quote may not always be the best choice, so before making a decision, thoroughly compare all of the quotes to make sure you’re getting what you really need. For example, one company may offer you a lower monthly rate but for way less coverage than you’d feel comfortable accepting.

    Compare Car Insurance Rates

    When you compare car insurance, there are a few factors that go into how much your car insurance rate is going to be. Sometimes it gets to the point where even if you shop around you won’t see a big difference. Then, other times searching for a deal can make a huge impact on what you pay for insurance.

    Insurance companies factor in the type of vehicle you have, your driving history and your age when determining a monthly premium amount.

    Younger people and new drivers tend to pay more than older drivers with clean records. Marks on your driving record like accidents and tickets can make a huge impact on how much you pay monthly. Things like zip codes can also cause a big difference in rates. Rates can also vary widely among states as well.

    Rideshare insurance is something you should consider if you are driving for Lyft or Uber. The rideshare company may not help you pay for an accident if you don’t have the rideshare insurance and your insurance company may decide to drop you if you didn’t tell them you were a rideshare driver and you get in an accident.

    Comparing Minimum and Full Coverage Car Insurance Rates by Company

    There is actually a big difference when comparing car insurance and the annual rates between some of the top insurance companies out there. According to Nerd Wallet, you’ll be paying the most with Famer’s Insurance at $1,865, whereas if you’re a member of the military or otherwise have a connection, USAA can save you a lot at $1,023 for full coverage.

    USAA is only available to active military members, veterans, and their families, however. If you aren’t a military member, then Geico is the lowest of the big companies out there at $1,198. Just make sure to ask for GEICO commercial insurance, as we’ve had many readers be denied GEICO coverage because not every GEICO agent is aware their company offers rideshare insurance.

    California drivers have another option: Esurance. Learn more about how Esurance works for rideshare drivers in the video below: Esurance rideshare insurance explained and reviewed

    Comparing Minimum and Full Coverage Car Insurance Rates by State

    Nerd Wallet and Bank Rate have compiled the following information comparing car insurance rates by state (as of 2018):

    State Average Annual Car Insurance Rate
    Alabama $1401
    Alaska $1533
    Arizona $1409
    Arkansas $1427
    California $1627
    Colorado $1973
    Connecticut $2010
    Delaware $1959
    Florida $2352
    Georgia $1594
    Hawaii $1176
    Idaho $1269
    Illinois $1163
    Indiana $1270
    Iowa $1360
    Kansas $1669
    Kentucky $2385
    Louisiana $2608
    Maine $1062
    Maryland $1842
    Massachusetts $1466
    Michigan $3466
    Minnesota $1620
    Mississippi $1681
    Missouri $1805
    Montana $1963
    Nebraska $1493
    Nevada $2486
    New Hampshire $1070
    New Jersey $1759
    New Mexico $1605
    New York $1759
    North Carolina $1425
    North Dakota $1565
    Ohio $1051
    Oklahoma $1822
    Oregon $1228
    Pennsylvania $1700
    Rhode Island $1688
    South Carolina $1620
    South Dakota $1245
    Tennessee $1170
    Texas $1823
    Utah $1515
    Vermont $1374
    Virginia $960
    Washington $1640
    West Virginia $1653
    Wisconsin $1005
    Wyoming $1184

    First, getting a car as a rideshare driver can be hard enough since dealerships typically put a heavier emphasis on your debt, credit, and take-home income. We put together a
    car buying guide with more information, but basically our contributor Jay had a difficult time trying to obtain a loan.Car Insurance and Your Credit Score

    As you can see, your credit score impacts a lot of factors including what type of car insurance quote you’ll get. NerdWallet analyzed multiple quotes from several states to find that car owners with a poor credit score (usually a FICO score of 579 or lower) were treated differently by insurers and struggled to secure an affordable auto insurance rate.

    According to The Zebra, drivers with poor credit scores (between 300-579) pay $635 more for a 6-month car insurance policy than drivers with very good credit (740+). Improving your credit score could likely help you score a lower auto insurance premium. To do this, prioritize paying down your debts and paying bills on time. Also, monitor your credit to make sure there are no errors that would drive your score down.

    Compare Car Insurance Rates for a Clean Driving Record vs. At-Fault Crash

    So what if you get into a collision and it’s your fault? Walking away from a car accident in good health is always something to be grateful for. However, you’ll have to deal with the aftermath or filing a claim with your insurance to cover the damages.

    Your insurance premiums will likely go up with an accident on your driving record. But by how much exactly? According to data compiled by NerdWallet, you could be paying anywhere from an extra $200 to $900+ annually in insurance premiums.

    Overview of Picking the Right Rideshare Coverage for You

    When it comes to choosing the right type of insurance for you and your car, it pays to compare car insurance options. Luckily, the internet makes comparing car insurance easier than ever.

    As rideshare drivers, it’s crucial to make sure you have enough coverage and the right coverage to handle any kind of accident. We highly recommend you visit our Rideshare Insurance Marketplace, where we’ve done the work to interview dozens of insurance agents who understand rideshare insurance and can help you get the best policy for you and your situation.

    What kind of insurance do you currently use for rideshare or delivery?

    -Chonce @ RSG

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    Chonce Maddox Rhea

    Chonce Maddox Rhea

    Choncé is a freelance writer who’s obsessed with living well on a budget and loves encouraging people to make extra money so they can meet their financial goals. She is happily married to one of the best Uber drivers in the Chicago metro area, who currently has 2,800+ trips under his belt.