How Does Allstate Rideshare Insurance Work?

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Harry here. Allstate rideshare insurance is offered in many states and is a popular option for drivers looking for cheap, all-around rideshare coverage. As we covered State Farm rideshare insurance here, and USAA rideshare insurance here, we also wanted to see what Allstate offers. Today, senior RSG contributor Jon Knope covers Allstate rideshare insurance, where you can get it, and what it may cost.

If you’re looking for more rideshare insurance options, check out our Insurance Marketplace here for more options in your state.

Allstate’s rideshare insurance offering – known as Allstate Ride for Hire – is available in a growing number of states, and it’s a popular choice for drivers looking for a cheap way to obtain good coverage while working for Uber and Lyft.

The Endorsement

Allstate’s coverage works by adding what’s known as a “rideshare endorsement” to an otherwise standard Allstate auto policy. The endorsement prevents you from being dropped from your policy as a result of driving for Uber or Lyft – and it closes the all-important Period 1 coverage gap.

If you’re not aware, Uber and Lyft provide dangerously low levels of coverage while you’re waiting for rides – but because you’re online, this still counts as commercial activity. That means a personal policy won’t cover you during Period 1 either. An Allstate policy with the rideshare endorsement solves this problem by extending your personal coverage to include period one.

Click here for more reasons why every Uber and Lyft driver needs rideshare insurance.

Availability as of 6/5/17

Allstate offers rideshare insurance to residents of the following states:

Arizona
California
Colorado
DC
Georgia
Illinois
Indiana
Kentucky
Maryland
Minnesota
Nevada
Ohio
Oklahoma
South Carolina
Tennessee
Texas
Utah
Washington
Wisconsin

If Allstate doesn’t cover your area, be sure to check out the Rideshare Insurance Marketplace to find out who does.

Extras – Deductible Gap Coverage

In addition to keeping you legal by allowing for ridesharing (and by closing the Period 1 coverage gap), Allstate’s rideshare endorsement also comes with a big perk: deductible gap coverage.

If you’re a Lyft driver, you may know that Lyft’s deductible is pretty high – $2,500, to be exact. That means if you get into an accident, you’ll be on the hook for damages up to $2,500. Uber’s deductible is lower but is still at $1,000.

Deductible gap coverage through your Allstate rideshare policy will reimburse you for a portion of that deductible, so that it matches the deductible on your personal policy. You’ll still need to pay the full amount to the TNC first – but once you send the receipt to Allstate, they’ll pay you the difference between the TNC’s deductible and your personal one. If you’re on the hook for the full $2,500, but your personal deductible is only $500, Allstate will reimburse you $2,000.

Fine Print

Allstate doesn’t cover you when you have passengers in the car (Period 3) or when you’re on the way to pick someone up (Period 2). Although they can help you meet the TNC’s deductible, you’re still reliant on Uber and Lyft’s insurance providers during periods 2 and 3. This is usually okay, since Uber and Lyft do cover you during these periods – and it definitely helps keep the cost down, in comparison to other policies that cover you all the time. Nonetheless, having to deal with Uber and Lyft and their insurance providers to process your claim can definitely be a drawback.

Allstate’s Ride For Hire also doesn’t cover you if you’re working for a company that doesn’t cover you with their own company policy while you’re working. In essence: As long as you’re on the clock, it’s up to your employer (or “client,” if you’re an independent contractor) to insure you.

Cost

Allstate’s rideshare-friendly policies are cheaper than many of their competitors because they are not full commercial policies, but rather an extended type of personal policy. In many cases, the cost of adding a rideshare endorsement to an existing Allstate policy is as little as $10-$20 dollars a month.

A while back, we ran some sample quotes through four different rideshare insurance providers. Allstate was by far the cheapest – $113 per month, or $673 for the 6-month policy. Click here to learn more about the numbers we used and the quote we received.

Where to Get a Quote

We’ve got a few Allstate agents listed by state in our Rideshare Insurance Marketplace. These are all folks who’ve demonstrated a good understanding of rideshare insurance and drivers’ needs – which is still something of a rarity in the auto insurance business! You can also get a quote through the Allstate website.

If you have an agent you’ve worked with and recommend, let us know in the comments. Below is our complete list of recommended agents:

California
Doug Eisold
[email protected]
(858) 271-7900

Arizona
Donnie Plunkett
[email protected]
480-595-7434

Illinois
Patrick McHugh
[email protected]

Texas – Dallas/Fort Worth
Carl Hellwege
[email protected]

Texas – Austin
John Murphy
[email protected]

Washington

Colin Johnson
[email protected]

Readers: Do you have a rideshare endorsement on your Allstate policy? Share your feedback in the comments.

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-Jon @ RSG

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Jonathan Knope

Jonathan Knope is a freelance writer and rideshare driver hailing from Atlanta, GA. Over the past two years, he's worked for many of the big names in the rideshare industry, including Uber, Lyft, DoorDash, and Amazon Flex. Though he's an avid tech enthusiast, Jonathan also enjoys cycling and backpacking excursions.