Rideshare insurance can be a complex topic, but as more carriers launch policies, there are more options and resources available for drivers every day. Today, senior RSG contributor Jon Knope takes a look at State Farm’s rideshare insurance policy. For a full listing of rideshare insurance options in your state, head over to our Insurance Marketplace.
State Farm is a major player in the rideshare insurance business, and they offer a unique type of coverage. More importantly, State Farm’s rideshare insurance policies are being offered in a growing number of states – and they’re already a popular choice for many renters and homeowners.
If you’ve already got State Farm insurance for something else, you may find it quite affordable to bundle in a rideshare insurance policy. Here, we’ll talk about how State Farm’s rideshare policies work, how much they cost, and how they stack up to other rideshare insurance providers.
Where does State Farm offer rideshare insurance?
State Farm offers rideshare-friendly policies in the following states:
Alabama, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, Washington, D.C, and Wyoming.
You can find all the choices available in your state by visiting our Rideshare Insurance Marketplace.
How does State Farm rideshare insurance work?
Like any rideshare insurance policy, the most important part is that you won’t be dropped for driving for Uber or Lyft. State Farm’s rideshare insurance policies keep you covered by allowing you to use your vehicle for these purposes.
Another reason to have rideshare insurance is the infamous period one gap. During period two (when you’re en route to a passenger) and period three (when the passenger is in your car), Uber and Lyft offer coverage, which can act as your primary policy. But during period one (when you’re online and waiting for requests), the TNCs offer precious little coverage: the liability limits are dangerously low, and you won’t have collision insurance. Since regular personal insurers don’t cover period one either (as it’s still commercial activity), this makes period one very risky for those without rideshare insurance.
State Farm solves this by extending your personal coverage through all three periods. Specifically, when your Uber/Lyft app is on and you’re waiting for a ping, coverage extends from your personal State Farm auto policy. Coverage may include liability coverage for property damage and injury to others, physical damage coverage for damage to your car, and emergency roadside service. Once you’re matched with a rider or are transporting him or her, the same coverage — minus liability to others — may apply.
We recommend reaching out to a State Farm agent in your state to determine what type of coverage your state requires you to have.
Related: 5 Reasons To Get Rideshare Insurance
Here’s a handy graphic to show you how State Farm insurance covers you:
How does State Farm’s rideshare insurance differ from other providers?
Some rideshare insurers offer “gap coverage,” which extends your personal policy to include period one, but stops short of providing coverage during all three periods. In this scenario, you’ll be at the mercy of James River or Steadfast (Uber and Lyft’s insurance providers, respectively) if you’re in an accident during periods two or three. Except for liability coverage, which shifts to the TNC, your State Farm’s car policy coverages (such as rental, medical payments for you or comprehensive) actually extend through all three periods. So if you have an accident at any point, you can go through State Farm.
This is really helpful if you depend heavily on rideshare driving as a source of income. When you report an accident to Uber or Lyft, it’s a big hassle to get reactivated and can often take weeks. Further, dealing with James River can be a nightmare, and most drivers are given all kinds of runarounds before actually getting their claims paid out. And I haven’t even mentioned the hefty deductibles – $1,000 for Uber and $2,500 for Lyft, regardless of who’s at fault.
Note: If you do get into an accident while rideshare driving and the other driver is at fault, we recommend you contact a lawyer who specializes in rideshare accident cases as you may be eligible for medical, repairs to your car, lost wages and more. We recommend Bryant Greening of LegalRideshare.
With State Farm, you can avoid all that hassle and just call your State Farm agent’s office to get the claim started, regardless of which period the accident happened in. State Farm makes it very easy to get a claim started – you can go online through your account portal, call State Farm, or submit your claim through the State Farm app. In addition to making it easy to file a claim, your State Farm agent can also help ease any concerns you have during the process, since you’ll already have a working relationship with your agent.
You’ll still receive all of your usual personal policy’s features. They’ll work to refund your deductible if you weren’t at fault – and if you opt for coverage that includes a rental in the event of an accident, you may even be able to keep working while your car is in the shop.
How much does a State Farm policy cost?
It depends on a lot of different factors. Typically, rideshare insurance is a little more expensive than a comparable policy without a ridesharing endorsement. If it’s been awhile since you last shopped for a quote, however, you may find that a rideshare-friendly policy is cheaper than what you’re paying now. State Farm also offers the usual discounts for bundling multiple policies, so you may be able to save some cash there, too.
We ran a sample quote to compare several competing rideshare insurance policies in CA (including one from State Farm) – the total cost was $166 per month, taking into account two traffic violations and a bundled renters’ insurance policy. Check out our full findings here.
According to State Farm, adding a rideshare coverage endorsement “typically adds about 15–20 percent to your current premium.”
Does State Farm only offer rideshare insurance to part-time drivers?
State Farm’s TNC Endorsement is aimed at part-time drivers, but this is not a requirement to purchase this type of coverage. On a corporate level, the company wants to focus on insuring drivers who only do rideshare driving part-time, since they represent a lower risk. However, there isn’t a good way to quantify how much driving people are doing – or what percentage of it is ridesharing.
From what we’ve been told, you’ll still be able to acquire a State Farm rideshare policy regardless of how much you drive – and you can rest assured that there are no time or mileage limits that go along with the policy. You can work and drive as much or as little as you like, and you’ll still be covered regardless.
Will rideshare insurance cover a rental car?
In most cases, no. According to insurance agent Doug Eisold, insurance companies want to make sure the person getting insurance has “insurable interest” in the car, meaning they have their name on it – and a rental car would be in the company’s name. Also, most rental car companies don’t let you make money with their cars, per the contract.
Looking for a car that you can use for rideshare or delivery driving? Check out our vehicle marketplace here.
Where can I get a quote?
Over the years, we’ve gotten to know a few State Farm agents who are especially familiar with the unique needs of rideshare drivers. Here’s their contact info (note: you’ll need to find an agent in your state):
Alabama Rideshare Insurance Agents
Arizona Rideshare Insurance Agents
California Rideshare Insurance Agents
Thach Ho – (877) 411-2221 – San Francisco Bay Area, CA
Kyle Middleton Insurance Services – (916) 234-0604 – Sacramento/Central Valley, CA
Kyle Middleton Insurance Services – (323) 250-0800 – Los Angeles/Orange County, CA
Thach Ho – (858) 746-9555 – San Diego, CA
Florida Rideshare Insurance Agents
Chris Tighe – 561-965-2588
Idaho Rideshare Insurance Agents
Randy Thompson – 888-767-0188
Illinois Rideshare Insurance Agents
Indiana Rideshare Insurance Agents
Mississippi Rideshare Insurance Agents
Missouri Rideshare Insurance Agents
Jody White – 618-343-1400
Nevada Rideshare Insurance Agents
Perry Olson – (702) 713-7671
New Jersey Rideshare Insurance Agents
Oregon Rideshare Insurance Agents
Jill Verboort –503-992-6167 – Portland, OR
Pennsylvania Rideshare Insurance Agents
Tennessee Rideshare Insurance Agents
Texas Rideshare Insurance Agents
Thien Thai – (800) 218-0264
Washington Rideshare Insurance Agents
Jill Verboort –503-992-6167 – Vancouver, WA
Wyoming Rideshare Insurance Agents
If you’ve worked with an agent in your area who you’d recommend, let us know in the comments or send us an e-mail. And my usual advice never goes amiss – get quotes from every rideshare insurance provider in your area. It never hurts to know your options. Find out what other options are available in your state through our rideshare insurance marketplace.
Readers: Do you have State Farm rideshare insurance? How do you like it? Share your experience in the comments!
-Jon @ RSG