Best Car Insurance Options for Uber Drivers and Lyft Drivers
If you’re looking for the best rideshare insurance in 2019, we’ve made it easy to learn about the options in your state on the page below. Make sure to get several rideshare insurance quotes from the agents below. There are still a few states that don’t have rideshare friendly options, but we keep this page updated as new options are added every week, so be sure to check back frequently!
If you’re just learning about rideshare insurance and not sure why you need it, it’s because as a rideshare driver, you need to be especially mindful about the risks and insurance limits in your state. There are many states where there isn’t an officially recognized rideshare insurance policy and, although you may still be covered by Uber/Lyft, your personal insurer may drop you for being a rideshare driver. You don’t want your income stream cut off before rent is due next month!
Why You Need Commercial Auto Insurance When Driving for Uber and Lyft
Uber and Lyft only cover rideshare drivers during Periods 2 and 3. Period 2 starts once you accept a ride request and are en route to your passenger, and Period 3 starts once your passenger gets into your car. BUT when you’re online and waiting for a request during Period 1, you have no collision coverage from Uber or Lyft and much lower liability limits. So as a rideshare driver, you’re most at risk during Period 1 since you won’t get any collision coverage from rideshare companies and your personal insurer likely won’t cover you during this time either.
Getting a rideshare insurance quote and rideshare insurance solves this gap by covering drivers during Period 1, and additionally they won’t drop you for being a rideshare driver. Some policies will even cover you during Periods 2 and 3 so you won’t be subject to Uber’s $1,000 collision deductible and Lyft’s $2,500 collision deductible.
You may be able to deduct your rideshare insurance from your tax bill. Use the Stride Tax App to maximize your deductions to keep more of your income.
What is Rideshare Insurance?
I’ve covered this issue extensively, so if you want to brush up on the current state of insurance for rideshare, here are some of the best rideshare insurance resources for you to review:
- Why Do I Need A Rideshare Insurance Policy?
- How To Handle Insurance After An Accident
- Rideshare’s Little White Lie
- Podcast: Everything You Need to Know About Rideshare Insurance
- Youtube Video: What Do Drivers Need to Know About Rideshare Insurance?
- All of our insurance articles
What’s the difference between rideshare and commercial insurance?
Is Rideshare Insurance Available in Your Area?
Over the past year, almost all of the major carriers have begun offering rideshare insurance policies for drivers. This is great news since we no longer need to worry about being dropped by our insurance company if we insure with a rideshare-friendly insurance company. This is why it pays to get multiple rideshare insurance quotes!
But changing insurance is obviously not a simple matter since many of us have policies across our homes, other cars, etc. My hope is that one day all major carriers will offer rideshare-friendly policies but, until then, drivers will have to either switch insurers or assume the risk of going without a rideshare friendly policy.
Rideshare Insurance Companies
Rideshare insurance is widely available these days and even some of the most well-known insurance providers are offering competitive coverage levels for drivers. Here’s what some of the top 4 big names in the industry offer.
Geico offers rideshare insurance in most states and they offer a hybrid coverage option which covers you when you drive rideshare along with when you drive for personal reasons. Geico’s rideshare insurance is comprehensive and covers you for all three periods of Uber nad Lyft driving including when the app is on and you are waiting for a passenger (Period 1) when you’re en route to a passenger (Period 2), and when passengers are in your car (Period 3).
This hybrid insurance also covers you when you’re doing food delivery (Uber Eats for example) and there are no strict mileage restrictions.
Allstate offers a rideshare endorsement to your regular auto insurance policy which will help cover your vehicle while you’re rideshare driving. Allstate’s rideshare endorsement helps close the infamous Period 1 coverage gap when Uber and Lyft’s insurance won’t cover you if you get into an accident when the app is on and you’re waiting for a trip.
However, Allstate’s endorsement won’t cover you during Periods 2 and 3 when Uber and Lyft’s insurance would cover you. With this policy, you’d also get deductible gap coverage so if you did need to file a claim through Uber or Lyft, Allstate would reimburse you for a portion of that deductible, so that it matches the deductible on your personal policy. For example, if you have to pay Lyft’s high deductible of $2,500 and your Allstate insurance deductible is only $500, you’d get reimbursed the difference.
Adding a rideshare endorsement to an existing policy can only cost you an extra $10 – $20 per month.
State Farm is another company that offers ‘gap coverage’ for rideshare drivers that extends to your personal policy to include Period 1 coverage. In fact, State Farm’s rideshare insurance can provide you with some amount of coverage during all 3 periods for rideshare drivers.
According to State Farm reps, adding a rideshare coverage endorsement “typically adds about 15–20 percent to your current premium.”
Farmers was one of the first insurers to offer rideshare endorsements. Like many other companies thy offer ‘gap coverage’ for rideshare drivers which can be added to a standard personal policy. While Farmer’s rideshare insurance is not a commercial policy, it does extend coverage through Period 1 so you’re completely covered when rideshare driving.
You can expect to pay about 25% more for your Farmers policy with a rideshare endorsement, but you won’t have to worry about getting dropped for driving for companies like Uber or Lyft. Another perk is that Farmer’s offers a rental car/loss of use option where they will provide you with a rental car or a set amount per day each day that your car is out of commission. There are caps for this of course, but it’s a nice benefit to have overall.
Other Insurance Companies that Offer Rideshare Insurance:
- Erie Insurance
- Liberty Mutual
- Quoteasy/Bristol West
Sign up to drive for Uber and Lyft
- Check out the Uber driver sign up bonus and Lyft driver sign up bonus. Here’s how to become an Uber driver.
Get a car
- Check out our vehicle marketplace to learn how to rent or lease a car to drive for Uber and other services. And use the GetUpside app and promo code to save money on gas.
Uber accident attorney
- Read out Uber Accident Lawyer page to learn how to handle rideshare insurance after an accident.
How Much Does Rideshare Insurance Cost?
As you know, insurance costs vary by company vastly. They also vary based on the services you want included in them and also on your own driving record. The best advice is to shop around. Find all of your options available in your area and choose the insurance company that works best for you. After doing some shopping around in California, I found that there was a range of $113 to $205 a month for rideshare insurance, which is in line with what I’ve found for most other drivers. If you have a better driving record or you live in an area that is cheaper to insure, you may be on the lower end. But for a lot of drivers, the average quote may come in at around $150/month.
One thing to keep in mind is what all is covered by each insurance company. For instance, in my research for the price range, I found that State Farm was the only company that offered coverage for all three periods instead of just period one so you can fully process your claim through State Farm instead of going through the TNC. On the other hand, if you have Allstate and get into an accident during period 2 or 3, Allstate will pay part of Uber’s $1000 deductible (or Lyft’s $2,500 deductible, etc) to make it match the deductible on your policy. So, again, shopping around and knowing what you want while comparing what each company offers is the best way to go about finding the right rideshare insurance for you.
For more information, take a look at this video on which companies offer rideshare insurance:
Need a car to drive with Uber? Try FAIRCA drivers: Fair is the official vehicle partner for Uber and is a great option for drivers in need of an eligible rideshare vehicle. Click here to sign-up! Not a California driver? Fair has options nationwide, and you can sign up here and get $100 off the start-up fee when you use the code 'RSG100'.
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