Rideshare Insurance: Everything You Need to Know
Insurance for rideshare drivers falls between commercial and personal auto insurance. Learn more about how to insure your vehicle, or enter your ZIP code below to start comparing rates.
What is rideshare insurance?
Rideshare insurance is a car insurance endorsement option that bridges the gap between a personal auto insurance and the commercial policy provided by the rideshare company. In short: your rideshare insurance covers you up until accepting a ride request; once you've accepted a ride, coverage from the rideshare company takes over.
Let's explore the ins and outs of rideshare insurance, how much it costs, and what the coverage from rideshare companies like Uber and Lyft look like.Â
How much does rideshare insurance cost?
We discovered that adding a rideshare endorsement to your car insurance policy will raise your rates by an average of $94. Below are some car insurance providers that include this coverage as well as some estimated rates.
Keep in mind, rideshare availability will be subject to state and insurance provider availability. This data reflects costs paid by an average user profile in the U.S.
Updating data...
Company | With Rideshare Endorsement | Without Rideshare Coverage |
---|---|---|
Allstate | $217 | $214 |
Farmers | $217 | $160 |
GEICO | $138 | $138 |
Nationwide | $139 | $139 |
Progressive | $193 | $158 |
State Farm | $172 | $146 |
USAA | $131 | $121 |
Source: The Zebra
Our agents can help you find rideshare insurance with select companies! Give them a call at 1-888-255-4364 to learn more.Â
How rideshare car insurance works for Uber and Lyft
If you are a Lyft or Uber driver, it's vital for you to know how your personal insurance and rideshare insurance policies differ. We'll start by breaking down how auto insurance coverage for the two largest ridesharing companies works. For more details on each period, expand the sections below.
Period 0: Offline |
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Period 1: Logged in and available |
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Period 2: En route to pick up passenger |
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Period 3: Transporting passenger |
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What kind of coverage does Lyft/Uber provide to their drivers?
Uber and Lyft provide coverage to their drivers, but only in periods 1, 2 and 3, and the coverage amounts vary.Â
Period | Coverage type | Limit |
---|---|---|
Period 1 | Liability | $1 million |
Periods 2 & 3 | Liability | $1 million |
Uninsured motorist/underinsured motorist coverage (UM/UIM) | $1 million | |
Contingent collision and comprehensive coverage* | $50K per person bodily injury/ $100K per accident bodily injury/ $25K per accident property damage |
Uber and Lyft coverage also carries deductibles for periods 2 and 3. Lyft enforces a maximum payout of $50,000 per accident.
- Uber deductible: $1,000
- Lyft deductible: $2,500
*Contingent comprehensive and collision coverage is dependent on your personal auto policy also carrying full coverage. The Lyft and Uber insurance limits are designed to meet or exceed state limits. If your state requirements differ, the company will match them, though they will not lower limits beyond their company standard of 50/100/25.
Do I need rideshare insurance?Â
Without rideshare insurance of your own, drivers are only covered by Uber or Lyft's insurance when the passenger is in the vehicle. This leaves the time waiting for a ride and traveling to the passenger with coverage gaps. With the rideshare endorsement, the coverage provided by your personal auto policy is extended through period 1, taking care of any coverage gaps that could prove costly.Â
In addition to providing coverage for the period when a driver is awaiting a ride request, rideshare coverage makes it so your insurance company can’t cancel your policy for being a rideshare driver. Most motorists have their cars insured for personal use. Using your vehicle in a business fashion — as rideshare drivers do — could actually require a more costly commercial policy.
Working as a rideshare driver complicates the seemingly straightforward relationship between personal car insurance — the type of policy most drivers carry — and commercial car insurance. Insurance companies had to create entirely new rules and regulations to accommodate companies like Uber and Lyft.Â
Futher, delivery driver insurance still slightly differs from traditional rideshare insurance. Do you also drive for UberEats, Doordash, or other delivery service? Check out our page on car insurance for delivery drivers.
Get auto insurance for rideshare drivers today!
What to do if you're in an accident while driving for Uber or Lyft
Whether you are driving for a rideshare service or not, the first thing you should do in an accident is to contact the police. Afterward, you can start thinking about insurance. Follow your company's protocol based on the period you are in:
- Period 0 (offline): Accidents that occur during period 0 fall under your personal policy and should be reported as such — unless your state or rideshare company stipulates otherwise.
- Period 1 (logged in + available): Uber and Lyft provide liability-only coverage during period 1, so a rideshare policy is critical to prevent coverage gaps — contact both your personal insurance company and the rideshare service if you get in an accident in period 1.
- Periods 2 and 3 (en route to or transporting passenger): If you are on your way to pick up a fare or are currently carrying a passenger when the accident occurs, Uber and Lyft's coverage works fully, covering any damages or injuries that you cause up to $1 million; however, the rideshare company's collision and comprehensive coverage only applies if you carry them on your personal policy.Â
Agent insight from The Zebra:
If an accident were to occur while waiting for a passenger, your personal auto policy would cover the loss. The comprehensive/collision deductibles you selected for your personal auto policy would apply here. If you get into an acciedent while in transit to pick up a passenger or you already have a passenger in your vehicle, then the commercial policy provided though Lyft or Uber would provide coverage and be subject to deductibles set by the company.
Katy Griffen — Insurance advisor at The Zebra
Uber and Lyft insurance coverage requirements by state
*If you just glanced at this table and your head is already spinning, Ask an Agent about rideshare insurance and we'll help you out.
*Please note: it is your responsibility to inform your insurance company that you drive for a ride-sharing service. Because this is considered a business activity, a standard insurance policy does not provide sufficient coverage. Driving for a rideshare company without a proper insurance policy could leave you at risk for any potential damages and could lead to your coverage being dropped altogether. Please contact a representative at your insurance company to discuss coverage options.
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Frequently asked questions— Rideshare insurance
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.