How much is rideshare insurance and what do you need to know about it?
As you’re figuring out how to answer the question, "how much is rideshare insurance?" there are many things to consider. First, the rideshare company you work for should have insurance that covers you when you are en route and during the drive. You will need additional coverage for when you are driving for personal use and while you are waiting for a ride request. Many auto insurers allow you to add rideshare insurance to your standard policy, but how much rideshare insurance is for you will vary.
UPDATED: Nov 17, 2021
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- Adding rideshare insurance to your policy isn’t that expensive
- Not all auto insurance companies offer rideshare insurance
- If you are in an accident while driving for a rideshare company, your auto insurance company can refuse or deny coverage without rideshare coverage
If you drive for a rideshare company, your auto insurance company needs to know. You need to add rideshare insurance to your policy to cover you in case of an accident.
How much is rideshare insurance? That depends on your insurer and where you live. It can be complicated, but we can help make it simple.
We’ll cover how to get rideshare insurance, how much it costs, and where to buy it below. Shop around before you buy rideshare insurance. Compare multiple companies to find the best deal for you.
Keep reading to learn about the cost of rideshare insurance. Enter your ZIP code now to compare free quotes from auto insurance companies in your area.
How much is rideshare insurance?
If you drive for Uber or Lyft, you might think that your standard auto insurance will cover you if you’re in an accident. Unfortunately, that’s usually not the case.
According to Nolo, most rideshare companies treat drivers like independent contractors, not employees. This limits the company’s liability if there’s an accident.
Unfortunately, this also means that drivers can’t depend on companies like Uber and Lyft to offer the auto insurance needed.
Your auto insurance company wants to know how you are using your car. That’s because more time on the road equals a higher chance of getting in an accident.
Although Lyft and Uber driver insurance covers you when you are driving to pick up a rider and during the ride, it doesn’t protect you at any other time.
Fortunately, many car insurance companies offer rideshare insurance that covers you when you are waiting for a ride request as well as for personal use of your car.
The good news is, the cost of rideshare insurance is pretty low when added to your standard coverage. This table shows you average rates from some of the top auto insurance companies.
|Company||Rideshare Insurance Rates|
|Allstate||$20 per year|
|Erie||$9 to $15 per month|
|Mercury||$27 per month|
|Safeco||$10 per month|
|State Farm||15%-20% of auto insurance policy|
|USAA||$6 per month|
You can see that adding rideshare coverage to your policy isn’t very expensive. If you don’t add the extra coverage, your insurer can not only refuse to pay your claim, but it can also cancel your insurance policy.
Which auto insurance companies offer rideshare insurance?
Not all auto insurance companies offer rideshare insurance. Additionally, the companies available will also vary by state.
This table shows you the top auto insurance companies that offer rideshare insurance in each state.
|State||Auto Insurance Companies with Rideshare Insurance|
|Alabama||Farmers, Geico, State Farm, USAA|
|Arizona||Allstate, Farmers, Geico, Mercury, USAA|
|California||Allstate, Farmers, Liberty Mutual, Mercury, Metlife, Metromile, State Farm, USAA|
|Colorado||Allstate, Farmers, Geico, Metlife, Safeco, State Farm, USAA|
|Connecticut||Geico, Liberty Mutual, State Farm|
|District of Columbia||Allstate, Geico, Liberty Mutual|
|Georgia||Allstate, Farmers, Geico, State Farm, USAA|
|Idaho||Farmers, State Farm|
|Illinois||Allstate, Erie, Farmers, Geico, Mercury, Metlife, Metromile, Safeco, USAA|
|Indiana||Allstate, Erie, Farmers, Geico, Safeco, State Farm, USAA|
|Iowa||Farmers, State Farm, USAA|
|Kansas||Farmers, Geico, USAA|
|Kentucky||Allstate, Erie, State Farm, USAA|
|Louisiana||State Farm, USAA|
|Maine||Geico, State Farm|
|Maryland||Allstate, Erie, Farmers, Geico, Liberty Mutual, USAA|
|Massachusetts||Liberty Mutual, USAA|
|Minnesota||Allstate, Farmers, Geico|
|Nebraska||Farmers, Geico, State Farm, USAA|
|Nevada||Allstate, Mercury, State Farm|
|New Jersey||Farmers, USAA|
|New Mexico||Farmers, Geico|
|New York||None Listed|
|North Carolina||Farmers, Liberty Mutual|
|North Dakota||None Listed|
|Ohio||Allstate, Erie, Farmers, Geico, State Farm, USAA|
|Oklahoma||Allstate, Farmers, Geico, Mercury, State Farm, USAA|
|Oregon||State Farm, USAA|
|Pennsylvania||Erie, Geico, Liberty Mutual, Progressive|
|Rhode Island||Geico, Liberty Mutual|
|South Dakota||None Listed|
|Tennessee||Allstate, Erie, Farmers, Geico, Liberty Mutual, State Farm, USAA|
|Texas||Allstate, Farmers, Geico, Liberty Mutual, Metlife, Progressive, USAA|
|Virginia||Allstate, Erie, Geico, Liberty Mutual|
|Washington||Allstate, Metlife, Metromile, State Farm, USAA|
|West Virginia||State Farm|
|Wisconsin||Allstate, Erie, Farmers, Geico, State Farm|
In most states, there are multiple auto insurance companies to choose from.
If your state doesn’t offer rideshare insurance, consider getting a commercial policy. You’ll get more coverage with a commercial policy. However, you will also pay more.
What happens if you are in an accident while driving for a rideshare?
If you are a rideshare driver and have an accident, which insurance coverage handles the claim will depend on when the accident happened.
Typically, there are several periods of activity when ridesharing:
- Period 0 – You are using your vehicle for personal use. Your standard personal insurance would handle any claims
- Period 1 – You have logged into the rideshare app and are waiting for a ride request. Your personal insurance with rideshare coverage would pay for damages.
- Period 2 – You are on your way to pick up a rider. Insurance through your rideshare company would pay for claims.
- Period 3 – You’ve picked up your rider and are on the way to drop off. Again, the insurance coverage carried by your rideshare company would pay for claims.
You will need to carry full coverage insurance on your personal policy for the rideshare company to give you the same coverage.
Keep in mind, the comprehensive and collision deductibles for insurance from rideshare companies will be higher than usual.
How do car insurance deductibles work? Your deductible is the amount of money you have to pay for damages before your auto insurance kicks in.
While your personal policy may carry a deductible of $500, Uber or Lyft may have a deductible of $2,500, for example.
How much is rideshare insurance? The Bottom Line
Adding rideshare insurance does cost a little more. However, if you don’t add the extra coverage, your auto insurance company can refuse to pay your claim and even drop your coverage.
Find affordable rideshare insurance by shopping around. The best rideshare insurance for you will depend on many factors, including the state where you live.
Now that you know how much rideshare insurance can cost, enter your ZIP code to compare rates from auto insurance companies near you for free.