Cheapest Rideshare Insurance for Drivers
State Farm has the cheapest car insurance for rideshare drivers. It charges an average of $142 a month for a personal auto policy with rideshare coverage added to it.
Although transportation network companies (TNCs) such as Uber, Lyft and DoorDash provide some insurance for drivers, it is not always enough. Adding rideshare coverage to your own insurance protects you from these shortfalls.
What’s the cheapest car insurance for rideshare drivers?
State Farm has the cheapest car insurance for most rideshare drivers. Its rates average $142 a month. American Family has the next-cheapest rate at $165 a month.
USAA’s rates are actually the cheapest overall for rideshare drivers. However, USAA is only available to current and former members of the military and their families.
Cheapest car insurance for rideshare drivers
| Company | Monthly rate |
|---|---|
| State Farm | $142 |
| American Family | $165 |
| Erie | $174 |
| Grange | $176 |
| Progressive | $217 |
| Allstate | $255 |
| Farmers | $325 |
| USAA* | $136 |
How much does rideshare insurance cost?
It costs an average of $31 a month to add rideshare coverage to a personal car insurance policy. This brings the average cost of car insurance for a rideshare driver up to $199 a month.
The actual price you pay depends on factors such as your driving record, the type of vehicle you drive and where you live. Since a company’s rates vary by customer, it’s important to compare quotes from multiple companies when you shop.
What is rideshare insurance?
Standard car insurance does not cover commercial activities such as driving for a rideshare company. However, adding a rideshare endorsement to your personal policy keeps your normal coverages in effect while you are on duty for your TNC.
Major TNCs also provide their drivers with insurance. However, these policies have limitations.
For example, if you get into an accident while you’re waiting to pick up a ride, the TNC’s insurance does not cover damage to your car. The collision coverage in your personal car insurance only covers an accident like this if you have a rideshare endorsement.
Who needs rideshare insurance?
Rideshare insurance was created for those who use their personal vehicle to drive for an eligible TNC company such as Uber, Lyft or DoorDash.
If you drive for Uber Black or a transportation service that offers rides through a TNC, you typically need full-fledged commercial auto insurance.
What does a rideshare company’s insurance cover?
The amount of insurance that your rideshare company provides varies by driving period and by state.
Uber and Lyft provide a moderate level of coverage when you are waiting to accept a ride with your app on (period one). Their coverage increases when you are on your way to pick up a ride (period two) or a ride is in progress (period three).
Both companies provide liability coverage in most states. Liability covers injuries and property damage you cause to others in a car accident. In some states, they also provide uninsured motorist (UM) coverage, personal injury protection (PIP) and/or medical payments (MedPay):
- Uninsured motorist covers injuries to you and your passengers in an accident caused by a driver with no insurance, or hit-and-run.
- PIP and MedPay cover injuries you and your passengers suffer in an accident, regardless of fault.
Uber and Lyft also provide collision and comprehensive coverage in periods two and three. However, these coverages come with a $2,500 deductible and only kick in if you also have collision and comprehensive on your personal car insurance.
In most states, DoorDash only provides liability coverage during its delivery service period. The latter begins when you accept an order and ends when the order is complete or canceled.
Car insurance provided by Uber and Lyft
| Type of coverage | Period 1: Waiting for a ride, app on | Periods 2 and 3: Picking up passenger/ride in progress |
|---|---|---|
| Bodily injury liability | $50,000 per person, $100,000 per accident | $1 million combined for bodily injury and property damage |
| Property damage liability | $25,000 | Included in $1 million combined liability limit |
| Collision/comprehensive | None | $2,500 deductible |
| Uninsured motorist | Varies by state | Varies by state |
| Personal injury protection | Varies by state | Varies by state |
| Medical payments | Varies by state | Varies by state |
Sources: Uber and Lyft
What does personal rideshare insurance cover?
A rideshare endorsement keeps the coverages in your personal car insurance active while you drive for your TNC.
The more coverage you have in your personal car insurance, the more coverage you get with your personal rideshare endorsement.
For example, if your personal policy includes PIP, your personal policy covers injuries you suffer in an accident while driving for your TNC. This is particularly valuable in states where TNCs’ policies don’t already include PIP.
If your personal policy includes collision coverage, your car is covered for accident damage in all three TNC driving periods.
Which companies offer rideshare insurance?
Rideshare insurance is not available from every car insurance company, and this makes it a little harder to find than normal car insurance.
When possible, you should be upfront about needing rideshare insurance with the companies you contact for a quote. If they don’t offer this coverage, you can quickly move on to the next company on your list.
If you’re wondering where to begin, here are some of the better-known companies that offer rideshare insurance:
- Allstate
- American Family
- Erie
- Farmers
- Grange
- Mercury
- NJM
- Progressive
- State Farm
- USAA
Is rideshare insurance required?
If you drive for a TNC, your current car insurance company may require you to add its rideshare endorsement to your policy, if it offers one.
Some companies don’t insure drivers who use their personal vehicle for a rideshare company.
You should contact your current insurance company if you plan to start driving for TNC in the future. You can find out if any restrictions apply and learn about your coverage options.
If your insurance company finds out you’ve been driving for a TNC without letting them know, it may drop you.
Methodology
Rates are based on an analysis of rideshare insurance quotes obtained from Quadrant Information Services for sample drivers in Arizona, Illinois and Ohio.
Our sample ride-share driver is a 30-year-old male with a clean driving record and good credit. Our sample vehicle is a 2015 Honda Civic EX.
Quoted policies include a rideshare endorsement and the following coverages, limits and deductibles:
- Bodily injury liability: $50,000 per person, $100,000 per accident
- Property damage liability: $25,000
- Uninsured motorist bodily injury: $50,000 per person, $100,000 per accident
- Collision: $500 deductible
- Comprehensive: $500 deductible
Prices are shown for comparative purposes only. Your rates may vary.
*USAA is only available to current and former members of the military and their families.