Affordable Auto Insurance Quotes for Rideshare Drivers (2023)

Employees of rideshare companies, such as Uber, Lyft, Instacart, or Postmates, may believe that between their personal auto insurance and employer-provided coverage any accident-related expenses will be covered, but this isn’t always the case. Learn what auto insurance does.

Since you are only protected by your rideshare company’s insurance during certain periods, you are vulnerable to being financially responsible for accident-related expenses that aren’t covered by insurance. Luckily, purchasing your own rideshare insurance allows you to close the gap and keep yourself protected. 

Here’s more on rideshare insurance. 

What is rideshare insurance? 

Rideshare insurance is a type of commercial insurance that covers drivers employed by rideshare companies, such as Uber, Lyft, Uber Eats, and Postmates, which transport customers and/or goods. Learn about Postmates auto insurance here.

Basically, if you get into an accident while driving for your rideshare employer, your personal insurance won’t cover you, and depending on your employer, coverage may be minimal, if any. Car insurance for rideshare drivers is useful because it closes that gap during those periods when you’re not covered. 

Insurance companies allow drivers to purchase this additional coverage as a hybrid package or add it to their policy. This specific coverage protects drivers when they are driving for work. Learn how to get auto insurance here.

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Rideshare Insurance Coverage

Here are some important facts you should know about rideshare insurance coverage. 

• It is used to fill in the gap between personal coverage and employer-provided coverage.
• Depending on location, it is not required by law to have rideshare insurance. 
• It differs from standard commercial coverage.

Below we’ll discuss rideshare insurance coverage in further detail. 

Rideshare Company Insurance

Employees of rideshare companies, such as Uber and Lyft, are often covered by the company, but coverage is only in effect during certain periods. For example, Lyft drivers are covered by Lyft’s auto insurance when the app is on and ready to pick up a passenger, the driver is picking up the passenger, and during the ride. 

Rideshare companies typically provide the following types of auto insurance coverage to their employees: 

• Liability auto insurance (bodily injury and property damage)
• Underinsured/uninsured motorist coverage
• Collision coverage
• Comprehensive auto insurance coverage

Although your rideshare company may offer auto insurance coverage during specified periods, you may still want to consider adding rideshare coverage to your personal auto insurance policy. Learn how much coverage you need.

Rideshare Commercial Insurance

Standard commercial insurance coverage is usually used for large businesses with fleets of vehicles. Rideshare insurance is still considered a type of commercial insurance, but drivers use their personal vehicles for work in addition to personal obligations, rather than operating company-supplied vehicles used strictly for commercial purposes. 

Is rideshare insurance required?

Adding rideshare insurance to your personal auto insurance policy is not required. In most states, rideshare companies must offer drivers coverage while they are on the clock. However, this coverage doesn’t wholly protect drivers because it only applies during certain periods. For that reason, drivers choose to purchase their own rideshare insurance. Find out if you need special insurance coverage to use your car for work. 

What does rideshare insurance cover?

Between your minimum liability insurance and the auto insurance offered by the rideshare company, you may not be completely covered in the event of an accident, which is where rideshare insurance comes in. Rideshare drivers are only covered when picking up a passenger and during the ride, so there is a small window where they are vulnerable.

Because rideshare insurance acts as supplemental coverage for you during app-on periods, whether a passenger is in the vehicle or not, there is little chance of you needing to pay out-of-pocket costs after an accident. And if you are required to pay a comprehensive or collision insurance deductible, you’ll pay whatever auto insurance deductible you’ve selected on your policy rather than the rideshare company’s chosen deductible, which can be expensive. 

The Best Rideshare Insurance Companies

Not all insurance companies offer rideshare insurance, but some do offer affordable rideshare insurance coverage that allows you to protect yourself financially if you’re involved in an accident while working. 

Here are the best car insurance companies for rideshare drivers:

Geico

Rideshare insurance through Geico is more expensive than a standard policy, but it is still affordable, coming in as low as $250. Its hybrid policy coverage means you can have one policy with both rideshare insurance and personal insurance. Learn more in our Geico auto insurance review.

Progressive

Available in 34 states, Progressive’s rideshare insurance requires drivers to purchase a rideshare endorsement if they work for Uber or Lyft. Additionally, if a driver is involved in an accident, they can be reimbursed for their deductible, up to the difference between the Uber or Lyft deductible and personal insurance deductible. Learn more in our Progressive auto insurance review.

Esurance

Esurance only offers rideshare insurance in three states: California, Illinois, and New Jersey. Rideshare drivers in these three states will pay their Esurance deductible if they’re involved in an accident, giving them control over their deductible instead of paying the high Uber or Lyft deductible.

USAA

Available in 38 states, USAA rideshare insurance is available for as low as $6 per month. Unfortunately, rideshare insurance coverage doesn’t allow drivers to avoid the high deductible if they are involved in an accident. 

Travelers

Travelers rideshare insurance is offered to drivers in Colorado and Illinois. Drivers are covered during the period of time when their rideshare is on, but they have not yet connected with a passenger or customer, which is often when there is little to no coverage provided by the rideshare company. Unfortunately, drivers are stuck paying their rideshare company’s deductible if they are involved in an accident since Travelers doesn’t offer deductible gap coverage.

Mercury

Mercury rideshare insurance is offered only in 11 states, and it costs as little as 90 cents per day.  Similar to USAA and Travelers’ rideshare insurance, Mercury’s rideshare insurance does not include deductible gap coverage, so drivers involved in an accident are required to pay the rideshare company’s deductible, which can be over $1,0000. 

To ensure you get the best price for rideshare insurance, compare quotes. Find auto insurance policies for delivery drivers.

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Uber and Lyft Insurance by Period

Uber and Lyft base their auto insurance coverage and limits on four different periods: app-off, waiting, pickup, and during the ride. 

Here’s a more detailed look at when drivers are covered by Uber or Lyft insurance. 

Drivers employed by Uber and Lyft are required to have comprehensive and collision insurance on their own insurance policy if they want access to the comprehensive and collision coverage offered by the company. Learn more about Uber Eats auto insurance here.

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