Auto Insurance Companies That Accept Rideshare (2021)
When looking for auto insurance companies that accept rideshare, you'll likely find a number of insurers who are willing to give you a policy. Because Uber and Lyft both offer commercial insurance, rates for auto insurance companies that accept rideshare are surprisingly low; you could find a quote for auto insurance companies that accept rideshare for as low as $6 a month.
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UPDATED: Sep 29, 2021
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- Rideshare coverage is required in most states
- Uber and Lyft provide some coverage to drivers while online
- Some rideshare policies are surprisingly affordable
When starting with a rideshare service, you may be interested in what auto insurance coverages might be required of you. Luckily, you should be able to find several auto insurance companies that accept rideshare in addition to your personal coverage.
If you’re looking for a quote for auto insurance companies that accept rideshare, enter your ZIP code into our free quote tool.
Best Auto Insurance Companies That Accept Rideshare
App-based ridesharing has been around for quite a while and has served as a great way to earn some extra cash or to pay the bills. In the time that ridesharing has been around, there have been new laws enacted that pose new insurance requirements.
Designed to protect both the driver and passenger, rideshare insurance is required before you can drive any person in your vehicle for financial gain.
This third-party insurance is purchased by you to protect the passengers in your car, and will likely be in addition to the coverage required in your state.
Some insurers will offer special deals for drivers who need rideshare coverage. Some of these insurers include:
- GEICO – Offers a hybrid insurance policy that will cover you whether you are on or off the clock
- Allstate – Gives the driver a choice between hybrid coverage or buying additional protection in addition to their liability
- State Farm – Offers an extension in coverage to your regular policy, adding protection for all aspects of a ridesharing trip
Ridesharing has been around for around a decade, and potential drivers are sure to find many rideshare car insurance policies available.
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The Basics of Rideshare Insurance
Ridesharing auto insurance is meant to cover the gap between your car insurance policy and the commercial responsibility that comes with carrying passengers. It’s required by most states to have some form of commercial coverage to protect the third party.
As with all car insurance regulations, each state is likely to have different laws in place when it comes to rideshare auto insurance.
Researching the state’s requirements as well as discussing your needs with a financial advisor will help you narrow down what kind of policy you need.
According to the Insurance Information Institute (III), auto insurance companies that don’t accept rideshare don’t because they don’t know how to underwrite the ridesharing risk yet.
Different Types of Rideshare Insurance
Most rideshare laws require a certain amount of coverage to protect you and the third party. To this end, auto insurers have come up with a few different types of policies/add-ons that have helped commercial drivers get the most value out of the policy possible.
Because ridesharing services have started offering auto insurance of their own, the affordable auto insurance companies that accept rideshare are being forced to keep their rates lower on these policy types. Some include:
- Policy Extension – This adds additional coverage to cover any gaps that might occur while you’re ridesharing, including when you’re picking up a customer
- Hybrid – This type of ridesharing policy covers you when you’re on and off the clock
- Commercial – This insurance is typically used by larger ridesharing organizations and can protect the people as well as the company property
Each insurer will be in charge of managing their insurance products, so you’re likely to find more than just the types above. That being said, a hybrid or policy extension is likely going to help most ridesharing drivers.
What does rideshare insurance cover?
When you use your vehicle to make money, your regular car insurance policy will likely become void, meaning if you’re in an accident while transporting someone, you won’t be able to get a claim from your insurer.
While most ride-sharing companies are required to provide insurance for their drivers, there are still some gaps that you should cover just in case. With a proper ridesharing insurance policy, you won’t have to stress about being financially liable in case of an accident.
Auto Insurance Coverage for Uber and Lyft Drivers
Both Lyft and Uber, two popular ridesharing apps, provide coverage for their drivers while they are active online in the app. If the driver is offline at the time of the accident, their own insurance coverage will take over.
Lyft and Uber both offer up to $100,000 for bodily injury while waiting and up to $1,000,000 for 3rd party liability while delivering a passenger. That doesn’t mean you won’t require an additional third-party liability insurance policy to cover the gaps in their coverage.
How much does rideshare insurance cost?
While the idea of additional coverage might make you worry about cost, some insurers are more than willing to give affordable coverage to rideshare drivers. Below are some examples of rates from companies that offer auto insurance for rideshare.
Rideshare Auto Insurance Rates by Company
|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|
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As you can see, some insurers will give affordable rideshare coverage starting as low as $6 a month. This is likely great news to the rideshare driver who doesn’t need to spend all their earnings insuring the car for commercial use.
Auto Insurance Companies That Accept Rideshare: The Bottom Line
When one starts ridesharing, they become responsible for the safety of their passenger in addition to their personal vehicle. Therefore, it makes sense that auto insurance companies that accept rideshare would provide affordable options that provide comprehensive rideshare coverage.
If you’re looking to get rates for auto companies that accept rideshare, enter your ZIP code into our free quote tool.