Rideshare Auto Insurance Coverage

Rideshare insurance is a type of commercial auto insurance for Transportation Network Company employees. Auto insurance for rideshare drivers costs as low as $6 per month, depending on the company. However, you can find rideshare car insurance with TNCs, like Lyft and Uber. Compare and shop around to locate the best rideshare auto insurance.

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Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Cynthia Lanctot is an insurance professional with ten years of industry experience. Cynthia is licensed in several states, and holds an associate in claims law, as well as a bachelor’s degree in English. Cynthia’s experience includes the New England and Northeast states. She currently works as a liability claims professional and an occasional online contributor.

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Reviewed by Cynthia Lanctot
Licensed Agent

UPDATED: Dec 2, 2020

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Rideshare Insurance Facts That Will Help You

  • Auto insurance companies consider rideshare insurance as a type of commercial auto insurance.
  • Some rideshare companies provide the minimum coverage requirements for insurance but only during your rideshare.
  • Adding rideshare insurance to your car insurance policy is affordable.

Rideshare insurance is an essential commercial car insurance coverage if you’re using your vehicle under a transportation network company (TNC). TNC has become popular in recent years, and it’s become a way for people to earn money without the hassle of a schedule.

However, ridesharing means a driver will spend more time on the road. Auto insurance companies want to help cover your bases, so they created rideshare auto insurance coverages to help insure drivers who use TNCs.

Under rideshare car insurance, you’ll have coverage similar to commercial car insurance, except it’ll be attached to your car insurance policy. Continue reading this guide to learn more about rideshare auto insurance, which companies provide the cheapest rates.

Start searching for affordable rideshare insurance by entering your ZIP code in the FREE online quote tool above.

What is rideshare insurance?

Rideshare insurance covers your vehicle while driving as a TNC driver (delivery or rideshare driver). If you get into an accident while working as a rideshare or delivery driver, rideshare insurance will cover the gaps where a personal auto insurance policy won’t. Ridesharing is similar to commercial auto insurance for pizza delivery drivers, except you’re not working for a company.

You must tell your auto insurance company that you use your vehicle as a rideshare business. It’s better to pay higher car insurance rates than to lose your coverage and damage your insurance history.

Where can you get rideshare insurance?

The short answer is you can get rideshare insurance just about anywhere these days. The most popular companies and rideshare services will have some level of rideshare insurance.

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How much does rideshare insurance cost?

Allstate, Geico, Progressive, and State Farm rideshare insurance connects to a personal auto insurance policy. Rideshare options with companies aren’t as expensive as you think. Examine our research below to closely examine the cost of rideshare insurance from the best car insurance companies.

Rideshare Auto Insurance Rates by Company
CompanyRideshare Insurance Rates
Allstate$20 per year
Erie$9 to $15 per month
Mercury$27 per month
Safeco$10 per month
State Farm15%-20% of auto insurance policy
USAA$6 per month
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We wanted to include the top ten auto insurance companies, but some companies are tight-lipped about providing rideshare insurance rates to the public. However, there are a few companies that show their rates openly for the public. We want to add that USAA is only available to U.S. military members and their immediate families.

How do you buy rideshare insurance?

If your car insurance company provides a rideshare program, you should add rideshare insurance to your auto insurance policy. However, some companies don’t offer rideshare insurance in all 50 states. Therefore, you’ll need rideshare insurance through a rideshare company.

The Difference Between Rideshare Insurance and Personal Auto Insurance

You may be wondering why personal auto insurance can’t cover you during rideshares. Under a personal auto insurance policy, you agree to an estimated number of miles during the policy. As a rideshare worker, you’ll likely go over that limit and increase your chances of getting into an accident.

Rideshare car insurance is a type of commercial insurance that covers a rideshare or delivery app driver in case of an accident.

Car insurance companies want to be prepared for that risk, so they create a rideshare insurance program to cover the risks. Some areas in the United States don’t provide auto insurance for ridesharing. Therefore, rideshare companies and delivery app companies offer insurance for you. However, it would be best if you still had standard auto insurance.

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Rideshare Companies

According to the National Association of Insurance Commissioners (NAIC), top TNCs, like Uber and Lyft, provide commercial auto insurance options or rideshare insurance.

https://www.youtube.com/embed/6uZopv5ji88Also, Lyft and Uber rideshare insurance, once approved, are only in effect during specific periods. Check out the list below to learn when rideshare companies will cover you.

  • Phase 0 – When your rideshare app is off, your auto insurance policy covers you.
  • Phase 1 – While the rideshare app is on, and as you wait for a rideshare request, your car insurance is still active. Rideshare insurance is limited to liability auto insurance.
  • Phase 2 – Lyft and Uber rideshare insurance is in full effect once you accept the request and drive to the customer’s location.
  • Phase 3 – Lyft and Uber rideshare insurance covers you in full effect when you have passengers in your vehicle.

Lyft and Uber rideshare insurance are only available to drivers who also carry the state’s standard minimum auto insurance requirements.

What does full effect or full force mean?

Full effect or full force is another way of saying you have full coverage. 

During Phase 1, you’re only covered through liability car insurance. Under Lyft and Uber rideshare auto insurance, your coverage limits are $50,000 for bodily injury of one person per accident, $100,000 for bodily injury of multiple people per accident, and $25,000 for property damage per accident.

Phase 2 and 3 is an extensive coverage period that gives you a $1 million liability coverage limit per accident, comprehensive and collision coverage covering the value of the vehicle, and uninsured/underinsured motorist coverage equal to the average coverage limit in your state.

Rideshare insurance that provides collision and comprehensive coverage will match the value of your car insurance.

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Rideshare Insurance for Delivery App Companies

Uber has invested in the delivery app services, competing with companies like DoorDash and Postmates. Let’s review the most popular delivery apps that provide rideshare insurance.

Rideshare Insurance Coverage Limits for Delivery Driver Apps
PhasesDoorDashPostmatesUber Eats
Phase 1No employer coverageNo Employer CoverageLiability-Only: 50/100/25
Phase 2No employer coverageLiability: $1 million per incidentLiability: $1 million per incident in addition to Comprehensive and Collision
Phase 3Liability: $1 million per incidentLiability: $1 million per incidentLiability: $1 million per incident in addition to Comprehensive and Collision
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UberEats functions the same as the parent company, Uber. DoorDash and Postmates only provide liability coverage.

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The Best Auto Insurance Companies with Rideshare Insurance

As rideshare car insurance became more popular, the top car insurance companies invested in rideshare programs. These programs help their rideshare driving customers with low-cost commercial insurance.

  • GEICO – Best Overall for Rideshare Car Insurance
  • Mercury – Best Auto Insurance Rates
  • State Farm – Best Add-On Auto Insurance Policy
  • Allstate – Best Rideshare Insurance for Lyft Drivers
  • Progressive – Best for Food Delivery App Drivers

Rideshare Insurance: The Bottom Line

Despite rideshare insurance coverage, you still need the minimum car insurance requirements according to your state’s standard. Some companies may offer rideshare insurance where you live, so you’ll have to rely on your TNC for rideshare options.

In the meantime, enter your ZIP code to compare multiple companies in your local area to see if you can purchase cheap auto insurance along with rideshare insurance.

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Frequently Asked Questions: Rideshare Insurance

#1 – Why do delivery and rideshare drivers need rideshare insurance?

Rideshare insurance fills gaps where standard auto insurance won’t provide coverage.

#2 – What happens if you have an accident while driving for rideshare companies and delivery app companies?

Contact law enforcement right away to make a report. Under rideshare insurance with a TNC, you will need to contact the TNC about your accident in addition to contacting your auto insurance provider that holds your standard insurance policy.

#3 – How do you file a rideshare insurance claim?

Once you’ve contacted your TNC and auto insurance company, your claim will be processed. They should give you a claim number so you can follow any details and provide additional information.

#4 – Can deductibles affect my rideshare insurance?

Deductibles can lower auto insurance rates per month. When you have rideshare insurance under Uber and Lyft, a deductible is required before they start paying for Phase 2 and 3 coverage.


References:

  1. https://www.naic.org/documents/consumer_alert_ridesharing_drivers.htm

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