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Edited by Jackie Cohen | Reviewed by licensed insurance agent, Amber Benka
Last Updated June 15, 2022
Why you can trust Insurify
Many Uber, Lyft, and delivery drivers actually rent the vehicles they drive for work, because they either don’t own an appropriate vehicle or want to prevent wear and tear on their personal car. If you’re considering renting a car to drive for a delivery or rideshare service, make sure to follow your local protocols and get appropriate insurance.
With Insurify, you can get multiple quotes from a variety of car insurance companies with the click of a button. Start comparing car insurance quotes with Insurify to find the best and cheapest insurance today.
Quick Facts
- Rideshare drivers can rent a car to prevent wear and tear on their personal car.
- Uber and Lyft partner with car rental companies to make the rental process easy and convenient for drivers.
- Rideshare drivers who rent their vehicles still need to purchase a rideshare add-on to their car insurance policy in order to stay protected on the road.
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Don’t Get Caught Underinsured While Driving for Income
Whether you’re renting a vehicle or driving your own, make sure you have sufficient insurance coverage for any property damage or bodily harm that could result from an accident. Otherwise, your planned source of income could ruin your finances. And remember that you can’t use a personal rental car for any rideshare or delivery service driving.
Always shop around for insurance to get the best deal. Car insurance quote comparison is the easiest way to see quotes from multiple insurance companies at once, so you can rest easy knowing you’ve found the best deal in insurance.
Frequently Asked Questions
There’s no single answer to this. You should calculate the expected cost of the rental compared to your anticipated income. Urban, densely populated areas likely have more opportunity for hires, for example. Many new drivers overestimate what they’ll make. It’s estimated that rideshare drivers make around $13 to $16 an hour, but try to research rates in your area.
If you plan on driving for income full-time, at least look into the option of purchasing a vehicle. The monthly expenses of owning may be less than ongoing rentals.
Your personal car insurance policy won’t cover you when you’re driving for income. (Your insurer could even drop you if you have an accident while driving for income and try to file a claim). So you’ll need to purchase rideshare and/or delivery service insurance, which is offered by many companies. Prices range from $15 a month to an additional 20 percent of your premium.
These companies are rolling out personal car rental services, but availability remains limited.
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The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.
Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.
With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.