How Driving for Uber and Lyft Affects Car Insurance Rates
Rideshare drivers pay about 28% more for car insurance than non-rideshare drivers.
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Written byElizabeth Rivelli
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Elizabeth Rivelli
5+ years writing insurance and personal finance topics
Auto, home, health, and life insurance expertise
Elizabeth has extensive insurance industry experience, having written for Insureon, Rate Retriever, and Insurify. She’s also finance and insurance editor for Car and Driver.
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Edited byKatie Powers
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Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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Data reviewed byKonstantin Halachev
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7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
Updated November 20, 2024
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Table of contents
If you drive for a transportation network company (TNC), like Uber or Lyft, it’s important to protect yourself financially with rideshare insurance. A rideshare insurance policy fills the gaps between your personal car insurance and the TNC’s insurance for greater financial protection.
The average rideshare driver pays $270 per month for car insurance, which is slightly higher than the average premium for non-rideshare drivers. But you can reduce the cost of car insurance in a few ways.
Here’s what you need to know about how driving for TNC companies affects car insurance costs.
Quick Facts
Rideshare insurance provides coverage during certain phases of rideshare trips.
Uber and Lyft drivers must carry a minimum amount of liability insurance at all times.
USAA has the cheapest average rideshare insurance rates.
How much rideshare insurance costs
The average rideshare insurance premium is $270 per month. By comparison, the average premium for a non-rideshare driver is about 28% lower, at $211 per month.
Rideshare drivers pay higher rates for coverage because they’re riskier to insure. Uber and Lyft drivers often travel further distances, drive more frequently, and are more likely to drive in densely populated areas than non-rideshare drivers. These factors can increase the chance of an accident or other claim, which leads to higher premiums.
Non-Rideshare Driver Premium ▲▼ | Rideshare Driver Premium ▲▼ | % Difference ▲▼ |
|---|---|---|
| $211 | $270 | 28% |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
Cheapest car insurance for rideshare drivers
Some car insurance companies offer cheaper rideshare insurance than others. Based on Insurify’s rate data, USAA, GEICO, and Erie are a few of the cheapest rideshare insurance companies.
You can see the cheapest car insurance for TNC drivers and their average monthly premiums below.
Insurance Company ▲▼ | Non-Rideshare Driver Monthly Premium ▲▼ | Rideshare Driver Monthly Premium ▲▼ | % Difference ▲▼ |
|---|---|---|---|
| USAA | $46 | $57 | 25% |
| GEICO | $54 | $68 | 25% |
| Erie | $57 | $68 | 19% |
| State Farm | $54 | $68 | 27% |
| Allstate | $62 | $79 | 28% |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
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Best Uber/Lyft insurance companies
Many reputable car insurance companies offer rideshare insurance to Uber and Lyft drivers, but the following insurers are some of the best overall.
GEICO: Best for affordable rates
| User Reviews | 4.0 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.0 /10 |
4.0
Best choiceBased on 10271 verified guest reviews and ratings
How drivers feel about GEICO
Drivers appreciate the excellent customer service and initial low prices but dislike the frequent price increases.
AI-generated from the text of verified reviews collected by Insurify
Best For
Teen drivers
Cheap rates
Accident forgiveness
How drivers feel about GEICO
Drivers appreciate the excellent customer service and initial low prices but dislike the frequent price increases.
AI-generated from the text of verified reviews collected by Insurify
Best For
Teen drivers
Cheap rates
Accident forgiveness
Reviews (5,647)
James
November 19, 2024
Verified Review
Unsatisfactory Experience with Geico
Steer clear. They increase your rate at every renewal.
Edward
November 18, 2024
Verified Review
Experience with Geico
Reliable.
Chris
November 18, 2024
Verified Review
Poor
The customer service is below average and terrible.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
835NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.74A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++Why we picked this company
GEICO has the cheapest rideshare insurance premiums, based on Insurify’s data. GEICO also offers a great variety of discounts for car insurance customers, including savings for military personnel, federal employees, and good students. That said, the company has a below-average customer satisfaction rating from J.D. Power.[1]
Pros
Some of the cheapest rideshare premiums
Great selection of available discounts
24/7 customer service and live chat
Cons
Below-average rating for overall customer satisfaction
More complaints than expected
Must call an agent to add rideshare coverage
USAA: Best for military families
| User Reviews | 4.9 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.4 /10 |
4.9
Best choiceBased on 1602 verified guest reviews and ratings
How drivers feel about USAA
Drivers appreciate the ease of working with the carrier, competitive rates, and responsive service but dislike the price increases and lack of rideshare add-ons in some areas.
AI-generated from the text of verified reviews collected by Insurify
Best For
Members of the military community
Outstanding customer service
Competitive rates
How drivers feel about USAA
Drivers appreciate the ease of working with the carrier, competitive rates, and responsive service but dislike the price increases and lack of rideshare add-ons in some areas.
AI-generated from the text of verified reviews collected by Insurify
Best For
Members of the military community
Outstanding customer service
Competitive rates
Reviews (914)
Gloria
November 15, 2024
Verified Review
Not Good for Claims
I have storm damage and the claim process is not satisfactory.
Martin
November 11, 2024
Verified Review
Price Shopping
I have been with USAA for over 60 years. Obviously, I've been very happy. Since I don't drive very far, I have been seeing advertisements for lower prices. However, I have no plans of leaving USAA.
Rena Sabine
November 8, 2024
Verified Review
Disappointing and inflexible service
My experience with this company has been disappointing, especially this second time around. I would suggest considering other options. From my recent interactions, they have been dismissive and argumentative. I have already started finalizing my next premium with another company. I'm perplexed as to how they receive praise when they treat clients in this manner.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
880NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
1.35A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++Why we picked this company
USAA sells rideshare insurance to active-duty and retired military service members and their spouses and children. To get USAA rideshare insurance, you must be a current car insurance customer.
One of the unique features of USAA rideshare insurance is that customers get access to guaranteed car repairs at nearly 3,000 auto body shops across the country. USAA consistently ranks among the top insurers for overall customer satisfaction and claims satisfaction.
Pros
Cheapest average rideshare insurance rates
Guaranteed car repairs at select auto body shops
Excellent third-party ratings
Cons
Only available to military personnel and family members
Not available in all U.S. states
High number of complaints
Erie: Best for customer satisfaction
| User Reviews | 4.1 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.0 /10 |
4.1
Best choiceBased on 240 verified guest reviews and ratings
How drivers feel about Erie Insurance
Drivers appreciate the excellent customer service, fair pricing, and responsive assistance. However, some are unhappy with unexpected rate increases and policy cancellations.
AI-generated from the text of verified reviews collected by Insurify
Best For
High customer satisfaction
Competitive rates
Optional coverages
How drivers feel about Erie Insurance
Drivers appreciate the excellent customer service, fair pricing, and responsive assistance. However, some are unhappy with unexpected rate increases and policy cancellations.
AI-generated from the text of verified reviews collected by Insurify
Best For
High customer satisfaction
Competitive rates
Optional coverages
Reviews (126)
Lana
November 10, 2024
Verified Review
Erie Insurance
The policy is difficult to understand. The rates are too high.
George
November 6, 2024
Verified Review
Good People
They handled my claim quickly.
Judie
November 4, 2024
Verified Review
Great Coverage
The coverage is excellent, but I am looking for a cheaper rate.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
870NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.49A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A+Why we picked this company
Erie is the best rideshare insurance company for overall customer satisfaction. In the J.D. Power 2024 U.S. Insurance Shopping Study, Erie ranked first out of the 18 insurers in the survey. It was the second-highest rated company for overall claims satisfaction by J.D. Power.
An Erie rideshare endorsement extends the coverages you already carry on your personal auto policy, like liability insurance and collision insurance. To get a quote for rideshare coverage, you must contact an Erie insurance agent.
Pros
Highest customer satisfaction score
Second-best claims satisfaction rating
Superior financial stability
Cons
Slightly more complaints than expected
Only sells coverage in 12 U.S. states
Must contact an agent to add rideshare coverage
To pick the best car insurance companies for Uber and Lyft drivers, we looked at third-party ratings for overall customer satisfaction, claim satisfaction, and financial strength. We also studied each company’s complaint index from the National Association of Insurance Commissioners (NAIC). Other factors we considered included rideshare insurance costs, customer service options, discounts, and state availability.
How car insurance works for Uber and Lyft drivers
You can add a rideshare insurance endorsement to your personal car insurance policy. It fills the coverage gap during phases of the trip where your personal car insurance and the rideshare company’s insurance don’t apply or provide limited coverage. You typically need to purchase rideshare insurance from the same company that provides your personal auto insurance policy.
Here’s how insurance works during each phase of the trip:[2] [3]
Phase 1: In phase one, you’re driving for personal use, and the rideshare app is off. During this phase, only your personal car insurance applies.
Phase 2: In phase two, you’re driving with the rideshare app turned on, and you’re waiting to receive a ride request. During this phase, the TNC’s insurance policy covers third-party liability. If you have rideshare insurance, the coverages you carry on your personal policy, like collision insurance, comprehensive insurance, and uninsured motorist insurance, will also apply during phase two.
Phase 3: In phase three, the rideshare app is on, and you’re either driving to pick up a passenger or you’re transporting a passenger. The Uber or Lyft insurance policy automatically covers third-party liability. If you carry full coverage on your personal auto policy, Uber and Lyft both provide contingent comprehensive and collision coverage with a $2,500 deductible. Rideshare insurance can help cover this deductible if you have a claim.
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Types of car insurance coverage for rideshare drivers
Rideshare drivers need to carry certain types of insurance coverage. The following types of car insurance are usually mandatory for Uber and Lyft drivers.
Bodily injury liability
Bodily injury liability insurance covers your financial responsibilities if you cause an accident that results in another person’s injuries. It’ll cover their medical treatment and lost wages.
Property damage liability
Property damage liability insurance kicks in when you accidentally damage someone else’s property, like their vehicle or a storefront. It pays for the cost of repairs, up to your policy’s limit.
Uninsured/underinsured motorist
Uninsured/underinsured motorist liability insurance covers your injuries and property damages if an uninsured driver or someone without enough insurance coverage to pay for your losses in full hits your car.
Some optional policies can also benefit rideshare drivers, including:
Comprehensive insurance
Comprehensive insurance covers non-accident damage, such as damage from falling objects, hail, flooding, and fires. It also covers theft and vandalism.
Collision insurance
Collision insurance pays for your vehicle’s repairs after an accident.
Roadside assistance
Roadside assistance covers the cost of basic repairs if you get stranded, like flat-tire changes, battery jump-starts, lockouts, and fuel delivery.
Rental car reimbursement
Rental car reimbursement pays for a rental vehicle if your car needs repairs after damage from a covered peril.
How to lower car insurance costs for rideshare drivers
Rideshare drivers can use these tips to reduce their car insurance costs:
Ask your insurance company about discounts. Many insurance companies offer discounts for car insurance customers. Find out if discounts are available for rideshare insurance, such as for taking a defensive driving course.
Bundle your policies. You can typically save money when you bundle rideshare insurance with another policy, like home insurance.
Maintain a clean driving record. Rideshare drivers with a clean record usually pay the lowest rates for coverage. To maintain a low rate, avoid tickets and accidents.
Choose higher deductibles. Raising your deductibles for collision and comprehensive can reduce your monthly premium for rideshare insurance.
Shop around and compare rates. To find the cheapest rideshare insurance, compare quotes from a few different insurers. Consider switching car insurance companies if you can find a cheaper rate from another insurer.
Uber and Lyft car insurance rates FAQs
Rideshare insurance offers important protection for Lyft and Uber drivers. Learn more about how driving for a TNC can affect your car insurance premium.
If you drive for Uber once, will your insurance go up?
No. If you drive for Uber one time, it won’t have an effect on your car insurance premium. Driving for Uber doesn’t directly affect your auto insurance rate.
But if you purchase rideshare insurance, it’ll cause your premium to increase, regardless of how often you drive for Uber or another TNC.
What if I don’t tell my insurer about my rideshare driving?
If you don’t tell your insurance company that you drive for Uber or Lyft, a few things can happen. If you have an accident while ridesharing, your insurer might not cover your claim. It’s also possible that your insurer could cancel or non-renew your policy if you drive for Uber or Lyft without telling them.
How much is rideshare insurance?
The average cost of car insurance with a rideshare endorsement is $270 per month, or $3,240 per year. To compare, the average insurance premium without rideshare coverage is $211 per month, or $2,532 per year.
Insurance companies personalize rideshare insurance premiums based on factors like your location, insurance company, vehicle type, and driving record.
What is Uber’s optional insurance?
Uber offers Optional Injury Protection insurance for all drivers. It can help cover unexpected medical bills and lost income if you get into an accident. Uber’s Optional Injury Protection includes up to $1 million in coverage for medical expenses and up to $500 per week in wage replacement. It also pays survivor benefits if you have a fatal car accident while ridesharing.
Does rideshare insurance also apply to delivery services?
Rideshare insurance applies to some delivery services, like Grubhub and DoorDash, but it doesn’t cover all delivery drivers. For example, rideshare insurance doesn’t cover people who use their personal vehicles to deliver full-time or drivers who use a company-owned vehicle to make deliveries. In these situations, they’d need commercial auto insurance.
Methodology
Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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Sources
- J.D. Power. "Half of Auto Insurance Customers Currently Shopping for New Policies, J.D. Power Finds."
- Lyft. "All things insurance, all in one place.."
- Uber. "Insurance to help protect you."
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Elizabeth Rivelli
Elizabeth Rivelli is a freelance writer covering insurance and personal finance. She has extensive knowledge of various insurance lines, including property and casualty, health, and life insurance. Her byline has been featured in dozens of publications, including Investopedia, Forbes, Bankrate, NextAdvisor, and Insurance.com.
Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
Featured in
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
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