Best Rideshare Insurance Companies for 2023

Driving for a rideshare service like Uber or Lyft can be incredibly lucrative. But rideshare drivers have unique insurance needs. Your personal car insurance policy doesn’t provide adequate protection throughout every stage of the process, from accepting a ride and transporting a passenger, to dropping them off at their destination.

If you’re a current rideshare driver, or are thinking about driving for Uber or Lyft, it’s important to understand rideshare insurance and how it works. In this guide, we’ll highlight some of the best rideshare insurance companies, explain how to compare car insurance policies and answer some frequently asked questions about rideshare coverage.

Does personal car insurance cover rideshare drivers?

Your personal car insurance policy doesn’t provide coverage during every phase of a rideshare trip. You can only rely on your personal auto insurance before you accept a trip and after you drop off a passenger. So, if you get into an accident after accepting a trip or while the passenger is in your car, your personal car insurance policy is essentially inactive.

What is rideshare insurance?

Rideshare insurance is a special type of car insurance that protects rideshare drivers. Depending on the policy, it may cover your liability and/or your vehicle damage in the event of an accident. If you drive for a transportation network company (TNC), your car insurance company may require you to purchase rideshare coverage.

Here are some of the most common ways that rideshare drivers can get insurance:

• TNC rideshare insurance: TNCs have to offer insurance, which covers you while you’re logged into the app. This policy provides coverage between the time you accept a ride and drop off the passenger. However, most TNC insurance policies provide liability coverage only, meaning it won’t pay for your vehicle’s damages if you get into an accident.

• Rideshare endorsement: A rideshare endorsement is an add-on to your personal car insurance policy. It provides coverage for the phases of a trip when your personal auto insurance policy is not in effect. 

• Private rideshare insurance: A few insurers offer standalone rideshare insurance policies that cover you during every phase of a trip. It usually provides the most comprehensive protection. However, keep in mind that you still need to have a regular car insurance policy for the times you aren’t driving for a TNC.

How much does rideshare insurance cost?

The cost of rideshare insurance depends on a few factors, like your age, driving record, location and insurance company. However, you can expect it to cost anywhere from $148-$422 per month.

Should you buy rideshare coverage?

If you drive for a rideshare company, it’s a good idea to purchase rideshare car insurance. Even the most robust personal car insurance policies will not adequately protect you during every phase of an Uber or Lyft trip, which can put you at risk. 

Fortunately, most TNCs including Uber and Lyft provide insurance coverage to drivers. However, there are gaps in that coverage, which is where having rideshare insurance or a rideshare endorsement can be valuable.

Here are the five phases of a typical ridesharing trip and what type of insurance applies:

1. Offline: You are not logged into the rideshare app. In this phase, only your personal car insurance policy is protecting you.

2. Available: The “available” phase is when the app is turned on and you’re waiting to accept a ride request. During this phase, your TNC insurance provides liability coverage only. 

3. En route: After accepting a ride, TNC insurance stays in effect as you drive to pick up the passenger. If you have supplemental rideshare coverage, you might also get liability insurance and contingent collision and comprehensive insurance during this time.

4. On trip: You pick up the passenger and start driving them to their destination. During this phase, the TNC insurance becomes the primary policy and provides the most coverage (liability insurance plus physical damage coverage).

5. End trip: As soon as you drop off the passenger, your TNC insurance is no longer in effect. If you stop driving and log out of the app, your personal car insurance policy takes over.

Best rideshare car insurance companies

Dozens of insurance companies sell rideshare insurance, but not all providers are created equal. Before you purchase a rideshare insurance policy, it’s important to do your own research to find a policy that meets your personal needs.

In general, the best rideshare insurance companies offer high coverage limits and flexible deductibles. You should also look for an insurance company that has excellent customer service, a mobile app, online claim reporting and affordable rates.

Rideshare insurance premiums can vary based on a number of factors, including the type of coverage you get. Keep in mind that a standalone rideshare insurance policy will be more expensive than a rideshare endorsement. Getting a few quotes will help you find the best rate.

1. USAA

• Insurify Composite Score: 96 out of 100

• Coverage Type: Rideshare endorsement

• Coverage Description: USAA sells rideshare gap insurance to current auto insurance customers, which is structured as an endorsement. This policy is designed to cover you during the gaps where your personal car insurance or TNC insurance policy do not apply, or when coverage is limited. 

• Estimated Cost: $211.80 per month

USAA sells rideshare gap coverage in every state except Hawaii, North Carolina, Michigan, Montana, New Mexico, New York, South Carolina and Virginia. In addition, you must carry a minimum amount of liability coverage on your personal car insurance policy before you can add this endorsement. If you aren’t already a USAA car insurance customer, note that you must be affiliated with the military to qualify.

2. Mercury

• Insurify Composite Score: 81 out of 100

• Coverage Type: Rideshare endorsement

• Coverage Description: Current Mercury car insurance customers can add a rideshare endorsement to their personal auto insurance policy. Mercury’s full coverage rideshare add-on protects drivers and their vehicles during the offline and phase one periods (the time between turning on the app and accepting a ride).

• Estimated Cost: $291 per month

Unlike some other insurance companies, Mercury does not require drivers to carry a minimum amount of coverage before they are eligible to add the rideshare endorsement to their policy. However, you can only add this endorsement to your existing Mercury policy if you live in Arizona, California, Florida, Georgia, Illinois, Nevada, Oklahoma, Texas or Virginia.

Learn More: Minimum Car Insurance Requirements by State

3. Allstate

• Insurify Composite Score: 85 out of 100

• Coverage Type: Rideshare endorsement

• Coverage Description: Allstate auto insurance customers can add the Allstate Ride for Hire endorsement to their policy to get coverage for ridesharing driving. This endorsement provides coverage when the app is on and you’re waiting to accept a ride, when you’re en route to pick up a passenger and during trips. You also get up to $2,500 in deductible gap coverage for your vehicle in the event of an accident during the trip phase.

• Estimated Cost: $337.13

The Allstate Ride for Hire endorsement is not available in all states, so you should check with an agent to see if this endorsement is sold in your area.

4. American Family

• Insurify Composite Score: 89 out of 100

• Coverage Type: Rideshare endorsement

• Coverage Description: If you drive for Uber or Lyft and have personal car insurance through American Family, you have the option to add a rideshare endorsement to your policy. This endorsement fills the gaps in your TNC insurance during phase one only, when your app is on and you’re waiting to accept a ride. It provides all the same coverages as your personal auto insurance, including liability, collision, comprehensive, medical payments, personal injury protection (PIP) and uninsured/underinsured motorist coverage.

• Estimated Cost: $268.11 per month

American Family does not offer its rideshare endorsement in all states. To find out if you can add this endorsement to your existing car insurance policy, we recommend contacting your American Family agent. If you want a more accurate rate quote based on your location, American Family also has a rate calculator on its website.

5. State Farm

• Insurify Composite Score: 88 out of 100

• Coverage Type: Rideshare endorsement

• Coverage Description: State Farm offers a rideshare endorsement, called Transportation Network Company Driver Coverage, for Uber or Lyft drivers who have a current State Farm car insurance policy. This endorsement provides matching coverage, meaning whatever coverage limits you have on your personal auto policy will be extended to the time you spend driving for a TNC. Specifically, it provides liability, physical damage and medical payments coverage while the app is on and continues providing physical damage and medical payments coverage en route and during trips.

• Estimated Cost: $200.34 

On its website, State Farm advertises “competitively priced” rideshare coverage. Compared to the other rideshare insurance companies we reviewed, State Farm has the lowest average premiums. 

Check Out: Car Insurance Calculator: Estimate Your Coverage Costs

Insurify Composite Score (ICS)

To calculate the Insurify Composite Score, a proprietary rating, Insurify data scientists and insurance experts weigh multiple factors that reflect the quality, reliability, and health of an insurance company.

Inputs to the score include J.D. Power ratings, Consumer Reports customer satisfaction surveys and customer complaints, mobile app reviews, user-generated company reviews, and financial strength ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch.

Rideshare coverage by state

Like other kinds of insurance, rideshare driver insurance requirements vary by state. Read up on unique rules and regulations wherever you drive, and then start comparing auto insurance quotes with Insurify.