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.
Rideshare insurance costs anywhere from $148-$422 per month.
The top three companies we found for rideshare insurance are USAA, Mercury, and Allstate.
Uber and Lyft drivers must inform their insurer of their rideshare driving – if they don’t, they risk losing their insurance policy.
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Rideshare insurance FAQs
How does rideshare insurance work?
You typically get insurance when you sign up to drive for Uber or Lyft, but it only covers you during certain phases of the trip. To fill the gaps, it’s a good idea to get separate rideshare auto insurance, through a standalone policy or an endorsement that you add to your personal car insurance policy.
Ultimately, having multiple types of rideshare car insurance will offer the best protection. Without adequate rideshare coverage, you are at risk during specific portions of the trip. If you were to get into an accident during a phase when you aren't covered, you would have to pay out-of-pocket.
What companies offer rideshare insurance?
Many insurance companies offer rideshare insurance. The most common type of rideshare coverage is an endorsement that you add to your existing auto insurance policy. However, you can also find some providers that offer standalone rideshare policies. Here are some insurance companies that sell rideshare coverage:
Every rideshare insurance company is different, so it’s important to compare a few providers using your personal criteria. You should also get several quotes to see which company can offer you the best rate.
Do you need to buy rideshare insurance?
In most cases, you are required to purchase rideshare insurance. If you drive for a TNC and you don’t report it to your insurance company, you could end up getting dropped as a customer.
Uber and Lyft provide some insurance coverage when you sign up to drive, but it doesn’t cover you during every phase of a trip. Unless you purchase supplemental coverage, like a rideshare endorsement, it can leave you vulnerable and at risk during those windows when your TNC coverage is not in effect.
Will driving for Uber affect your car insurance?
Yes, driving for Uber will impact your car insurance premium. When you add rideshare coverage, your monthly premium goes up. However, the actual rate increase will depend on a variety of factors, like your age, driving record, credit score and the coverage limits you choose.
To get cheap rideshare insurance, make sure you’re taking advantage of discounts. In addition, paying your premium in full, raising your deductible, lowering your coverage limits and improving your credit score may also lower your rate. You should always compare car insurance quotes to find the cheapest rideshare insurance premium for your situation.
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Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from our partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Service's database of auto insurance rates. With these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums.