Rideshare Insurance: What It Covers and When You Need It

If you drive for Uber, Lyft, or another transportation network company, you may need to purchase rideshare insurance.

Theresa Stevens
Theresa Stevens
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  • 6 years experience in the personal financial industry

Theresa is a writer and former financial advisor with experience helping clients solve money challenges. She uses her expertise to clarify complex personal finance concepts.


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Chris Schafer
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Chris Schafer
Chris SchaferSenior Editor
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Evelyn Pimplaskar
Evelyn PimplaskarEditor-in-Chief, Director of Content
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Konstantin Halachev
Data reviewed byKonstantin Halachev
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Konstantin HalachevVP of Engineering & Data Science
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  • 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 June 12, 2024

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Driving passengers and delivering food for companies like Uber, Lyft, and DoorDash have become popular ways to earn money. However, many drivers are surprised to learn that their standard auto policy won’t cover them for accidents that occur while working for a rideshare company.

Enter rideshare insurance, which offers financial protection if you get into an accident while transporting passengers.

Here’s what you need to know about this unique coverage.

Quick Facts
  • Rideshare insurance is typically available as an add-on to your personal auto insurance or as a stand-alone policy.

  • Failing to notify your insurer about your rideshare driving can lead to policy cancellation.

  • Most rideshare companies provide insurance to drivers, but the coverage varies by phase.

How rideshare insurance works for Uber and Lyft drivers

Rideshare insurance can help bridge the gap between what’s covered under a rideshare company, such as Uber or Lyft, and what’s covered under your personal auto policy. Rideshare insurance isn’t included in a standard auto insurance policy. Instead, rideshare insurance is offered as an endorsement to your standard policy or as a separate policy.

Uber and Lyft offer different levels of coverage depending on the phase you’re in when an incident occurs. Here’s a breakdown of the different phases and what’s covered in each.

Phase 1: Driving for personal use with rideshare app turned off

Uber and Lyft: No coverage offered. Your personal auto insurance policy applies.

Phase 2: Driving with rideshare app turned on but no request for a ride yet

Uber and Lyft: Both offer third-party liability insurance for covered accidents in the following amounts. Note that this insurance only kicks in if your personal auto coverage doesn’t apply.

  • $50,000 per person for bodily injury

  • $100,000 per accident for bodily injury

  • $25,000 per accident for property damage[1] [2]

Note that coverage limits vary by state.

Phase 3: Either driving to pick up a passenger or driving the passenger to their destination

Uber: The following coverage is available to Uber drivers in the event of a covered accident:

  • $1 million liability insurance

  • Uninsured motorist coverage, underinsured motorist coverage, and first-party injury insurance

  • Contingent comprehensive and collision up to the actual cash value of the vehicle, with a $2,500 deductible[2]

Lyft: Lyft offers drivers the following coverage if they’re involved in a covered accident:

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Do you need rideshare insurance?

Most personal car insurance policies won’t cover you while using your vehicle for business use, including rideshare driving. Purchasing rideshare insurance is essential to bridge any potential coverage gaps, and it allows you to feel confident on the road.

Important Information

Many rideshare company insurance policies don’t cover drivers while they’re waiting to pick up passengers. This may leave drivers open to financial losses since their personal auto policy also may not cover them during that waiting period. Rideshare insurance can bridge this gap.

Here are some of the major insurers that offer rideshare insurance as either a supplemental or commercial insurance policy:

  • Progressive

  • Allstate

  • USAA

  • State Farm

  • Farmers Insurance

  • Mercury

  • American Family

  • Travelers

What to know about delivery driver insurance

You may also need delivery driver insurance if you use your car to deliver food through companies such as Uber, Instacart, and DoorDash. Delivering food using your car is considered a business use instead of a personal use. Therefore, your personal auto policy may not cover any associated claims.

Though some rideshare companies offer insurance for delivery drivers, the coverage is limited. For example, Uber offers the following coverage for delivery drivers on its platform:

Offline or the driver app is off:

  • Your personal auto insurance coverage applies.

Available or waiting for a delivery request:

  • $50,000 in bodily injury per person

  • $100,000 in bodily injury per accident

  • $25,000 in property damage per accident

En route to pick up deliveries and during trips:

  • $1 million liability insurance

  • Contingent comprehensive and collision coverage up to the actual cash value of the car with a $2,500 deductible[2]

Note that rideshare companies may not offer insurance to delivery drivers in all states. For example, Uber’s delivery driver coverage excludes accidents that occur in New York state.

How much does rideshare insurance cost?

The cost of rideshare insurance depends on several factors, including your location, insurer, driving record, and coverage limits. It also depends on the type of rideshare insurance you purchase.

A rideshare endorsement is typically the most cost-efficient; however, availability varies by state and insurance company. In some states, your only option for rideshare insurance is a commercial auto policy, which is more expensive than an endorsement.

One of the best ways to find an affordable rideshare insurance policy is to shop around. An insurance-comparison website can help you compare quotes from multiple insurers in one place.

Insurance CompanyAverage Rideshare Insurance Quote
USAA$119
State Farm$131
GEICO$136
Mercury$160
Allstate$162
Progressive$179
American Family$207
Liberty Mutual$213
Nationwide$224
Travelers$237
Farmers$282
The General$300
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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Recent car insurance prices for Buick, Nissan, Toyota, and more. Insurify features quotes from 70+ carriers including National General, Elephant, and Safeco.

*Quotes generated for Insurify users within the last 10 days. Last updated on June 12, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from June 12, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

*Quotes generated for Insurify users within the last 10 days. Last updated on June 12, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from June 12, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

Rideshare driving requirements in your state

You must meet certain requirements to drive for rideshare companies, such as Uber and Lyft. Here’s a list of general requirements, which vary by state.

Uber driver requirements:

  • Meet your city’s minimum driving age requirement

  • Have at least one year of licensed driving experience in the U.S.

  • Drivers younger than 25 must have at least three years of licensed driving experience in the U.S.

  • Have a valid in-state license

  • Must use an eligible four-door vehicle

  • Provide proof of residency in your city, proof of vehicle insurance, and a picture for your Uber driver profile

  • Complete a driver screening, which includes a review of your driving record and criminal history

Lyft driver requirements:

  • Meet the minimum driving age in your state and have a valid license

  • Complete a background check

  • If using your own vehicle, upload proof of insurance and registration

  • Have a four-door vehicle or rent a car through Express Drive[3]

You can learn more about rideshare insurance requirements in your area by visiting the state pages below.

What to do if you get in an accident while driving for Uber or Lyft

If you get into a car accident while driving for Uber or Lyft, you’ll need to follow a few general steps.

Here’s what to do in the event of an accident, according to Uber:

  1. Ensure that everyone involved in the crash is safe.

  2. Contact the police and an ambulance if necessary.

  3. Inform Uber about the crash.

  4. Fill out the Uber claims form.

If you want to file a claim following an accident while driving for Lyft, you must complete an accident report.

Rideshare insurance FAQs

Driving for a rideshare program isnt as easy as it seems. Here are some commonly asked questions to help get you started.

  • How much does rideshare insurance cost?

    The cost of rideshare insurance depends on several factors, including your driving record and the coverage requirements in your state. Generally, you can expect to pay anywhere from $119 to $300 for rideshare insurance.

  • Do you need to tell your insurance company you drive for Uber?

    Generally, you must give your insurance company a heads-up if you begin driving for rideshare companies, including Uber and Lyft. If you don’t notify your insurer, it may be grounds for policy cancellation and you leave yourself financially vulnerable in the event of an accident.

  • Do you need rideshare insurance in New York?

    Purchasing rideshare insurance isn’t a legal requirement in New York. However, it’s generally recommended to ensure adequate protection in the event of an accident. You can learn more about specific state requirements in the linked state pages included in this article.

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
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
  • 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.

Sources

  1. Lyft. "Insurance coverage while driving with Lyft."
  2. Uber. "Auto insurance to help protect you."
  3. Lyft. "What you need to drive with Lyft in Boston."
Theresa Stevens
Theresa Stevens

Theresa Stevens is a personal finance writer based in Boston, Massachusetts. Her work has been featured in Forbes Advisor, Bankrate, and more. As a former financial advisor, she has first-hand experience helping people solve their money challenges. When she's not writing, you'll find her trying out new karaoke spots or planning her next trip abroad.

Chris Schafer
Edited byChris SchaferSenior Editor
Chris Schafer
Chris SchaferSenior Editor
  • 15+ years in content creation

  • 7+ years in business and financial services content

Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.

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Evelyn Pimplaskar
Reviewed byEvelyn PimplaskarEditor-in-Chief, Director of Content
Evelyn Pimplaskar
Evelyn PimplaskarEditor-in-Chief, Director of Content
  • 10+ years in insurance and personal finance content

  • 30+ years in media, PR, and content creation

Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.

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Konstantin Halachev
Data reviewed byKonstantin HalachevVP of Engineering & Data Science
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVP of Engineering & Data Science
  • 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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