These providers offer the best rideshare insurance coverage at cheap prices when your personal auto insurance would otherwise become void.
Many drivers working for rideshare companies, like Uber or Lyft, assume that their personal auto insurance policies will continue to cover them when they’re signed into the company app. However, the entire time your rideshare app is on, your personal car insurance is suspended.
At these times, the only coverage you have is the commercial insurance provided by Uber or Lyft. This stand in coverage might be less than your personal insurance limits and may not be enough to cover extensive bodily or property damage should you have an accident with passengers in your vehicle.
The commercial coverage you’re provided while driving for Uber or Lyft is broken down into stages, or periods, throughout your trip. These stages include offline, available, en route, and on trip.
Uber and Lyft provide different coverage amounts to their drivers at different stages of their trips.
Of course, while you are signed out of the rideshare app your personal auto insurance is the only coverage in effect.
Before insurance companies offered these policies, most of the industry considered rideshare drivers high risk and could refuse claims and cancel insurance policies.
Nowadays, you can find relief in the fact that auto insurance companies are beginning to make tailor-made policies for rideshare drivers that are cheaper than commercial insurances. But, not all of these rideshare policies provide the same coverage so it’s important to read the fine print for each.
All these rideshare policies are meant to be used in addition to the commercial insurance that Uber and Lyft provide, but conditions may apply.
While researching be aware of the difference between
State Farm, Safeco, and Allstate offer an optional coverage that will carry the policy limits you have already set for your personal auto policy into the stages of your rideshare trip; where other insurance companies, that don’t support rideshare driver, would suspend your policy. Allstate provides additional deductible gap coverage on top of this.
GEICO’s policy made the list because they cover the most states (36 to be exact) compared to any other auto insurance company in the U.S. And they cover every stage of your rideshare trip. However, their rideshare policy isn’t the cheapest.
GEICO’s Rideshare Insurance is estimated to cost $25 more a month than your existing personal auto insurance premium with GEICO.
Currently GEICO’s rideshare policy is available in Alabama, Arizona, Arkansas, California, Connecticut, Colorado, Delaware, Washington DC, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
GEICO’s policy is valid for all rideshare companies like Uber and Lyft. Because this policy is a hybrid, every stage of your rideshare trip is covered from App On to App Off.
This rideshare insurance is meant to cover you as the named driver on the policy, anyone living in your home, your passengers (up to your policy limits for injuries or property damage), and property damage to your car if you have collision and comprehensive insurance. Any vehicle you do not own is not covered under your rideshare insurance.
If you have multiple vehicles in your household, you’ll need to continue to have personal auto insurance on the cars not being used for rideshare services.
Erie has made the best list because, like GEICO, their rideshare coverage is included in your personal auto policy. It covers you offline and throughout every stage of your rideshare trip. And it only costs an additional $9 to $15 a month on your existing Erie policy.
Currently Erie’s hybrid rideshare policies are available in Illinois, Indiana, Kentucky, Maryland, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin and D.C.
Erie’s business use extension is valid for all rideshare companies like Uber and Lyft.
More importantly, your liability coverage does NOT carry over to your rideshare trips during the en route or on trip stages. Liability is only included when during the offline and available stages. Basically this means that as the driver, you will have to make sure that Uber and Lyft's liability limits are high enough to cover possible liabilities with passengers.
All other coverages during your en route and on trip stages are based on the coverages and limits you’ve selected for your personal auto policy.
State Farm is on this list because this coverage can be easily added to an existing personal auto policy for an additional 15 to 20 percent of your current premium. And it’s available in a large number of states across the U.S.
Currently State Farm’s Rideshare Driver Coverage is available in Alabama, California, Colorado, Connecticut, Delaware, Georgia, Idaho, Indiana, Iowa, Kentucky, Louisiana, Maine, Minnesota, Missouri, Nebraska, North Dakota, Ohio, Oklahoma, Oregon, Tennessee, Washington, West Virginia, and Wisconsin.
State Farm claims this additional coverage is a smart decision because it puts your personal policy deductible into effect while ridesharing and if you have a claim, you can deal with State Farm directly, instead of your rideshare company.
Safeco’s Ridesharing Coverage made the list because it is available in 13 states and only cost an additional $10 a month on top of your personal auto premium with Safeco.
Currently Safeco’s Ridesharing Coverage is available in Arizona, Colorado, Illinois, Indiana, Kansas, Minnesota, Missouri, Oklahoma, Oregon, Tennessee, Utah, Washington, and Wisconsin.
If you have multiple vehicles in your household, ridesharing coverage will only protect vehicles explicitly written under this optional coverage.
Even though it does not replace personal auto insurance policies, Allstate’s Ride for Hire made the list because it is available in 14 states across the U.S. and only costs an additional $15-$20 a month to add to your current Allstate personal policy.
Currently Allstate’s Ride for Hire is available in Arizona, California, Colorado, Georgia, Illinois, Indiana, Kentucky, Minnesota, Oklahoma, South Carolina, Tennessee, Texas, Utah, Washington, and D.C.
Allstate’s policy is valid for all rideshare companies like Uber and Lyft. Because this policy does not cover you when you are signed off your rideshare app, it does not replace your personal auto insurance policy.