Here’s Where to Find the Best Insurance for Ride-Share Drivers

Driving for Uber, Lyft, or a delivery app can be a great way to make money with a flexible schedule, but you can’t simply jump in your car and start driving. As part of the startup process, it’s critical you get insurance that covers you and your passengers when you are ride hailing, which most people colloquially call ride sharing. Even worse, you could end up with huge liabilities if you’re involved in an accident and don’t have the right coverage.

While getting ride-share insurance may not be an exciting process, it’s an essential step in starting as a ride-share driver. If you already have insurance, it’s a good idea to shop around every couple of years to ensure you’re still getting the best deal for your driving habits. Here’s a closer look at the best ride-share insurance for drivers to help you hone in on the best combination of cost and coverage for your unique driving needs.

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Allstate

Farmers

Geico

Progressive

Safeco

State Farm

USAA

To choose the best companies and products for this list, I looked at a large number of financial products from various providers. I focused on cost, product features and options, ease of use, customer service, and past customer ratings as the most important factors in the ratings.

Pros

Cons

Summary

While it may not be the cheapest option, Allstate offers robust coverage with a good list of discounts. However, the customer service and claims processes are not always smooth and easy.

Allstate is a major insurance company offering insurance policies in every state. However, the Allstate Personal Auto Policy with Allstate Ride For Hire policy isn’t available in all states, so you’ll have to work with an agent to find out your options. If you choose Allstate, the additional cost for Ride for Hire coverage is typically minimal, around $20 a year.

Policies also include gap coverage for up to $2,500 to cover the high deductible of Uber or Lyft’s insurance policies while you have passengers in the vehicle. This is a valuable feature if you’re ever in an accident while driving with any customers in the car.

Allstate isn’t the lowest cost insurer around, but the added cost for ride-share coverage is minimal. It earns very high ratings for financial stability, but customer service and claims ratings are mixed. This insurer is best for people who want hands-on experience working with an agent and don’t prefer doing everything themselves online.

Pros

Cons

Summary

Farmers is a large, stable insurance company with high ratings for customer service and claims processing. It’s not always the cheapest, but you’ll get great support in the event of a claim.

Farmers is a large and storied insurer, founded in 1928 in a one-room office in downtown Los Angeles. It maintains excellent financial strength ratings and scores above average for customer service and claims satisfaction, meaning most customers are happy compared to similar insurance companies. If you already have Farmers, adding rideshare coverage takes just a few minutes by phone. If you don’t, you can contact an agent or apply online with instant, same-day coverage availability. Rideshare policies are available in over half of the United States, but many locations are missing from the supported list for this add-on feature.

Farmers' general auto coverage is flexible with high limits and just about any feature you could want. Bundle discounts are available for renters and homeowners policies, and you may qualify for additional discounts for safe drivers. If customer service is a top priority for you, it’s worth getting a quote from this insurance company.

Pros

Cons

Summary

Geico is a low-cost insurer with good customer service, but getting a quote for rideshare insurance requires getting on the phone with customer service.

Geico offers rideshare insurance as an add-on to its standard auto policies, which are among the cheapest around. The commercials saying you could save money switching to Geico often tell the truth. You can call Geico to get a quote and add rideshare coverage. However, you can’t get a quote or sign up for rideshare insurance online.

In its most recent customer satisfaction surveys, J.D. Power found that Geico performs average or above in most regions and scores average in the nationwide survey for claims satisfaction. Considering the low cost, that could make Geico a bargain. If you choose Geico for auto and rideshare insurance, look at the extensive list of discounts. Also, note that Geico may offer you a lower level of coverage to help you save on premiums. While it seems nice to save a little upfront, higher premiums for more extensive coverage are often worth the cost. Discuss with a trusted agent or financial professional if you’re not sure what level of coverage makes the most sense for your needs.

Pros

Cons

Summary

Progressive is a large insurance company with rideshare coverage in most states, but customer service could be better.

Progressive is one of the largest auto insurance companies in the U.S. and offers a rideshare endorsement in 34 states. The insurance company requires Lyft and Uber drivers with Progressive auto insurance to have this add-on coverage.

Progressive may offer competitive rates, but you’ll have to get a quote to compare for your specific driving history. The biggest downside of Progressive is a history of mediocre to poor ratings from past customers for claims and overall customer satisfaction.

In addition to searching for discounts, it’s good to remember the Progressive accident forgiveness program. For claims up to $500, your premium isn’t increased. If you’ve been with Progressive for at least five years and have been accident-free for the last three, you won’t have your rate raised even if you cause an accident with a large claim.

Pros

Cons

Summary

Safeco is part of a large, stable insurance company. While it doesn’t rank highly for customer satisfaction, the affordable rideshare add-on makes it worth adding to your comparison list where available.

Safeco is a subsidiary of Liberty Mutual, one of the big, stable insurance companies operating in much of the U.S. Liberty Mutual earns an A rating for financial stability from AM Best, but its ratings for customer satisfaction leave something to be desired. Safeco offers drivers a combination of policy features that cover just about any need, with plenty of discounts available. It may not be the cheapest, but you could find it offers the best deal for your desired level of coverage, particularly when you factor in rideshare coverage, which will likely cost less than $10 per month.

Safeco policies only come from working with a local agent. Working with an independent agent is beneficial, as they may offer several quotes and options for different insurers at once. However, it may also be more time consuming than doing it yourself online, which isn’t supported at Safeco. But if the price is right, the coverage is excellent.

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Summary

State Farm is one of the biggest insurance companies in the United States and ranks highly for customer service. While rates are sometimes competitive, rideshare coverage isn’t the cheapest among competitors.

State Farm is a top choice for customer service, financial stability, and finding all types of coverage you may want from one insurer. According to J.D. Power, State Farm's customer service is among the best in the industry, and it earns the highest possible A++ rating from AM Best. As wtih other giants in the insurance industry, State Farm offers just about any coverage you could want, with bundle discounts available. For auto policies, you can find plenty of discounts, which could lead to State Farm being your cheapest option.

However, rideshare coverage isn’t necessarily the cheapest here, as the cost is typically an additional 10 to 15 percent based on your monthly premium. If you find a good deal here, you should end up with an overall positive experience in most cases.

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Summary

If you, a spouse, or a parent are veterans of any branch of the United States Armed Forces, you should check out USAA, as it offers competitive rates and excellent service.

USAA is only available only to military veterans and their families. However, if you qualify, it’s certainly worth a look. USAA is known for excellent customer service and competitive insurance rates across all insurance products. With bundle discounts and other benefits tailored for active-duty military households, it’s often a winner if you’re eligible.

USAA rideshare coverage is available in 38 states and costs as little as $6 per month. However, gap coverage is not included and it isn’t available in eight states, so you could incur a high deductible if you have a claim with a passenger in the vehicle.

The biggest downside is that you’re not eligible for USAA membership unless you have that military connection or an immediate family member is already a member.

Insurance costs vary widely based on your location, vehicle, driving record, and other factors. Every state has different rates, making a comparison of insurance rates even more complicated.

According to one source, the average cost for rideshare insurance in California is $264 per month, including auto coverage. The average cost per month in Texas is $256. In Pennsylvania, the average is $195 per month. To find the best price, it’s important to shop around and compare rates.

Rideshare insurance customers can save through discounts, making one policy cheaper than another after considering the all-in rate. 

Many variables will affect the cost of your insurance. With that in mind, here are the variables that’ll change the cost of your insurance.

You’ve got questions. The Drive has answers.