Reviews | The Drive

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

If you’re ferrying passengers for Uber or Lyft to make money, specialized insurance isn’t optional.

With decades of combined experience covering the latest news, reviewing the greatest gear, and advising you on your next car purchase, The Drive is the leading authority on all things automotive.

youtubefacebookinstagram

The Drive and its partners may earn a commission if you purchase a product through one of our links. Read more.

BYEric Rosenberg/ LAST UPDATED ON May 24, 2022
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.

This article may include references to products or services where The Drive has an affiliate relationship with the providing company. The Drive and its partners may earn a commission if you purchase a product through one of our links. Read more.

Our Top Choices for Ride-Share Insurance

Allstate

Farmers

Geico

Progressive

Safeco

State Farm

USAA

Our Methodology

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.

Allstate

Pros

  • Policy add-on to personal auto insurance
  • Nationwide coverage
  • Low additional cost for coverage

Cons

  • Policy costs higher than competitors
  • Mixed reviews for claims and customer service
  • Not available in New York

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.

Farmers

Pros

  • High ratings for claims processing
  • Add to an existing policy in five minutes
  • Work with an agent or get a quote online

Cons

  • Often not the cheapest option
  • Does not include gap coverage
  • Not available in all states

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.

Geico

Pros

  • One of the lowest-cost auto insurers around
  • Options for low deductibles and flexible coverage levels
  • Good ratings for customer service

Cons

  • Little information on rideshare policies is available without calling customer service
  • No gap coverage for high rideshare insurance deductibles

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.

Progressive

Pros

  • In more than 30 states
  • A large insurer
  • Gap insurance

Cons

  • Below-average ratings for claims and mediocre ratings for customer satisfaction

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.

Safeco

Pros

  • May cost less than $10 per month
  • Subsidiary of Liberty Mutual 
  • Flexible add-on coverage options

Cons

  • Not available in many areas
  • Below-average customer service ratings

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.

State Farm

Pros

  • Nationwide operations and financial stability
  • Very high ratings for customer satisfaction and claims service
  • Discounts available

Cons

  • 10 to 15 percent of your premium
  • No rideshare coverage in seven states

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.

USAA

Pros

  • Excellent pricing and customer service
  • Strong reputation for banking and insurance products
  • Specialized service for military households

Cons

  • Not available to non-military families
  • Gap coverage is not supported in all states

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.

Average Cost of Insurance for Rideshare Coverage

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.

How to Save on Rideshare Insurance

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

  • Bundle discounts. If you buy multiple insurance policies from the same insurer, you can often save with a bundle discount. Check for renters and homeowners insurance and what you can save by keeping both with one insurer.
  • Safe driver discounts. If you drive safely and avoid tickets, you can often get some of the best discounts and rates. Always drive safely regardless, especially if you have passengers riding with you.
  • Driver’s education discounts. Driver’s ed isn’t just for kids. Young and experienced drivers alike may find savings and discounts by completing an authorized driver safety course.

Cost Variables for Ride-Share Insurance

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.

  • Age. Younger drivers tend to pay more as do older drivers in their golden years. You can blame your peers for proving that younger drivers with less experience cause more accidents. You can’t do anything about your birthday, however.
  • Gender. Men tend to have more accidents than women and pay higher rates for insurance. 
  • Credit Score. Data indicates that drivers with good to excellent credit scores tend to file fewer claims than those with poor credit. Improving your credit score can save you money on insurance premiums.
  • Location. The zip code you call home influences your rates, as does your parking situation. If you live in a safe area with few claims and can park in a garage, you’ll pay less than someone who lives in an urban area with a high crime rate who has to park on the street.
  • Vehicle and Model. More expensive and flashier cars typically carry a higher rate than boring, inexpensive cars.
  • Type of Coverage: You’ll pay more for higher levels of coverage and a lower deductible in the event of an accident.

FAQs

You’ve got questions. The Drive has answers.

Q. Is extra insurance required for ride-share drivers?

A. If you are driving for Uber or Lyft, the company provides a $1 million policy when riders are in the vehicle with you. Ride-share insurance covers when you are on the app but don’t have a rider in the car.

Q. What should I look for when shopping for ride-share insurance?

A. Rideshare insurance coverage is generally an add-on to your personal auto insurance policy. In addition to coverage when you’re waiting for a rider or on the way to a passenger, it’s good to look for gap coverage to help with the $2,500 deductible if you have an accident while covered by Lyft or Uber insurance policies.

Q. Does my regular car insurance cover ride-share driving?

A. Your regular car insurance doesn’t cover ride-share driving. You need a rideshare add-on or endorsement for full coverage while using your vehicle for ride-share or delivery.

Q. Do I need a commercial driving policy for ride sharing?

A. No, commercial policies are generally reserved for other types of business owners and vehicles. Ride-share insurance comes through an endorsement or an addition to your auto insurance policy.

stripe
stripe