Best rideshare insurance companies
Fact-checked with HomeInsurance.com
True or false: Rideshare insurance is only for drivers who pick up passengers with apps like Uber and Lyft.
If you answered true, think again. While ridesharing insurance was initially created with Uber and Lyft drivers in mind, supplemental coverage is an essential for all gig workers who generate income while behind the wheel of their personal vehicle. This includes food delivery drivers for DoorDash and Postmates, Amazon Flex drivers and Instacart delivery workers, among others.
The good news is that rideshare insurance costs are less than you might think, and more insurance companies now offer it – potentially even your current auto insurer. We’ve compiled a list of the best rideshare insurance companies to make sure you don’t lose your hard-earned dollars while on the job.
What is rideshare insurance?
Rideshare insurance is a type of coverage that either supplements or replaces your personal auto insurance policy while you’re driving for a ridesharing or delivery app.
Since personal auto policies don’t cover commercial activity, your insurer may refuse to cover claims that occur while you’re driving for an app. Most ridesharing and delivery companies offer insurance to their drivers, but coverage is notoriously minimal and might not cover full damages in the event of an accident. Rideshare insurance fills the gap between these two policies.
Who needs rideshare insurance?
As the name implies, drivers for ridesharing apps like Uber and Lyft are most frequently called out as those who need supplemental insurance. In reality, the need is much greater. Any gig worker who uses their personal vehicle to complete tasks should carry rideshare insurance.
If you make money driving for one or more of the following companies, you probably need ridesharing insurance.
- Uber/Uber Eats
- Amazon Flex
- Point Pickup
Types of rideshare insurance policies
Unlike other types of auto insurance, rideshare insurance is usually divided into phases that are characterized by the tasks you’re performing at the time. There are three phases considered by insurance companies according to the International Risk Management Institute.
- Phase 1: When your ridesharing app is turned on but you don’t have any fares in the queue, this is called Phase 1. Most people spend this time driving around or idling off the road while waiting for their next trip. The app’s insurance coverage for drivers is typically minimal during this phase, restricted to low-limit liability that is contingent upon your own personal policy refusing to pay.
- Phase 2: As soon as you accept a trip, Phase 2 begins. This phase covers the time and distance from your prior location to the passenger pickup point. Note that during Phase 2, you’ll never have any passengers (or goods) in the vehicle. Ridesharing apps provide better insurance coverage during Phase 2 than Phase 1, but it’s still limited to excess liability not covered by your personal auto insurance.
- Phase 3: Phase 3 starts the moment your passenger gets in the vehicle (or you pick up the goods you’re delivering) and lasts until you drop them off at their destination. This is the only phase during which ridesharing apps offer primary insurance coverage for drivers. Your personal policy will be rendered completely ineffective during this phase.
Best rideshare insurance companies
Every year, more auto insurers join the wave of companies offering rideshare insurance for Uber and Lyft drivers. At the moment, these are the best options out there:
Most auto insurers ask drivers to purchase ridesharing coverage as an add-on to their existing policy. Geico rideshare insurance, however, is an all-in-one policy that combines both personal and ridesharing coverage.
There are a few benefits to this. First, it’s the most secure way to eliminate gaps between your personal and ridesharing benefits; there’s never any question as to which policy is effective at the time of a claim. Second, you may be able to save some money by rolling both policies into one. Third, it’s simply more convenient to only have one policy to manage.
Geico allows drivers to work for more than one ridesharing or delivery app, and provides consistent coverage through every phase of your trip. Coverage is available in 40 states and the District of Columbia.
Progressive rideshare insurance is available through two very different types of policies. The first is an add-on to your existing Progressive auto coverage, which the company currently offers in 34 states and the District of Columbia. Progressive notes that this is the easiest and usually the cheapest option if all you need is basic car insurance for Uber or Lyft drivers.
If you live in a state where Progressive doesn’t issue ridesharing add-ons or you want something more robust, you can instead opt for a commercial for-hire livery policy. While it’s more expensive, it also has the benefit of providing you with a single policy and nonstop coverage through every phase of personal and professional driving. Progressive sells these policies to drivers in 38 states.
Ride for Hire is Allstate’s rideshare insurance policy. While it provides the lowest amount of coverage out of the options we reviewed, it’s also the most cost effective. Ride for Hire acts as a deductible gap coverage that reduces your Uber or Lyft deductible in the event of a claim. It also provides some supplemental coverage during Phase 1 of your trip while you’re waiting to accept a fare.
While Allstate offers auto insurance policies in every state, Ride for Hire may not be available everywhere. You’ll need to get in touch with an Allstate representative to find out about the specific options in your area.
How to choose the right rideshare insurance
Whether you’re thinking about signing up as a ridesharing or delivery driver, or you’ve already started earning money, the Insurance Information Institute recommends that you first talk to both your personal auto insurer and the company you’ll be driving for. Ask both companies about the type and amount of coverage they’ll extend to you while you’re on the clock. Make sure you ask specifically about the three different ridesharing phases as coverage may change.
Once you’ve determined what coverage you have and what’s missing, it’s time to ask your insurance company about ridesharing add-ons. Ask for a quote to supplement your current policy with ridesharing coverage. At the same time, think about shopping around with other companies to see what rates you’d get by switching your personal policy to a competitor with better rideshare options. You never know – you might even end up saving money on your existing auto insurance.
- Personal auto insurance policies don’t cover claims that occur while you’re driving for a ridesharing or delivery service like Uber, Lyft, DoorDash or Amazon Flex.
- Most ridesharing apps provide their drivers with insurance, but it almost always falls short of providing sufficient coverage.
- Ridesharing and delivery drivers should supplement their personal auto policy with rideshare insurance to make sure they’re fully covered throughout every portion of their trip.
Most rideshare insurance costs just a few cents per day, and the benefits are more than worth it when you think about losing the income you’ve worked so hard for due to poor coverage and high deductibles. With so many rideshare insurance options available nowadays, chances are you can add coverage to your current policy in just a few minutes.