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Rideshare Insurance for Drivers

Fact-checked with HomeInsurance.com

If you drive for a rideshare company, you take on certain liabilities. To protect you and your passengers, purchasing rideshare insurance is a good idea. Rideshare insurance is rarely required by rideshare companies, but there are a number of benefits to having it. 

What is ridesharing?

What is rideshare or ridesharing? A rideshare is a type of service that allows passengers to get short rides from one place to another. Drivers who own a vehicle can sign up to drive for a rideshare company, like Uber or Lyft. Passengers call a car using an app, input their pick up and drop off location and tip the driver after the ride. 

Ridesharing is popular, especially in urban areas where some people don’t own a car. It’s a much cheaper option than taking a taxi, so rideshare is also used by travelers. There are many companies on the market today that offer rideshare services, and the demand for rideshare is high in most major cities.

Many people choose to drive for a rideshare company to make extra money outside of their full-time job. Rideshare drivers can create their own hours and make good money. Some people are able to make a full-time income with rideshare driving.

Where to get rideshare insurance

Most major auto insurance providers also sell rideshare insurance. It’s available as an endorsement to your existing auto policy, meaning you’ll pay a higher premium for it. However, rideshare insurance is not available in every state. Here are some popular insurance companies that offer rideshare insurance, and the states where it’s available:


States served
AllstateArizona, California, Colorado, Georgia, Illinois, Indiana, Kentucky, Minnesota, Oklahoma, South Carolina, Tennessee, Texas, Utah, Washington, Washington D.C.
GeicoAlabama, Arizona, Arkansas, Colorado, Connecticut, Delaware, 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, Washington, DC, West Virginia, Wisconsin, Wyoming
FarmersAlabama, Arizona, Arkansas, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, Tennessee, Texas, Utah, Wisconsin
State FarmAlabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington, DC, West Virginia, Wisconsin, Wyoming
ProgressivePennsylvania and Texas

Do I need rideshare insurance?

Legally, you probably don’t need rideshare insurance. However, if rideshare insurance is available in your state, it’s a good idea to purchase coverage. 

Rideshare insurance protects you and your passengers when your personal auto policy and the rideshare company’s insurance won’t cover a claim. It also makes up for certain gaps in coverage. 

For example, your personal auto policy usually doesn’t cover losses when the vehicle is being used for business purposes. If you’re on your way to pick up a passenger and you get into an accident, you may not be covered. Rideshare insurance can help fill that gap.

Rideshare insurance periods

Uber and Lyft both have insurance policies that drivers can use. However, their coverage is not end-to-end coverage, meaning drivers are only covered during certain periods of time. There are three time periods when drivers are covered by Uber and Lyft’s insurance.

  • Period 0: When you’re offline and not using the Uber or Lyft app, it’s period 0. You are covered by your personal auto insurance during this time.
  • Period 1: Period 1 is when you are driving around with the app on but you haven’t had a ride request. During this time, you are covered by your rideshare insurance and the rideshare company’s policy.
  • Period 2: Period 2 is when you are using the app and get a ride request but you haven’t picked up the passenger yet. During this time, you are covered by the rideshare company’s policy. 
  • Period 3: When you are using the app and have a passenger in your vehicle, it’s considered period 3. During this time, you are covered by the rideshare company’s insurance. 

The tables below indicate what Uber and Lyft cover in each of the three periods. 

Period 1: Driver is covered by rideshare insurance and Uber/Lyft insurance

Coverage typeUberLyft
Bodily Injury$50,000 per person$100,000 per accident$50,000 per person$100,000 per accident
Property Damage$25,000 per accident$25,000 per accident

Period 2: Driver is covered only by Uber/Lyft insurance

Coverage typeUberLyft
LiabilityUp to $1,000,000Up to $1,000,000
Uninsured/underinsured motoristUp to $250,000Up to $250,000
Contingent comprehensive and collisionUp to actual cash value of car ($1,000 deductible)Up to actual cash value of car ($2,500 deductible)

Period 3: Driver is covered only by Uber/Lyft insurance

Coverage typeUberLyft
LiabilityUp to $1,000,000Up to $1,000,000
Uninsured/underinsured motoristUp to $250,000Up to $250,000
Contingent Comprehensive and collisionUp to actual cash value of car ($1,000 deductible)Up to actual cash value of car ($2,500 deductible)

What if my area doesn’t have rideshare insurance?

If your state does not offer rideshare insurance, you can still get coverage beyond your personal auto policy.

The best option is to purchase a commercial insurance policy, which is available through major insurance providers nationwide. Although commercial insurance is more expensive than standard car insurance, the added coverage will protect you and your assets.

How much does rideshare insurance cost?

The cost of rideshare insurance depends on the state you live in, your age, the type of car you drive and your driving record. The only way to find the cheapest company is to get multiple quotes. As a reference, State Farm claims that rideshare coverage generally raises your auto insurance premium by 15-20 percent, depending on the amount of coverage and discounts.

How to buy rideshare insurance

Buying rideshare insurance is simple. Here are the steps:

  • Contact your auto insurer to notify them that you are driving for a rideshare company.
  • Ask if rideshare coverage is available in your state.
  • If it’s available, get a quote online or through an agent for a rideshare endorsement.
  • Determine the amount of coverage you need based on gaps between your personal auto policy and the rideshare company’s insurance.
  • If you can’t get a rideshare endorsement, ask your insurance company about purchasing commercial insurance.

What if I get in an accident driving for Uber or Lyft?

If you get into a rideshare accident during periods two or three, the rideshare company’s insurance will cover medical expenses for injuries and certain damages to your car. If you’re hit by an uninsured or underinsured driver, the rideshare company’s insurance policy will cover the losses up to $1 million.

After reporting an accident, you’ll fill out a claims form and submit to the rideshare company. From there, the company will notify their insurance provider about the incident. The insurance provider will investigate the accident based on the details you provide and will contact you with their expected payout.

If you get into an accident during period one, you’re have coverage from both the rideshare company’s insurance and your own rideshare policy. In this case, file a claim with your insurance provider. If your claim gets denied or if the claim is only partially covered, the rideshare company’s insurance will cover the difference. 

How to report an accident during rideshare

If you’re in an accident while driving for a rideshare company, here’s how you should report it:

  • Immediately after the accident occurs, call the police.
  • Exchange information with the other driver involved and gather details lie photos to help your claim.
  • Contact the rideshare company as soon as possible to start to claims process, if applicable.
  • Get in touch with your personal insurance provider to determine if you need to file a claim.

File a claim as quickly as possible so you can pay for any needed repairs.

The takeaway

  • Rideshare insurance protects you and your passengers from accidents
  • Rideshare insurance isn’t required, but it’s a good idea to purchase a policy if it’s available in your state.
  • Uber and Lyft have insurance that drivers can use, but it only covers drivers during certain times.
  • If your state doesn’t have rideshare insurance, consider purchasing a commercial policy.

If you drive for Uber or Lyft, purchasing a rideshare insurance endorsement is a good idea—if it’s sold in your state. Before you start driving, check with your auto insurance company to see if it’s available. If not, buying commercial insurance will extend your coverage.

Although rideshare companies have insurance that drivers can use, it only applies during certain times. Getting rideshare insurance can help fill gaps and ensure that you and your passengers are protected.

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