Best Auto Insurance Companies for Uber and Lyft Drivers
Last Updated on July 12, 2023
Getting the right car insurance is crucial for Uber and Lyft drivers. The wrong car insurance can leave you exposed to enormous liability.
Today, we’re featuring the best car insurance companies for Uber and Lyft drivers, including the best rideshare auto insurance offered by America’s leading insurance companies.
Key Takeaways:
- Uber and Lyft drivers require a special type of commercial car insurance when driving for these companies, as personal auto insurance doesn’t provide adequate coverage when you are on the clock with a ride-sharing company.
- There are four phases of insurance policies for Uber and Lyft drivers: Offline, Available, En Route, and On Trip. Uber and Lyft’s commercial car insurance covers drivers in the Available, En Route, and On Trip stages, but a coverage gap exists during the Available stage.
- Most car insurance companies in the US offer rideshare insurance policies that provide additional protection and fully cover a driver’s car, themselves, and their passengers. The three broad types of rideshare policies include additional protection, personal coverage extension, and a hybrid insurance package.
- The best car insurance companies for Uber and Lyft drivers include USAA, which offers Ridesharing Gap Coverage, and Progressive, which provides rideshare coverage in most states. Other popular insurance companies include Allstate, American Family, and State Farm.
Do You Need Special Insurance When Driving for Uber and Lyft?
Yes! You’ll need to get a special type of car insurance when driving for Uber, Lyft, or another ridesharing service.
You need car insurance to legally drive on the road. Your standard car insurance will cover non-commercial driving: say, when you’re driving to pick up groceries.
Your car insurance will not, however, cover you when you’re driving for Uber or Lyft. When you’re on the clock serving a rideshare company, you’ll need a special type of commercial insurance. Fortunately, Uber and Lyft provide basic commercial car insurance to all drivers while they’re on the clock. However, this auto insurance may not provide adequate coverage for you, your car, and your passengers.
Both Uber and Lyft offer different insurance coverage based on what you’re currently doing. They break down insurance policies by four phases, including offline, available, en route, and on trip.
Offline: You haven’t opened the app, and you’re not available for rides. Your personal auto insurance covers you in this situation, and commercial car insurance from Uber and Lyft does not apply.
Available: You’ve opened the app and are available to pick up passengers. Uber and Lyft’s commercial car insurance policies kick into action, providing $50,000 of bodily injury liability coverage per person, $100,000 of bodily injury liability coverage per accident, and $25,000 of property damage liability coverage. Your personal car insurance policy may not apply, leaving you with a gap in coverage.
En Route: A passenger has requested a ride. You’ve accepted the ride and are en route to pick up the passenger. Uber and Lyft’s car insurance still applies in this situation, but it significantly increases over the car insurance in the previous “available” phase. You get $1 million in liability insurance and $1 million in uninsured/underinsured motorist coverage from both Uber and Lyft. You also get additional collision and comprehensive coverage, although it varies between Uber and Lyft. Uber will cover up to the actual cash value of your vehicle with a $1,000 deductible, while Lyft covers collision and comprehensive damage up to $50,000 with a $2500 deductible.
On Trip: The passenger is in your vehicle, and you’re driving to their destination. You get the same coverage as you got when en route, including $1 million in liability coverage, $1 million in uninsured/underinsured motorist coverage, and additional collision and comprehensive coverage as listed above.
As you can see, Uber and Lyft provide basic insurance protection when you’re “on the clock” with either company.
However, this coverage doesn’t cover you comprehensively when driving your vehicle. There’s a big gap in coverage during the “available” stage, where you’re online and waiting for a rideshare request.
Plus, you’ll have to pay a $1,000 or $2,500 deductible if you get into an accident – which means most Uber and Lyft drivers will pay out of pocket for minor incidents.
Most Car Insurance Companies Offer Special Rideshare Insurance Policies
There’s some good news: most car insurance companies in the United States now offer some type of rideshare insurance policy. This insurance fully covers your car, yourself, and your passengers. It supplements the coverage provided by Lyft or Uber when you’re on the clock while also comprehensively covering your vehicle in other circumstances.
There are three broad types of rideshare policies:
Additional Protection: Car insurance companies provide additional protection plans, also known as gap coverage plans. These insurance plans cover you while you’re “on the clock” with Uber, Lyft, or another ridesharing service. These policies may cover things that Uber and Lyft’s commercial coverage will not.
Personal Coverage Extension: Some insurance companies offer personal coverage extensions. These policies allow your personal coverage – your ordinary car insurance plan – to carry over while you’re driving for Uber and Lyft.
Hybrid Insurance Package: These policies completely replace your existing car insurance policy with a hybrid personal/rideshare-friendly plan.
So which company offers the best car insurance for Uber and Lyft drivers? Here are some of the most popular companies and their rideshare insurance policies.
Best Car Insurance Companies for Uber and Lyft Drivers
Uber and Lyft drivers have had particularly good experiences with the following companies:
USAA
USAA offers a popular car insurance policy called Ridesharing Gap Coverage. This policy covers you while you’re logged onto your ridesharing app and waiting for a request. It functions as “gap coverage,” providing additional protection when you’re on the clock. USAA’s rideshare policy can be added to your existing car insurance plan for as little as $6 per month.
States USAA Ridesharing Coverage is Available
AL, AR, AZ, CA, CO, GA, DC DE, IA, ID, IL, IN, KS, KY, MA, MD, ME, MN, MO, MS, ND, NE, NH, NJ, NV, OH, OK, OR, TN, TX, UT, VT, WA, WV, WY
Progressive
Progressive offers rideshare coverage in most states. If you drive for Uber, Lyft, or other ridesharing companies, Progressive requires you to add this coverage to your policy. Adding rideshare coverage to your Progressive policy will cost you 15-20% of your personal policy’s premium. If you’re already a Progressive customer, adding this coverage to your policy is easy. Simply call your Progressive agent and request ridesharing coverage be added to your policy immediately.
States Progressive Ridesharing Coverage is Available
Progressive offers rideshare coverage in more than 40 states. Contact your agent to see if it’s available in your state.
American Family Insurance
American Family Insurance has a rideshare-friendly car insurance policy called Rideshare Auto Insurance. The coverage works as an add-on to your existing American Family Insurance auto insurance coverage. It works similarly to gap coverage, and it only applies during the “available” phase of a ridesharing trip.
States American Family Ridesharing Coverage is Available
American Family rideshare insurance coverage is not available in all states. Please contact your agent for more information.
GEICO
GEICO offers a car insurance product called Ridesharing Insurance. It’s a hybrid policy designed to replace your existing policy. GEICO’s Ridesharing Insurance, unlike the gap coverage plans listed above, is designed to comprehensively protect you and your vehicle whether you’re driving for Uber and Lyft or off the clock. This plan will replace your current insurance policy.
States GEICO Ridesharing Coverage is Available
AL, AR, AZ, CA, CO, CT, DC, DE, FL, IA, ID, IL, IN, KS, LA, MA, MD, ME, MN, MO, MS, MT, ND, NE, NH, NM, OH, OK, OR, PA, RI, SC, SD, TN, VA, VT, WA, WI, WV, WY
Erie Insurance
Erie Insurance offers Rideshare Insurance, which gets added to your personal auto insurance coverage. Erie recently expanded its “business use” auto insurance policy clause to include Uber and Lyft drivers along with food delivery services. It will cost about $10 to $15 to add Erie’s Rideshare Insurance to your policy.
States Erie Ridesharing Coverage is Available
DC, IL, IN, KY, MD, OH, PA, TN, VA, WI, WV
Allstate
Allstate offers a Ride for Hire policy that functions like gap coverage. It’s only activated when you’re on the clock with Uber or Lyft. Priced at around $20 per month, the policy will not provide additional protection when off the clock.
States Allstate Ridesharing Coverage is Available
AK, AL, AR, AZ, CA, CO, CT, DC, DE, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY
Farmers
Farmers offers a Rideshare car insurance policy that extends your existing coverage. It supplements your existing personal auto insurance policy to ensure you’re fully covered when driving for Uber or Lyft.
States Farmers Ridesharing Coverage is Available
AL, AR, AZ, CA, CO, GA, IA, ID, IL, IN, KS, MD, MI, MN, MO, MT, ND, NE, NJ, NM, NV, OH, OK, OR, PA, SD, TN, TX, UT, VA, WA, WI, WY
State Farm
State Farm offers Rideshare Driver Coverage, an optional insurance plan that covers you during the “available” phase. Effectively, State Farm’s Rideshare Driver Coverage plan allows your personal car insurance policy to carry over when driving for Uber or Lyft.
States State Farm Ridesharing Coverage is Available
AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, IA, ID, IN, KS, KY, LA, MD, ME, MI, MN, MO, MS, MT, ND, NE, NH, NJ, NM, NV, OH, OK, OR, PA, SC, TN, TX, UT, VA, VT, WA, WI, WV, WY
Liberty Mutual
Liberty Mutual now provides an optional rideshare coverage endorsement to their auto insurance policies. The endorsement offers additional protection during the waiting period for a ride request and during the ride itself. If you are considering this type of coverage, please get in touch with Liberty Mutual or an independent agent associated with them to gain more information and receive a quote.
States Liberty Mutual Ridesharing Coverage is Available
CT, MA, ME, NH, RI, VT, SC, PR
Final Word on Getting Insurance for Uber and Lyft Drivers
Uber and Lyft employ thousands of drivers across the United States. A growing number of car insurance companies now offer insurance plans catered specifically to Uber, Lyft, and other ridesharing service drivers.
While ridesharing companies provide some coverage, there are gaps in their policies. Most insurance companies now offer special rideshare insurance policies to cover drivers while they’re on the clock. The best car insurance companies for Uber and Lyft drivers include USAA, Progressive, Allstate, State Farm, and Farmers. Please get in touch with your insurance company today to inquire about adding rideshare coverage to your policy.
