Best Auto Insurance Companies for Uber and Lyft Drivers
Last Updated on May 21, 2020
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.
Do You Need Special Insurance When Driving for Uber and Lyft?
Yes! When driving for Uber, Lyft, or another ridesharing service, you’ll need to get a special type of car insurance.
Obviously, 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, including:
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 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
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 offers a car insurance product called Ridesharing Insurance. It’s a hybrid policy designed to totally 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 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 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 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 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 is the first company on this list that doesn’t specifically offer rideshare insurance coverage. However, the company will not cancel your personal policy if you use your vehicle for ridesharing services.
Update – As of December 31, 2019, Liberty Mutual now offers rideshare coverage in certain states.
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.