Best Rideshare Insurance of May 2020

Best Rideshare Insurance of May 2020

Rideshare services have taken off in recent years: In fact, Uber and Lyft employ close to 2 million drivers in the United States alone. While these gigs can be good for the self-employed, personal auto insurance doesn’t cover rideshare drivers on the job, and the companies themselves only cover drivers during certain phases of the trip. Result: Rideshare drivers can end up shelling out a lot of money in the unfortunate event of an on-the-job accident.

Luckily, many car insurance providers now offer rideshare policies that drivers can either add on to their current plan or convert their existing policy to. We analyzed all of the major auto insurance companies in the country that provide such policies. Our evaluations factored in such variables as coverage terms, availability, cost, and brand reliability to come up with these top choices for rideshare insurance coverage, depending on your particular needs.

Best Rideshare Insurance Companies:

• Geico: Best Overall
• Mercury: Best Rates
• State Farm: Best Add-On Policy
• Allstate: Best for Lyft Drivers
• Progressive: Best for Food Delivery Drivers

Geico: Best Overall

Pros

• Complete coverage both on and off the job
• No mileage restrictions
• Includes coverage for delivery driving

Cons

• Costs more than some other plans
• Not available in all 50 states

Coverage

Unlike most other insurance companies, Geico’s Rideshare Policy is actually a hybrid plan that includes both personal and business trips. In other words, you’re covered when the app is completely off and you have no passengers, and when you’re actively driving passengers to their desired destination.

This plan also covers the rideshare passengers themselves and even includes provisions for delivery driving for UberEats or other food delivery services (a rarity in the industry). Furthermore, Geico doesn’t enforce mileage restrictions a boon for those who log a lot of driving time.

Obviously, the biggest selling point of Geico’s Rideshare Policy is that you never have to worry about claims coverage or who to report an incident to because Geico covers it all. There’s no trying to decide whether you file a claim with your insurance or through your rideshare company, which can save rideshare drivers a lot of hassle in the event of an accident or other incident.

Availability

Geico’s Rideshare Insurance is available to most rideshare drivers regardless of what transportation network company (TNC) they use, and is available in all states except Alaska, Georgia, Kentucky, Michigan, Nevada, New Jersey, New York, North Carolina, Texas, and Utah.

Cost

Geico’s rideshare insurance policy is considered a commercial insurance plan. While much cheaper than Geico’s other commercial auto insurance policies, it skews somewhat higher than competitors' rideshare policies—but remember, the coverage extends to personal driving time, as well. Since rates vary greatly based on location, vehicle, and driving history, it’s best to contact Geico directly (866-509-9444) to receive a free quote.

Mercury: Best Rates

Pros

• Rates start under $10/month
• Policies include mechanical breakdown coverage
• Covers drivers for all TNCs

Cons

• Only available in 8 states
• No online claims filing

Coverage

If you're looking for the absolute lowest rates on rideshare coverage, then Mercury Insurance just might be the ticket for you. In fact, Mercury Insurance claims that they provide peace of mind for Uber, Lyft, and other TNC drivers for "as little as 20 cents a day."

Unlike GEICO's hybrid policy, Mercury's rideshare coverage works like most other comanies, meaning it fills in the gaps where your TNC's coverage doesn't work. In other words, Mercury's Ride-Hailing Insurance covers you during Period 1 when your rideshare app is turned on but you have not yet accepted a passenger.

Availability

Although any driver who uses Mercury Insurance can enroll in Mercury's Ride-Hailing Insruance, the company only provides car insurance coverage in a total of 11 states, and their rideshare coverage only works in 8 of those 11 regions. So if you don't live in Arizona, California, Georgia, Illinois, Nevada, Oklahoma, Texas or Virginia, then you can't roll with Mercury as your rideshare provider.

Cost

According to Mercury's website, rideshare insurance costs will vary depending on the amount and type of coverage you select. As we mentioned, though, their site states that drivers can add on rideshare coverage to an existing policy for as little as 20 cents per day, meaning that the average driver can receive rideshare coverage from Mercury Insurance for just $6 per month (in addition to their regular insurance premiums).

State Farm: Best Add-On Policy

Pros

• Available in most states
• Includes coverage for UberEats and other delivery services
• No mileage restrictions

Cons

• Only covers gaps in rideshare service coverage
• Costs more than other comparable plans

Coverage

For drivers who may not want to invest in a hybrid or comprehensive commercial coverage plan, an add-on policy for existing personal car insurance plans might be a more reasonable option. State Farm’s Rideshare Driver coverage is specifically geared toward bridging the gap where a personal policy ends and where a transportation network company like Uber or Lyft picks up liability coverage.  

While State Farm’s policy is mainly geared towards part-time drivers who use Uber or Lyft to supplement their full-time income, the company does not increase rates based on logged rideshare hours or mandate any mileage caps. Also, State Farm’s rideshare coverage extends to delivery driving without any premium increases, which makes it a great choice for Uber drivers who do both ridesharing and food delivery.

Availability

State Farm offers coverage for most TNC drivers in all states except Alaska, Hawaii, Illinois, Massachusetts, New York, and North Carolina. For exact availability, though, always check with a local State Farm agent.

Cost

According to State Farm’s website, their rideshare coverage typically increases your current insurance premium by around 20%, depending on your coverage and available discounts.

Allstate: Best for Lyft Drivers

Pros

• Coverage available in nearly all 50 states
• Provides deductible gap coverage to minimize out-of-pocket expenses
• Low premuims

Cons

• Exists solely as add-on to Allstate policies
• Does not provide full coverage during all rideshare phases

Coverage

Allstate offers their “Ride for Hire” coverage to drivers using most of the common rideshare apps. But it's especially beneficial for Lyft drivers, who tend to pay more for their corporate coverage.

Lyft’s typical deductible is $2,500—not only higher than Uber's but also Allstate's average $500 deductible. "Ride for Hire" includes deductible gap coverage during all phases of a driver's duty. If you end up in an accident while driving for a rideshare company and would be covered under its plan, Allstate helps cover the difference between its own deductible and the deductible of the rideshare company.

Keep in mind, though, that while it'll cover the difference in deductibles, Allstate doesn’t guarantee continuous coverage when you’re actually in transit with a passenger; its coverage for damage and injury mainly applies when you're signed onto the app, but haven't yet accepted a fare.

Availability

Allstate provides coverage to nearly all TNC affiliates, and provides coverage in every state except Florida, Michigan, and New York, making it by far the most widely available rideshare car insurance option.

Cost

Because Allstate offers its Ride For Hire plan as an add-on policy that only covers the gap between a personal policy and your rideshare company’s liability plans, it’s one of the most affordable options out there. In fact, Allstate’s Ride For Hire policy adds less than $30 per month to your existing Allstate car insurance premium.

Progressive: Best for Food Delivery Drivers

Pros

• Most options for coverage, including delivery-only plans
• Ability to customize price based on season

Cons

• Not available in several states
• Rates not transparent—vary widely based on individual info

Coverage

While most drivers see the necessity in having ample insurance coverage when transporting passengers, many people who drive for a delivery service like UberEats, Postmates, or Doordash don’t realize that they too need additional protection. Most personal car insurance policies don’t cover you when delivering food. 

Surprisingly, Progressive is the only insurance company that offers unique insurance plans for delivery drivers. It not only covers the gap between your personal policy and the delivery company, but Progressive also offers customers the option to customize their delivery driver plan to account for on- and off-season driving. This policy is often much cheaper than a full rideshare policy but provides the needed coverage for delivery drivers in every phase of transport.

Additionally, Progressive offers rideshare coverage similar to State Farm's and Allstate's that fills in the gaps of coverage as well as full-blown commercial for-hire livery policies similar to Geico's. Depending on the state you live in and how much you drive, you can determine if it’s best to opt for Progressive’s rideshare add-on to an existing personal plan or to roll your coverage into one of its commercial policies.

Availability

Currently, Progressive’s rideshare coverage is available in about 35 states and not available in Alaska, California, Delaware, Hawaii, Kansas, Massachusetts, Nevada, New Jersey, New York, North Carolina, Oregon, South Carolina, and Vermont. However, the company does have plans to expand into these territories in the near future.

Cost

Since Progressive offers the widest array of options for rideshare drivers, their rates vary based on the specific policy you select and other factors. It’s best to simply obtain a quote or use Progressive’s online quote comparison tool to see if their policy is the best option for you.

What is Rideshare Insurance?

Rideshare insurance is a specific type of auto insurance geared toward drivers who work full-time or part-time for one of the app-oriented livery companies, like Uber or Lyft. Typically rideshare policies are offered in one of two ways: either as an add-on to an existing personal car insurance policy or as a stand-alone policy from an insurance carrier. Applying to both car damage and passenger injury, rideshare coverage offers a less expensive alternative to commercial insurance coverage and provides greater flexibility to part-time rideshare drivers.

What Coverage Does Rideshare Insurance Provide?

Rideshare insurance aims to fill the gap between a driver's own personal car insurance and the coverage offered by the employing firm. Rideshare companies and insurance providers have agreed on a general guideline for rideshare work. These periods of work, often referred to as phases, are:

• Phase 0: The rideshare app is off. Your personal auto insurance policy covers you.
• Phase 1: The app is on, but you’re waiting for a customer request. Your personal policy doesn’t cover you now—because you're in professional mode—but the rideshare company also doesn’t offer coverage (or very limited coverage) at this point.
• Phase 2: You accept a request and are en route to pick up your passenger. Your rideshare company’s policy is in full force.
• Phase 3: You have passengers in the car. Your rideshare company’s policy is in full force.

Most rideshare insurance policies provide you with critical coverage, both liability and personal, during that Phase 1 period when personal policies drop out but the corporate coverage hasn't yet kicked in. Additionally, some insurance companies, like Geico and Progressive, provide full coverage during all phases so that you don’t have to worry about where or with whom to file a claim, in the event of an accident.

Is Rideshare Insurance Expensive?

Rideshare insurance is typically cheaper than full commercial auto insurance policies but more expensive than a traditional personal car insurance plan. Prices can vary from as little as $10 more per month to nearly double what a traditional car insurance policy costs. That being said, the exact price of rideshare insurance plans depends on several factors, including your driving history, location, and elected coverages. 

Do You Need Rideshare Insurance?

While most rideshare companies do not require that you hold a specific policy, Uber and Lyft do require all of their drivers to be privately insured. However, most personal car insurance plans do not cover commercial use of the vehicle—which means transporting passengers or goods for money. They will even cancel your insurance policy altogether if you’re found driving for hire without rideshare insurance coverage.

Where Can You Get Rideshare Insurance?

Insurance Company	Availability
Allstate	All states EXCEPT: FL, MI, NY
Erie	Available in: IL, IN, KY, MD, OH, PA, TN, VA, WI, WV, and DC
Farmers	Available in: 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
Geico	All states EXCEPT: AK, GA, HI, KY, MI, NC, NJ, NY, TX, UT
Mercury	Available in: AZ, CA, GA, IL, NV, OK, TX
Progressive	Available in: AL, AR, AZ, CO, CT, DC, FL, GA, IA, ID, IL, IN, KY, LA, MA, ME, MI, MN, MO, MS, ND, NE, NM, OH, OK, PA, RI, SD, TN, TX, UT, VA, WA, WI, WV, WY
Safeco	Available in: AZ, CO, IL, IN, KS, MN, MS, OK, OR, TN, UT, WA, WI
State Farm	All states EXCEPT: AK, HI, IL, MA, NY, RI, SD
Travelers	Only available in: CO, IL
USAA	Available in: 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

The Bottom Line

Rideshare coverage should be a top priority to the nearly two million Uber and Lyft drivers (not to mention those working for smaller, local livery firms) out on the roads here in the United States. Luckily many companies—including the four we highlighted here—now offer rideshare insurance policies that help bridge the gap between personal car insurance and rideshare company coverage. Whether you just want an add-on policy or full-out coverage both on and off the job, you can save yourself thousands of dollars in the unfortunate event of a car accident.

Methodology

When selecting the best car insurance companies for rideshare drivers, we not only considered each company’s ratings with companies like J.D. Power and the Better Business Bureau, but we also looked at rate comparisons, policy fine print, and discount offerings listed by more than 25 insurance providers.

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