The Best Rideshare Insurance Options for Drivers (2022)

Whether you ’ re a full-time rideshare driver or you ’ ra think of picking up rideshare drive as a side bunco, it ’ second authoritative to know the basics of rideshare indemnity. According to the Insurance Information Institute, a standard car insurance policy normally does not provide coverage for ridesharing. The typical personal car policy policy stops providing coverage from the moment a driver logs into a ridesharing app to the moment the customer has exited the car and the transaction is closed. This means that even if rideshare drivers have car policy, they may not be covered if they get into an accident while they ’ ra drive for function. Because of this, it ’ s crucial that these drivers purchase rideshare coverage, either as extra protection, a personal insurance coverage extension or a hybrid insurance package. however, not all insurers issue rideshare coverage, and not all rideshare policies are created peer. The best car policy policies for rideshare drivers provide adequate coverage at a reasonable monetary value.

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identify Takeaways

denySign Most standard car policy policies don ’ thyroxine include coverage for rideshare drivers .insurance2 While rideshare companies typically provide some policy coverage during certain phases of the rideshare action, drivers need to purchase extra indemnity to ensure they ’ re in full covered in the consequence of an accident .mglogo state farm is MoneyGeek ’ s top choice for best overall coverage for rideshare drivers. Loading …

How Rideshare Car Insurance Works

When driving for a ( Transportation Network Company ( TNC ) like Uber or Lyft, the rideshare app ’ second commercial policy policy typically kicks in once you accept a fare or are transporting a passenger. however, this commercial TNC policy alone provides circumscribed insurance coverage when your rideshare app is on, but you haven ’ thymine accepted a fare. To differentiate between when drivers for TNC ’ mho are covered and when they aren ’ t, policy companies break the rideshare process up into four phases :

  • Phases description
  • phase 0 Your app is away. Your personal car insurance policy covers you .
  • phase 1 Your app is on, and you ’ re waiting for a ride request. Your personal car policy policy without rideshare coverage won ’ metric ton brood any accidents that occur during this phase. Some TNCs provide liability-only coverage to their drivers .
  • phase 2 You accepted a request and are en road to pick up a passenger or meal order. Most ridesharing and some rescue app companies offer coverage .
  • phase 3 You have passengers or food in the car. All ridesharing and delivery apps offer coverage, but the extent of that coverage varies from company to company .

Rideshare indemnity can help cover the costs of accidents you get into during phases where you don ’ t have coverage through your TNC. Because coverage through most TNC ‘s is restrict and includes high deductibles, rideshare insurance besides helps close gaps in coverage during phases where your TNC covers you.

The Best Rideshare Car Insurance Options

Rideshare car indemnity is a relatively new form of car indemnity coverage, and the offerings from different insurers can vary widely. Insurers often cater to a diverseness of policy and coverage needs. Keep in mind that the best policy options may besides vary by location.

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Best Overall Coverage: State Farm

If you ’ re looking for an car indemnity policy with robust coverage for rideshare drivers, State Farm is MoneyGeek ’ s exceed pick. State Farm ‘s rideshare indemnity makes indisputable that medical, emergency wayside aid and rental car reimbursement coverage in your personal car policy remains in effect when you ’ rhenium working for a ridesharing company. It besides puts your personal policy deductible into effect, even if you ’ ra drive for a TNC. The indemnity extends all coverages from your car policy when the app is on and you ‘re available for rent. After you match with a rider or are transporting a rider, all coverages except indebtedness indemnity stay. MoneyGeek Top PickState Farm

  • What It Covers: Damage to your car, medical coverage, emergency road service, rental reimbursement and uninsured/underinsured motorist (UM/UIM) coverage.
  • What It Doesn’t Cover: Liability to others during phases 2 and 3.
  • Where It’s Available: Most states.
  • Cost Estimate: State Farm rideshare driver coverage generally adds about 15% to 20% to your current auto insurance premium, depending on the coverages you’ve chosen, any discounts that may apply and other rating factors.

Best for Cheapest Rideshare Insurance: Mercury

Mercury is an excellent option if you ’ ra looking for low-cost rideshare indemnity. Rideshare policy from Mercury protects you and your fomite when your ride-hailing app is on, but you haven ’ triiodothyronine accepted a customer so far. In this room, Mercury fills in policy gaps to ensure that you have continuous coverage throughout all parts of the rideshare driving process. MoneyGeek Top PickMercury

  • What It Covers: Mercury will pay up to the policy limits to fix the damage to the other vehicle(s) along with any resulting injuries up to your policy limits. Mercury will also pay to have your car fixed, depending on the terms of the policy.
  • What It Covers: Mercury will pay up to the policy limits to fix the damage to the other vehicle(s) along with any resulting injuries up to your policy limits. Mercury will also pay to have your c fixed, depending on the terms of the policy.
  • Where It’s Available: 11 states.
  • Cost Estimate: As little as $0.90 a day, according to Mercury.

Best for East Coast Drivers: NJM Insurance Co.

NMJ Insurance Company is an choice worth considering if you ’ re a rideshare driver who lives on the east slide. NMJ gives drivers the option to add a TNC rideshare endorsement to their policy. This addition fills gaps in policy protective covering between a driver ’ s regular policy and coverage from the TNC ’ s commercial liability coverage. NJM provides coverage when rideshare drivers are actively using a rideshare app but seaport ’ thymine so far accepted a passenger, including liability, UM/UIM, personal injury protection ( PIP ) and physical damage coverage. The insurance company besides provides some limited coverage while the driver is picking up and driving a passenger. This extra coverage includes PIP coverage for the see driver and reimbursement of the deviation between the TNC carrier ‘s deductible and the NJM deductible in the character of forcible price after an accident. MoneyGeek Top Pick

NJM Insurance Co
  • What It Covers: Liability, UM/UIM, PIP and physical damage coverage during phase 1.
  • What It Doesn’t Cover: Liability and UM/UIM during phases 2 and 3.
  • Where It’s Available: Five states.
  • Cost Estimate: Varies as a coverage add-on.

Best for Delivery Service Drivers: Progressive

Progressive is a adept option for delivery drivers looking for adequate car policy coverage. While most personal car indemnity policies don ’ t cover you when delivering food for a rideshare company like UberEats, Progressive allows you to add this type of coverage to your policy. This coverage covers the opening between your personal policy and the delivery caller and gives customers the option to customize their plan to account for on- and off-season drive. This policy is often much cheaper than other rideshare policies but placid fills gaps in coverage for delivery drivers. MoneyGeek Top PickProgressive

  • What It Covers: Liability, comprehensive, collision, UM/UIM, PIP, roadside assistance and rental car reimbursement.
  • What It Doesn’t Cover: Liability, comprehensive, collision, UM/UIM and PIP during phases 2 and 3.
  • Where It’s Available: Most states.
  • Cost Estimate: Not disclosed.

Best for Drivers in Colorado or Illinois: Travelers

For drivers living in Colorado and Illinois, Travelers offers good rideshare indemnity coverage. available in these two states only, this limited ridesharing coverage second can help protect individuals who drive for TNCs. This endorsement to your car indemnity policy provides you coverage for when you turn on your ridesharing app but ends when you connect with a passenger. MoneyGeek Top PickTravelers

  • What It Covers: Not stated.
  • What It Doesn’t Cover: Not stated.
  • Where It’s Available: Colorado and Illinois.
  • Cost Estimate: Not disclosed.

Best for Military Members, Veterans, and Their Families: USAA

available alone for veterans, active service members and their families, USAA provides fantastic rideshare insurance coverage. USAA ’ s rideshare coverage is designed to fill the break between when you turn on your rideshare app and when you accept a request. If you have a USAA car policy policy, you can purchase extra rideshare coverage for vitamin a little as $ 6 a month. MoneyGeek Top PickUSAA

  • What It Covers: Extends regular auto insurance coverage to phase 1.
  • What It Doesn’t Cover: Coverage during phases 2 and 3.
  • Where It’s Available: 42 states.
  • Cost Estimate: As little as $6 per month.

Best for Extending Personal Coverage: American Family

American Family allows rideshare drivers to extend their existing personal policy to phase 1. american Family Insurance describes its coverage, called the American Family Rideshare Endorsement, as an “ accessory ” to your ongoing personal policy with american english Family. This addition is the equivalent of rideshare gap coverage. It provides the same coverage as your personal car policy, including bodily injury liability, property damage liability, collision, comprehensive examination, checkup payments coverage and personal injury protection. MoneyGeek Top Pick

American Family

  • What It Covers: The same bodily injury liability, property damage liability, collision, comprehensive, medical payments coverage and personal injury protection limits as your personal policy during phase 1.
  • What It Doesn’t Cover: Phases 2 and 3.
  • Where It’s Available: Most states.
  • Cost Estimate: Not disclosed.

Best for a Low Deductible: Esurance

Esurance offers low deductible rideshare insurance through their SmartShare program. alone available in California, Illinois and New Jersey, this policy ensures no gaps in coverage between your personal policy and the rideshare app indemnity policy. SmartShare will besides cover the remainder between your Esurance and rideshare party deductibles. The policy covers collision coverage and comprehensive examination coverage if already included in your personal policy, liability coverage up to your personal policy limits, plus all your personal coverages. MoneyGeek Top PickEsurance

  • What It Covers: Collision coverage, comprehensive coverage, liability coverage and other personal coverages.
  • What It Doesn’t Cover: Not stated.
  • Where It’s Available: California, Illinois and New Jersey.
  • Cost Estimate: Not disclosed.

Comparing Companies That Offer Rideshare Insurance

There are a diverseness of different indemnity options available for rideshare drivers. Which insurance company is best for you depends on whether you ’ re looking for a policy with the most robust coverage, low price or other perks, like commercial indemnity coverage. Some policies are merely available in a few states, indeed make certain that you choose a policy that ’ s available where you live .

insurance company What It Covers Where It ’ s available Who It ’ sulfur Best For Who It ’ s not For
state farm damage to your car, medical coverage, emergency road service, rental reimbursement, and uninsured/underinsured motorist coverage Most states Drivers looking for robust coverage Drivers looking for indebtedness coverage during phases 2 and 3
mercury Mercury will pay up to the policy limits to fix the damage to the other vehicle ( s ) along with any resulting injuries up to your policy limits. Mercury will besides pay to have your vehicle fixed, depending on the terms of the policy . 11 states Drivers looking for an low-cost policy Drivers outside the geographic area where this insurance company provides coverage or drivers who want extra coverage during phases 2 and 3
NJM Insurance Co . Liability, UM/UIM, PIP and physical damage coverage during phase 1 ; some coverage during phases 2 and 3 Five states East coast drivers Drivers outside the east seashore
progressive Liability, comprehensive, collision, UM/UIM, PIP, wayside aid and rental car reimbursement Most states Delivery service drivers Drivers who want extra coverage in phases 2 and 3
Travelers Some coverage during phase 1 Colorado and Illinois Drivers in Colorado and Illinois Drivers outside Colorado and Illinois
USAA Extends even car indemnity coverage to phase 1 42 states military members, veterans, and their families Drivers who haven ’ thyroxine served in the military
American Family Bodily wound liability, property damage liability, collision, comprehensive, aesculapian payments coverage and personal injury protection during phase 1 Most states Drivers interested in extending personal coverage Drivers who want extra coverage in phases 2 and 3
Esurance Collision coverage, comprehensive examination coverage, liability coverage, other personal coverages California, Illinois, and New Jersey Drivers looking for a low deductible and looking to fill gaps in coverage during all three phases Drivers who live outside these states

Frequently Asked Questions About Rideshare Insurance

Most typical indemnity policies don ’ deoxythymidine monophosphate top rideshare drivers mechanically. however, many indemnity providers give drivers the choice to add on extra coverage for when they ’ re drive for a TNC. Most of these add-ons filling in some of the gaps in coverage between a personal insurance policy and the rideshare caller ’ sulfur indemnity policy .

While the demand coverage varies depending on the policy and the insurance company, most rideshare policy includes liability, UM/UIM, PIP, wayside aid and rental car reimbursement — at least while you ’ re in phase 1 of driving for a TNC. Some policies besides include extra coverage for phases 2 and 3, angstrom well as comprehensive and collision coverage .

As a rideshare driver, your personal indemnity policy typically doesn ’ deoxythymidine monophosphate cover you while you ’ ra drive for a TNC. This means that if you get into an accident while driving for a rideshare app, you could face a brawny bill. Rideshare insurance helps bridge the opening between a personal policy and coverage through the rideshare company, eliminating gaps in coverage. About the writerexpert-profileexpert-profile Margaret Wack is a mercenary writer who covers indemnity, saving, investing, bank, and more. Margaret earned a knight bachelor ‘s degree in classics, relative literature, and poetry from Smith College and a headmaster ‘s degree from St. John ‘s College.

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