Best Rideshare Insurance Companies & Tips for 2022
Rideshare insurance is a type of auto insurance that increases the driver’s coverage and lowers their deductible for accidents that occur while driving for Lyft, Uber, or similar companies. without a rideshare insurance policy or rideshare add-on, the driver’s personal auto insurance will not apply when online with the app.
best rideshare insurance companies
- geico
- progressive
- surance
- united states
- travellers
- mercury
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- what are the obstacles for insurance companies to offer insurance for rideshare drivers in more states?
- how likely is it that an auto insurance company will cancel a personal auto insurance policy because the customer drives for uber or a similar service?
- Can a car insurance company really deny a claim because the driver sometimes uses the car to drive a ride-sharing service?
uber and lyft provide extensive coverage when drivers pick up and drop off a passenger. but they only provide liability insurance for drivers waiting for a ride request, creating a gap in coverage. Consequently, rideshare insurance coverage can help supplement the insurance provided by Uber and Lyft.
The best rideshare insurance companies are the ones that are widely available, affordable, and include deductible gap coverage. This coverage allows drivers to pay their personal policy deductible instead of the expensive Uber or Lyft deductible.
best rideshare insurance
1. geico
geico has the best rideshare insurance because it offers a deductible as low as $250 and costs just a little more than a standard policy. Geico offers hybrid rideshare insurance coverage, which means a single policy covers personal driving plus driving for a company like Lyft or Uber.
geico also scored highly with wallethub editors, earning an overall score of 4.5 out of 5 stars. Drivers can purchase a Geico rideshare insurance policy in 40 states, most insurance companies that disclose their availability.
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2. progressive
progressive offers a rideshare endorsement that drivers can add to a personal auto insurance policy in 34 states. In fact, Progressive specifically requires customers to purchase the endorsement if they drive for a company like Lyft or Uber.
It’s also worth noting that it progressively reimburses drivers for the difference between their Lyft or Uber deductible and their personal policy deductible. Lastly, the company earned a high rating of 4.3 out of 5 stars from wallethub editors, due to its reliability and overall low prices.
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3. safe
esurance rideshare insurance is only available in california, illinois, and new jersey, but it’s a good option for drivers who can afford it. If a customer with esurance rideshare coverage is in an accident while driving for uber or lyft, they will only have to pay their esurance deductible.
The company doesn’t disclose how much its rideshare insurance costs, but insurance premiums are generally affordable, according to wallethub’s data on personal auto insurance policies.
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4. usa
U.S. rideshare insurance. It costs as little as $6 a month and is available in 38 states. On the downside, the rideshare endorsement does not include deductible gap coverage. As a result, customers with US rideshare coverage. uu. they’ll still have to pay an expensive lyft or uber deductible if they get into an accident with a carpool passenger.
U.S. auto insurance generally. uu. It got a rating of 3.3 out of 5 from wallethub editors. The company’s premiums are among the cheapest of all the major auto insurance providers, but it received low marks in the customer service department.
get a usa quote. uu.
5. travelers
shared travel insurance for travelers is available in colorado and illinois, although the company does not disclose any pricing information. Travelers also does not provide deductible gap coverage, which means policyholders will have to pay the Uber or Lyft deductible if they have an accident while driving with a rideshare passenger.
wallehub editors gave Travelers Auto Insurance 3.8 out of 5 stars, noting its excellent coverage options and online claims filing system.
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6. mercury
mercury rideshare insurance is available in 11 states. The company doesn’t disclose how much its rideshare endorsement costs, but Mercury’s personal auto insurance premiums are competitive. Still, it’s worth noting that Mercury rideshare insurance doesn’t include deductible coverage, so drivers will pay the rideshare company’s deductible if they’re in an accident with a passenger.
wallehub editors gave mercury car insurance 2.8 out of 5 stars, noting its limited availability and sub-par customer service.
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honorable mention: state farm
state farm is a good option for drivers who can buy their rideshare insurance in their area, but the company doesn’t disclose where it’s available. state farm rideshare coverage is an endorsement that can be added to an existing policy and only increases premiums by 15-20%.
All of a driver’s state farm policy coverage will apply while driving for a rideshare company. the exception to this is liability insurance, which is offered by most rideshare companies.
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honorable mention: allstate
Allstate rideshare insurance, known as “ride for hire,” is an endorsement that customers can add to their allstate personal auto insurance policy. ride-for-hire provides extensive coverage and even reimburses customers for the difference between their allstate deductible and their rideshare company’s deductible.
The company doesn’t disclose where the shuttle is available, which explains why it’s an honorable mention pick. but drivers can call a local allstate agent to see if it’s offered in their state.
get allstate quote
honorable mention: farmers
Farmer rideshare insurance will cover drivers while their rideshare app is activated and they are waiting for a ride request. on the other hand, it does not provide any coverage or a reduced deductible once the trip has been accepted.
farmers doesn’t disclose where their rideshare insurance is offered, but you can contact their customer service department or a local agent to see if it’s available in your state.
get quote from farmers
compare the best rideshare insurance companies
types of rideshare insurance
Insurance companies sell different types of rideshare insurance as it is a new and evolving type of coverage. It’s important to know what type of policy you want, as they cover slightly different scenarios.
hybrid rideshare insurance
Companies like Geico offer “hybrid” rideshare insurance, which combines personal and rideshare coverage in one policy for a single premium. Geico hybrid insurance covers drivers regardless of whether they drive for business or pleasure. drivers can select a deductible starting at $250.
rideshare insurance extensions or endorsements
Details of rideshare endorsements and extensions vary, but these policy add-ons are generally intended to cover gaps in Uber or Lyft coverage. Unlike hybrid policies, endorsements can be added or removed from a standard auto insurance policy.
for example, state farm rideshare insurance is an endorsement that covers drivers who are in line and waiting for a ride request. Once the driver has received a ride request and is on their way to pick up the passenger, Uber and Lyft provide primary liability coverage, but other types of state farm coverage still apply.
So, if an Uber driver caused an accident with a passenger in the car, Uber would pay any liability claims. The driver could then file a claim with state farm for collision insurance, rental reimbursement, or any other type of coverage included in the state farm policy.
commercial insurance
Commercial auto insurance is an option for drivers who are unable to purchase rideshare insurance, as rideshare coverage is not available in all states. Commercial policies are more expensive, but they are a good investment given how expensive accidents without insurance coverage can be. Without rideshare insurance or a commercial policy, drivers will be personally responsible for anything not covered by Uber or Lyft.
uber and lyft insurance
driving with uber or lyft can be divided into four periods. Both companies provide different types of coverage and limits within these four periods, as noted below.
uber and lyft insurance per period
Uber and Lyft coverage types and amounts may vary by state.
uber and lyft only offer comprehensive and collision coverage on a contingent basis, which means you must have these types of coverage on your personal auto insurance policy for them to apply. It’s also worth noting that you can’t rely solely on the rideshare company’s insurance. You still need a personal auto insurance policy for non-commercial driving.
tips for buying rideshare insurance
1. worst-case plan.
If you drive for Lyft but couldn’t afford the company’s $2,500 comprehensive and collision deductible in the event of an accident, purchasing additional rideshare insurance is in your best interest. Likewise, if Uber or Lyft provide you with a significant source of income, the additional coverage is probably worth it.
2. consider what type of coverage you want.
Because rideshare insurance policies vary, determining what you need can help narrow your search. For example, you may want a policy with a deductible of $500 or less. Or you may decide to prioritize rental reimbursement coverage that will apply if you are in a car accident while driving for Lyft or Uber. Taking these parameters into account is important to protect yourself financially.
3. compare prices.
Comparing quotes is always the best way to determine the cheapest auto insurance option, no matter what type of policy you need. Even if your current insurance company offers rideshare insurance, check to see if your competitors offer a better deal on the coverage you want.
4. be honest.
Tell your insurance company that you drive for a rideshare company and that you want the right coverage. If you need to file a claim, be truthful about the circumstances, as you may be dropped as a customer if you provide false information.
ask the experts
methodology
wallethub’s rankings of the best rideshare insurance companies are based on the number of states where rideshare insurance is available, wallethub’s editor ratings, and the amount of coverage provided by each rideshare endorsement . In particular, it is especially considered if a company offers deductible gap coverage. if necessary, the editors’ ratings were used as a tiebreaker.
Companies that do not disclose enough information to be accurately ranked received an honorable mention if they scored well in other categories.
