Once tied solely to commercial insurance, Uber, and Lyft drivers now have the option of insuring themselves with “rideshare insurance.” In the past, commercial insurance was necessary for those who worked as rideshare drivers. Now, insurance companies have expanded the scope of their offerings and introduced insurance policies that specifically meet the needs of this niche market. Rideshare insurance is commonly added on as an extension of the driver’s personal policy, but in many cases can be a separate contract on its own.
The first step to getting this type of policy is calling your carrier. Regardless of whether they can offer you a policy or not, notifying them that you are working as a rideshare driver is necessary, as you can have your personal policy canceled if your insurance company finds out. Naturally, when you become a rideshare driver, the risk of an accident increases as more time is spent on the road. If there is no adjustment in the policy for the adjustment of risk, the insurance company can take action to cancel the policy altogether. This can be viewed as insurance fraud. With the emergence of rideshare policies it is important you adjust your auto insurance if you are a rideshare driver. Here’s a look at some policies with the widest coverage for drivers with companies like Uber and Lyft.
One of the benefits of Geico’s rideshare insurance is that you can have a uniform policy whether you are driving for personal or business reasons. This means that whether or not you have a passenger in the car, you will be covered with their rideshare insurance. Policies can be $150 a year or more depending on factors such as your age, state, vehicle, and driving history. Geico’s rideshare insurance is available in AL, AZ, CT, CO, DE, DC, GA, ID, IL, IN, IA, KS, LA, ME, MD, MN, MS, MO, NE, NM, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, VT, VA, WI, and WY.
Like Geico, this insurance policy covers you during the entire trip for personal or business reasons. The price, though, will be an add-on to your personal insurance policy. It can be anywhere from $10-20 extra per month. Erie Insurance is available in DC, IL, IN, KY, MD, OH, PA, TN, VA, WV, and WI.
Farmers Insurance Group
Another common insurance heavyweight, Farmers also offers rideshare insurance to Uber and Lyft drivers. This type of policy differs from Geico’s in that there is a constraint on the extension of your personal coverage from the time you log into the app to the time you accept a ride request. For example, if you logged in at 10:00 a.m. to the app, but didn’t accept a ride until 10:30 a.m., for that half hour you would still be covered under your personal insurance as an extension until you received a client request. This might benefit drivers who might not log in as often as full-time drivers or who work for Uber and Lyft as side jobs. Farmers Insurance Group offers rideshare insurance in AZ, AR, CA, CO, GA, ID, IL, IN, IA, KS, MD, MI, MN, MT, ND, NE, NJ, NM, NV, OH, OK, TN, TX, UT, WI.
Allstate covers all ridesharing apps, but a significant aspect of their coverage is that you are NOT guaranteed continuous coverage when signed into the app. This means that a separate policy with outlined terms will be necessary for full coverage, which can range from $15-30 a year. Allstate offers ridesharing insurance in CA, CO, GA, IL, IN, MN, NV, OK, SC, TX, UT, WA, and WI.
Although State Farm is known for having overall coverage on most auto insurance policies, their rideshare options are a little different. While they cover all ridesharing apps, they do not cover the driver for liabilities while signed into the app, but DO cover for other coverages the driver carries on a personal policy. This essentially means that the driver will have to ensure that their personal policy can sufficiently cover possible liabilities. They offer a new option called "TNC Drier Coverage Endorsement" to enable drivers to have their personal auto policies fill in any coverage gaps they might have with their Uber or Lyft insurance companies, like an add-on or addendum to their personal auto policy contract. This provides full coverage during the time the driver is "available for hire." State Farm offers rideshare insurance in CA, CO, KY, ME, MN, TN, and WI.
The Bottom Line
Rideshare insurance is available in most states where there are large concentrations of Uber and Lyft drivers. It is also often a cheaper decision than commercial insurance. Make sure to call your carrier regardless of where you choose to buy your secondary policy—they might have a policy themselves that works with your personal and business needs.