Best Rideshare Insurance Companies

USAA is the best provider, with low rates and flexible coverage

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Driving for a rideshare company like Uber or Lyft can be a lucrative side hustle. But while you’re transporting passengers, your personal auto insurance policy doesn’t offer any coverage. You’ll need to purchase rideshare insurance to fill the gaps and protect you and others in your vehicle. Fortunately, there are lots of rideshare insurance companies that sell comprehensive policies.

You might assume that all rideshare policies are created equal, but that’s not necessarily the case. The best rideshare insurance companies offer reliable coverage, affordable rates, flexible policy limits, helpful online tools, and have excellent third-party ratings for customer satisfaction and claim satisfaction.

Best Rideshare Insurance Companies of 2021

Best Overall : USAA


USAA

USAA

  • No. Policy Types: 1
  • Coverage Limit: Varies
  • Price: Varies
Why We Chose It

USAA is highly rated for overall customer satisfaction and claims satisfaction, and the company’s rideshare insurance policies provide comprehensive coverage while driving for Uber, Lyft, or any other app-based delivery service. 

Pros & Cons
Pros
  • Excellent third-party ratings for customer service and claim satisfaction

  • Premiums tend to be affordable

  • Flexible deductible and coverage limits

Cons
  • Only available for military personnel and their immediate family members

  • Not sold in every state

Overview

We selected USAA as the best rideshare insurance company overall because it’s widely recognized as one of the top insurance providers on the market. USAA’s rideshare coverage is reliable, customizable, and affordable.

USAA’s rideshare insurance can be used for any type of ridesharing or delivery driving. You can get a free quote by logging into your USAA online account and seeing how much coverage costs in your area. USAA doesn’t advertise any discounts or add-ons for its rideshare insurance offering.

If you need to file a claim, you can start the process online, through the mobile app, or by calling an agent, who will connect you with a claim adjuster. USAA partners with a network of 2,900 repair shops, but you have the option to take your car to any shop of your choosing if it needs repairs after a covered claim.

The biggest downside to USAA is that the eligibility requirements are strict. You can only purchase rideshare insurance if you are an active duty or retired military servicemember or the spouse or child of a servicemember. Additionally, USAA rideshare insurance is only available in 42 states, including Washington, D.C.

Best for Uber : Mercury


Mercury Insurance

Mercury Insurance

  • No. Policy Types: 1
  • Coverage Limit: Varies
  • Price: Varies
Why We Chose It

Rideshare insurance from Mercury covers you while driving for Uber, whether you’re driving a single passenger or multiple people through Uber Pool. We also like that the coverage is affordable.

Pros & Cons
Pros
  • Low-cost policies starting at $0.90 per day

  • Covers Uber and most other Transportation Network Companies (TNCs)

  • Helpful information online about what the policy covers

Cons
  • Very limited coverage area

  • Doesn’t specify whether non-ride hailing drivers are covered

  • Can’t file a claim online

Overview

Mercury is the best rideshare insurance company for Uber drivers because the policy specifically covers you when driving any number of passengers. You get the same coverage while transporting one passenger as you do through Uber Pool, where you might be driving multiple people.

Another thing we like about Mercury’s rideshare insurance is that it’s pretty affordable. You can get coverage for as little as $0.90 per day, which equates to less than $30 per month. To get a free quote and purchase a policy, you can contact a Mercury agent. You’ll also be able to set your deductible and choose your coverage limits. 

Filing a rideshare insurance claim through Mercury is simple, but the company doesn’t support online or mobile claims. Once you file a claim via phone with a representative, you can track the status of the claim through your customer account. 

One of the major downsides of Mercury is that rideshare insurance is not available everywhere. In fact, the coverage area is very small. Currently, Mercury rideshare insurance is sold in Arizona, California, Florida, Georgia, Illinois, Nevada, Oklahoma, Texas, and Virginia.

Best for Lyft : Allstate


Allstate

Allstate

  • No. Policy Types: 1
  • Coverage Limit: Varies
  • Price: Varies
Why We Chose It

Insurance through Lyft can be expensive, and because Allstate’s rideshare policy includes deductible gap coverage, Lyft drivers can avoid paying the standard $2,500 deductible entirely out-of-pocket in the event of a claim. 

Pros & Cons
Pros
  • Policies are available in most states

  • Includes deductible gap coverage to minimize out-of-pocket expenses

  • Coverage is affordable for many drivers

Cons
  • Must have a current Allstate auto policy to purchase rideshare coverage

Overview

Allstate is the best insurance provider for Lyft drivers because every policy includes deductible gap insurance, which stays in effect during the entire duration of a trip. Plus, you can get coverage in almost every state, which is helpful if you drive passengers across state lines. 

If you end up in an accident while driving for Lyft and would be covered under its plan, Allstate helps cover the difference between its own deductible and the Lyft deductible, which is $2,500.

Allstate doesn’t advertise how much coverage is available or what deductibles you can choose. The company does, however, mention that you can get coverage for “as little as pennies a day.” To get a quote and purchase the ridesharing endorsement, you should call an Allstate agent in your area. Just keep in mind that you must already have a personal auto policy from Allstate.

Allstate has great claim handling, with the option to file a new claim online, over the phone, or through the company’s mobile app. If you’ve never filed a claim before, Allstate has a few helpful resources on its website to guide you through the process.

Best Coverage Options : Progressive


Progressive
  • No. Policy Types: 1
  • Coverage Limit: Varies
  • Price: Varies
Why We Chose It

If you have a Progressive personal auto insurance policy, you can purchase a rideshare endorsement and keep the same add-on coverages, like rental car reimbursement, when you drive for Uber or Lyft. 

Pros & Cons
Pros
  • Coverage is available for rideshare drivers and delivery drivers

  • Wide coverage area

  • Personal policy add-ons remain active when driving for a rideshare company

Cons
  • Policies can be expensive

  • Can’t purchase a policy online

Overview

Progressive is our pick for the best rideshare insurance company for coverage options. Any endorsements you’ve added to your personal policy, such as roadside assistance or rental car reimbursement, apply when you drive for a TNC like Uber or Lyft. Plus, you get full coverage during trips.

You must have an existing auto insurance policy from Progressive in order to add the rideshare endorsement. To get a free quote, you’ll need to contact an agent directly. An agent can also explain what coverage limits are available and what deductibles you can choose from.

Although Progressive doesn’t have online quotes for rideshare insurance, you can file a claim online if you get into an accident. Customers also have the option to file a new claim through the mobile app or by calling an agent. 

Progressive’s rideshare insurance is available in most states. Just keep in mind that Progressive’s rideshare coverage can be pricey, depending on your driver profile and existing car insurance premium.

Best for Delivery App Drivers : State Farm


State Farm

State Farm

  • No. Policy Types: 1
  • Coverage Limit: Varies
  • Price: Varies
Why We Chose It

State Farm provides rideshare insurance to a wide variety of drivers. Whether you work for Uber, Lyft, Amazon Flex, or another delivery company, your State Farm rideshare policy will cover you during trips. 

Pros & Cons
Pros
  • All types of rideshare and delivery drivers qualify for coverage

  • Most add-on coverages from your personal policy are included

  • Easy to file claims online or through the app

Cons
  • Policies tend to be more expensive than some competitors

  • Certain coverages are subject to state availability

Overview

If you drive for a delivery app, State Farm is your best choice for rideshare insurance. State Farm’s policies cover a wide variety of delivery drivers and it’s a good option if you drive for multiple companies, like Uber and Postmates, or Lyft and Grubhub. 

To get rideshare coverage from State Farm, you must already have a personal auto policy from the company. However, most of the add-on policies you’ve purchased, like roadside assistance, will apply when you drive for a delivery service.

In terms of coverage limits and deductibles, State Farm doesn’t mention what options are available. If you want to get a quote or purchase an endorsement, you’ll need to call an agent. If you get involved in an accident, you can start a new claim online, through the mobile app, or by contacting your agent via phone.

One of the biggest downsides to State Farm is that its rideshare policies can be expensive. On the website, it says that adding a rideshare endorsement can add anywhere from 15% to 20% to your existing premium. If you’re already paying a lot for personal car insurance, you might end up paying a much higher rate with the addition of rideshare insurance.

Best Claims Processing : Farmers


Farmers

Farmers

  • No. Policy Types: 1
  • Coverage Limit: Varies
  • Price: Varies
Why We Chose It

Farmers has above-average ratings for overall claim satisfaction according to J.D. Power. Additionally, customers can choose to file a new claim online or through the mobile app, without ever contacting an agent. 

Pros & Cons
Pros
  • Easy claim reporting process

  • Both TNC and delivery drivers qualify for coverage

Cons
  • Must work with an agent to purchase an endorsement

  • Limited information online about what the policy covers

  • Small coverage area

Overview

If you want an insurance company with excellent claim handling, we recommend Farmers. The company is rated above-average for overall claim satisfaction in J.D. Power’s 2020 U.S. Auto Claim Satisfaction Study. Plus, you can file a claim online, through the mobile app, or by calling an agent, and track the status of existing claims from your phone or computer.

Farmers rideshare insurance is available to most drivers in the gig economy, whether you work for Uber, Lyft, Amazon Flex, Grubhub, DoorDash, or another delivery service. To get the rideshare endorsement, you must already have a personal car insurance policy through Farmers.

Although we appreciate Farmers’ commitment to fast and fair claim handling, there are a few downsides to this provider. First, you need to contact an agent to get a quote or purchase a policy. There’s also no information online about what coverage limits or deductibles are available.

Another thing to know is that Farmers has a relatively small coverage area. The endorsement is available to drivers in 36 states. However, the coverage area has slowly expanded over the last several years.

Final Verdict

There are lots of insurance carriers that sell rideshare insurance to Uber and Lyft drivers. Based on our comparison, we found that USAA is the best provider overall. USAA consistently gets high ratings for customer service, customer satisfaction, and claims satisfaction. The coverage limits are flexible, and for drivers who meet the military eligibility criteria, it’s usually one of the more affordable providers.

Compare the Best Rideshare Insurance Companies

Company Price  Industries Covered  Coverage Limit  Policy Types (list) 
USAA
Best Overall
Varies Rideshare, Delivery Varies Rideshare endorsement
Mercury
Best for Uber 
Varies  Rideshare Varies  Rideshare endorsement 
Allstate
Best for Lyft 
Varies  Rideshare, Delivery  Varies  Rideshare endorsement 
Progressive
Best Coverage Options 
Varies  Rideshare, Delivery  Varies  Rideshare endorsement 
State Farm
Best for Delivery App Drivers 
Varies  Rideshare, Delivery  Varies  Rideshare endorsement
Farmers
Best Claims Processing 
Varies  Rideshare, Delivery  Varies  Rideshare endorsement 

Guide for Choosing the Best Rideshare Insurance Companies

Is Rideshare Insurance Worth It?

If you drive for a rideshare service like Uber or Lyft, purchasing rideshare insurance is usually worth it. If you rely on your personal policy, it will not cover you and your passengers during certain parts of the trip. It doesn’t matter what type of insurance you have, how high your coverage limits are, or how often you drive for a rideshare service.

However, it’s possible that the rideshare company you drive for provides some coverage during the trip. In this case, having personal rideshare insurance will offer more protection and peace of mind. Before you decide to forgo rideshare insurance, check to see what type of coverage you have through the rideshare company, if any.

Comparing Rideshare Insurance Companies

It’s important to compare rideshare insurance companies before you choose one. Here are some of the factors you should consider before purchasing a policy:

  • Coverage area: Not all rideshare insurance companies sell coverage in all 50 states. Double-check that your state is covered before getting a quote, and if you plan to transport passengers across state lines, make sure that both states are covered.
  • Premium: Adding rideshare insurance to your personal auto insurance policy will raise your premium. Before you purchase coverage, get personalized quotes from a few carriers to see which company can offer you the best rate.
  • Coverage limits: Everyone has different insurance coverage needs. When comparing providers, take a look at the coverage limits available, and choose a company that offers a coverage limit that you feel comfortable with. 
  • Customer reviews: When it comes to customer service, some rideshare insurance companies are better than others. Search for online reviews for each provider to gauge how current and past customers feel about the company, and look out for red flags. 

Signing Up for Rideshare Insurance Coverage

Once you’ve made the decision to purchase rideshare insurance, you should reach out to an agent. Keep in mind that you will likely need to get rideshare insurance from the same provider that insures your personal vehicle. If your current insurer doesn’t sell rideshare coverage, you might need to switch to a different provider.

An agent will explain how much coverage is available and what deductibles you can choose. If you’re not sure how much coverage to get, the agent can make a recommendation. After you set your policy limits and deductible, the agent will give you a quote. If you’re satisfied with the quote, the agent can walk you through the process of purchasing coverage. 

In the event of an accident, most insurance companies allow customers to file a claim online, over the phone with an agent, or through a mobile app. If your insurance company has a mobile app, you can probably use it to view your ID cards, pay your premium, and get connected to roadside assistance if you have it.

Frequently Asked Questions

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 standalone 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.

How Much Does Rideshare Insurance Cost?

Rideshare insurance is typically more expensive than personal car insurance and cheaper than commercial auto insurance. The cost 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 depends on several factors, including your driving history, location, coverage limits, credit score, and deductible.

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 rideshare company. Rideshare companies and insurance providers have agreed on a general guideline for rideshare coverage. 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 insurance 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 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 some rideshare companies do not require drivers to have rideshare insurance, Uber and Lyft do require all of their drivers to be privately insured. Because your personal car insurance policy will not cover business use of the vehicle—which means transporting passengers or goods for money—getting rideshare insurance is a good idea.

If you get into an accident without having rideshare coverage, and your insurance company finds out you were driving for a rideshare provider, the company could potentially cancel your policy. 

Where Can You Get Rideshare Insurance?

Insurance Company Availability
Allstate All states EXCEPT: NY
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
Mercury Available in: AZ, CA, NV
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
State Farm All states EXCEPT: AK, HI, IL, MA, NY, RI, SD
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 or food delivery services) out on the roads here in the United States. Luckily many companies 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 coverage both on and off the job, you can save yourself thousands of dollars in the unfortunate event of a car accident.

Methodology

To find the best rideshare insurance companies, we reviewed 10 insurance carriers that offer rideshare endorsements. We compared providers based on factors like coverage options, policy limits, premium, third-party ratings, coverage area, accessibility, and claim handling. We also looked for insurance providers that offer rideshare coverage to a wide variety of drivers, including delivery drivers.

Article Sources

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  1. J.D. Power. "Auto Insurance Claims Satisfaction Climbs to Record High as Carriers Refine Customer Experience During Pandemic, J.D. Power Finds." Accessed September 2, 2021.