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Why You Need Rideshare Insurance and Which Companies Offer It

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Why You Need Rideshare Insurance and Which Companies Offer It

Maggie Overholt

Maggie Overholt

Senior Insurance Editor

5 min. read

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Rideshare Insurance Definition

Anyone who makes money driving for a rideshare company like Uber or Lyft should carry special insurance above and beyond their personal car insurance policy. This add-on is called “rideshare coverage” or Transportation Network Company (TNC) coverage, if you’re feeling official. It covers drivers in instances where their personal car insurance or company-provided policy might not apply.

What Rideshare Insurance Covers

Rideshare insurance usually covers all the same areas protected under your personal auto insurance policy. Bodily injury and property damage liability are covered, likely including uninsured/underinsured motorist coverage, MedPay or PIP, and collision and comprehensive if you have those on your base plan. You can earn more about each coverage here.

The tricky bit about rideshare insurance is when your coverage applies. Technically, there are three “periods” of ridesharing: when you’ve turned the app on and are waiting to match with a passenger; when you’ve matched and are en route to pick them up; and then when the passenger is actually in your vehicle. During each period, there are limits or exclusions to what’s covered by your personal insurance and company-provided insurance.

Period one is the important part to note here. Between the time you’ve turned on a rideshare app and matched with a customer, and during breaks between rides, you’re likely not covered by your personal car insurance because you’re using the vehicle for business purposes.

If you drive for Uber or Lyft, the company does insure you during this period, but only for third-party liability. That means you’re protected if you hit someone and have to pay damages, but not if someone else hits you, if you run into an object, if your vehicle is stolen or vandalized, etc. These are the types of outlying situations that would be covered by your rideshare insurance during period one.

Companies That Offer Rideshare Insurance

The following are the 10 most popular car insurance companies (by market share) that offer supplemental rideshare insurance for customers. Note that each company limits rideshare coverage to certain states, and prices will vary depending on your location, driving record, car, and other factors. Speak to an agent or get a quote to find out which company is right for you.

*USAA insurance is only available to current and former members of the U.S. Military and their families

Rideshare Insurance FAQ

How much does rideshare insurance cost?

Rideshare insurance is generally bought as an add-on to your existing auto insurance policy (though with some companies, like Geico, your TNC policy will completely replace your personal one). Rideshare coverage is typically much less expensive than a personal insurance policy, adding as little as $15 per year to your base premium.

Sample rates below are averages from a handful of popular rideshare insurance companies according to QuoteWizard.com. Not all providers show sample rates, but almost all of them have an easy form for requesting quotes online that will show you a personalized estimate.

Does Uber have insurance?

Uber provides drivers with basic liability insurance during period one of rideshare driving, and a more robust policy during periods two and three. Note that Uber’s coverage varies by state and is partially contingent upon your personal auto insurance. This means it’s not necessarily full coverage — underlining the need for supplemental rideshare insurance.

Uber automatically includes insurance for its drivers up to the following limits:

Period 1:

  • $50,000 bodily injury liability per person
  • $100,000 bodily injury liability total per accident
  • $25,000 property damage liability per accident

Periods 2 and 3:

  • $1 million total liability coverage
  • Uninsured/underinsured motorist bodily injury, varies depending on state requirements, but starts at $250,000
  • Collision and comprehensive with a $1,000 deductible included if you have collision and comprehensive coverage on your personal insurance policy

Does Lyft have insurance?

Like Uber, Lyft provides drivers with basic liability insurance during period one, and more robust coverage during periods two and three. Lyft’s coverage also varies by state and is partially contingent upon your personal auto insurance. Again, this means it’s not necessarily full coverage and you’ll likely want to supplement with rideshare insurance.

Lyft automatically includes insurance for its drivers up to the following limits:

Period 1:

  • $50,000 bodily injury liability per person
  • $100,000 bodily injury liability total per accident
  • $25,000 property damage liability per accident

Periods 2 and 3:

  • $1 million total liability coverage
  • Uninsured/underinsured motorist coverage varies depending on state requirements
  • Collision and comprehensive with a $2,500 deductible included if you have collision and comprehensive coverage on your personal insurance policy

More Auto Insurance Resources

Learn more about your car insurance coverage:

Learn more about your car insurance rates:

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