Rideshare Insurance Coverage
Rideshare insurance coverage is necessary to cover the gaps between the insurance Uber offers and your own personal auto insurance. In some cases you might not be able to get rideshare insurance and you will need to get commercial auto insurance coverage. Read more to find out everything you need to know abour rideshare insurance coverage and how it affects your auto insurance costs.
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Insurance Lawyer
Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...
Jeffrey Johnson
Insurance Lawyer
Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...
Jeffrey Johnson
Updated August 2024
- If you’re driving for a rideshare company like Uber or Lyft you likely need more auto insurance than your personal policy affords you
- Most personal auto insurance policies will not cover you while you are working for a rideshare
- You will need to find additional auto insurance coverage for the times you are working as a rideshare driver
Rideshare insurance coverage can seem confusing to drivers who are trying to earn some extra money by driving. Ridesharing and uber drivers have changed the world in more ways than just offering easy and affordable rides to people anywhere.
Rideshare has also changed auto insurance and the way insurance companies need to address rideshare drivers and the people who take rides in Ubers or Lyfts.
If you’re an Uber driver, you likely need to speak with your auto insurance company about your current coverage. Your personal auto insurance policy will most likely not cover you in the event of an accident, and even though Uber insurance is available it is designed to protect the company, not you.
If you’re ready to compare rideshare insurance coverage quotes, enter your ZIP code above to find affordable rideshare insurance rates in your area.
What type of auto insurance do I need if I am an Uber driver?
Uber drivers often wonder what type of auto insurance do I need? Is my personal auto insurance policy sufficient? The answer is no, your personal auto insurance policy is not sufficient.
Yes, Uber checks to make sure that you are insured, but your personal auto insurance policy likely doesn’t cover you if you are using your vehicle for commercial purposes.
Out of all the basic types of auto insurance coverage available, rideshare drivers will likely need to get commercial auto insurance or rideshare insurance to cover them while they are working.
The availability of rideshare insurance from your current provider may vary based on location, and you may have no other option but to purchase a commercial auto insurance policy.
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How do I get rideshare insurance?
Rideshare insurance is a lot cheaper than buying a commercial auto insurance policy. You need to speak with your auto insurance provider and see if rideshare insurance is available in your location with your current policy.
Rideshare Auto Insurance Cost by Provider| Insurance Company | Rates |
|---|---|
| Allstate | About $20 per year. |
| Erie | $9 to $15 per month. |
| Geico | $25 per month. |
| Mercury | Starting at about $27 per month. |
| Safeco | Likely under $10 per month. |
| State Farm | 15%-20% of premium. |
| USAA | Starting at $6 per month |
As you can see rideshare insurance is generally not too expensive. It is important to speak with your insurance company and Uber driver support to understand where the gaps in your coverage are and what the best auto insurance policy is to ensure you are always fully covered.
Case Studies: Rideshare Insurance Coverage
Case Study 1: Coverage Gaps
Lisa, an Uber driver, assumes her personal auto insurance policy will protect her while driving for Uber. One night, she gets into an accident while on the way to pick up a passenger. To her surprise, her insurance company denies the claim because her personal policy doesn’t cover the commercial use of her vehicle.
Lisa is left facing significant repair costs and potential liability. She realizes the need for rideshare insurance coverage and promptly contacts her insurance provider to add the necessary coverage.
Case Study 2: Limited Rideshare Insurance Options
John drives for both Uber and Lyft in a rural area where rideshare insurance options are limited. After researching, he discovers that his current insurance company doesn’t offer rideshare coverage in his location. With no other option, John is required to obtain a commercial auto insurance policy to ensure he has proper coverage while driving for both platforms.
Although the commercial policy comes at a higher cost, John recognizes the importance of being adequately protected.
Case Study 3: Coverage Gaps and Liability Concerns
Emily, a rideshare driver, has an accident while transporting passengers for Uber. The accident results in injuries to her passengers and damage to another vehicle. Emily’s personal auto insurance policy denies coverage due to the commercial use of her vehicle at the time of the accident.
As a result, Emily faces potential lawsuits from her injured passengers and the other driver. She seeks legal advice and learns that having appropriate rideshare insurance coverage could have helped mitigate these financial risks.
Rideshare Insurance: The Bottom Line
Drive insurance is crucial for Uber drivers and their passengers. You don’t want to be left hanging in the event of an accident. Make sure that you have all of the auto insurance coverage that you need while you are working as a rideshare driver.
The Insurance Information Institute has more information for rideshare drivers who are curious about their insurance situation.
If you lie to your insurance company about your rideshare driving, you could be dropped from your coverage completely. Be honest and upfront with your insurance company, and they will help you get all of the coverage you need to drive for Uber or Lyft.
If you’re ready to buy cheap rideshare insurance, enter your ZIP code below to compare affordable rideshare insurance coverage quotes.
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