Working for a rideshare company is an incredibly popular job these days. Whether you work for Uber or Lyft, it's essential to have your rideshare business insurance. Your auto insurance policy won't provide any coverage when transporting passengers for commercial ridesharing purposes!
To ensure you get the proper protection as you drive, let's review what you need about rideshare insurance, Uber insurance, and Lyft insurance. We will also go over the best available options today.
Best rideshare insurance companies in 2023
USAA
USAA rideshare insurance is one of the best options in 2023. The rideshare insurance policies offered by USAA offer complete coverage when operating a vehicle for Uber, Lyft, or any other app-based delivery service. USAA has received outstanding ratings for overall customer happiness and claims satisfaction.
Because USAA is a well-known leader in the insurance industry, we chose it as the best ridesharing insurance provider overall. The rideshare insurance from USAA is dependable, adaptable, and reasonably priced.
USAA's rideshare insurance covers all forms of ridesharing and delivery driving. By logging into your USAA online account, you may check how much coverage costs in your location and obtain a free quotation. When it comes to its rideshare insurance program, USAA doesn't promote any discounts or extras.
You can begin the claim-filing procedure online, via the mobile app, or by phoning an agent who will contact a claim adjuster. Although USAA has partnered with a network of 2,900 repair facilities, you can drive your vehicle to any facility you choose for repairs after a covered claim.
The tight eligibility restrictions are USAA's main drawback. Only those in the military on active duty, in retirement, or who are the spouse or dependent child of a service member are eligible to acquire ridesharing insurance. However, only 42 states, including Washington, D.C., provide USAA ridesharing insurance.
Mercury
Mercury is an excellent choice if you're looking for reasonably priced rideshare insurance. Mercury's rideshare insurance shields you and your car from potential losses when your rideshare app runs but you haven't yet taken a passenger. Mercury fills in insurance gaps in this way to guarantee that you have ongoing protection throughout the entire rideshare driving procedure.
Because the policy specifically covers you when driving any number of passengers, Mercury is the ideal rideshare insurance provider for Uber drivers. You receive the same coverage whether you are driving a single passenger or a group of passengers with Uber Pool.
The fact that Mercury's rideshare insurance is reasonably priced is something else we like. You can purchase coverage for as low as $0.90 per day or less than $30 per month. You can speak with a Mercury agent for a free quote and purchase a policy. You will also have the option of choosing your coverage limits and your deductible.
Mercury makes it easy to submit a claim for rideshare insurance. However, the firm does not enable mobile claims. After calling a representative to file a claim, you can check the claim's progress in your customer account.
The fact that rideshare insurance is not universally available is one of Mercury's most significant drawbacks, and the coverage area is relatively tiny. Arizona, California, Florida, Georgia, Illinois, Nevada, Oklahoma, Texas, and Virginia are the only states offering Mercury ridesharing insurance.
Allstate
For drivers on a tight budget, Allstate provides an economic ridesharing endorsement for vehicle insurance. Depending on the type of policy you select, the cost of ridesharing insurance varies. A rideshare endorsement, for instance, can be less expensive than a separate rideshare policy. In the event of an accident, an endorsement pays the difference between your Allstate deductible and your rideshare company's deductible. Comparing its premiums to those of other insurers, they are reasonable.
Due to the inclusion of deductible gap insurance in every policy, valid for the whole journey, Allstate is the best insurance company for Lyft drivers. Also, practically every state offers coverage, which is helpful if you transport passengers across state boundaries.
If you get into an accident while working for Lyft and are covered by its insurance policy, Allstate will help pay the $2,500 difference between its and Lyft's deductible.
The amount of coverage offered by Allstate or the deductible options must be advertised. But, the business also notes that customers may obtain coverage for "as low as cents a day."
Call a local Allstate agent to get a price and purchase the ridesharing endorsement. But remember that you must already have personal auto coverage from Allstate.
With the option to file a new claim online, over the phone, or through the company's mobile app, Allstate excels at handling claims. If you've never made a claim, Allstate has helpful resources to walk you through the procedure on its website.
Progressive
When you drive for Uber or Lyft, you can keep the same add-on coverages, such as rental car reimbursement, if you have a Progressive personal auto insurance policy.
Progressive is our choice for the finest ridesharing insurance provider in terms of coverage options. When you drive for a TNC like Uber or Lyft, any endorsements you've added to your policy, like roadside assistance or rental car reimbursement, apply. You also have complete coverage while traveling.
The ridesharing endorsement cannot be added to a Progressive vehicle insurance policy. You must speak with a representative or complete an online form to obtain a free quote. An agent can also explain the different coverage limits and deductible options.
Progressive does not currently offer online prices for rideshare insurance, but if you are in an accident, you can still submit a claim online. Consumers can also phone an agent or submit a new claim through the mobile app.
In most states, Progressive's ridesharing insurance is accessible. But be aware that Progressive's rideshare coverage may be expensive based on your driving profile and current vehicle insurance cost.
Final verdict: What's the best rideshare insurance company?
Uber and Lyft drivers can purchase rideshare insurance from various insurance providers. We concluded that USAA is the top provider overall after comparing various competitive rideshare insurance companies. When it comes to customer satisfaction, customer service, and claims satisfaction, USAA typically receives top scores. For drivers who satisfy the requirements for military eligibility, the coverage limits are adjustable, and it's typically one of the less expensive suppliers.
For the approximately two million drivers of Uber and Lyft operating on American roadways (not to mention those driving for smaller, local livery companies or food delivery businesses), rideshare coverage should be a high priority.
Fortunately, many companies now provide ridesharing insurance plans that aid in bridging the gap between individual auto insurance and rideshare provider coverage. In the unfortunate event of a car accident, you can save yourself thousands of dollars whether you only want an add-on policy or comprehensive coverage on and off work.
Comparing the best rideshare insurance companies
Note that prices will vary for all rideshare insurance options since your insurance premium depends on a variety of factors.
- USAA: Covers rideshare and delivery.
- Mercury: Covers rideshare.
- Allstate: Covers rideshare and delivery.
- Progressive: Covers rideshare and delivery.
- State Farm: Covers rideshare and delivery.
- Farmers: Covers rideshare and delivery.
How to choose the best rideshare insurance
- Create a worst-case scenario plan
It is in your best interest to purchase additional ridesharing insurance if you are a Lyft driver but cannot afford the company's $2,500 comprehensive and collision deductible in the event of an accident. Similarly, if you depend on Uber or Lyft as a significant source of income, getting more coverage is undoubtedly worthwhile.
Considering that rideshare insurance policy differ, figuring out what you require can help you focus your search. For instance, you could want insurance with a $500 or lower deductible. If you get into a car accident while driving for Lyft or Uber, you could choose to prioritize rental reimbursement coverage. It's crucial to remember these guidelines if you want to safeguard your finances.
Regardless of the kind of policy you require, comparing quotes is always the best method to find the lowest auto insurance choice. Even if your current insurance provider offers rideshare insurance, evaluate if its rivals provide the coverage you need at a lower price.
Inform your insurance provider that you work as a driver for a ridesharing service and that you need the necessary coverage. If you need to make a claim, be honest about the situation because giving false information could result in your account being closed.
Is rideshare insurance worth it?
Typically, buying rideshare insurance is worthwhile if you work as a driver for an app like Uber or Lyft. Your insurance won't protect you and your passengers throughout some of the trips if you rely on it. No matter what kind of insurance you have, how much coverage you have, or how frequently you drive for a ridesharing service, none of these factors matter.
It is possible, though, that the rideshare company you work for will offer some form of coverage while you are traveling. In this situation, having personal rideshare insurance will provide extra security and assurance. Check to determine what kind of coverage you have through the rideshare business before deciding not to purchase rideshare insurance.
Insurance comparison factors
Before choosing a rideshare insurance provider, it's crucial to compare them. Here’s what you should take into account before you buy insurance so you can maximize your value:
Coverage: Not all rideshare insurance providers offer protection in each of the 50 states. Before requesting a price, verify that you’ll have adequate coverage in a state, especially if you need to cross state borders. To transport passengers across state boundaries, ensure that both states are covered.
Cost: Your personal auto insurance policy's rate will increase if you add ridesharing insurance. Get individual quotations from a few carriers before purchasing coverage to determine which business can provide you with the cheapest pricing.
Coverage limits: Each person's requirements for insurance coverage are unique. Examine the various coverage limits when contrasting providers, and pick a provider with a coverage limit you are happy with.
Customer testimonials: Some ridesharing insurance companies have better customer service than others. Look up each provider's internet reviews to see how current and former clients feel about the business, and watch out for warning signs.
How to get rideshare insurance
Typically, rideshare insurance combines the protection your ridesharing operator provides and the protection added to your auto policy.
Often, rideshare insurance is not available as a standalone coverage. For instance, you cannot purchase ridesharing insurance from Farmers and have Progressive for your auto policy!
Here are some points to keep in mind when it comes to buying an insurance policy for ridesharing purposes:
- Inform your auto insurer that you are a rideshare driver.
- Determine the gaps between what is covered by your policy and the policy of your rideshare provider.
- Get an estimate for a commercial policy or inquire about your insurer's availability of ridesharing insurance to close any coverage gaps.
- Get quotes if both are offered so you can compare prices.
Rideshare insurance FAQs
What is rideshare insurance?
Rideshare insurance protects a driver and their vehicle if they drive for a rideshare company such as Uber or Lyft.
How much does rideshare insurance cost?
Rideshare insurance costs more than personal automobile insurance but less than commercial auto insurance, and the cost might range from $10 monthly to nearly double a standard car insurance policy. But, your driving history, location, coverage limitations, credit score, and deductible affect rideshare insurance prices.
Who needs rideshare insurance?
Unlike some rideshare providers, Uber and Lyft require all drivers to be privately insured. Rideshare insurance is recommended because your car insurance coverage won't cover business use, such as delivering people or products for money.
If you have an accident without ridesharing coverage and your insurance company discovers you were driving for a rideshare operator, they may cancel your policy.
What does rideshare insurance cover?
Rideshare insurance, generally a supplement to an automobile insurance policy, fills coverage gaps in limited liability insurance, ridesharing company insurance, and standard commercial insurance. Rideshare insurance covers drivers' policies during the "app on" period.
Can I buy just rideshare insurance?
You can't get ridesharing insurance alone because most suppliers don't offer it.
Several insurers provide ridesharing coverage as an add-on or endorsement. This covers one form of commercial use for non-business drivers.
About The Author
Edited by:
Bryan Huynh
•
Product Tester & Writer
