Uber, Lyft, and other rideshare drivers now have insurance options

Updated October 3, 2017

Uber is no stranger to controversy, especially controversy over how they treat their drivers. At the heart of these controversies is this central question: How much is Uber or Lyft – or any rideshare company – responsible for?

In the case of car insurance for Uber drivers and Lyft drivers, that question still lingers. Back in the day, there was some question over when, exactly Uber and Lyft insurance covered rideshare drivers. When the driver wasn't working, he or she obviously had personal car insurance, and when there was a passenger in the car, the rideshare company's insurance kicked in. But when a driver was working but didn't have a passenger, coverage was limited. Car insurance companies also frowned upon drivers working commercially and in some cases, personal auto insurance policies were actually canceled once insurance companies found out that the driver worked for Uber or Lyft.

Luckily, Uber and Lyft have beefed up their insurance options, and rideshare insurance has evolved to meet the modern working world.

Here's what you need to know about insurance for Uber drivers and Lyft drivers offered by the companies, and rideshare insurance options from leading car insurance companies.

Insurance for Uber drivers and Lyft drivers

Rideshare trips are divided into three periods, depending on where the driver is in the process: The driver has not made a match with a passenger, the driver has made a match and is going to pick up the passenger, and the passenger is in the vehicle.

The insurance coverage provided by Uber and Lyft depends on the period.

Uber insurance coverage
Period 1

App is on, but no match made
Period 2

Match made, driver is en route to pick up rider
Period 3

Passenger in car
Auto Liability Up to $75K/person (Bodily Injury)

Up to $150K/accident (Bodily Injury)

Up to $25K/accident (Property Damage)
With limits of $1.25 Million for all bodily injuries property damage per accident With limits of $1.25 Million for all bodily injuries property damage per accident
Personal Injury Up to $50K/person Up to $50K/person Up to $50K/person
Uninsured and Underinsured Motorist coverage Up to $25K/person (Bodily Injury)

Up to $50K/accident (Bodily Injury)

Up to $50K/person (Death)

Up to $100K/accident (Death)
Up to $1.25M Up to $1.25M
Contingent Collision and Comprehensive N/A Up to actual cash value or cost of, whichever is less ($1,000 deductible) Up to actual cash value or cost of, whichever is less ($1,000 deductible)

Lyft insurance coverage
Period 1

App is on, but no match made
Period 2

Match made, driver is en route to pick up rider
Period 3

Passenger in car
Auto Liability Up to $50K/person (Bodily Injury)

Up to $100K/accident (Bodily Injury)

Up to $25K/accident (Property Damage)
Up to $1 Million per occurrence Up to $1 Million per occurrence
Uninsured and Underinsured Motorist coverage N/A Up to $1 Million per occurrence Up to $1 Million per occurrence
Contingent Collision and Comprehensive N/A Up to actual cash value or cost of, whichever is less ($2,500 deductible) Up to actual cash value or cost of, whichever is less ($2,500 deductible)

Rideshare insurance options

So if Uber and Lyft offer insurance, why should drivers buy a rideshare insurance policy? Because the coverage offered above may not be enough, or it might be more economical to have your own policy (for example, a rideshare policy may have a lower deductible than what Uber and Lyft provide).

To see available rideshare insurance plans, see the chart below or choose your state from the dropdown!




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Rideshare insurance policies
Insurance company Eligible drivers Available states Cost
Geico All rideshare drivers AL, AZ, AR, 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, WA, WV, WI, WY Estimated to be 3x a regular personal policy
USAA All USAA member rideshare drivers AL, AZ, CA, CO, GA, IA, IL, IN, KS, KY, MA, MD, ND, NE, NV, OH, OK, OR, TN, TX, WA, WY Starts at $6/month on top of your regular auto insurance bill
Farmers All rideshare drivers AL, AR, AZ, CA, CO, FL, GA, ID, IL, IA, KS, MD, MI, MN, MT, NE, NV, NJ, NM, ND, OH, OK, OR, TN, TX, UT, WI Adds an additional 25% to the cost of your personal policy on average
Allstate All rideshare drivers AZ, AR, CA, CO, CT, DC, GA, HI, IA, ID, IL, IN, KY, KS, MA, MD, ME, MN, MO, MT, NH, NV, OH, OK, RI, SC, TN, TX, UT, VT, WA, WI, WV An additional $15 – $30 per year policy
State Farm All rideshare drivers AL, CA, CT, CO, DE, GA, ID, IN, LA, KY, ME, MN, MS, ND, NE, OH, OK, OR, TN, WA, WI, WV No information provided
SafeCo All rideshare drivers AZ, CO, IL, IN, KS, MN, MO, OK, OR, TN, UT, WA, WI Less than $10 per month for most drivers
Mercury Insurance Uber and Lyft drivers AZ, CA, GA, IL, NV, OK, TX Starts at $0.20 per day or $73 per year
American Family Insurance All rideshare drivers AZ, CO, GA, ID, IN, KS, MO, ND, OH, OR, SD, UT, WI Starts at $10 per month
MetLife All rideshare drivers CA, CO, IL, TX, WA No information provided
Erie All rideshare drivers IL, IN No information provided
Travelers All rideshare drivers CO, IL No information provided
Progressive All rideshare drivers TX No information provided

Geico

Available for: All rideshare drivers

Available in: AL, AR, AZ, CO, CT, DE, DC, GA, IA, ID, IL, IN, KS, LA, ME, MD, MI, MN, MS, MO, NE, NM, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, VA, VT, WA, WI, WV, WY

Cost: Estimated to be 3x a regular personal policy

Geico rideshare insurance is pretty straightforward. Their rideshare insurance product is offered by Geico Commercial, but it’s much cheaper than Geico’s other commercial auto insurance policies - typically around three times the cost of a regular personal auto insurance policy.

Drivers need more than just rideshare insurance. Find out what you're missing.

USAA

Available for: All rideshare drivers who have served in the military, or are a spouse or child of someone who is a USAA member

Available in: AL, AZ, CA, CO, GA, IA, IL, IN, KS, KY, MA, MD, ND, NE, NV, OH, OK, OR, TN, TX, WA, WY

Cost: Starts at $6/month on top of your regular auto insurance bill

USAA’s rideshare insurance policy is actually an add-on endorsement to your existing policy. Unlike some other policies on this list, USAA’s rideshare endorsement only covers the "gap" between your personal policy and Uber or Lyft’s insurance, which is one reason why it’s less expensive than other policies. USAA makes it easy to purchase this endorsement – instead of buying a whole new policy, you can add the endorsement to your existing policy for as little as $6 per month. This makes getting rideshare insurance an easy and cheap process for existing USAA members.

Farmers

Available for: All rideshare drivers

Available in: AL, AR, AZ, CA, CO, FL, GA, ID, IL, IA, KS, MD, MI, MN, MT, NE, NV, NJ, NM, ND, OH, OK, OR, TN, TX, UT, WI

Cost: Adds an additional 25% to the cost of your personal policy, on average

Farmers rideshare insurance product is an extension of your existing personal auto insurance policy, covering you while you’re driving your car for personal use and while the app is open and you’re waiting for a passenger. It won’t cover you when the rideshare company’s coverage is in effect. According to a statement released in 2015, the cost of Farmers’ rideshare insurance policy is about 1.25x the cost of a personal policy, on average.

Also note that in Florida, Farmers offers rideshare insurance under the Foremost brand.

Allstate

Available for: All rideshare drivers

Available in: AZ, CA, CO, DC, GA, IA, IL, IN, KY, KS, MD, ME, MI, NV, OH, OK, RI, SC, TN, TX, UT, WA, WI

Cost: An additional $15 – $30 per year

Allstate’s rideshare insurance policy, Allstate Ride For Hire, is available for an affordable $15 - $30 per year on top of your personal policy (their website says $15 - 20, but a customer service representative told me that it can get as expensive as $30 for some drivers). Allstate Ride For Hire covers you while you’re looking for a passenger, and can help provide additional coverage if you get into an accident while you have a passenger in the car.

State Farm

Available for: All rideshare drivers

Available in: AL, AZ, CA, CO, CT, DE, DC, FL, GA, ID, IN, KS, KY, LA, ME, MI, MN, MS, ND, NE, NH, NJ, NM, OH, OK, OR, SC, TN, TX, UT, VA, WA, WI, WV

Cost: No information provided

Details of State Farm’s rideshare insurance coverage is sparse, but they do state in a press release that their product is an extended personal auto policy, not a modified commercial policy, which should make it relatively affordable.

SafeCo

Available for: All rideshare drivers

Available in: AZ, CO, GA, IL, IN, KS, MN, MO, OK, OR, SD, UT, WA, WI

Cost: Less than $10 per month for most drivers

Like other companies on this list, SafeCo is offering a modified personal auto insurance policy that covers you while you’re waiting for a passenger. SafeCo claims that, if you choose their rideshare insurance policy, "you’ll likely pay less than $10 per month."

Mercury Insurance

Available for: Uber and Lyft drivers

Available in: AZ, CA, GA, IL, NV, OK, TX

Cost: Starts at $0.20 per day, or $73 per year

If you have a personal auto insurance policy through Mercury, you can purchase additional rideshare insurance from them for "as little as $0.20 a day!", according to their website. That works out to about $73 per year extra, at minimum.

American Family Insurance

Available for: All rideshare drivers

Available in: AZ, CO, GA, ID, IA, IN, KS, MO, ND, NE, OH, OR, SD, UT, WI

Cost: Starting at $10 a month

American Family Insurance provides standard rideshare insurance for those times when drivers are on Uber and Lyft waiting for a fare.

MetLife

Available for: all rideshare drivers

Available in: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IO, KS, KT, LA, ME, MD, MA, MI, MN, MS, MO, NE, NV, NH, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY

Cost: No information provided

MetLife Auto & Home's Lyft endorsement will provide coverage for Lyft drivers at every stage of the trip. Premiums will be based on how many miles you drive with Lyft.

Erie

Available for: all rideshare drivers

Available in: DC, IL, IN, MD, OH, PA, TN, VA, WV, WI

Cost: No information provided

Unlike other rideshare insurance products, Erie’s rideshare insurance is not a commercial policy. Instead, Erie has lifted the exclusion on ridesharing from their "business use" designation. According to Cody Cook, Vice President of Auto Insurance at Erie, business use "traditionally has covered people who use their personal cars for things like delivering pizza or flowers, but has historically excluded... people who use their cars as taxis." Erie’s new insurance products lifts that exclusion.

Travelers

Available for: All rideshare drivers

Available in: CO, IL

Cost: No information provided

Very little information is available on Travelers’ rideshare insurance policy – it’s given about one paragraph on a page titled "Optional coverages." However, it is apparent that their rideshare insurance coverage is a modified personal policy, intended to cover you while you are searching for a passenger. No information on additional cost is provided.

Progressive

Available for: Lyft drivers

Available in: TX

Cost: No information provided

Progressive currently has an insurance offering for rideshare drivers in Texas. Like many other companies, Progressive’s rideshare insurance is a personal policy with a ridesharing endorsement. Unfortunately, no word on how much more it costs – like all Progressive policies, you’ll need to get a quote directly from an agent.

Note: Progressive previously offered a pilot program for Lyft drivers in Pennsylvania, but that program has since ended.

Liberty Mutual

Liberty Mutual auto insurance is an interesting rideshare option...in that it doesn't exist. Liberty Mutual doesn't offer rideshare insurance, but they also won't cancel personal policies for commercial drivers, something that was common in the early days of ridesharing. So, for better or for worse, Liberty Mutual will leave rideshare drivers alone.

Did we miss one?

New rideshare insurance options are being created every day. Leave us a comment below if we missed one so we can add it to the list.

Photo: Alfredo Mendez