The most popular auto insurance provider in the country, State Farm has expanded its rideshare coverage to most states. With affordable rates and strong customer service, it’s a great choice for rideshare drivers.
With any auto insurance company, available coverages vary by state. For example, a provider might sell policies in a state but not offer specific coverages, such as rideshare coverage.
State Farm offers rideshare insurance in 43 states and Washington, D.C., making it one of the most widely available options for drivers. Typically, adding rideshare coverage to your State Farm policy will increase your premiums by 15 to 20 percent.
Purchasing rideshare coverage extends the protections of your personal policy, including the limits and deductibles, to times when the app is on. Once you’ve matched with a rider, all coverages apply, except liability to others.
||App is on
||Matched with rider
|Bodily injury and property damage liability
|Collision, comprehensive, rental reimbursement, and emergency road service
|Medical payments coverage
The extra liability coverage in the first period is important. Uber and Lyft’s first-period limits are $50,000 in bodily injury per person, $100,000 in bodily injury per accident, and $25,000 in property damage per accident, which are lower than most auto insurance experts’ recommendations of $100,000, $300,000, and $100,000, respectively. Once you’ve matched with a rider, Uber and Lyft’s liability limits go up to $1 million total. With State Farm, you can increase your liability limits, or lessen your financial responsibilities after a collision.
Choose Your Deductible
If you carry comprehensive and collision coverage, Uber and Lyft maintain that coverage on your behalf once you’ve matched with a passenger. In the event of a covered incident, they will pay for damages up to your car’s actual cash value. However, Uber and Lyft have higher deductibles than most personal auto insurance policies.
Uber and Lyft have $2,500 deductibles before the collision and comprehensive coverage kicks in for covered incidents.2
With State Farm’s rideshare coverage, in the event of a claim, you will pay your State Farm deductible rather than the costlier rideshare company deductible. When you add rideshare coverage to your policy, any deductibles you have for collision and comprehensive coverage will not increase.
Some auto insurance companies offer rideshare insurance through a partner company rather than underwriting the policies themselves. State Farm keeps rideshare coverage in-house. If you have to file a claim for a rideshare-related incident, you will work with State Farm directly rather than with a partner company.
State Farm is known for strong customer service and backs up its reputation with above-average customer satisfaction ratings from J.D. Power.3 Additionally, State Farm holds an A++ financial strength rating from AM Best, so you can count on its ability to pay for a claim.