AutoInsurance.com
Icon CheckLast updated: October 24, 2022

The Best Auto Insurance for Rideshares

Insurance for Uber and Lyft drivers is different from personal car insurance.

Best Overall
State Farm Logo

State Farm combines strong types of coverage, wide availability, and affordable rates, making it our top choice for rideshare drivers.

Best for Periods Covered
Esurance Logo

The only company that covers all three periods without restrictions or limitations, Esurance is our second choice for rideshare drivers. The company has an A+ rating from AM Best, meaning you can trust its ability to pay for a claim.1

Many auto insurance companies require you to purchase rideshare coverage if you plan to drive for Uber or Lyft. To understand why, it helps to know the main “periods” of rideshare work:

  • Period 0: The app is off and your personal car insurance policy is in effect.
  • Period 1: The app is on and you are waiting to match with a rider.
  • Period 2: You have accepted a ride request and you’re on your way.
  • Period 3: The rider is in your vehicle.

Uber, Lyft, and similar services offer some coverage, but it’s limited, especially during the first period. Because you are technically working during the first period, your personal policy will not apply, either, leaving you with a gap in coverage. Further, Uber and Lyft’s first-period liability limits are lower than what most auto insurance experts recommend.

How can you fill the gap and make sure you have full coverage car insurance? The answer is simple: a rideshare endorsement to your personal policy.

Not holding rideshare insurance can leave you with serious financial consequences in the event of an accident, especially one that occurs while you’re waiting to match with a rider. Additionally, if your insurer finds out you were driving without coverage for a rideshare company, your insurer may drop your policy. Despite the risks, more than half of rideshare drivers report not having purchased rideshare coverage, according to market research by the rideshare assistant app Gridwise.

We’re here to walk you through your options so you’re covered on the road.

Comparison of the Best Auto Insurance for Rideshares

Insurance company What it’s best for Periods covered Deductible reimbursement Available discounts States where rideshare insurance is offered Review
State Farm Overall All, except liability for Periods 2 and 3 Yes Multivehicle, multiline, track safe driving behavior, accident-free, good driving history, defensive driver course, safe vehicle All except AK, HI, IL, MA, NC, RI, SD State Farm review
Esurance Periods covered All Yes Multivehicle, multiline, track safe driving behavior, safe vehicle, driver training, good driving history, preferred payment CA, IL, NJ Esurance review
Progressive Food delivery Period 1, with roadside assistance and rental reimbursement for Periods 2 & 3 Yes Multivehicle, multiline, continuously insured, track safe driving behavior, homeowner, online quote, sign online, auto-pay, pay in full, paperless All except AK, CA, CT, DE, HI, KS, MD, MT, NV, NH, NJ, NY, NC, OR, SC, VT Progressive review
Bristol West High-risk drivers Period 1 No Multivehicle, multiline (including with Farmers or Foremost), automatic payments, paperless, good record AL, AR, AZ, CA, CO, DC, DE, GA, FL, HI, IA, ID, IL, IN, KS, MD, MI, MN, MO, MT, ND, NE, NJ, NM, NV, OH, OK, OR, PA, SD, TN, TX, UT, VA, WI, WV N/A
American Family Accident forgiveness Period 1 No Multivehicle, loyal customer, early quote, multiline, safe vehicle, defensive driver course, good record, low mileage, track safe driving behavior, auto-pay, pay in full, paperless CO, GA, KS, MN, WI N/A

Summary of the Best Auto Insurance for Rideshares

  1. 1.

    Best Overall: State Farm

  2. 2.

    Best for Periods Covered: Esurance

  3. 3.

    Best for Food Delivery: Progressive

  4. 4.

    Best for High-Risk Drivers: Bristol West

  5. 5.

    Best for Accident Forgiveness: American Family

Detailed List of the Best Auto Insurance for Rideshares

1. Best Overall - State Farm

What We Like Most:

  • Local agents
  • Rideshare insurance available
  • Discounts for having multiple cars

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.

ProsWho It's Best For
  • pro
    Drivers who live in states where it’s difficult to find coverage
  • pro
    People who want lower deductibles
  • pro
    Customers who want to work with State Farm directly in the event of a claim
  • pro
    People who are looking for discounts and affordable premiums
ConsWho It's Not Best For
  • con
    People who live in the following places, where State Farm doesn’t offer rideshare coverage:
    • Alaska
    • Hawaii
    • Illinois
    • Massachusetts
    • North Carolina
    • Rhode Island
    • South Dakota
  • con
    Drivers who want added liability coverage once they’ve matched with a rider

Wide Availability

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.

Coverage App is on Matched with rider Transporting passenger
Bodily injury and property damage liability State Farm Rideshare company Rideshare company
Collision, comprehensive, rental reimbursement, and emergency road service State Farm State Farm State Farm
Medical payments coverage State Farm State Farm State Farm

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.

FYI


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.

Customer Service

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.

2. Best for Periods Covered - Esurance
Esurance Logo

What We Like Most:

  • Backed by Allstate
  • Easy online experience from start to finish
  • Discounted bundling options with home, renters, or motorcycle insurance

Owned by Allstate, Esurance offers rideshare coverage through a program it calls ShareSmart. It offers protection across all three rideshare periods, without restriction.

ProsWho It's Best For
  • pro
    Rideshare drivers who want coverage for all three periods
  • pro
    Drivers who want to choose their deductibles
  • pro
    Customers who are looking for user-friendly online tools
  • pro
    People who need gap insurance
ConsWho It's Not Best For
  • con
    Drivers who live outside California, Illinois, or New Jersey
  • con
    People who don’t want to purchase collision and comprehensive coverage

ShareSmart Rideshare Coverage

Esurance’s rideshare coverage, known as ShareSmart, extends the protections of your personal policy to all three periods (waiting for a ride, matching with a passenger, and transporting the passenger) across all coverage types, including the following:

  • Liability insurance coverage up to your personal limits
  • Comprehensive and collision
  • Medical payments and personal injury protection
  • Uninsured/underinsured motorist
  • Emergency road service
  • Rental reimbursement

Note that to purchase rideshare coverage from Esurance, you must carry collision and comprehensive coverages. You can add rideshare coverage at your next renewal. Esurance offers rideshare coverage only in California, Illinois, and New Jersey, though it plans to expand coverage to additional states soon.

Lower Deductibles

If your car sustains damage while you’re driving for a rideshare company, Esurance will cover the difference between your deductible and the rideshare company’s deductible. You’ll pay the lowest deductible between your personal policy and the rideshare insurance policy, and Esurance will take care of the rest. That way, you’re not on the hook for steep rideshare deductibles, which are often up to $2,500.

Digital Tools

For drivers who want to manage their policies via a mobile app, Esurance is a solid choice. The company was one of the first to sell policies online and maintains a good reputation for digital tools.

Esurance’s mobile app holds a 4.4-star rating in the Google Play store and a 4.8-star rating in the App Store. You can use it to manage most of your policy needs, including these tasks:

  • Updating your contact info
  • Adding a new vehicle to your policy
  • Viewing your ID card and adding it to a digital wallet
  • Filing claims
  • Calling for roadside assistance
  • Paying your bill
  • Updating your payment method and due date
3. Best for Food Delivery - Progressive

What We Like Most:

  • Save up to 12 percent for insuring multiple cars
  • Coverage available for teen drivers and their parents
  • Rates 25 percent lower than the national average

With over 20 million policies in force, Progressive is the third-largest auto insurer in the U.S.4 It’s a good choice for rideshare drivers, in particular those who want to do food delivery in addition to rideshare driving.

ProsWho It's Best For
  • pro
    People who drive for food delivery services in addition to rideshare
  • pro
    Drivers who are seeking a plan with deductible reimbursement
  • pro
    Customers who are looking for an array of discounts
  • pro
    People who want their deductibles to decrease over time
ConsWho It's Not Best For
  • con
    Drivers in the following states, where Progressive does not offer rideshare coverage:
    • Alaska
    • California
    • Connecticut
    • Delaware
    • Hawaii
    • Kansas
    • Maryland
    • Montana
    • Nevada
    • New Hampshire
    • New Jersey
    • New York
    • North Carolina
    • Oregon
    • South Carolina
    • Vermont
  • con
    Drivers who want coverage beyond roadside assistance and rental reimbursement after they’ve matched with passengers

Protection for Food Delivery Drivers

More than half of rideshare drivers also work for delivery services such as Instacart, Grubhub, and DoorDash.5 Maybe you feel safer driving without passengers or simply appreciate the solitude. Even if you’re alone in your car, you’re still working if the app is turned on, meaning you need coverage beyond your personal policy.

You can work with multiple apps on, and food delivery apps don’t penalize you for declining (with the exception of special promotions). That said, if you accept an order on one app, it’s wise to pause the other app while you complete the order. If you don’t, you may end up juggling more orders than you can deliver in time.

Progressive allows you to customize your plan, depending on whether you expect to drive solely for delivery services or for both delivery and rideshare. If rideshare coverage isn’t available in your state, Progressive also offers for-livery hire insurance, which offers similar benefits (though at a slightly higher cost than rideshare coverage).

Deductible Reimbursement

Progressive will reimburse you for the difference between the deductible on your personal policy and the rideshare company’s deductible. For example, if the rideshare company has a $2,500 deductible and you have a $500 deductible, Progressive will pay you $2,000. That way, you don’t have to worry about a big, unexpected expense at an already stressful time.

Many Discount Possibilities

Over 60 percent of rideshare drivers regularly put in more than 35 hours behind the wheel each week, and three-quarters of drivers keep close track of their earnings and financial goals. If you’re working toward a savings goal, you want to make sure each dollar you spend is worth it.

Progressive offers a substantial number of discounts that can help you keep insurance costs low, including the following:

Discount Average savings
Bundle multiple policies 5%
Add multiple vehicles to the same policy 4%
Be insured continuously Varies
Track safe driving $146
Have homeowners insurance (even if you don’t insure your home with Progressive) 10%
Get an online quote 7%
Sign up online 9%
Use a preferred payment method (pay in full, automatic, paperless) Varies
4. Best for High-Risk Drivers - Bristol West
Bristol West Logo

What We Like Most:

  • Good for first-time insurance customers
  • Accepts high-risk drivers
  • Discounts for going paperless, bundling, or setting up automatic payments

A subsidiary of Farmers, Bristol West specializes in selling insurance (including rideshare insurance) to high-risk drivers whom other insurers might turn away. It covers the first period, when the app is on and you’re waiting to match with a passenger.

ProsWho It's Best For
  • pro
    Drivers with high-risk designations
  • pro
    Customers who are looking for discounts
  • pro
    People who are seeking a financially sound insurer
  • pro
    Customers who want to work directly with an insurance agent
ConsWho It's Not Best For
  • con
    Drivers who are not considered high-risk, who can find better rates and coverage elsewhere
  • con
    People who live in the following places:
    • Alaska
    • Connecticut
    • Kentucky
    • Louisiana
    • Maine
    • Massachusetts
    • Mississippi
    • New Hampshire
    • New York
    • North Carolina
    • Rhode Island
    • South Carolina
    • Vermont
    • Washington
    • Wyoming

Coverage for High-Risk Drivers

Bristol West sells insurance to high-risk drivers. Note that Uber, Lyft, and similar platforms conduct a background check when you apply and annually thereafter. Some high-risk designations may disqualify you. For example, Uber and Lyft have the following requirements for drivers:

  • No DUIs, DWIs, driving-related felonies, or reckless-driving violations in the past seven years, or 10 years in California
  • No more than three traffic violations in the past three years
  • No speeding violations 20 miles per hour or more over the limit in the past three years
  • Depending on the state, at least one year of licensed driving experience

At the same time, being “high-risk” doesn’t mean you’re a bad driver or automatically disqualified from driving for a rideshare company. You might have trouble finding insurance if:

  • You have low credit or have missed insurance payments.
  • You have a gap in your insurance history.
  • You have a history of multiple traffic violations or at-fault accidents.

Bristol West offers rideshare coverage to high-risk drivers, including for delivery services such as Uber Eats. The following coverages are available:

  • Bodily injury liability
  • Property damage liability
  • Collision and comprehensive
  • Uninsured/underinsured motorists
  • Medical payments
  • Towing and roadside service
  • Rental car reimbursement

Discounts

High-risk auto insurance tends to cost more than regular auto insurance, and some high-risk insurers skimp when it comes to discounts. However, Bristol West offers you several ways to save. You’ll earn discounts for:

  • Insuring multiple vehicles.
  • Bundling different policies (including with Farmers or Foremost, another subsidiary).
  • Setting up automatic payments.
  • Going paperless.
  • Maintaining a good driving record.
  • Owning a home.
  • Buying a policy at least two days in advance of its effective date with no lapse in coverage.

Financial Strength

A company’s financial strength can affect its ability to pay for a claim and how long it takes to get your payment. Sometimes, smaller providers like Bristol West lack the financial strength of big companies. However, because Farmers owns and operates Bristol West, it benefits from the financial power of a larger company. Bristol West has an A rating from AM Best, so you can depend on this insurer to pay for a claim, which is especially important if your car provides your main source of income.

5. Best for Accident Forgiveness - American Family
American Family Logo

What We Like Most:

  • Add-on roadside assistance
  • Will pay for a rental car if yours is in the shop
  • Diminishing deductibles

Founded in 1927, American Family Insurance (or AmFam) offers an array of insurance offerings, including rideshare coverage. The company holds an above-average customer satisfaction rating from J.D. Power and stands out for its accident forgiveness coverage.

ProsWho It's Best For
  • pro
    Customers who want accident forgiveness
  • pro
    People who need gap or lease/loan insurance
  • pro
    Drivers who are looking for a company with high customer satisfaction rates
  • pro
    Customers who are seeking a range of add-on options, such as original equipment, classic car, and travel coverage packages
ConsWho It's Not Best For
  • con
    Rideshare drivers who live outside the following places:
    • Colorado
    • Georgia
    • Kansas
    • Minnesota
    • Wisconsin
  • con
    People who want policies that extend coverage after they’ve matched with customers

Accident Forgiveness

Accidents happen to anyone, even the most experienced drivers, and extra miles on the road can increase your risk.

DID YOU KNOW?


Research suggests that the rise of rideshare apps is associated with a 2 to 3 percent increase in traffic accidents.6

Typically, your insurance rates will rise by 40 to 50 percent after an at-fault accident. However, if you purchase accident forgiveness, your premiums won’t go up — and you won’t lose your good driving discount, either.

American Family offers two options for accident forgiveness:

  • Purchased: You can buy coverage if your household has had no at-fault accidents in the past year and no more than one at-fault accident in the past three years.
  • Earned: You earn coverage if you remain claim-free for five years.

If you purchased accident forgiveness and hit five years without a claim, American Family will swap purchased for earned coverage so you no longer pay for it.

Extend Your Personal Coverage

American Family offers rideshare insurance coverage that protects you from the time you turn on the app until you match with a customer. The coverage extends the protections that you purchase on your personal policy, including the following:

  • Bodily injury liability
  • Property damage liability
  • Collision and comprehensive
  • Medical payments
  • Personal injury protection
  • Uninsured/underinsured motorist

Wondering how much rideshare coverage will cost you each month? American Family offers a transparent online tool that lets you estimate the added cost of rideshare insurance based on your ZIP code and current monthly premiums.

Gap and Loan/Lease Insurance

Nearly one in five rideshare drivers lease their vehicles, and more than half of drivers purchased their vehicles because they wanted to start rideshare driving. If you recently bought your vehicle for rideshare purposes, you might still have a significant portion of your loan to pay off and even be “underwater” (owe more on the car than it’s worth).

In general, it’s a good idea to consider gap coverage if you leased your vehicle, put less than 20 percent down when you bought it, or financed it for five years or longer. Sometimes, your lender may even require you purchase the coverage. Without gap insurance, if you experience a total loss, you could be on the hook for more money than the car is worth.

It’s more expensive to purchase gap coverage from the dealership, but not all insurance companies offer it. American Family offers gap coverage, and typically, it adds only a few dollars to your monthly premiums. In the event of a total loss, if you owe more on your vehicle than it’s worth, American Family will pay the difference.

Rideshare Service Car Insurance Methodology

  • Data analysis: Over the past two decades and counting, AutoInsurance.com has made its mission to help customers find the right auto insurance coverage for their needs. We’ve amassed millions of data points that represent customer transactions and analyzed the data to uncover the best companies for particular customer needs — in this case, rideshare coverage.
  • Public information: We take into account each company’s average rates, available discounts, and other benefits. We also gather information on rideshare periods each company covers, deductible reimbursements, and availability by state. Finally, we examine information from independent sources to evaluate companies’ customer service, financial solidity, and claims satisfaction. These third-party institutions include AM Best, the National Association of Insurance Commissioners (NAIC), S&P Global, Moody’s, J.D. Power, and the Better Business Bureau.
  • Our experience: Over the years, AutoInsurance.com’s experts have become keenly familiar with each auto insurance company and what it offers. We use our institutional knowledge to help customers find the right policies for them. Additionally, we consult with Paul Ford, a professional with 30 years in the industry. Paul’s past experience includes time with Datalot, Canadian Access, NetQuote, Bankrate, InsLogic, and Capital One Insurance Services. Currently, Paul serves as president of insurance at Centerfield, AutoInsurance.com’s parent company.

FAQs

Who offers the cheapest rideshare insurance?

State Farm, Progressive, and Mercury offer some of the cheapest rideshare insurance.

What is commercial auto insurance?

Commercial auto insurance is a type of insurance policy that covers vehicles used for business purposes. If rideshare insurance is unavailable or difficult to find in your state, you can purchase a commercial policy instead. However, commercial auto insurance tends to cost more than rideshare coverage.

Do I need rideshare insurance?

Legally, you do not need to purchase rideshare coverage — but you should buy it anyway. If your insurance provider discovers that you have been driving rideshare without disclosing it, it may drop your coverage or increase your rates. Additionally, if you’re involved in an accident, you may be on the hook for a lot of money due to limited coverage from Lyft and Uber.

What companies offer rideshare insurance?

  • Allstate
  • American Family
  • Bristol West
  • Erie
  • Esurance
  • Farmers
  • GEICO
  • Liberty Mutual
  • Mercury
  • Metlife
  • Metromile
  • Progressive
  • Safeco
  • State Farm
  • Travelers
  • USAA

Availability of coverage varies by state.

Citations

  1. Ratings. AM Best. (2022).
    https://ratings.ambest.com/CompanyProfile.aspx?ambnum=19232&URatingId=0&bl=0&AltSrc=1&PPP=&AltNum=0&Ext_User=&Ext_Misc=&Portal=0&Site=

  2. Insurance coverage while driving with Lyft. Lyft. (2022).
    https://help.lyft.com/hc/en-us/all/articles/115013080548-Insurance-coverage-while-driving-with-Lyft

  3. Usage-Based Auto Insurance Takes Center Stage as Satisfaction Flatlines, J.D. Power Finds. J.D Power. (2022, June 13).
    https://www.jdpower.com/business/press-releases/2022-us-auto-insurance-study

  4. About Us. Progressive. (2022).
    https://www.progressive.com/about/

  5. Who are rideshare drivers: A demographic breakdown of rideshare drivers in the U.S.. Gridwise. (2020, Aug 19).
    https://gridwise.io/blog/b2b/who-are-rideshare-drivers-a-demographic-breakdown-of-rideshare-drivers-in-the-u-s/

  6. The Cost of Convenience: Ridesharing and Traffic Fatalities. Chicago Booth. (2018, Oct).
    https://research.chicagobooth.edu/-/media/research/stigler/pdfs/workingpapers/27thecostofconvenience.pdf