Updated: December 9, 2025
Advertising & Editorial Disclosure
Progressive earned an 88 out of 100 MoneyGeek Score as the top choice for delivery drivers. Add rideshare coverage to your policy and save $200 to $400 monthly versus commercial policies.
Standard auto policies exclude rideshare driving. You'll pay $0.90 to $6 daily for Mercury or USAA coverage, or 15-20% more with State Farm to fill the gap.
Rideshare companies provide limited coverage during specific driving phases. You need additional insurance for complete financial protection after accidents.
We evaluated rideshare insurance providers based on coverage quality, cost, availability and features. Mercury offers the cheapest rates at $0.90 per day. Rideshare coverage typically costs between $6 and $30 per month across providers.
Each insurer approaches rideshare coverage differently. Your best affordable option depends on where you live, how often you drive and which coverage gaps create the most financial risk.
As low as $0.90/day | 11 states | If you are seeking affordable Period 1 coverage | |
Additional 15-20% of current premium | Most states | Drivers needing comprehensive protection | |
Undisclosed | Most states | For delivery service drivers | |
As low as $6/month | 42 states | Military members, veterans and families | |
Undisclosed | Most states | Drivers extending personal coverage to Period 1 | |
Undisclosed | Colorado and Illinois | If you are a driver in Colorado or Illinois | |
Varies | Five East Coast states | East Coast drivers | |
Esurance | Undisclosed | California, Illinois, New Jersey | Drivers seeking low deductible coverage |
Mercury focuses exclusively on Period 1 with transparent daily pricing at $0.90, making it the most affordable option for drivers in its 11-state service area (Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia). The low daily rate makes Mercury ideal for part-time drivers who work limited hours each week.
Mercury's coverage protects you during the highest-risk period for rideshare drivers. When your app is active but no passenger is assigned, you're working commercially but lack full protection from personal policies or rideshare companies. Mercury covers damage to other vehicles and related injuries up to your policy limits, with potential coverage for your vehicle repairs depending on your policy terms.
Part-time drivers in Mercury's service area save the most with its $0.90 daily rate. Those needing broader coverage or living outside Mercury's availability should compare State Farm, Progressive and USAA.
State Farm provides the most comprehensive rideshare insurance coverage for drivers seeking robust protection throughout all driving phases. Its rideshare endorsement maintains medical coverage, emergency roadside assistance and rental car reimbursement from your personal policy while you work for Uber, Lyft or similar platforms.
The policy applies your personal deductible when driving for a transportation network company. All coverages extend during Period 1 when your app is on and you're available for hire. After matching with or transporting a rider during Periods 2 and 3, comprehensive and collision coverages remain active, though liability coverage shifts to the rideshare company's policy.
What it covers: Damage to other vehicles and related injuries up to your policy limits during Period 1. Coverage may include your vehicle repairs depending on policy terms.
What isn't covered: Periods 2 and 3 (rideshare companies provide coverage during these phases).
Progressive offers reliable coverage for delivery drivers working for companies like Uber Eats, DoorDash, Grubhub and Postmates.Personal auto policies exclude delivery work, but Progressive bridges the gap between your personal coverage and the delivery company's insurance with a customizable add-on.
This coverage lets drivers adjust plans based on seasonal activity. You can scale coverage up during busy holiday periods and reduce it during slower months, providing flexibility while controlling costs. The endorsement costs less than traditional rideshare policies while delivering necessary protection for delivery-specific scenarios.
What it covers: Liability, comprehensive, collision, uninsured/underinsured motorist (UM/UIM), personal injury protection (PIP), roadside assistance and rental car reimbursement during Period 1.
What isn't covered: Liability, comprehensive, collision, UM/UIM and PIP during Periods 2 and 3 when the delivery platform's insurance activates.
Availability: Most states
Progressive recognizes that delivery driving creates different risks than passenger transport. Delivery drivers make frequent stops, spend more time parked and face unique liability scenarios. Progressive's coverage accounts for these differences while maintaining competitive pricing for part-time delivery workers.
USAA offers rideshare insurance exclusively for veterans, active service members and their families. This coverage bridges the Period 1 gap between turning on your rideshare app and accepting a ride. Existing USAA customers add this protection for $6 per month.
What it covers: Extends regular auto insurance coverage to Period 1, including liability, comprehensive, collision and other personal policy coverages.
What isn't covered: Coverage during Periods 2 and 3, when rideshare company insurance provides protection.
Availability: 42 states
Cost estimate: Starting at $6 per month for existing USAA customers.
USAA's military-focused service extends to rideshare coverage with straightforward pricing and simple integration with existing policies. The $6 monthly rate makes it one of the most affordable options for eligible drivers, though membership restrictions limit availability to military-connected individuals and families.
American Family offers the Rideshare Endorsement, extending personal auto coverage to Period 1 for rideshare drivers. This endorsement provides identical coverages as your personal policy: bodily injury liability, property damage liability, collision, comprehensive, medical payments and personal injury protection.
What it covers: Same bodily injury liability, property damage liability, collision, comprehensive, medical payments and PIP limits as your personal policy during Period 1.
What isn't covered: Periods 2 and 3, when the rideshare company's commercial insurance activates.
Availability: Most states
Cost estimate: Undisclosed; varies by personal policy terms and state regulations.
American Family's approach simply extends your existing coverage rather than creating new limits or terms. If you carry $100,000/$300,000 bodily injury liability and $500 deductibles on your personal policy, those same amounts apply during Period 1 rideshare driving. This straightforward extension makes coverage easy to understand without complicated endorsement terms.
Rideshare car insurance is a newer type of auto coverage, and options vary widely between insurers. Policies meet different needs, and the best car insurance choices depend on your location.
NJM offers a rideshare endorsement for drivers in Connecticut, New Jersey, New York, Ohio and Pennsylvania. The endorsement bridges coverage gaps between your personal policy and the transportation network company's commercial insurance during Period 1.
What it covers: Liability, uninsured/underinsured motorist, personal injury protection and physical damage coverage during Period 1.
What isn't covered: Liability and UM/UIM during Periods 2 and 3, when rideshare company coverage activates.
Availability: Five states (Connecticut, New Jersey, New York, Ohio, Pennsylvania)
Cost estimate: Varies as a coverage add-on to existing NJM policies.
NJM's regional focus allows it to tailor coverage to East Coast insurance requirements and pricing structures. Drivers in NJM's service area benefit from an insurer familiar with state-specific regulations affecting rideshare coverage.
Travelers offers rideshare insurance exclusively for Colorado and Illinois drivers. This endorsement provides coverage when you activate your rideshare app but ends once you connect with a passenger, focusing on Period 1 protection.
What it covers: Specific coverage details undisclosed; focuses on Period 1 gap coverage.
What isn't covered: Coverage specifics undisclosed.
Availability: Colorado and Illinois only
Cost estimate: Undisclosed; varies by driver and policy.
Travelers' limited geographic availability reflects the complex regulatory environment for rideshare insurance. State-specific requirements and approval processes mean not all insurers offer coverage in every state.
Esurance offers rideshare insurance through its SmartShare program in California, Illinois and New Jersey. This policy eliminates coverage gaps between your personal policy and the rideshare app's insurance, including collision, comprehensive and liability coverage up to your policy limits.
SmartShare covers the difference between your Esurance deductible and the rideshare company's higher deductible. Uber charges $1,000 deductibles during Periods 2 and 3, while Lyft charges $2,500. If your personal policy carries a $500 deductible, SmartShare pays the difference, reducing your out-of-pocket costs after accidents.
What it covers: Collision coverage, comprehensive coverage, liability coverage and other personal coverages, plus deductible gap coverage.
What isn't covered: Specific exclusions undisclosed.
Availability: California, Illinois and New Jersey
Cost estimate: Undisclosed; varies by personal policy terms.
Shopping for rideshare insurance requires more than comparing rates. You need coverage that protects your income and prevents thousands of dollars in out-of-pocket expenses after an accident. Your best option depends on how often you drive, which coverage gaps create the most financial risk, and whether you can manage high deductibles. Most rideshare coverage adds to your personal auto policy as an endorsement, saving $200 to $400 monthly compared to commercial policies designed for taxis and limousines. Review your state's options, which driving phases each policy covers, deductible amounts and whether deductible gap coverage is included.
Weekend drivers need affordable Period 1 coverage. Full-time drivers benefit from broader protections including deductible gap coverage for Periods 2 and 3. Your vehicle's value matters too. Newer, more valuable cars justify paying extra for complete protection and lower deductibles.
Your current auto policy is the key to affordable rideshare coverage. Adding an endorsement to your existing insurance costs less than buying a separate commercial policy. Here's how to get the best value at the lowest cost.
Review your personal auto insurance policy and note your current discounts—safe driver, multi-policy and good student rates often transfer to rideshare endorsements.
Call your insurer to ask about rideshare endorsements and pricing.
If your insurer doesn't offer rideshare coverage, consider shopping during your renewal period to avoid cancellation fees.
Match coverage to how often you drive and your car's value. Weekend-only drivers can save hundreds by choosing basic Period 1 protection.
Once you've chosen your provider and coverage level, complete the application. Pay annually to receive a 5-10% discount on your premium.
Rideshare insurance discounts lower your premium while maintaining solid protection. Some discounts transfer from your personal policy, while others become available when you add rideshare coverage. Stacking multiple discounts can reduce premiums by 20 to 40%.
This discount applies to drivers who maintain a clean record with no accidents or violations for a certain period. It’s especially valuable for rideshare drivers who log more hours behind the wheel.
You can save on premiums by bundling rideshare insurance with other policies like home or renters insurance. Many insurers offer discounts for combining coverage, making it an affordable way to manage multiple policies.
Drive fewer personal miles? You qualify for a low-mileage discount. Focus on personal driving miles, not rideshare miles, when calculating eligibility.
Pay your premium upfront instead of in monthly installments to save money. This simple payment change provides meaningful annual savings.
Opting for electronic billing and policy documents instead of paper mail earns you a discount while supporting eco-friendly practices and ensuring faster communication during claims processing.
Part-time rideshare drivers who are students maintain their good student discounts when adding rideshare coverage. This is valuable for college students driving for extra income between classes.
If you insure multiple vehicles with the same company, you receive discounts even if only one vehicle has rideshare coverage. This makes staying with your current insurer more attractive when adding rideshare protection.
Completing an approved defensive driving course reduces premiums and helps offset points on your license. Given the increased road exposure for rideshare drivers, this discount offers both financial and safety benefits.
These programs provide discounts based on safe driving behaviors. Rideshare drivers often benefit because they drive during daylight hours and follow traffic laws closely to maintain high ratings.
Many insurers offer discounts for membership in professional organizations, alumni associations or employer groups. Check if your day job, college alumni status or professional memberships qualify for additional savings.
Installing approved anti-theft devices (car alarms, GPS tracking systems, engine immobilizers) reduces comprehensive coverage costs. Rideshare vehicles are more prone to theft because of their visibility and frequent stops, making these devices valuable for both security and savings.
Staying with the same insurer for multiple years unlocks loyalty-based discounts. If you're adding rideshare coverage to an existing policy, your loyalty history often applies immediately to your new coverage.
Rideshare insurance requirements vary by state, driving wide gaps in costs and coverage needs. Some states require minimal Period 1 coverage, as low as $25,000 per person for bodily injury liability, while others mandate higher limits that match standard auto insurance requirements. When transporting passengers during Periods 2 and 3, liability requirements range from $100,000 in some states to $1.25 million in states like New York.
Higher state requirements mean higher premiums. Not all states mandate rideshare coverage either. Some require transportation network companies to provide a minimum level of insurance, while others allow companies and drivers to set their own coverage levels. Check your state's requirements before you start driving and include insurance costs in your earnings calculations.
Mercury offers the lowest rates at $0.90 daily for Period 1 coverage, but its coverage is limited to only 11 states. USAA charges $6 monthly for military-connected drivers. State Farm and Progressive offer comprehensive options, but at higher costs. Premiums vary based on your location, driving record, vehicle and how often you drive for rideshare platforms.
Here are the MoneyGeek team's expert answers to common questions about rideshare insurance and choosing a provider:
Yes, most food delivery services like DoorDash, Uber Eats and Grubhub require rideshare or commercial coverage. Your personal auto policy doesn't cover accidents while delivering food for payment. Some insurers include delivery services in rideshare endorsements, while others require separate coverage. Progressive offers specific delivery driver coverage that works well for food delivery platforms. Check with your insurer to confirm whether your rideshare endorsement covers delivery work or requires a separate policy.
Failing to disclose rideshare driving results in claim denials and policy cancellations. If your insurer discovers you've been driving commercially without proper coverage, it will deny claims related to rideshare activity and may cancel your entire policy retroactively.
This denial leaves you personally liable for all damages and injuries from accidents, potentially costing tens of thousands in repairs, medical bills and legal fees. Policy cancellation makes it difficult and expensive to get coverage elsewhere, as you'll be flagged as a high-risk driver requiring non-standard insurance at significantly higher rates.
Yes, but expect higher rates. Accidents, tickets and violations increase your premium by 20 to 50% or more depending on severity and frequency. Some insurers specialize in high-risk drivers and offer rideshare coverage despite poor driving records, though availability may be limited.
DUIs, reckless driving and multiple at-fault accidents make finding rideshare coverage more difficult. Focus on improving your driving record while comparing quotes from multiple insurers, as rates vary significantly for high-risk drivers.
It depends on your state. Some states require specific coverage levels for transportation network company drivers, while others let insurance companies set rideshare requirements. Several states mandate that TNCs provide minimum insurance but don't require drivers to carry additional coverage.
Other states require drivers to notify their insurers about rideshare activity even if rideshare endorsements aren't mandatory. Check your state's Department of Insurance website for specific requirements and your insurer's policy terms to ensure compliance with both state law and company rules.
Yes, rideshare insurance works with leased vehicles. However, inform your leasing company you're driving for rideshare since this may affect your lease terms. Some lessors require additional coverage beyond standard rideshare endorsements or prohibit commercial use entirely.
Review your lease agreement carefully for clauses restricting business use or requiring specific insurance coverage. Some leasing companies charge higher rates or require gap insurance when vehicles are used for rideshare purposes. Get written approval from your lessor before starting rideshare driving to avoid lease violations.
Rideshare insurance covers part-time drivers using personal cars for platforms like Uber and Lyft, adding 15-30% to personal policy costs. It focuses on filling Period 1 gaps and may include deductible gap coverage. Commercial auto insurance typically covers full-time professional drivers or company-owned fleets, which can cost two to three times more than regular auto insurance.
Commercial policies provide unlimited business use coverage, cargo protection and higher liability limits. Most part-time rideshare drivers typically need only rideshare endorsements, while full-time drivers working 30 hours or more weekly should consider commercial coverage for better protection.
Rideshare insurance costs vary by insurer, location and coverage type. Mercury charges as low as $0.90 per day in 11 states. USAA offers coverage starting at $6 monthly for military-connected drivers. State Farm adds 15 to 20% to your current premium, typically $15 to $50 monthly depending on your base policy cost.
Most insurers charge between $10 and $60 monthly for rideshare endorsements. Factors affecting your cost include your driving record, vehicle value, location, base insurance premium and how much coverage you select beyond basic Period 1 protection.
Rideshare insurance extends your personal coverage to fill gaps when driving for companies like Uber and Lyft. It covers different driving phases when your personal policy excludes commercial activity and rideshare company coverage is limited or carries high deductibles.
Rideshare drivers lose coverage the moment they turn on their apps — your personal policy stops protecting you, but the rideshare company's insurance doesn't fully kick in yet. We built our research to find insurers that actually solve this problem without charging commercial policy rates.
What We Evaluated
We examined how each provider handles the three rideshare driving phases: app off (personal driving), app on (waiting for rides) and active rides (transporting passengers). Period 1 creates the biggest risk. You're working but have minimal coverage for vehicle damage. Most drivers don't realize they're exposed until after an accident.
Our analysis compared coverage availability across different driver profiles, cost increases over standard auto insurance and state availability. We focused on rideshare endorsements that add to your existing policy rather than commercial policies costing $200 to $400 more monthly.
Research Sources
We gathered information from these industry sources:
We contacted insurance companies directly to confirm rideshare coverage details, deductible amounts and which driving periods each policy covers. The Insurance Information Institute provided additional context on how rideshare insurance bridges coverage gaps.
Editorial Standards
Our editorial review board verifies all data for accuracy and confirms information applies specifically to rideshare drivers. We update our research quarterly to reflect changing state regulations and new coverage options. MoneyGeek provides unbiased recommendations to help you find financial protection during all three driving phases, not just when passengers are in your car.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
