Cheapest Rideshare Insurance for Drivers

Mercury offers the cheapest rideshare coverage at $0.90 per day.

We evaluated rideshare insurance providers and found Mercury offers the most affordable option, though availability and features vary between insurers. 

Match your driving habits, location and coverage needs with the right provider. The table below shows the best cheap rideshare insurance companies.

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.

Rideshare insurance bridges coverage gaps during Period 1, when personal and rideshare company insurance fall short. Without it, you risk paying thousands for vehicle damage or liability claims. During this period, rideshare companies provide only cheap liability coverage, which may not adequately protect you.

Uber charges a $1,000 deductible during Periods 2 and 3, while Lyft charges $2,500. That's a sharp increase from the $500 deductible most drivers carry on personal policies.

Deductible gap coverage closes that gap by covering the difference between your personal deductible and the higher rideshare deductible. You pay only your usual amount after an accident. Not all rideshare insurance includes this feature, so ask when comparing policies.

Shopping for rideshare insurance goes beyond finding the cheapest car insurance. You need coverage that protects your income and prevents you from paying thousands after accidents. Your best option depends on how much you drive, which coverage gaps create the most risk and whether you can afford high deductibles.

Most rideshare coverage adds to your personal auto policy as an endorsement. This approach costs much less than buying a separate commercial policy — often half the price or better. When evaluating policies, look at your state's available options, which driving phases they cover, deductible amounts and whether deductible gap coverage is included.

1. Stack compatible discounts: Safe driver, bundling and pay-in-full discounts add up when combined. Most insurers let you apply multiple discounts to rideshare policies simultaneously.
2. Ask about unadvertised discounts: Companies don't advertise every available discount. When shopping for coverage or renewing, ask your agent about all rideshare discounts.
3. Review discounts annually: Your options change as your driving record improves, you reach new age milestones or complete safety courses. Check available discounts at each renewal to maximize savings.

Personal auto insurance doesn't cover you while driving for Uber, Lyft or other rideshare companies. Rideshare insurance fills gaps between your personal policy and TNC coverage. Without it, you'll pay thousands out of pocket after an accident.

Knowing when you're covered saves you thousands. The rideshare app's commercial insurance kicks in once you accept a fare or pick up a passenger, but coverage becomes unclear when your app is on without an accepted ride. 

This gap catches many drivers unprepared.

Insurers break the rideshare process into four phases, each covered differently:

Period 1 creates the biggest risk for drivers. Your personal policy won't cover you during commercial activity and rideshare companies offer just liability coverage without protecting your vehicle from collision or comprehensive damage.

Rideshare insurance requirements vary by state, creating differences in costs and coverage needs. Some states require minimal Period 1 coverage (waiting for rides), as low as $25,000 per person, while others mandate higher limits. When transporting passengers, liability requirements range from $100,000 to $1.25 million in states like New York.

High-requirement states charge higher insurance costs that reduce your profits. Research your state's requirements before driving and factor insurance costs into earnings calculations. State-by-state differences can determine whether rideshare driving is profitable.

Do you need commercial auto insurance or is rideshare insurance enough? The difference comes down to how you use your vehicle and how often you drive for hire. Commercial auto insurance covers full-time professional drivers and company-owned vehicles, while rideshare insurance covers part-time drivers using personal cars for apps like Uber and Lyft.

Rideshare insurance covers most part-time drivers without the hefty price tag of commercial policies. Full-time drivers or those running multiple vehicles should get commercial coverage instead.

Standard auto insurance doesn't cover rideshare driving, according to the Insurance Information Institute. You need rideshare coverage as an add-on, policy extension or hybrid package, whether you drive full-time or part-time.

Mercury offers the lowest rates at $0.90 daily but operates in only 11 states. USAA, State Farm and Progressive provide solid alternatives with different coverage features and pricing.

Don't focus solely on the lowest premium. Consider deductible gap coverage, customer service ratings and claims handling. Paying more for better features saves you thousands after accidents.

Here are the MoneyGeek team's expert answers to common questions about rideshare insurance and choosing a provider:

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:

• AM Best for financial stability ratings
• J.D. Power for customer satisfaction scores
• National Association of Insurance Commissioners (NAIC) for complaint ratios
• Quadrant Information Services for rate analysis
• State insurance departments for regulatory requirements

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.