The Best Rideshare Insurance Options for Drivers (2023)

Whether you’re a full-time rideshare driver or you’re thinking of picking up rideshare driving as a side hustle, it’s important to know the basics of rideshare insurance.

According to the Insurance Information Institute, a standard auto insurance policy usually does not provide coverage for ridesharing. The typical personal auto insurance policy stops providing coverage from the moment a driver logs into a ridesharing app to the moment the customer has exited the car and the transaction is closed.

This means that even if rideshare drivers have auto insurance, they may not be covered if they get into an accident while they’re driving for work. Because of this, it’s crucial that these drivers purchase rideshare coverage, either as additional protection, a personal insurance coverage extension or a hybrid insurance package.

However, not all insurers issue rideshare coverage, and not all rideshare policies are created equal. The best auto insurance policies for rideshare drivers provide adequate coverage at a reasonable cost.

• How Rideshare Insurance Works
• The Best Rideshare Insurance Options
• Comparing Companies That Offer Rideshare Insurance Coverage
• Rideshare Insurance FAQs

When driving for a (Transportation Network Company (TNC) like Uber or Lyft, the rideshare app’s commercial insurance policy typically kicks in once you accept a fare or are transporting a passenger. However, this commercial TNC policy only provides limited insurance coverage when your rideshare app is on, but you haven’t accepted a fare.

To differentiate between when drivers for TNC’s are covered and when they aren’t, insurance companies break the rideshare process up into four phases:

Rideshare insurance can help cover the costs of accidents you get into during phases where you don’t have coverage through your TNC. Because coverage through most TNC's is limited and includes high deductibles, rideshare insurance also helps close gaps in coverage during phases where your TNC covers you.

Rideshare car insurance is a relatively new form of auto insurance coverage, and the offerings from different insurers can vary widely. Insurers often cater to a variety of policy and coverage needs. Keep in mind that the best policy options may also vary by location.

• Best Overall Coverage
• Cheapest Rideshare Insurance
• Best for East Coast Drivers
• Best for Delivery Service Drivers
• Best for Drivers in Colorado or Illinois
• Best for Military Members, Veterans and their Families
• Best for Extending Personal Coverage
• Best for a Low Deductible

If you’re looking for an auto insurance policy with robust coverage for rideshare drivers, State Farm is MoneyGeek’s top pick. State Farm's rideshare insurance makes sure that medical, emergency roadside assistance and rental car reimbursement coverage in your personal auto policy remains in effect when you’re working for a ridesharing company.

It also puts your personal policy deductible into effect, even if you’re driving for a TNC. The insurance extends all coverages from your auto policy when the app is on and you're available for hire. After you match with a rider or are transporting a rider, all coverages except liability insurance remain.

Mercury is an excellent option if you’re looking for affordable rideshare insurance. Rideshare insurance from Mercury protects you and your vehicle when your ride-hailing app is on, but you haven’t accepted a customer yet. In this way, Mercury fills in insurance gaps to ensure that you have continuous coverage throughout all parts of the rideshare driving process.

NMJ Insurance Company is an option worth considering if you’re a rideshare driver who lives on the east coast. NMJ gives drivers the option to add a TNC rideshare endorsement to their policy. This add-on fills gaps in insurance protection between a driver’s regular policy and coverage from the TNC’s commercial liability coverage.

NJM provides coverage when rideshare drivers are actively using a rideshare app but haven’t yet accepted a passenger, including liability, UM/UIM, personal injury protection (PIP) and physical damage coverage.

The insurer also provides some limited coverage while the driver is picking up and driving a passenger. This additional coverage includes PIP coverage for the insured driver and reimbursement of the difference between the TNC carrier's deductible and the NJM deductible in the case of physical damage after an accident.

Progressive is a good option for delivery drivers looking for adequate auto insurance coverage. While most personal car insurance policies don’t cover you when delivering food for a rideshare company like UberEats, Progressive allows you to add this type of coverage to your policy.

This coverage covers the gap between your personal policy and the delivery company and gives customers the option to customize their plan to account for on- and off-season driving. This policy is often much cheaper than other rideshare policies but still fills gaps in coverage for delivery drivers.

For drivers living in Colorado and Illinois, Travelers offers good rideshare insurance coverage. Available in these two states only, this limited ridesharing coverage endorsement can help protect individuals who drive for TNCs. This endorsement to your auto insurance policy provides you coverage for when you turn on your ridesharing app but ends when you connect with a passenger.

Available only for veterans, active service members and their families, USAA provides fantastic rideshare insurance coverage. USAA’s rideshare coverage is designed to fill the gap between when you turn on your rideshare app and when you accept a request. If you have a USAA auto insurance policy, you can purchase additional rideshare coverage for as little as $6 a month.

American Family allows rideshare drivers to extend their existing personal policy to phase 1. American Family Insurance describes its coverage, called the American Family Rideshare Endorsement, as an “add-on” to your ongoing personal policy with American Family.

This add-on is the equivalent of rideshare gap coverage. It provides the same coverage as your personal auto policy, including bodily injury liability, property damage liability, collision, comprehensive, medical payments coverage and personal injury protection.

Esurance offers low-deductible rideshare insurance through their SmartShare program. Only available in California, Illinois and New Jersey, this policy ensures no gaps in coverage between your personal policy and the rideshare app insurance policy. SmartShare will also cover the difference between your Esurance and rideshare company deductibles. The policy covers collision coverage and comprehensive coverage if already included in your personal policy, liability coverage up to your personal policy limits, plus all your personal coverages.

There are a variety of different insurance options available for rideshare drivers. Which insurer is best for you depends on whether you’re looking for a policy with the most robust coverage, lowest price or other perks, like commercial insurance coverage. Some policies are only available in a few states, so make sure that you choose a policy that’s available where you live.