Cheapest Rideshare Insurance for Drivers

Finding affordable rideshare insurance doesn't mean sacrificing protection. It means knowing where to look and what coverage you actually need. Mercury offers the cheapest rideshare coverage starting at just $0.90 per day.

We evaluated rideshare insurance providers and found that while Mercury offers the most affordable option, availability and features vary between insurers. The key is matching 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, especially during Period 1, when personal and rideshare company insurance fall short. Without it, drivers risk significant financial exposure for vehicle damage or liability claims.

When picking up or transporting passengers, Uber and Lyft have high deductibles: $1,000 for Uber and $2,500 for Lyft. That’s a sharp increase from the $500 deductible most people carry on their personal policies.

Deductible gap coverage closes that gap. It covers the difference between your personal deductible and the higher rideshare deductible, so you only pay your usual amount if you’re in an accident. Not all rideshare insurance includes this, so ask about it when comparing policies.

Shopping for rideshare insurance goes beyond finding the cheapest car insurance. You need coverage that protects your income and saves you from paying thousands when accidents happen. 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 gets added to your personal auto policy as an endorsement. This approach costs significantly 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, the deductible amounts and whether gap coverage is included for deductibles.

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 at once.
2. Ask about unadvertised discounts: Companies don't always advertise every discount they offer. When shopping for coverage or renewing, ask your agent about all available rideshare discounts.
3. Review annually: Your discount options change as your driving record improves, you hit new age milestones or complete safety courses. Check available discounts at each renewal so you don't leave money on the table.

Personal auto insurance won't cover you while driving for Uber, Lyft or other rideshare companies. Rideshare insurance fills the gaps between your personal policy and what TNCs provide. Skip this coverage, and you could pay thousands out of pocket after an accident.

Knowing when you're covered can save you thousands. The rideshare app's commercial insurance kicks in once you accept a fare or pick up a passenger, but coverage gets murky when the 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 from state to state, creating differences in both costs and coverage needs for drivers. Some states require minimal coverage during Period 1 (waiting for rides), as low as $25,000 per person, while others mandate much higher limits. When transporting passengers, liability requirements range from $100,000 in some areas to $1.25 million in states like New York. 

You'll face higher insurance costs in high-requirement states that eat into your profits. Before you start driving, research your specific state's requirements and factor the insurance costs into your earnings calculations. The difference between states is substantial enough to impact whether rideshare driving is profitable for you.

Many new rideshare drivers wonder whether they need commercial auto insurance or if rideshare insurance is enough. The difference comes down to how you use your vehicle and how often you drive for hire. Commercial auto insurance is designed for full-time professional drivers and company-owned vehicles, while rideshare insurance is specifically created for part-time drivers using their 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 won't cover you while ridesharing, according to the Insurance Information Institute. You'll need rideshare coverage as an add-on, policy extension or hybrid package, whether you drive full-time or just on weekends.

Finding affordable rideshare insurance means comparing options and knowing what coverage you actually need. Mercury offers the lowest rates at $0.90 daily, but only operates in 11 states. USAA, State Farm and Progressive provide solid alternatives with different coverage features and pricing.

Don't chase the lowest premium alone. Look at deductible gap coverage, customer service ratings and how companies handle claims. Paying more for better features can save you thousands after an accident.

Here are common questions about rideshare insurance and how to choose a provider:

Rideshare driving creates coverage gaps that regular auto policies miss, leaving drivers exposed between personal trips and active rides. Our methodology identifies which insurers grasp these challenges and offer practical solutions for drivers on platforms like Uber and Lyft.

Coverage Analysis Framework

We evaluated rideshare insurance by examining how each provider handles the three phases of rideshare driving: app off (personal driving), app on (waiting for rides) and active rides (passengers in vehicle). This matters because most accidents happen during the app-on phase when drivers have the least coverage from rideshare companies.

Our analysis looked at coverage availability for different driver profiles, cost compared to standard auto insurance and state availability since rideshare rules differ by location. We focused on insurers offering dedicated rideshare coverage rather than expensive commercial policies that run hundreds more monthly.

Data Sources and Verification

We gathered information from these industry sources:

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

We reached out to insurance companies to confirm their rideshare coverage and pulled data from the Insurance Information Institute to show how this coverage actually works. We evaluated each provider on their rideshare offerings, not their standard auto policies.

Editorial Standards

Our editorial review board assesses and verifies all data for accuracy, quality and relevance to rideshare drivers' unique needs. We regularly update our research to reflect changing state regulations and new coverage options. MoneyGeek provides unbiased recommendations to help rideshare drivers find financial protection that actually covers their driving reality.