We evaluated rideshare insurance providers based on coverage quality, cost, availability and features to find the best affordable options for rideshare drivers. Mercury offers the cheapest rates at $0.90 per day, while State Farm provides the most comprehensive coverage. The table below presents the best affordable ride-share insurance options tailored to various driver needs and locations.
Best Cheap Rideshare Insurance for Drivers
Updated: November 10, 2025
Advertising & Editorial Disclosure
Key Takeaways
Progressive is the top choice for delivery drivers. You can add rideshare coverage to your personal policy for food delivery protection at lower costs than separate rideshare policies.
Standard auto policies don't cover rideshare driving. You need specialized coverage if you drive for Uber, Lyft or similar apps.
Rideshare companies provide limited coverage during specific driving phases. You need additional insurance for complete financial protection after accidents.
Best Cheap Rideshare Insurance
As low as $0.90/day | 11 states | Drivers seeking affordable Period 1 coverage | |
Additional 15-20% of current premium | Most states | Drivers needing comprehensive protection | |
Undisclosed | Most states | 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 | Drivers in Colorado or Illinois | |
Varies | Five East Coast states | East Coast drivers | |
Esurance | Undisclosed | California, Illinois, New Jersey | Drivers seeking low deductible coverage |
Each insurer approaches rideshare coverage differently, striking a balance between cost and protection quality. Your best affordable option depends on where you live, how often you drive and which coverage gaps create the most financial risk. Drivers working full-time require more comprehensive protection than those working on weekends.
Cheapest Rideshare Insurance Company: Mercury
Mercury Insurance
Overview
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.
Best Overall Rideshare Insurance Coverage: State Farm
State Farm
MoneyGeek Score:
88/ 100
Overview
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).
Best Rideshare Insurance for Delivery Service Drivers: Progressive
Progressive
MoneyGeek Score:
88/ 100
Overview
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.
Best Rideshare Insurance for Military Members, Veterans and Their Families: USAA
USAA
MoneyGeek Score:
97/ 100
Overview
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.
Best Rideshare Insurance for Extending Personal Coverage: American Family
American Family Insurance
Overview
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.
Best Rideshare Insurance by Location
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.
Best Rideshare Insurance for East Coast Drivers: NJM
NJM Insurance Co
Overview
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.
Best Rideshare Insurance for Drivers in Colorado or Illinois: Travelers
Travelers
Overview
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.
Best Rideshare Insurance for a Low Deductible (California, Illinois and New Jersey): Esurance
Esurance
Overview
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.
Best Affordable Rideshare Car Insurance: Buying Guide
Shopping for rideshare insurance involves more than just finding the cheapest car insurance. You need coverage that protects your income and prevents you from incurring thousands of dollars in expenses after an accident. Your best option depends on how much you drive, which coverage gaps pose the greatest risk, and whether you can afford high deductibles. Most rideshare coverage is added to your personal auto policy as an endorsement.
This approach costs much less than purchasing a separate commercial policy—often half the price or less. Commercial policies designed for taxis and limousines usually cost $200 to $400 more per month than rideshare endorsements. When comparing policies, review your state's available options, the driving phases each policy covers, deductible amounts, and whether deductible gap coverage is included.
Weekend drivers need less expensive Period 1 coverage. Full-time drivers benefit from comprehensive protections, including deductible gap coverage for Periods 2 and 3. Consider your vehicle's value when choosing coverage. Newer cars with higher values justify paying more for full protection and lower deductibles. Older vehicles with lower values might not need collision and comprehensive coverage, which can significantly reduce your premium.
How to Get the Best Cheap Rideshare Insurance
Affordable rideshare insurance means finding coverage that protects your earnings without draining your wallet. Balance what you pay monthly against what you'd owe after an accident. Follow these steps to secure the best value.
- 1Check your current policy
Review your personal auto insurance policy for existing rideshare coverage. Most standard policies don't cover commercial driving, but checking first saves time. Write down your current discounts—safe driver, multi-policy and good student discounts typically transfer to rideshare endorsements and lower costs immediately.
- 2Contact your insurance provider
Call your insurer to ask about rideshare endorsements. Adding one to your current policy costs less than changing insurers and keeps your multi-policy discounts and loyalty benefits. Your agent can clarify coverage details, costs, and which driving periods are protected.
- 3Compare insurers
If your insurer doesn't offer rideshare coverage, consider shopping during your renewal period to avoid cancellation fees. Companies like Progressive, State Farm, and GEICO all provide rideshare options. Get quotes from at least three insurers—rates can vary by hundreds for the same coverage. Ask specifically about Period 1 coverage, deductible amounts, and whether deductible gap coverage is included.
- 4Determine your coverage needs
Match coverage to how often you drive and your car's value. Weekend-only drivers can save hundreds by choosing basic Period 1 protection instead of comprehensive coverage. Full-time drivers need more extensive protection, including deductible gap coverage for Periods 2 and 3. Consider your emergency fund size—higher deductibles lower premiums but require more cash available after accidents.
- 5Apply and finalize
Complete the application after choosing your provider and coverage. Pay annually instead of monthly to lower your premium by 5 to 10%. Make sure all rideshare phases are covered, and ask about usage-based discounts if you drive fewer than 12,000 personal miles annually. Request documentation that shows exactly when coverage applies and what deductibles you'll pay during each period
Rideshare Car Insurance Discounts
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%.
Safe driver discount
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.
Bundling discount
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.
Low-mileage discount
Drive fewer personal miles? You qualify for a low-mileage discount. Focus on personal driving miles, not rideshare miles, when calculating eligibility.
Pay-in-full discount
Pay your premium upfront instead of in monthly installments to save money. This simple payment change provides meaningful annual savings.
Paperless discount
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.
Good student discount
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.
Multi-vehicle discount
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.
Defensive driving course discount
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.
Usage-based insurance programs
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.
Professional association memberships
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.
Anti-theft device discounts
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.
Loyalty discounts
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 by State
Rideshare insurance requirements vary by state, leading to differences 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 matching 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. These variations significantly impact insurance costs and driver profitability.
States with higher requirements charge more for insurance, which reduces your take-home earnings. Additionally, states differ on whether rideshare coverage is mandatory or optional. Some states require transportation network companies to provide minimum insurance, while others allow companies and drivers to determine appropriate coverage levels. A few states mandate that drivers carry rideshare endorsements on personal policies.
It’s crucial to research your state's requirements before driving and to factor insurance costs into your earnings calculations. State-by-state differences can influence whether rideshare driving remains profitable after accounting for insurance, fuel, vehicle maintenance, and other expenses.
Cheapest Rideshare Car Insurance Companies: Bottom Line
Mercury offers the lowest rates at $0.90 daily for Period 1 coverage but operates in only 11 states. USAA provides excellent value at $6 monthly for military-connected drivers. State Farm and Progressive offer comprehensive options with broader availability, though at higher costs.
Compare quotes from at least three insurers before deciding. Rates vary significantly based on your location, driving record, vehicle and how often you drive for rideshare platforms. Stack all available discounts including safe driver, bundling, pay-in-full and low-mileage discounts to reduce your premium while maintaining complete protection.
Best Rideshare Auto Insurance: FAQ
Here are the MoneyGeek team's expert answers to common questions about rideshare insurance and choosing a provider:
Do I need rideshare insurance for food delivery?
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.
What happens if I don't tell my insurance company I drive for rideshare?
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.
Can I get rideshare insurance if I have a bad driving record?
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.
Is rideshare insurance required by law?
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.
Can I use rideshare insurance with a leased car?
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.
What's the difference between rideshare insurance and commercial auto insurance?
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.
How much does rideshare insurance cost?
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.
What does rideshare insurance cover?
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.
Best Rideshare Car Insurance: Our Review Methodology
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.
Car Insurance for Rideshare Drivers: Related Pages
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.
sources
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