Updated: September 4, 2026
Advertising & Editorial Disclosure
Mercury offers the cheapest rideshare insurance, starting at about $0.90 per day for Uber and Lyft drivers, though availability is limited to select states.
State Farm ranks as the best overall rideshare insurance provider, offering competitive rates and coverage for Uber and Lyft drivers in most states.
Standard auto insurance doesn't cover rideshare driving. Drivers for Uber and Lyft need a rideshare endorsement to avoid coverage gaps while working.
Mercury offers the cheapest rideshare insurance for Uber and Lyft drivers, starting at about $0.90 per day, though coverage is limited to 11 states. State Farm ranks best overall, with rideshare coverage available in most states at competitive rates.
Rideshare coverage is usually added to a personal auto policy as an endorsement. It fills the gap between your personal insurance and the limited financial protection provided by Uber and Lyft while you are logged into the app.
Mercury | As low as $0.90/day | 11 states | Drivers seeking the lowest rideshare endorsement cost |
Additional 15%-20% of current premium | Most states | Drivers needing comprehensive protection | |
Undisclosed | Most states | Drivers who also deliver | |
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 financial 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).
Rideshare drivers need more than a low rate. The right policy protects your income and keeps a single accident from costing you thousands out of pocket.
Your best option depends on how often you drive, which coverage gaps pose the greatest financial risk, and whether you can afford high deductibles.
Most rideshare coverage is added to your personal auto policy as an endorsement rather than purchased as a separate commercial policy.
Rideshare insurance often costs between $6 and $30 per month when added to a personal auto policy as an endorsement.
Insurers price it differently. Mercury offers coverage starting at about $0.90 per day, while USAA offers rideshare endorsements beginning at around $6 per month for eligible military members and families.
Your final cost depends on:
Because insurers price rideshare endorsements differently, comparing quotes from multiple companies can help you find the lowest rate.
Rideshare insurance fills the coverage gap between your personal auto policy and the insurance provided by transportation network companies such as Uber and Lyft.
Most personal auto policies exclude commercial activities, including transporting passengers for payment. If you drive for a rideshare company without the proper coverage, your insurer may deny claims related to accidents that occur while you are working.
A rideshare endorsement keeps your personal coverage active while you are logged into the rideshare app. Depending on your policy, this may include liability protection, collision coverage and medical benefits.
Rideshare companies provide insurance while drivers are using their apps, but coverage levels change depending on the stage of the trip.
These stages are commonly referred to as driving periods.
Period 0 | App off | Personal auto insurance applies |
Period 1 | App on and waiting for a ride request | Limited liability coverage from the rideshare company |
Period 2 | Driving to pick up a passenger | Higher liability coverage from the rideshare company |
Period 3 | Passenger in the vehicle | Full rideshare company coverage, often up to $1 million liability |
During Period 1, rideshare company coverage is limited and may not include protection for damage to your vehicle.
During Periods 2 and 3, rideshare companies such as Uber and Lyft generally provide higher liability limits. Collision and comprehensive coverage through the platform kicks in only if you carry those protections on your personal auto policy, and deductibles can run as high as $2,500.
A rideshare endorsement extends the protections from your personal auto policy while you are working for a rideshare company.
If your policy includes collision coverage, your vehicle may be covered for accident damage even when rideshare company coverage is limited. If your policy includes personal injury protection or medical payments coverage, these benefits may also apply during rideshare activity.
The amount of financial protection you receive depends on the coverages already included in your personal auto policy.
Rideshare insurance is designed for drivers who use their personal vehicles to transport passengers through platforms such as Uber or Lyft.
Drivers who operate premium services such as Uber Black or work full time in transportation services may require commercial auto insurance instead of a rideshare endorsement.
Before starting rideshare work, drivers should contact their insurance company to confirm whether rideshare coverage is available.
Some insurers require drivers to add a rideshare endorsement if they plan to work for a transportation network company.
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. Looking to get car insurance now? Follow our comprehensive guide below to get the best value at the lowest cost.
Pull up your personal auto insurance policy and list your current discounts. Safe driver, multi-policy and good student rates often carry over to rideshare endorsements.
Call your insurer. Ask directly about rideshare endorsements and what they cost.
Get quotes from at least three insurers. Time this during your renewal period. Switching mid-term risks cancellation fees, even if your current insurer already offers rideshare coverage.
Base your coverage on how often you drive and what your car is worth. Figure out how much coverage you actually need before you buy more than that. Drivers who only use their car on weekends can save hundreds of dollars a year with basic Period 1 protection.
Submit your application once you've picked a provider and coverage level. Paying annually instead of monthly cuts 5% to 10% off your premium.
Rideshare insurance discounts lower your premium and leave your coverage untouched. Some carry over from your personal policy. Others only unlock once you add rideshare coverage, and stacking several together can cut premiums by 20% to 40%.
Insurers reward drivers with a clean record: no accidents or violations for a set period. Rideshare drivers rack up more hours behind the wheel, so this discount carries extra weight for them.
Bundle rideshare insurance with your home or renters insurance and most insurers will cut your premium for combining coverage. It's one of the simplest ways to manage multiple policies under one bill.
Drive fewer personal miles? You may qualify for a low-mileage discount. Eligibility is based on personal driving miles only, not the miles you log for rideshare work.
Paying your premium upfront instead of in monthly installments saves you money. The payment change alone can add up to real savings over a year.
Switch to electronic billing and policy documents and you'll typically earn a discount. It also speeds up communication when you file a claim.
Rideshare driving part-time as a student doesn't cost you your good student discount; it stays intact when you add rideshare coverage. That matters for college students driving between classes for extra income.
Insure multiple vehicles with the same company and you'll get a discount, even if only one of those vehicles carries rideshare coverage. That's one more reason to stick with your current insurer when you add rideshare protection.
An approved defensive driving course lowers your premium and can offset points on your license. Rideshare drivers spend more time on the road, so the safety benefit matters here as much as the discount.
These programs track your driving behavior and reward safe habits with lower rates. Rideshare drivers tend to do well here: daylight hours and strict traffic-law compliance keep their ratings high.
Membership in a professional organization, alumni association or employer group can unlock extra savings. Check your day job, college alumni status and any professional memberships for eligibility.
Approved anti-theft devices, such as car alarms, GPS tracking systems and engine immobilizers, reduce comprehensive coverage costs when installed. Rideshare vehicles draw more theft risk because of their visibility and frequent stops. These devices lower theft risk and your premium at the same time.
Stick with the same insurer for multiple years and you unlock loyalty-based discounts. Add rideshare coverage to an existing policy, and that loyalty history usually applies right away.
Rideshare insurance requirements vary widely by state, and that gap shows up directly in cost and coverage. Some states require as little as $25,000 per person in Period 1 bodily injury liability. Others mandate higher limits that match standard auto insurance requirements.
Liability requirements for Periods 2 and 3, when you're transporting passengers, start at $100,000 in some states and climb to $1.25 million in states like New York. States with higher requirements tend to come with higher premiums. Some states don't mandate rideshare coverage at all.
State rules differ on who sets those coverage levels, too. Some require transportation network companies to carry a minimum level of insurance. Others leave companies and drivers free to set their own coverage. Check your state's requirements before you start driving, and factor insurance costs into your earnings calculations.
USAA charges $6 monthly, the lowest rate for military-connected drivers. Mercury's $0.90 daily rate for Period 1 coverage is hard to beat on price, but the insurer operates in only 11 states.
State Farm and Progressive cover more ground with broader options, though their premiums run higher. Your final rate depends on where you live, your driving record, the vehicle you drive and how many hours you log on rideshare platforms.
Here are the MoneyGeek team's expert answers to common questions about rideshare insurance and choosing a provider:
Yes. Most food delivery platforms, including DoorDash, Uber Eats and Grubhub, require rideshare or commercial coverage. Your personal auto policy won't cover an accident that happens while you're delivering food for payment.
Coverage rules vary by insurer. Some fold delivery services into a rideshare endorsement. Others require a separate policy altogether. Progressive, for example, offers delivery driver coverage built specifically for food delivery platforms. Check with your insurer to find out whether your rideshare endorsement covers delivery work or whether you need something separate.
Not disclosing rideshare driving can get your claims denied and your policy canceled. If your insurer finds out you've been driving commercially without the right coverage, it can deny claims tied to rideshare activity and cancel your policy retroactively.
That denial leaves you on the hook personally for damages and injuries from any accident, which can mean tens of thousands of dollars in repairs, medical bills and legal fees. A canceled policy also makes it harder and pricier to get coverage anywhere else. Insurers treat canceled policyholders as high-risk, so you'll likely end up qualifying only for non-standard insurance at much higher rates.
Yes, but expect to pay more for it. Accidents, tickets and violations can raise your premium 20% to 50% or more, depending on how severe and how frequent they are. Some insurers specialize in high-risk drivers and will offer rideshare coverage despite a rough driving history, though your options may be limited.
DUIs, reckless driving and multiple at-fault accidents make coverage harder to find. Rates for high-risk drivers vary a lot from insurer to insurer, so compare quotes from at least three companies while you work on cleaning up your record.
It depends on your state. Some states set specific coverage levels for transportation network company drivers. Others leave rideshare requirements up to insurance companies. Several states require TNCs to carry minimum insurance but don't require drivers to add coverage on top of it.
Other states require drivers to tell their insurer about rideshare activity even when a rideshare endorsement isn't mandatory. Check your state's Department of Insurance website for the specific rules, and check your insurer's policy terms too, since you need to follow both state law and your company's requirements.
Yes, rideshare insurance works with a leased vehicle. Tell your leasing company you're driving for rideshare first, since it can affect your lease terms. Some lessors require coverage beyond a standard rideshare endorsement. Others won't allow commercial use at all.
Read your lease agreement closely for any clause restricting business use or requiring specific coverage. Some leasing companies charge higher rates or require gap insurance once a vehicle is used for rideshare work. Get written approval from your lessor before you start driving for rideshare, or you risk violating your lease.
Rideshare insurance covers part-time drivers using their own car for platforms like Uber and Lyft, adding 15% to 30% to what you already pay for your personal policy. It's built to fill Period 1 gaps and may include deductible gap coverage. Commercial auto insurance is a different tier: it covers full-time professional drivers or company-owned fleets, and it typically costs two to three times more than regular auto insurance.
A commercial policy gives you unlimited business-use coverage, cargo protection and higher liability limits. Most part-time rideshare drivers only need a rideshare endorsement. If you're logging 30 hours a week or more, commercial coverage is worth considering for the extra 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, usually $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 start 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.
Mark Fitzpatrick, a licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident expert in insurance and economics. He has spent nearly a decade covering the insurance market at LendingTree and MoneyGeek, analyzing hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.
His work has appeared in The Washington Post, The New York Times and NPR. He draws on independent cost and consumer experience data, and no insurance company partnerships affect his recommendations.
Mark studied at Boston College and later earned a master's in economics and international relations from Johns Hopkins University. He worked in financial risk management at State Street before joining MoneyGeek. He's also a five-time “Jeopardy!” champion.
