Updated: May 11, 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.
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).
Shopping for rideshare insurance requires more than comparing rates. You need coverage that protects your income and prevents thousands of dollars in out-of-pocket expenses after an accident.
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.
Some insurers use different pricing models. 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 several factors:
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.
Review your personal auto insurance policy and note your current discounts. Safe driver, multi-policy and good student rates often transfer to rideshare endorsements.
Call your insurer to ask about rideshare endorsements and pricing.
Compare quotes from at least three insurers. Even if your insurer does offer rideshare coverage, consider shopping during your renewal period to avoid cancellation fees.
Match coverage to how often you drive and your car's value. Weekend-only drivers can save hundreds by choosing basic Period 1 protection.
Once you've chosen your provider and coverage level, complete the application. Pay annually to receive a 5% to 10% discount on your premium.
Rideshare insurance discounts lower your premium without cutting your coverage. 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%.
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.
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.
Drive fewer personal miles? You qualify for a low-mileage discount. Focus on personal driving miles, not rideshare miles, when calculating eligibility.
Pay your premium upfront instead of in monthly installments to save money. This simple payment change provides meaningful annual savings.
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.
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.
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.
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.
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.
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.
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.
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 vary by state, driving wide gaps 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 that match 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. Higher state requirements mean higher premiums. Not all states mandate rideshare coverage either.
Some require transportation network companies to provide a minimum level of insurance, while others allow companies and drivers to set their own coverage levels. Check your state's requirements before you start driving and include insurance costs in 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 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.
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. Insurers flag canceled policyholders as high-risk, which means you'll likely qualify only for non-standard insurance at much higher rates.
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. Rates for high-risk drivers vary widely across insurers, so compare quotes from at least three companies while you work on improving your driving record.
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.
Yes, rideshare insurance works with leased vehicles. Let your leasing company know you're driving for rideshare, since this can affect your lease terms. Some lessors require additional coverage beyond standard rideshare endorsements and others 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.
Rideshare insurance covers part-time drivers using personal cars for platforms like Uber and Lyft, adding 15% to 30% to personal policy costs. It focuses on filling Period 1 gaps and may include deductible gap coverage. Commercial auto insurance covers full-time professional drivers or company-owned fleets, often costing two to three times more than regular auto insurance.
Commercial policies provide unlimited business use coverage, cargo protection and higher liability limits. Part-time rideshare drivers usually need only a rideshare endorsement, while full-time drivers logging 30 hours or more weekly should consider commercial coverage for better 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.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident insurance expert. He has analyzed the insurance market for almost a decade, first with LendingTree and now with MoneyGeek, conducting original research on hundreds of insurance companies and millions of insurance rates for insurance shoppers.
He writes about economics and insurance on MoneyGeek, breaking down complex topics so people can have confidence in their purchase. Like all MoneyGeek analysts, Mark collects and analyzes independent cost and consumer experience data on insurance companies to provide objective recommendations in our content that are independent of any of MoneyGeek's insurance company partnerships.
His insights on products ranging from car, home and renters insurance to health and life insurance have been featured in The Washington Post, The New York Times and NPR, among others.
Mark holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He started his career working in financial risk management at State Street before transitioning to the analysis of the personal insurance market. He's also a five-time Jeopardy champion!
