Best Auto Insurance Companies For Uber Drivers

Driving for a ridesharing company like Uber is a great way to earn some extra cash, but it's important to make sure you have the right insurance coverage. While Uber does provide some insurance for its drivers, there are gaps in their coverage, and your personal auto insurance policy may not cover you while driving for a ridesharing service. This is because personal car insurance policies typically exclude driving-for-hire. Therefore, it's a good idea to purchase supplemental commercial auto insurance or rideshare insurance. Rideshare insurance fills the gaps between your personal auto insurance and the coverage provided by the ridesharing company, and it's available from several insurance providers, including Mercury, Allstate, Progressive, State Farm, and Farmers. These companies offer affordable rates, flexible coverage, and excellent customer satisfaction ratings.

Uber's insurance requirements for drivers

Uber requires all its drivers to have car insurance and provides supplemental insurance coverage, but only while the app is on. When the Uber app is off, a driver is covered by their own personal car insurance. When the Uber app is turned on, a low level of liability insurance becomes active. When a trip is accepted, a higher level of coverage kicks in and remains active until the passenger exits the vehicle.

If you drive a commercial vehicle, such as a licensed for-hire vehicle, black car, limousine, livery vehicle, or taxi, you must have your own commercial insurance to drive with Uber.

Uber maintains commercial auto insurance on your behalf for ridesharing and delivery activities when you’re driving on the Uber platform. When you’re not driving with Uber, you maintain your own personal auto insurance.

Uber maintains some of the most comprehensive insurance for ridesharing and deliveries, including:

• Insurance that covers at least $1,000,000 for property damage and injuries to riders and third parties involved in an accident where you’re at fault.
• Insurance that covers the cost to repair your car, up to the actual cash value, with a $2,500 deductible, contingent on your personal insurance including comprehensive and collision coverage. This extra insurance protects your car, no matter who’s at fault, if you maintain comprehensive and collision coverage on your own vehicle.

In most US states, you can also purchase Optional Injury Protection to cover your additional medical expenses if you’re hurt in an accident. This insurance offering, pioneered by Uber, is designed specifically for drivers.

Depending on the law of your state, Uber may maintain extra coverage for you and your riders, including one or more of the following:

• Coverage for you and your riders for injuries in a hit-and-run or an accident caused by an uninsured or underinsured driver.
• Personal injury protection, including medical expenses and lost wages for you and your riders, no matter who’s at fault.
• Medical payments coverage for you and your riders, no matter who’s at fault.

Uber's insurance coverage for drivers

Uber's Insurance Coverage:

• When the driver is offline: When Uber drivers are offline, their personal auto insurance policy is responsible for providing coverage. This means that drivers must maintain their own personal automobile insurance with mandatory minimum limits and provide proof of this insurance to Uber.
• When the driver is online but without a passenger: In this scenario, Uber provides limited liability coverage to its drivers. The company offers $50,000 per person and $100,000 per accident for injuries, with a maximum of $25,000 in property damage per accident. This coverage from Uber is secondary, meaning it only applies if the driver's personal liability coverage is insufficient or does not apply.
• When the driver is online and has accepted a ride request but hasn't picked up the passenger yet (Period 2): During this period, Uber's insurance coverage becomes more comprehensive. The company provides $1 million in third-party liability coverage to protect riders and drivers against covered accidents on the way to pick up passengers. This coverage also includes uninsured/underinsured motorist protection.
• When the driver is transporting a passenger (Period 3): Uber's insurance coverage remains active during this period, providing the same level of protection as in Period 2. The company offers $1 million in third-party liability coverage and uninsured/underinsured motorist protection.

Additional Considerations:

• Rideshare Insurance: Due to the coverage gaps in Uber's insurance policy, drivers are strongly advised to obtain rideshare insurance. This type of insurance is designed specifically for rideshare drivers and covers them during Period 1 (app on, no passenger) and provides protection for both personal and professional use.
• Optional Injury Protection: Uber offers Optional Injury Protection, which covers additional medical expenses, disability payments, and survivor benefits for drivers and their families in the event of an accident while working. This coverage is available in most US states.
• Commercial Drivers: Commercial drivers using licensed vehicles, such as taxis or limousines, are required to have their own commercial insurance to drive with Uber.
• Rental Cars: Uber's insurance does not cover rental cars. If a driver rents a car through Uber's vehicle solutions partners, they may be offered additional insurance options through these partners.
• State-Specific Variations: It is important to note that Uber's insurance coverage may vary depending on the state and local regulations. For example, in California, Uber is required to provide additional coverage, including personal injury protection and medical payments coverage.

Personal auto insurance policies for rideshare drivers

Personal auto insurance policies typically do not cover ridesharing or commercial driving. This means that if you are driving for Uber, your personal auto insurance will not cover you while you are on the job.

Uber maintains commercial auto insurance on your behalf for ridesharing and delivery activities when you are driving on the Uber platform. This insurance covers you for at least $50,000 per person and $100,000 per accident for injuries, and $25,000 in property damage per accident. However, this insurance only applies when you are online and available for a trip, en route, or on a trip. When you are offline, your personal auto insurance covers you.

Some insurance companies offer rideshare insurance, which fills the gaps in coverage between your personal policy and Uber's insurance. Rideshare insurance is not available everywhere, and you will likely need to get it from the same provider that insures your personal vehicle. It is also important to note that rideshare insurance is not a stand-alone policy; it is added to your personal auto insurance policy.

Rideshare insurance companies

Rideshare insurance is a specific type of auto insurance for drivers who work for rideshare companies like Uber and Lyft. It fills the gap between a driver's personal car insurance and the coverage offered by the rideshare company.

When driving for a Transportation Network Company (TNC), their commercial insurance policy usually only kicks in once you accept a fare or are transporting a passenger. This means that, without rideshare insurance, you may not be covered if you get into an accident while waiting to pick up a fare.

Mercury

Mercury is often considered the best option for Uber drivers. Their rideshare insurance covers you while driving for Uber, whether you're driving a single passenger or multiple people through Uber Pool. Their coverage is also affordable, starting at $0.90 per day. However, their coverage area is very limited, currently only available in 10 states.

Allstate

Allstate is a good option for Lyft drivers as their rideshare policy includes deductible gap coverage, helping drivers avoid paying the standard $2,500 deductible out-of-pocket in the event of a claim. Their policies are available in most states and are generally affordable. However, you must have a current Allstate auto policy to purchase their rideshare coverage.

Progressive

Progressive is a good choice for those looking for coverage options. If you have a Progressive personal auto insurance policy, you can purchase a rideshare endorsement and keep the same add-on coverages, like rental car reimbursement, when you drive for a TNC. Their rideshare insurance is available in most states but can be pricey.

State Farm

State Farm is recommended for delivery app drivers as they provide rideshare insurance to a wide variety of drivers, including those who work for Uber, Lyft, Amazon Flex, and other delivery companies. Their rideshare policies can be expensive, adding between 15% to 20% to your existing premium.

Farmers

Farmers is a good choice for those who prioritize claim processing. They have above-average ratings for overall claim satisfaction and allow customers to file a claim online, through their mobile app, or by calling an agent. Their rideshare insurance is available to most drivers in the gig economy and is currently offered in 23 states.

USAA

USAA is highly rated for overall customer satisfaction and claims satisfaction. Their rideshare insurance policies are reliable, customizable, and affordable. However, their eligibility requirements are strict as they are only available to military personnel and their immediate family members, and they are only offered in 42 states.

Rideshare insurance costs

Rideshare insurance is a specific type of commercial auto insurance policy for people who drive for rideshare or food delivery services such as Uber, Lyft, DoorDash, and Postmates. It fills the gap in coverage between your personal auto insurance and the commercial auto insurance provided by your rideshare employer.

Rideshare insurance is not required by law, but it is a good idea to have it. If you get into an accident while driving for a rideshare company and don't have this insurance, your personal liability car insurance policy may not cover the cost of damages, and you could even have your coverage dropped.

The cost of rideshare insurance varies depending on the amount and type of coverage you select. It is usually offered as an add-on to an existing personal auto insurance policy. The cost can be as low as $6 per month, with some providers offering coverage for as little as $0.90 per day. However, it can also be expensive, with some policies adding anywhere from 15% to 20% to your existing premium.

When purchasing rideshare insurance, it is important to compare providers based on factors such as coverage area, premium, coverage limits, and customer reviews. You will likely need to get rideshare insurance from the same provider that insures your personal vehicle.

• USAA: Highly rated for customer satisfaction and claims satisfaction. Offers comprehensive, customizable, and affordable coverage for Uber, Lyft, or any other app-based delivery service. Only available for military personnel and their immediate family members.
• Mercury: Best for Uber drivers as it covers you while driving any number of passengers. Affordable policies starting at $0.90 per day. However, it has a very limited coverage area.
• Allstate: Best for Lyft drivers as it includes deductible gap coverage, helping drivers avoid paying the standard $2,500 deductible out-of-pocket. Policies are available in most states.
• Progressive: Best for coverage options as you can purchase a rideshare endorsement and keep the same add-on coverages from your personal policy, such as rental car reimbursement. Available in most states but can be pricey.
• State Farm: Best for delivery app drivers as it covers a wide variety of drivers, including those who work for multiple companies. Policies tend to be more expensive.
• Farmers: Best for claims processing as it has above-average ratings for claim satisfaction. Available to most drivers in the gig economy. However, there is limited information online about what the policy covers, and you need to contact an agent to get a quote or purchase a policy.

Uber's Insurance Coverage

Uber maintains commercial auto insurance on behalf of its drivers for ridesharing and delivery activities. The coverage depends on factors such as who was at fault, whether you were offline, online, en route, or on a trip, and your personal insurance policy.

When you are offline, your personal auto insurance covers you, and you must maintain personal automobile insurance at mandatory minimum limits.

When you are online and available for a trip, Uber's third-party liability insurance covers the cost of injuries or damage:

• $50,000 per person and $100,000 per accident for injuries
• $25,000 in property damage per accident

When you are en route or on a trip, Uber maintains comprehensive insurance, including:

• Insurance that covers at least $1,000,000 for property damage and injuries to riders and third parties involved in an accident where you’re at fault
• Insurance that covers the cost to repair your car, up to the actual cash value, with a $2,500 deductible, contingent on your personal insurance including comprehensive and collision coverage

Frequently asked questions