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Ridesharing insurance policies


If you just started working for Uber or Lyft, you may be wondering how ridesharing insurance policies work. Here we explain everything you need to know about Uber insurance and Lyft insurance.

The ridesharing insurance dilemma

Insurance coverage has been a problem since the earliest days of ridesharing and while solutions are starting to appear, there are serious limitations.

It's true that all the major transportation network companies (TNCs), such as Uber and Lyft, protect their drivers with huge liability policies. Unfortunately, there are coverage gaps that can leave drivers on the hook for some major expenses. At issue:

  • During Period 1 (app is open but no passenger has been assigned) liability limits are low and the coverage is contingent in most states, meaning the driver has to make a claim with their own insurer before a TNC's insurance steps up.
  • The cost to repair their vehicle falls to drivers during Period 1 as TNC's offer zero collision or comprehensive. Once a passenger is assigned, collision/comprehensive coverage is contingent so a driver must notify their personal insurer about an accident.
  • Medical bills can also be a problem. A passenger's medical bills sould be covered in any type of accident, but the driver's injuries may only be covered if someone else caused the crash.

Ridesharing insurance policies

Insurers and state regulators are finally addressing the problem.

Recently, regulators in California and Maine removed the contingency for liability coverage so private insurance does not apply during Period 1. Drivers must either purchase a commercial policy, a rideshare policy or the TNC must provide coverage.

Drivers in certain states (where regulators have passed rideshare laws) are protected by the TNC's liability policy during Period 1 but the limits are low, typically 50/100/25, which translates into $50,000 per person bodily injury, up to $100,000 per incident, and $25,000 for property damage.

"These limits are low when compared to the 100/300/50 that most experts recommend," says Penny Gusner, consumer analyst for CarInsurance.com. "In a serious accident, these limits would be exceeded pretty quickly, leaving you on the hook for the balance."

In addition, repairs to your vehicle are remain uncovered, as do injuries, and without a rideshare-specific policy your personal insurance may be essentially worthless.

Chancing it with only the TNC's coverage during Period 1 is a bad idea, according to most experts. "Personally, I don't think it's worth the risk to become a rideshare driver unless you can get a rideshare-friendly policy in your state," warns Harry Campbell, "The Rideshare Guy" blogger.

It's early days, but insurers are starting to close insurance gaps with policies that cover rideshare activities. Coverage varies; some insurers only cover Period 1 while others cover the entire ride.

Ridesharing insurance by state

StateCompanyPeriod of coverageUber, Lyft or both
StateCompanyPeriod of coverageUber, Lyft or both
Alabama Farmers Insurance Period 1 Both
Geico All Both
State Farm All** Both
USAA Period 1 Both
Arizona Allstate All* Both
Farmers Insurance Period 1 Both
Geico All Both
Mercury Insurance All** Both
Safeco Period 1 Both
USAA Period 1 Both
Arkansas Farmers Insurance Period 1 Both
California Allstate All* Both
Farmers Insurance Period 1 Both
Mercury Insurance All** Both
Metlife All Lyft
Metromile Period 1 Uber
State Farm All** Both
USAA Period 1 Both
Colorado Allstate All* Both
Farmers Insurance Period 1 Both
Geico All Both
Metlife All Lyft
Safeco Period 1 Both
State Farm All** Both
Travelers Period 1 Both
USAA Period 1 Both
Connecticut Geico All Both
State Farm All** Both
USAA Period 1 Both
Delaware Geico All Both
State Farm All** Both
District of Columbia Allstate All* Both
Erie All Both
Geico All Both
Florida Farmers (Foremost) Period 1 Both
Georgia Allstate All* Both
Farmers Period 1 Both
Geico All Both
State Farm All** Both
USAA Period 1 Both
Idaho Farmers Period 1 Both
Geico All Both
State Farm All** Both
Illinois Allstate All* Both
Erie All Both
Farmers Period 1 Both
Geico All Both
Mercury Insurance All** Both
Metlife All Lyft
Metromile Period 1 Uber
Safeco Period 1 Both
Travelers Period 1 Both
USAA Period 1 Both
Indiana Allstate All* Both
Erie All Both
Farmers Period 1 Both
Geico All Both
Safeco Period 1 Both
State Farm All** Both
USAA Period 1 Both
Iowa Farmers Period 1 Both
Geico All Both
State Farm All** Both
USAA Period 1 Both
Kansas Farmers Insurance Period 1 Both
Geico All Both
Safeco Period 1 Both
USAA Period 1 Both
Kentucky Allstate All* Both
Erie All Both
State Farm All** Both
USAA Period 1 Both
Louisiana Geico All Both
State Farm All** Both
Maine Geico All Both
State Farm All** Both
Maryland Erie All Both
Farmers Period 1 Both
Geico All Both
USAA Period 1 Both
Massachusetts USAA Period 1 Both
Michigan Farmers Insurance Period 1 Both
Minnesota Allstate All* Both
Farmers Insurance Period 1 Both
Geico All Both
Safeco Period 1 Both
State Farm All** Both
Missouri Geico All Both
Safeco Period 1 Both
State Farm All** Both
USAA Period 1 Both
Montana Farmers Insurance Period 1 Both
Nebraska Farmers Insurance Period 1 Both
Geico All Both
State Farm All** Both
USAA Period 1 Both
Nevada Farmers Insurance Period 1 Both
Mercury Insurance All** Both
USAA Period 1 Both
New Jersey Farmers Insurance Period 1 Both
New Hampshire USAA Period 1 Both
New Mexico Farmers Insurance Period 1 Both
Geico All Both
North Dakota Farmers Insurance Period 1 Both
Geico All Both
State Farm All** Both
USAA Period 1 Both
Ohio Erie All Both
Farmers Insurance Period 1 Both
Geico All Both
State Farm All** Both
USAA Period 1 Both
Oklahoma Allstate All* Both
Farmers Insurance Period 1 Both
Geico All Both
Mercury Insurance All** Both
Safeco Period 1 Both
State Farm All** Both
Oregon Geico All Both
Safeco Period 1 Both
State Farm All** Both
USAA Period 1 Both
Pennsylvania Erie All Both
Geico All Both
Progressive All Both
Rhode Island Geico All Both
South Carolina Allstate All* Both
Geico All Both
South Dakota Geico All Both
Tennessee Allstate All* Both
Erie All Both
Farmers Insurance Period 1 Both
Geico All Both
Safeco Period 1 Both
State Farm All** Both
USAA Period 1 Both
Texas Allstate All* Both
Farmers Insurance Period 1 Both
Geico All Both
Metlife All Lyft
Progressive All Both
USAA Period 1 Both
Utah Allstate All* Both
Farmers Insurance Period 1 Both
Safeco Period 1 Both
Vermont Geico All Both
Washington Allstate All* Both
Geico All Both
Metlife All Lyft
Metromile Period 1 Uber
Safeco Period 1 Both
State Farm All** Both
USAA Period 1 Both
West Virgina Erie All Both
Geico All Both
State Farm All** Both
Wisconsin Erie All Both
Farmers Insurance Period 1 Both
Safeco Period 1 Both
State Farm All** Both
Wyoming Geico All Both
USAA Period 1 Both

* Period 1 - all coverages, Period 2 & 3 -  Allstate provides deductible help in certain situations

** Period 1 - full coverage available, Periods 2 & 3 - Mercury and State Farm provide coverage in excess of ridesharing company coverage


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2 Responses to "Ridesharing insurance policies"
  1. Charles O. Slavens

    Who is most likely to need ride-sharing services? The biggest group would be people who can no longer drive due to age or physical disability. Where do most of these people live? Florida. There are hundreds of people with cars in this state driving people around for a fee. None of them has commercial insurance. It is in retirement states like Florida where this insurance is needed the most.

      Reply»  
  2. Al

    I read that Mercury is also offering TNC insurance in California. Is this correct?

      Reply»  
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