Ridesharing companies like Uber and Lyft have transformed transportation. Millions of people use these services to travel to school, work and social events, and millions of drivers now rely on these companies for employment.

However, while driving for these rideshare companies can generate an income while controlling your own schedule, being a rideshare driver comes with several car insurance considerations. Getting rideshare insurance is one of the most important. 

If you’re contemplating driving for Uber or Lyft, here’s what you need to know about rideshare insurance.

author-img
Written by:
Laura Longero
Executive Editor
Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.
author
Reviewed by:
Nupur Gambhir
reviewer icon
Managing Editor
Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.

Why do you need ridesharing insurance?

As a rideshare driver, you operate as an independent contractor. That means you’re essentially running your own business. As a self-employed person, you must have all the necessary insurance protections to safeguard your business.

However, regular car insurance doesn’t cover rideshare drivers when they operate their vehicles for business rather than for personal use. Though ridesharing companies like Uber and Lyft offer insurance, this coverage differs depending on which phase of the trip the driver is in. 

Generally, you can divide ridesharing into the following periods:

  • Period 0: The driver is conducting personal business — the app isn’t on.
  • Period 1: The app is on, but the driver is waiting for a passenger.
  • Period 2: The app is on, and the driver is on their way to pick up a passenger.
  • Period 3: The app is on, a passenger is in the vehicle, and the ride has started.

Uber and Lyft cover their drivers, but this coverage is only in effect once you’ve accepted a ride request (Period 1) to the time you have a passenger onboard (Period 3). 

However, the insurance’s liability limits are generally low, come with high deductibles that can range anywhere from $1,000 to $2,500, and include several coverage gaps that can increase your out-of-pocket costs if you were to get into an accident or have medical bills related to an accident that occurred before or after any of these periods.

This is why rideshare insurance is so important. It can fill these coverage gaps and provide more insurance protection throughout the time you’re using your vehicle to pick up passengers for Uber and Lyft — even in some cases when you haven’t turned on the app yet.

How does ridesharing insurance work?

If you have your own personal vehicle, you must meet the minimum liability requirements for car insurance in your state. However, these requirements apply for the personal use of your vehicle, not for rideshare pick-ups. 

After Uber and Lyft launched, most insurance companies didn’t provide liability or comprehensive coverage under one umbrella policy that covered both personal and commercial use of a driver’s vehicle. Insurers didn’t want to take on the added risk at that time. 

However, many insurers now offer:

  • Separate rideshare insurance policies; or
  • Allow drivers to purchase gap insurance or to add an endorsement to their personal auto insurance policy.

With this approach, you can get rideshare insurance from insurers that cover all phases of your trip.

Dan Karr, founder and CEO of Valchoice, a free auto insurance grading tool that helps consumers determine the strengths and weaknesses of their coverage plans, says Uber and Lyft insurance isn’t enough for rideshare drivers. Additional coverage is essential.

“If you’re using rideshare insurance through Lyft or Uber, drivers will need to purchase additional coverage in order to insure the full amount of a loan or lease on their vehicle will be paid off in an accident. Otherwise, they could end up in a position where they need to come up with the money after an accident,” Karr says.

Ridesharing insurance by state

Allstate provides some reimbursement to help you cover the deductible for your claim through Uber or Lyft’s insurance. Drivers must weigh all these factors when choosing between rideshare policies.

Let’s look at the differences by company and state:

Note: Data is from 2020.
State Company Period of Coverage
AlaskaNoneNone
AlabamaAllstateAll
AlabamaFarmers InsurancePeriod 1
AlabamaGeicoAll
AlabamaProgressiveAll
AlabamaState FarmAll
AlabamaUSAAPeriod 1
ArizonaAllstateAll
ArizonaFarmers InsurancePeriod 1
ArizonaGeicoAll
ArizonaMercury InsuranceAll
ArizonaProgressiveAll
ArizonaSafecoPeriod 1
ArizonaState FarmAll
ArizonaUSAAPeriod 1
ArkansasAllstateAll
ArkansasFarmers InsurancePeriod 1
ArkansasGeicoAll
ArkansasState FarmAll
ArkansasUSAAPeriod 1
CaliforniaAllstateAll
CaliforniaEsurancePeriod 1
CaliforniaFarmers InsurancePeriod 1
CaliforniaGeicoAll
CaliforniaMercury InsuranceAll
CaliforniaState FarmAll
CaliforniaUSAAPeriod 1
ColoradoAllstateAll
ColoradoFarmers InsurancePeriod 1
ColoradoGeicoAll
ColoradoSafecoPeriod 1
ColoradoState FarmAll
ColoradoTravelersPeriod 1
ColoradoUSAAPeriod 1
ConnecticutAllstateAll
ConnecticutGeicoAll
ConnecticutLiberty MutualAll
ConnecticutState FarmAll
DelawareAllstateAll
DelawareFarmersPeriod 1
DelawareGeicoAll
DelawareProgressiveAll
DelawareState FarmAll
DelawareUSAAPeriod 1
District of ColumbiaAllstateAll
District of ColumbiaErieAll
District of ColumbiaUSAAPeriod 1
District of ColumbiaGeicoAll
District of ColumbiaState FarmAll
District of ColumbiaUSAAPeriod 1
FloridaFarmers (Foremost)Period 1
FloridaGeicoAll
FloridaMercuryAll
FloridaState FarmAll
FloridaUSAAPeriod 1
GeorgiaAllstateAll
GeorgiaFarmersPeriod 1
GeorgiaMercuryAll
GeorgiaProgressiveAll
GeorgiaState FarmAll
GeorgiaUSAAPeriod 1
HawaiiAllstateAll
HawaiiFarmersPeriod 1
IdahoFarmersPeriod 1
IdahoGeicoAll
IdahoProgressiveAll
IdahoState FarmAll
IdahoUSAAPeriod 1
IllinoisAllstateAll
IllinoisErieAll
IllinoisFarmersPeriod 1
IllinoisGeicoAll
IllinoisMercury InsuranceAll
IllinoisProgressiveAll
IllinoisSafecoPeriod 1
IllinoisState FarmAll
IllinoisTravelersPeriod 1
IllinoisUSAAPeriod 1
IndianaAllstateAll
IndianaErieAll
IndianaFarmersPeriod 1
IndianaGeicoAll
IndianaProgressiveAll
IndianaSafecoPeriod 1
IndianaState FarmAll
IndianaUSAAPeriod 1
IowaAllstateAll
IowaFarmersPeriod 1
IowaGeicoAll
IowaProgressiveAll
IowaState FarmAll
IowaUSAAAll
KansasAllstatePeriod 1
KansasFarmers InsurancePeriod 1
KansasGeicoAll
KansasSafecoPeriod 1
KansasState FarmAll
KansasUSAAPeriod 1
KentuckyAllstateAll
KentuckyErieAll
KentuckyProgressiveAll
KentuckyState FarmAll
KentuckyUSAAPeriod 1
LouisianaAllstateAll
LouisianaGeicoAll
LouisianaState FarmAll
LouisianaUSAAPeriod 1
MaineAllstateAll
MaineGeicoAll
MaineLiberty MutualAll
MaineProgressiveAll
MaineState FarmAll
MaineUSAAPeriod 1
MarylandAllstateAll
MarylandErieAll
MarylandFarmersPeriod 1
MarylandGeicoAll
MarylandState FarmAll
MarylandUSAAPeriod 1
MassachusettsAllstateAll*
MassachusettsGeicoAll
MassachusettsLiberty MutualAll
MassachusettsProgressiveAll
MassachusettsUSAAPeriod 1
MichiganFarmers InsurancePeriod 1
MichiganProgressiveAll
MichiganState FarmAll
MinnesotaAllstateAll
MinnesotaFarmers InsurancePeriod 1
MinnesotaGeicoAll
MinnesotaProgressiveAll
MinnesotaSafecoPeriod 1
MinnesotaState FarmAll
MinnesotaUSAAPeriod 1
MississippiAllstateAll
MississippiGeicoAll
MississippiProgressiveAll
MississippiState FarmAll
MississippiUSAAPeriod 1
MissouriAllstateAll
MissouriFarmers InsurancePeriod 1
MissouriGeicoAll
MissouriProgressiveAll
MissouriSafecoPeriod 1
MissouriState FarmAll
MissouriUSAAPeriod 1
MontanaAllstateAll
MontanaFarmers InsurancePeriod 1
MontanaGeicoAll
MontanaState FarmAll
NebraskaAllstateAll
NebraskaFarmers InsurancePeriod 1
NebraskaGeicoAll
NebraskaProgressiveAll
NebraskaState FarmAll
NebraskaUSAAPeriod 1
NevadaAllstateAll
NevadaFarmers InsurancePeriod 1
NevadaMercury InsuranceAll
NevadaState FarmAll
NevadaUSAAPeriod 1
New JerseyAllstateAll
New JerseyFarmers InsurancePeriod 1
New JerseyState FarmAll
New JerseyUSAAPeriod 1
New HampshireAllstateAll
New HampshireGeicoAll
New HampshireLiberty MutualAll
New HampshireState FarmAll
New HampshireUSAAPeriod 1
New MexicoAllstateAll
New MexicoFarmers InsurancePeriod 1
New MexicoGeicoAll
New MexicoProgressiveAll
New MexicoState FarmAll
North CarolinaAllstateAll
North DakotaAllstateAll
North DakotaFarmers InsurancePeriod 1
North DakotaGeicoAll
North DakotaProgressiveAll
North DakotaState FarmAll
North DakotaUSAAPeriod 1
OhioAllstateAll
OhioErieAll
OhioFarmers InsurancePeriod 1
OhioGeicoAll
OhioProgressiveAll
OhioState FarmAll
OhioUSAAPeriod 1
OklahomaAllstateAll
OklahomaFarmers InsurancePeriod 1
OklahomaGeicoAll
OklahomaMercury InsuranceAll
OklahomaProgressiveAll
OklahomaSafecoPeriod 1
OklahomaState FarmAll
OklahomaUSAAPeriod 1
OregonAllstateAll
OregonFarmersPeriod 1
OregonGeicoAll
OregonSafecoPeriod 1
OregonState FarmAll
OregonUSAAPeriod 1
PennsylvaniaAllstateAll
PennsylvaniaErieAll
PennsylvaniaFarmersPeriod 1
PennsylvaniaGeicoAll
PennsylvaniaProgressiveAll
PennsylvaniaState FarmAll
Rhode IslandAllstateAll
Rhode IslandGeicoAll
Rhode IslandLiberty MutualAll
Rhode IslandProgressiveAll
South CarolinaAllstateAll
South CarolinaGeicoAll
South CarolinaLiberty MutualAll
South CarolinaState FarmAll
South DakotaFarmersPeriod 1
TennesseeAllstateAll
TennesseeErieAll
TennesseeFarmers InsurancePeriod 1
TennesseeGeicoAll
TennesseeProgressiveAll
TennesseeSafecoPeriod 1
TennesseeState FarmAll
TennesseeUSAAPeriod 1
TexasAllstateAll
TexasFarmers InsurancePeriod 1
TexasMercuryAll
TexasProgressiveAll
TexasState FarmAll
TexasUSAAPeriod 1
UtahAllstateAll
UtahFarmers InsurancePeriod 1
UtahSafecoPeriod 1
UtahState FarmAll
UtahUSAAPeriod 1
VermontAllstateAll
VermontGeicoAll
VermontLiberty MutualAll
VermontUSAAPeriod 1
VirginiaAllstateAll
VirginiaErieAll
VirginiaFarmersPeriod 1
VirginiaGeicoAll
VirginiaProgressiveAll
VirginiaState FarmAll
WashingtonAllstateAll
WashingtonGeicoAll
WashingtonSafecoPeriod 1
WashingtonState FarmAll
WashingtonUSAAPeriod 1
West VirginiaAllstateAll
West VirginiaErieAll
West VirginiaFarmersPeriod 1
West VirginiaGeicoAll
West VirginiaProgressiveAll
West VirginiaState FarmAll
West VirginiaUSAAPeriod 1
WisconsinAllstateAll
WisconsinErieAll
WisconsinFarmers InsurancePeriod 1
WisconsinGeicoAll
WisconsinSafecoPeriod 1
WisconsinState FarmAll
WisconsinUSAAPeriod 1
WyomingAllstateAll
WyomingGeicoAll
WyomingState FarmAll
WyomingUSAAPeriod 1

How to get enough ridesharing car insurance

Despite the possibility of being underinsured, many rideshare drivers don’t have enough coverage.

Here are some tips to ensure you have sufficient coverage:

  • Review your personal policy, as well as what is offered by the ridesharing company, and be sure there are no gaps in coverage, especially when your app is on and you’re waiting for a customer to ask for a ride.
  • Regardless of whether your ridesharing coverage applies to the entire time you’re on the job or not, you still must tell your personal insurance company that you are working for a ridesharing service. Otherwise, you risk having your own policy canceled.
  • Buy liability limits on your own policy as follows: $100,000 to pay for injuries to others in an accident you cause; $300,000 per accident; $100,000 to pay for damage to other cars and property.
  • Uninsured/underinsured motorist coverage is required in some states, and others allow you to reject it. Don’t. If you are in an accident and the other driver is at fault but doesn’t have car insurance, UIM covers your injury-related medical expenses and those of your passengers. It can cover your lost wages and pain and suffering. If the driver who hit you has insurance, but low limits, underinsured coverage will cover the difference. Choose coverage amounts that match your own liability limits.

— Satta Sarmah-Hightower contributed to this story.

Laura Longero

Ask the Insurance Expert

Laura Longero

Executive Editor

Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.

John McCormick

Ask the Insurance Expert

John McCormick

Editorial Director

John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.

Leslie Kasperowicz

Ask the Insurance Expert

Leslie Kasperowicz

Managing Editor

Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.

Nupur Gambhir

Ask the Insurance Expert

Nupur Gambhir

Managing Editor

Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.

Please Enter Valid Question. Min 50 to max 250 characters are allowed. Only (& ? , .) charcters are allowed.
Please Enter Valid Email.
Error: Security check failed
Thank You, Your message has been received. Our team of auto insurance experts typically answers questions within five working days. Note that due to the volume of questions we receive, not all may be answered. Due to technical error, please try again later.
Get quotes near you!
Please enter valid zip
author image
Executive Editor

Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.