Rideshare drivers are paying more for insurance. Granted, with inflation rising more than 8% over the last 12 months, everything from clothing to food costs more. But auto insurance rates, in many cases, are outpacing the rate of inflation. 

Allstate, for instance, said in September that it was raising rates by more than 14% in a handful of locations. Rideshare coverage for Uber and Lyft drivers is an add-on to your personal car insurance policy – an endorsement.

Lauren McKenzie, an insurance broker/agent with A Plus Insurance in South Carolina, says insurance costs more in general, so rideshare insurance cost is increasing also.

“The cost for insurance is going up overall because of inflation, which means the cost for rideshare insurance is increasing as well,” McKenzie says. “Insurance companies have to increase their costs because the price of car parts is going up if a vehicle needs to be repaired/replaced in the event of a claim or accident and also the cost of labor.”

But there are ways to cut the cost. Keep reading for tips to save on rideshare insurance now and in 2023.

What are some ways to save on rideshare car insurance?

McKenzie says drivers can save on rideshare insurance by maintaining a clean driving history and staying safe on the road to avoid any accident that may occur, even if it was not your fault, comparing coverage options and making sure they have a safe vehicle.

“Consider the type of vehicle you are insuring if you’re looking at purchasing a new vehicle. Look at the cost for that vehicle compared to others, consider what coverages you may need if you are financing and using the vehicle for rideshare,” she says.

“Go over different coverage options, such as increasing your full coverage deductible, removing full coverage if the vehicle is older, and removing any additional coverages such as roadside or rental reimbursement.”

Here are other ways to save on car insurance:

Which companies offer rideshare insurance?

Here are a few companies that offer a rideshare endorsement.

Allstate’s ride-hailing insurance endorsement

Allstate’s Ride for Hire program offers car insurance for drivers who work for a transportation network company(TNC). Ride for Hire provides deductible gap coverage for up to $2,500 and fills in the gaps from a TNC’s coverage.

Farmers rideshare insurance

Farmers offers rideshare endorsement by contacting an agent or calling 1-855-808-6599.

Mercury rideshare car insurance

Mercury provides rideshare insurance coverage for as little as $0.90 per day (this is for the endorsement and will depend on personal factors). This is in addition to your personal coverage.

Progressive’s rideshare insurance

Progressive offers a personal policy and fills in the rideshare coverage gaps under one policy. The company also offers deductible reimbursement for the difference between a rideshare company’s deductible and your personal deductible.

State Farm rideshare driver coverage

State Farm’s endorsement adds about 15% to 20% to a personal policy premium, so contact an agent to ensure you have the cheapest rates for rideshare driver coverage.

USAA rideshare gap protection coverage

USAA offers rideshare coverage as an addition to a personal auto policy as well to drivers in all states except Hawaii, North Carolina, Michigan, Montana, New Mexico, New York, South Carolina and Virginia. USAA is only available for members of the military community, veterans and their families.

How much does rideshare car insurance cost?

McKenzie says that when it comes to the cost of the rideshare endorsement costs around $50 per month for a driver with no violations for a full coverage vehicle. 

“Not all insurance companies will cover this type of vehicle usage, so it is important to disclose that to the insurance company when setting up a policy in order to make sure you and your passengers are properly covered,” she says.

“A driver who may have violations on their record could pay more for the rideshare endorsement, just depending on the type of violation, when it occurred, and the type of vehicles/coverages and location.”

Resources & Methodology

Sources:

  1. Allstate. “Allstate Announces August 2022 Implemented Auto Rates.” Accessed November 2022.
  2. CNBC. “Lyft cuts 13% of its workforce.” Accessed November 2022.
  3. Fox Business. “Car insurance premiums going up? Blame inflation.” Accessed November 2022.
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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.