Not long ago, rideshare drivers didn’t have many options when it came to auto insurance. Most drivers maintained an uneasy balance between personal policies and the policies offered by their ridesharing companies, and some shelled out for pricey commercial auto insurance.
But as Uber and Lyft have grown in popularity, auto insurance companies have expanded their efforts to meet the demand from drivers for full coverage. Typically, these policies cover personal use and add coverage for at least part of the time that drivers are signed in to a ridesharing app. These ridesharing insurance policies usually cost more than a standard personal policy but less than commercial auto insurance.
Not all insurance companies offer ridesharing policies, nor is coverage available in all states. However, three insurance companies have jumped into the market in a substantial way, and several other carriers offer more limited coverage. These three companies offer the most complete ridesharing insurance packages:
Recommended for rideshare drivers
- Offers coverage in DC, IL, IN, KY, MD, OH, PA, TN, VA, WV, WI.
- Costs between $9 and $15 per month more than personal auto insurance that includes “business use.”
- Coverage applies whether driving for business or personal use, and during every part of the trip: before, during and after the ride.
- Offers coverage in AZ, AR, CA, CO, KS, MN, NV, OH, OK, TX, UT, WI.
- Extends drivers’ personal coverage limits from the time they log into ridesharing app until they accept ride request.
- Kicks in again after dropping off passenger and before accepting next request.
- Offers coverage in GA, MD, TX, VA.
- Acts as primary coverage whether or not drivers have a passenger.
- Costs about $150 a year more than a regular personal auto policy in some cases, based on NerdWallet research.
Other options for rideshare insurance
Although Erie, Farmers and Geico tend to offer the best mix of coverage and availability, rideshare insurance is also available on a more limited basis from a handful of other well-known companies:
If you’re a rideshare driver and your state doesn’t yet have a ridesharing insurance program, be aware that that coverage is expanding quickly. In just the past year, Erie has added seven states and the District of Columbia to its three initial states. And as states continue to regulate ridesharing, it’s likely that other companies will fall in line, giving drivers even more options.
For more help finding the most competitive car insurance quotes, try NerdWallet’s anonymous comparison tool and see how much you could be saving.
Lynn Mucken contributed to this article.
Image via iStock.