Rideshare insurance

Rideshare insurance is a specialized auto policy that fills coverage gaps between personal car insurance and rideshare company-provided commercial insurance, such as those offered by Uber and Lyft. Major insurers like GEICO, State Farm, and Progressive sell rideshare insurance in at least 40 states.

Rideshare insurance typically covers drivers during “Period 1” (app on, waiting for a ride request), when personal insurance usually denies claims and company policies do not yet apply. Premiums for rideshare endorsements average $15–$30 monthly according to ValuePenguin’s 2023 data.

Many policies exclude collision or comprehensive coverage unless the driver purchases full-coverage rideshare endorsements. Companies require proof of rideshare coverage when processing certain accident claims involving Uber or Lyft drivers; lack of coverage can result in denied claims and policy cancellation.

Some states–like California, Illinois, and Texas–mandate that rideshare drivers carry additional liability protection beyond standard state minimums, per a report from YourInsuranceInfo. Only select insurers allow stacked uninsured/underinsured motorist protection in rideshare add-ons, with USAA and Farmers among them.

Most personal policies explicitly exclude “driving-for-hire” activities from all coverage forms; thus, drivers must disclose ridesharing to avoid misrepresentation. Rideshare gap coverage applies only if you drive for companies defined as TNCs (Transportation Network Companies) per state law (e.g.

Uber, Lyft), not taxi or delivery services like DoorDash or Instacart. Some carriers deny new business to applicants with prior undisclosed TNC driving history within the last three years due to increased risk profiles validated by NAIC loss ratios from 2021–2023.