Rideshare insurance: What is it and what does it cover?

When does rideshare coverage from Uber, Lyft and other rideshare companies kick in?

Uber and Lyft provide insurance for drivers with their apps, and coverage depends on the driver’s activity. There are three periods that rideshare insurance covers:

• Period 1 (the app is on; the driver is waiting for a ride request): May provide minimal liability coverage from the rideshare company.
• Period 2 (you are en route to pick up a passenger): Uber and Lyft provide higher liability and contingent collision/comprehensive coverage.
• Period 3 (your passenger is in the car): Full rideshare company coverage applies.

Uber's coverage and Lyft's coverage both include $50,000 of bodily injury coverage per person and $100,000 per accident, plus $25,000 of property damage coverage per accident while drivers are waiting on a fare. Liability coverage increases to $1 million once you’re en route to pick up a passenger or while a ride is in progress.

If Uber and Lyft offer rideshare insurance, why would a commercial rideshare service need rideshare insurance?

While Uber and Lyft provide liability coverage and some collision coverage, their policies have gaps.

During the waiting period (when the app is on but no passenger is assigned), liability coverage is minimal and might not cover your vehicle’s damage.

Collision and comprehensive insurance are only available if you carry the same coverage on your personal policy, and they only apply while you’re either on your way to pick up a rider or have a passenger on board.

Drivers may need a rideshare policy or endorsement to avoid gaps.

What does rideshare insurance cover?

Rideshare insurance typically includes the following:

• Liability coverage, which protects rideshare drivers from legal and financial responsibility for injuries or damages you cause to others.
• Collision and comprehensive coverage, which pays for damage to a driver's vehicle in case of accidents, theft, or natural disasters (if you have these coverages on your personal policy).
• Uninsured/underinsured motorist coverage, which covers and protects the rideshare driver if another driver without adequate insurance hits you.
• Medical payments or personal injury protection (PIP), which cover medical expenses for rideshare drivers and passengers.

However, coverage varies by insurer and policy.

Can I get a rideshare endorsement on my current personal auto policy?

Yes, many insurance companies offer rideshare endorsements – or add-ons – that you can put into your existing personal auto policy. This endorsement extends your coverage when you’re logged into the rideshare app but not actively transporting a passenger.

What insurance companies offer rideshare insurance?

Many insurance companies now offer rideshare insurance, including:

• Allstate: Offers a "Ride for Hire" endorsement for ride-sharing drivers in certain states (see table below). This add-on to your policy helps to cover the deductible if the Uber or Lyft deductible is higher than your personal deductible.
• Farmers Insurance: Offers coverage during Period 1, when the app is on and you haven't picked up passengers yet. Farmers also provides rideshare coverage in Florida under its Foremost brand.
• Geico: Offers coverage for all three periods. The company says the cost for rideshare insurance, which comes with a $250 deductible, is slightly higher than a personal auto policy. However, if you're a full-time rideshare driver, you'll probably need commercial auto insurance, which is more expensive.
• MetLife: MetLife initially only covered Lyft drivers for all three periods. However, in 2017, the company began offering coverage for all ridesharing companies for Periods 1 and 2. Existing Lyft endorsements that covered all three time periods also were included.
• Progressive: Offers rideshare insurance either as an endorsement on a personal auto policy or as a commercial for-hire livery policy, which comes with a higher premium.
• State Farm: Its coverage endorsement can add about 15% to 20% to your policy. If your rideshare app is on and you're available for hire, State Farm says its coverage extends your personal car insurance policy and “may include liability coverage for property damage and injury to others, physical damage coverage for damage to your car, and emergency roadside service.” Once you start transporting a passenger, the same coverage, minus liability to others, may apply, although actual limitations may vary by state, the company says.
• USAA: You must be an active or retired military member or the spouse or child of a service member who is a USAA policyholder in order to buy insurance. Rideshare drivers can get coverage for as little as $6 a month. 

How much rideshare insurance does a driver need?

Coverage limits should meet or exceed your state’s requirements. Generally:

• Liability: You need the minimum limits required by your state. In California, those limits are $30,000 for bodily injury or death of one person, $60,000 for bodily injury or death of all persons in one accident, and $15,000 for damage to the property of others as a result of any one accident. However, experts often recommend higher liability coverage.
• Collision/comprehensive: Coverage sufficient to replace or repair your vehicle.
• Uninsured/underinsured motorist: Equal to your liability limits for added protection.

How much does rideshare insurance or a rideshare endorsement cost?

Rideshare insurance or an endorsement typically costs an additional $15 to $25 per month. The exact amount depends on factors like your state, vehicle, driving history and insurer.

How can I save on rideshare insurance?

You can save on rideshare insurance by:

• Bundling auto and home insurance.
• Maintaining a clean driving record.
• Increasing your deductibles (if financially feasible).

William H. Cooper is the lead trial counsel at New York City law firm Marvin A. Cooper, P.C., a personal injury law practice in the New York metropolitan area. His practice areas include car accidents, personal injury, slip and fall accidents and wrongful death. He was honored in 2024 with a Super Lawyers designation, which recognizes the top attorneys in the U.S.