Personal car insurance won’t cover you while rideshare driving—and getting caught without proper insurance could mean policy cancellation or huge fines.
This guide explains:
✔ Why Uber’s insurance isn’t enough
✔ Best insurance companies for rideshare
✔ How much it really costs
✔ 3 dangerous coverage gaps to avoid
By the end, you’ll know exactly how to stay fully protected without overpaying.
Why Personal Insurance Isn’t Enough for Rideshare
The 3 Insurance Periods Every Driver Must Know:
| Period | Who Covers You? | Big Risk |
|---|---|---|
| App Off | Personal insurance | None |
| App On (No Ride) | Uber/Lyft’s contingent liability | No collision/comprehensive |
| On Trip | Uber/Lyft’s $1M policy | High deductible ($2,500) |
Key Problem: Most personal policies void coverage once you turn on the app.
5 Best Rideshare Insurance Companies (2024)
| Company | Best For | Avg. Annual Cost |
|---|---|---|
| Progressive | Cheapest overall | $1,800 |
| State Farm | Best full-time drivers | $2,000 |
| Allstate | Best for Lyft drivers | $2,100 |
| USAA | Military families | $1,700 |
| Farmers | High-mileage drivers | $2,300 |
Prices for drivers with clean records working 20 hrs/week
How Much Does Rideshare Insurance Cost?
Cost Factors:
- Location (Chicago costs 2x more than Omaha)
- Rideshare Hours (full-time = higher premiums)
- DUI/Tickets (can double your rate)
Typical Annual Costs:
| Driver Type | Annual Premium |
|---|---|
| Part-Time (10 hrs/week) | $1,500-$2,000 |
| Full-Time (40+ hrs/week) | $2,500-$3,500 |
| Driver With 1 DUI | $3,000-$5,000 |
3 Dangerous Coverage Gaps (Must Avoid!)
1. App-On Gap
❌ Risk: If you’re waiting for a ride request and crash, Uber only provides liability (no coverage for your car).
✅ Fix: Get a policy that covers Period 2 (like Progressive’s rideshare endorsement).
2. Rental Car Loophole
❌ Risk: Using a rental for Uber? Most rental companies void insurance if used commercially.
✅ Fix: Buy non-owner rideshare insurance first.
3. Delivery Work Exclusion
❌ Risk: Many rideshare policies don’t cover food delivery (DoorDash, etc.).
✅ Fix: Ask about hybrid commercial policies if you multi-app.
How to Save Money on Rideshare Insurance
1. Bundle with Other Policies
✔ Adding renters/home insurance can save 15-20%
2. Pay Annually
✔ Avoid $10-$15/month installment fees
3. Take a Defensive Driving Course
✔ 5-10% discount in most states
4. Increase Your Deductible
✔ Going from $500 → $1,000 saves $200+/year
5. Compare Quotes Every 6 Months
✔ New insurers enter market frequently
FAQs About Uber/Lyft Insurance
❓ Does Uber provide insurance when I’m driving?
✅ Yes—but only liability during trips ($1M coverage). They don’t cover your vehicle damage.
❓ Can I lie and say I don’t drive for Uber?
❌ NO! This is insurance fraud—penalties include denied claims and policy cancellation.
❓ What’s the cheapest car for rideshare?
✅ Toyota Prius (low maintenance + great gas mileage).
❓ Do I need special insurance for Uber Black?
✅ YES—commercial insurance is required (costs $5,000-$10,000/year).
Final Verdict: Protecting Your Rideshare Business
✔ Never drive without rideshare coverage (risk is too high)
✔ Compare at least 3 quotes—rates vary wildly
✔ Ask about food delivery coverage if you multi-app
✔ Re-evaluate every 6 months as your driving changes
🚗💨 Get Covered Today—Compare Rideshare Insurance Quotes in Minutes!