Rideshare Auto Insurance in 2026 (What Uber & Lyft Drivers Should Know)
Standard auto policies may not cover accidents while driving for Uber or Lyft, leaving gaps in your protection. Rideshare insurance picks up where your personal policy ends and can extend the policy limits of insurance offered by ridesharing companies. Rideshare car insurance costs start as low as $2 monthly.
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Tracey L. Wells
Licensed Insurance Agent & Agency Owner
Tracey L. Wells is a licensed insurance agent and Farmers insurance agency owner with 23 years of experience. He is proud to be a local Farmers agent serving Grayson, Georgia and surrounding areas. With experience as both an underwriter and agent, he provides his customers with insight that others agents may not have. His agency offers all lines of insurance including home, life, auto, RV, busi...
Licensed Insurance Agent & Agency Owner
UPDATED: Jun 19, 2025
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
UPDATED: Jun 19, 2025
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
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If you’re a rideshare driver for a transport network company (TNC) like Uber or Lyft, you likely need more auto insurance than your personal policy affords you. Speak with your provider about buying additional rideshare insurance that covers you when you’re working.
Even though Uber insurance is available, it is designed to protect the company, not you. Read more to find out everything you need to know about rideshare driver insurance and the types of auto insurance coverage you need.
- Personal car insurance will not cover you while working for a rideshare
- Rideshare insurance is cheaper than buying commercial car insurance
- Allstate has the cheapest rideshare insurance, starting at $2 monthly
If you can’t get rideshare auto insurance in your state, you will need to buy a commercial policy. Enter your ZIP code to get an affordable rideshare insurance quote in your area.
Car Insurance For Rideshare Drivers Explained
What type of auto insurance do I need if I am an Uber driver? Rideshare drivers often wonder whether it’s sufficient to use personal insurance for a car used for business purposes. Unfortunately, your personal policy does not have enough insurance for ridesharing.
Since personal auto insurance won’t cover you while you’re using your vehicle for work, rideshare companies like Lyft, Uber, and Uber Eats auto insurance do provide minimum liability policies that cover when you’re with passengers or deliverables.
However, you won’t be covered while you’re waiting for a rider or on your way to pick them up, and your personal policy won’t apply in the event of an accident while you’re working. Rideshare car insurance is necessary to cover these gaps between TNC coverage and your own policy:
- Phase 1: When the rideshare app is open, but there is no rider in the car. Personal and TNC coverage do not always apply.
- Phase 2: When a ride is requested, and the driver is en route to them. Personal and TNC coverage may have exclusions.
- Phase 3: The passenger is in the rideshare and headed to the destination. Personal coverage doesn’t apply, but TNC insurance will up to policy limits.
Rideshare insurance coverage can seem confusing to drivers who are trying to earn some extra money. To understand how rideshare gap insurance works, use this example of Allstate Ride for Hire, its Uber-friendly insurance add-on.
It is important to speak with your insurance company and Uber driver support to understand where the gaps in your coverage are and what the best car insurance for rideshare is to ensure you are always fully covered.
Read More: Best Auto Insurance for Lyft Drivers
Commercial Insurance vs. Ridesharing Insurance
Uber checks to make sure that you are insured, but your personal auto insurance policy likely doesn’t cover you if you are using your vehicle for commercial purposes. Rideshare drivers will need to get commercial auto insurance or rideshare insurance to cover them while they are working.
Commercial car insurance is more expensive than insurance for rideshare because it’s designed to protect company-owned vehicles and delivery drivers, but self-employed or remote workers can still use it if driving their personal vehicles for business.
Read More: Best Commercial Car Insurance Discounts
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The Best Rideshare Insurance Companies
Most national providers sell commercial rideshare insurance in 40+ states and Washington, D.C. However, Liberty Mutual and Mercury rideshare insurance are quite limited.
How much is rideshare insurance? The table below compares the cost of rideshare insurance against state and coverage availability from the best auto insurance companies for rideshare drivers.
Rideshare Insurance Monthly Rates by Provider| Insurance Company | Rates | Availability | Covered Phases |
|---|---|---|---|
 | $2 | 49 states | Phase 1 |
 | $12 | 19 states | Phase 1 |
 | $15 | 12 states | All Phases |
 | $15 | 23 states | Phase 1 |
 | $25 | 40 states | All Phases |
 | $20 | 7 states | All Phases |
 | $27 | 9 states | Phase 1 |
 | $18 | 39 states | Phase 1 |
 | $10 | 13 states | Phase 1 |
 | 15%-20% | 38 states | All Phases |
 | $6 | 42 states | Phase 1 |
Can I buy just rideshare insurance? Yes, and as you can see, a rideshare endorsement is generally not too expensive. Allstate and USAA rideshare insurance costs less than $10 a month when added to a personal policy (Read More: Allstate vs. USAA Renters Insurance).
But be careful — most low-cost Uber-friendly car insurance policies don’t cover all phases, leaving you liable for accidents that happen while you’re waiting for a passenger. State Farm and Geico might cost more, but their rideshare insurance covers all phases of ridesharing.
How to Buy Rideshare Insurance Coverage
How do I get rideshare insurance? You need to speak with your provider and see if rideshare auto insurance is available in your location with your current policy. Follow the steps below to buy rideshare car insurance:
- Call Your Provider: Reach out to your current insurer to see if it provides ridesharing insurance and how much it costs.
- Understand Coverage Phases: Most rideshare insurance policies only cover Phase 1, while other companies agree to cover all three, so determine how much car insurance you need.
- Compare Insurance Companies: If your current insurer doesn’t offer rideshare coverage, consider shopping around. Enter your ZIP code to compare ridesharing insurance companies near you for free.
- Add Rideshare Endorsement: Work with the insurance company to add the rideshare endorsement to your policy and adjust coverage limits to be compliant with state requirements.
State laws set policy limits and dictate whether insurance companies can sell rideshare policies to local drivers. For example, Texas rideshare insurance requirements are higher than standard policies, while North Carolina doesn’t require rideshare coverage at all (Read More: Cheap Car Insurance in North Carolina).
Other states, like New Jersey and New York, have strict TNC laws that restrict rideshare insurance availability. So always shop aroun,d and don’t be afraid to ask your insurance company about business-use car insurance coverage options in your state.
Rideshare Insurance Coverage Case Studies
Ridesharing and Uber drivers have changed the world in more ways than just offering easy and affordable rides. Rideshare has also changed the way insurance companies need to address self-employed drivers and customers who use ridesharing services.
Even the best auto insurance for Uber drivers comes with limitations. These case studies explore the scenarios uninsured rideshare drivers experience when they don’t have the right policy and how to avoid similar situations in the future.
Case Study 1: Rideshare Insurance Gaps
Lisa, a Lyft driver, assumes her personal auto insurance policy will protect her while driving for Lyft. One night, she gets into an accident while on the way to pick up a passenger. To her surprise, her insurance company denies the claim because her personal policy doesn’t cover the commercial use of her vehicle. Lisa is left facing significant repair costs. Learn what to do when your car insurance claim is denied.
Case Study 2: No Rideshare Insurance Companies
John drives for both Uber and Lyft in a rural area where rideshare insurance options are limited. After researching, he discovers that the local insurance companies don’t offer rideshare coverage in his location.
Dani Best Licensed Insurance Producer
John is required to obtain a commercial auto insurance policy to ensure he has proper coverage while driving for both platforms. Although the commercial policy comes at a higher cost, John recognizes the importance of being adequately protected.
Read More: Best Auto Insurance Discounts For Rideshare Drivers
Case Study 3: Rideshare Insurance Liability Concerns
Emily has an accident while transporting passengers for Uber. The accident results in injuries to her passengers and damage to another vehicle. Emily’s personal policy denies coverage due to the commercial use of her vehicle at the time of the accident, and Uber insurance only pays for the injuries and doesn’t completely cover the cost of property damage to the other vehicle.
As a result, Emily faces potential lawsuits from the other driver and has to pay out-of-pocket for her own vehicle repairs. She hires a car accident lawyer after the accident and learns that having appropriate rideshare insurance coverage could have helped mitigate these financial risks.
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Get a Free Rideshare Car Insurance Quote
Rideshare insurance is crucial for Uber drivers and their passengers. You don’t want to be left hanging in the event of an accident. While TNCs provide some coverage, gaps remain, especially during Phase 1 when you’re waiting for a ride request.
How much is ridesharing insurance? Endorsements start as low as $2 per month, and you can find competitively priced plans with State Farm and Erie Insurance that cover all three phases of rideshare driving.
Jeffrey Johnson Insurance Lawyer
Make sure that you have all of the auto insurance coverage that you need while you are working as a rideshare driver. If you lie to your insurance company about your rideshare driving, you could be accused of auto insurance fraud and dropped from your coverage completely.
Get cheap rideshare insurance today. Enter your ZIP code to compare affordable rideshare insurance quotes from companies near you.
Frequently Asked Questions
What is rideshare insurance coverage?
Rideshare car insurance is a special policy designed for those working for ride-hailing companies like Uber or Lyft and using their personal vehicles. It covers the gaps in personal coverage and the rideshare company’s insurance.
What is rideshare driving?
Rideshare driving involves using a personal vehicle to transport passengers for a fee through app-based platforms like Uber and Lyft. Drivers operate as independent contractors, picking up and dropping off riders on demand.
Read More: GrubHub Auto Insurance Requirements
Should I tell my insurance about rideshare?
Yes, because your insurer can deny claims or drop your policy if it finds out you were using your personal vehicle for work or business purposes.
How much does rideshare insurance cost?
How much is rideshare coverage? With most companies, rideshare insurance rates are less than $10 a month. Check out our list of the best auto insurance discounts for Lyft drivers to see how much you could lower your rates.
Who has the best ridehare insurance?
The best insurance for rideshare drivers covers all phases — while waiting for a ride, on the way to a passenger, and when the passenger is in the car. Erie, Geico, Liberty Mutual, and State Farm rideshare insurance cover drivers the entire time they work.
Can I do Uber without rideshare insurance?
Yes, Uber only requires drivers to meet their state minimum insurance laws. But without rideshare coverage, you will be responsible for all damages to your vehicle and your medical bills if there is an accident.
What is the best insurance for Uber drivers?
Liberty Mutual works exclusively with Uber and Lyft to provide the best rideshare insurance for drivers who need complete coverage. Learn more about its coverage options in our Liberty Mutual auto insurance review.
How much does insurance increase for rideshare?
Auto insurance rates will increase by around $10-$20 per month with rideshare endorsements. Will my insurance go up if I drive for Uber? Yes, Uber car insurance will increase rates, too. For instance, State Farm charges 15%-20% of your annual premium for rideshare coverage.
Why is rideshare insurance so expensive?
Rideshare insurance costs are higher because rideshare drivers are on the road more often, which increases the likelihood of accidents and property damage. Enter your ZIP code to compare rideshare insurance quotes from multiple insurers.
How much is rideshare insurance in Texas?
Texas rideshare insurance is more expensive than in other states, adding around $50 to monthly premiums. Rideshare drivers without accidents or speeding tickets get the cheapest rates, so compare the best car insurance for safe drivers in Texas to get a better price.
How much is rideshare insurance in Raleigh, NC?
Raleigh rideshare endorsements add around $30 to monthly rates, which is more expensive than rideshare insurance in Cary, NC at around $17 per month.
Will my insurance drop me if I drive for Uber?
Your insurance company can drop you if you don’t tell them you work for Uber. You’ll want to hire an auto insurance lawyer if you face insurance fraud charges for rideshare driving.
What kind of insurance do you need for Lyft?
Lyft requires personal auto insurance that meets state minimum requirements. The policy must also list you as the primary driver or a named driver if you want to drive for Lyft.
Does Geico offer rideshare insurance?
Yes, Geico rideshare insurance costs around $25 per month. Compare free quotes in our Geico auto insurance review.
Is there health insurance for rideshare drivers?
No. Because rideshare drivers are contract workers, employers aren’t required to offer them health insurance or other benefits usually given to full- or part-time employees. Some rideshare companies provide personal injury protection to drivers if they’re injured in a collision.
Enter your ZIP code below to compare cheap insurance rates.
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Tracey L. Wells
Licensed Insurance Agent & Agency Owner
Tracey L. Wells is a licensed insurance agent and Farmers insurance agency owner with 23 years of experience. He is proud to be a local Farmers agent serving Grayson, Georgia and surrounding areas. With experience as both an underwriter and agent, he provides his customers with insight that others agents may not have. His agency offers all lines of insurance including home, life, auto, RV, busi...
Licensed Insurance Agent & Agency Owner
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.