If you're a ride-share driver, you're likely feeling the pinch of high gas prices lately — the national average price per gallon broke $4 again in mid-July.
If you're looking to trim costs where you can, look at your car insurance. Comparison shopping can help you find better deals and avoid potentially costly coverage gaps by making sure you have the right policy.
After all, ride-share drivers need more than a standard car insurance policy for their work. While the ride-share platforms do offer some coverage for their drivers, there are some major gaps: Neither the companies' plans nor your personal auto policy provides full protection when you're on the road.
For example, you're not covered by either the ride-share company's plan or your personal auto insurance if you're on the clock but waiting to match with a rider. That gap would leave you on your own if your car was damaged in this window. That's when you need a ride-share insurance endorsement, which covers those gaps and ensures your car is protected on and off the clock. These endorsements typically add 10% to 15% to your premiums.
CNBC Select named the best insurance companies for ride-share insurance in a variety of categories. (See our methodology for more information about how we made our picks.)
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Best ride-share insurance companies
Best for affordability: Mercury Insurance
Mercury Auto Insurance
Cost
The best way to estimate your cost is to get a personalized quote
App available
Yes
Policy highlights
Mercury offers affordable auto insurance and convenient online quotes and claim filing. Discounts are available for anti-theft features, bundling and for paying premiums in full.
Pros
- Affordable rates in California
- Rideshare insurance available under $1 per day
- Repairs made by an authorized garage are guaranteed
Cons
- Auto insurance only available in 11 states
- Rated below average for customer satisfaction by J.D. Power
- No gap insurance coverage
Who's this for? Mercury offers ride-share coverage for as little as $0.90 a day, depending on your policy and location.
Standout benefits: Optional 24/7 roadside assistance is available for help with jump starts, lockouts, flats, towing and gas delivery. It also includes texts with real-time updates. Repairs at designated auto shops are guaranteed for the life of your vehicle.
Best for Uber and Lyft: Progressive and Allstate
- Small-accident forgiveness included with all policies — Accidents with claims of $500 or less will not affect your rates.
- Large accident forgiveness also available
- Non-owner car insurance and SR-22 certificates available
- Offers decreasing deductibles for each year you're accident-free
- Below-average customer satisfaction ratings from J.D. Power
- Above-average number of complaints
- Snapshot safe-driving discount program could result in rate increase
Allstate Auto Insurance
Policy highlights
Allstate offers full coverage auto insurance, with add-ons like accident forgiveness, rideshare insurance and mechanical breakdown insurance. Allstate's MileWise pay-per-mile plan can save infrequent drivers up to 40% over a traditional policy.
Accident forgiveness
Yes
Availability
Allstate is available in all 50 U.S. states and Washington, DC
Read our Allstate auto insurance review
Pros
- Highly rated for claims processing by J.D. Power.
- Up to 25% off with Allstate’s Drivewise telematics app
- Pay-per-mile insurance in 18 states.
- Rideshare insurance available
Cons
- Rates are higher than competitors, especially for high-risk drivers
- Rated below average for overall customer satisfaction in most regions
Who's this for? Getting your car insurance with a ride-share endorsement from Progressive or Allstate can help you avoid Uber's or Lyft's expensive $2,500 deductible by refunding the difference between this deductible and a lower one you chose on your policy.
Standout benefits: Allstate and Progressive both have reasonable rates for ride-share endorsements, adding $4 and $51 respectively to your policy per month, according to The Zebra.
Best for food delivery drivers: State Farm
- High customer satisfaction ratings
- Available in most states
- Affordable rates for teen drivers
- Doesn’t offer gap insurance
- Accident forgiveness requires 9 years accident-free
- Have to work with an agent to buy a policy..
Who's this for? State Farm's ride-share policy insures drivers for delivery apps like Uber Eats and DoorDash. It also offers a business-use notation option, which can be added to a personal auto insurance policy for those who exclusively deliver food and never carry passengers in their car. This notation is often cheaper than a full ride-share policy.
Standout benefits: State Farm's highly rated mobile app allows customers to review their policy, pay their premiums, get proof of insurance, file claims and get roadside assistance.
Best for military members and veterans: USAA
- Cheapest insurer for liability policies
- Stellar customer satisfaction scores
- Available in all 50 states
- Limited to military families and veterans
- No physical branches
- Customer service not available 24/7
- Safe-driver discount not available in every state
Who's this for? Available to active duty military, veterans and their families, USAA offers a ride-share endorsement to drivers with their auto insurance for as little as $6 a month.
Standout benefits: USAA offers generous discounts for military families, including for leaving your car in a garage on base or storing your vehicle when deployed.
What is ride-share insurance?
Your regular car insurance is not in force when you're clocked in and working for a ride-share app like Lyft or Uber (also known as transportation network companies, or TNCs).
Ride-share companies are required by law to provide drivers with basic insurance for that period, but it's only in effect if you are driving passengers or heading to pick someone up.
That leaves a gap: When you're logged on but waiting for a ride request.
Getting a ride-share insurance endorsement on your personal policy bridges this gap. It can also provide other benefits, like roadside assistance, that can be helpful when you spend a lot of time driving.
Finally, a ride-share endorsement can lower the amount you'd have to pay if you were involved in an accident. To use Lyft or Uber's insurance, you'd have to pay a $2,500 deductible. While you're locked into that rate for Uber or Lyft's coverage, you can find a cheaper deductible when shopping for your own policy. Many of the best ride-share endorsements add coverage that pays the difference between your lower deductible and the platform's higher $2,500 deductible.
Before you start driving for a ride-sharing company, check with your insurer — not all companies offer coverage for this scenario in every state. You may need to switch insurers to get ride-sharing coverage.
How much does ride-share insurance cost?
A ride-share insurance endorsement typically adds 10 to 15% to your premiums.
However, the amount you may pay depends on the provider, your driving record, the type of vehicle you're driving and where you live.
What does ride-share insurance cover?
A ride-share insurance endorsement fills the gap between your policy and anything offered by an ride-share company. To be fully protected both on and off the clock, you'll need your own insurance, coverage from the ride-share company and some form of ride-share insurance.
Here's when each applies during different phases of your driving:
- Driving for personal reasons: Your personal auto insurance policy
- App is on but you haven't matched with a rider: Ride-share insurance endorsement
- You've accepted a fare: App's coverage applies
- Driving a customer: App's coverage applies
Do Uber and Lyft have their own insurance policies?
Yes, Uber and Lyft both offer some level of coverage for their drivers. Here are the coverage types and limits each brand offers:
| Scenario | Coverage in effect |
|---|---|
| App is turned off | Your personal auto insurance policy |
| App is on but no ride request | Uber and Lyft: $50,000 bodily injury coverage per person, $100,000 per accident and $25,000 per accident for property damage. (In Arizona and Nebraska, Lyft's coverage drops to $25,000 per person for bodily injury coverage, $50,000 bodily injury coverage per accident and $20,000 property damage per accident) |
| You're going to get a fare or they're in the car | Uber and Lyft: At least $1 million bodily injury protection for drivers, passengers, pedestrians and property; At least $1 million bodily injury protection for you and your passengers against uninsured/underinsured motorists. If you have comprehensive & collision policy, additional coverage up to the value of your vehicle, with a $2,500 deductible |
Coverage with Uber and Lyft is in effect from the moment you accept a ride request to the moment you drop your passenger off.
Both companies have a $2,500 deductible. Some insurance companies have a deductible gap benefit that will reimburse you for the difference between this $2,500 payout and your personal policy's deductible, which can be as low as $250 or $500.
Other ride-share apps have different policies: DoorDash provides third-party auto liability for drivers, which only applies once you're matched with a delivery.
Ride-share FAQs
Do I need ride-share insurance?
In most cases, your car insurance isn't in effect when you're working for a ride-share company — and the coverage offered by the app is only active when there's a passenger in the car. Ride-share insurance covers your vehicle if you're signed on but waiting for a fare. It's equally important whether you drive part-time or full-time. If you're a seasonal driver, you can add ride-share coverage for just the times you work.
How much is ride-share insurance?
Ride-share insurance costs can vary, though an endorsement typically adds between 10% and 15% to your premium. Getting several quotes can give you a better idea of the best price.
Is ride-share insurance tax-deductible?
If you are a ride-share driver, you may be able to deduct the cost of ride-share insurance and gas used for transporting customers, as well as repairs, maintenance, depreciation and other work-related costs. Keep records and consult a tax professional to determine which expenses qualify.
Do I need to tell my car insurance company that I'm a ride-share driver?
Yes, you need to inform your insurance company that you're driving for a ride-sharing platform, or risk cancellation or non-renewal.
Does ride-share insurance apply to delivery services like Grubhub and DoorDash?
Yes, ride-share insurance endorsements cover working for DoorDash and other delivery apps. Since the vehicle is being used for business, your regular car insurance likely isn't applicable.
What should I do if ride-share insurance isn't available in my state?
If you can't get ride-share insurance in your area, you may be able to get a commercial auto insurance policy.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice to help them make informed financial decisions. Every auto insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of auto insurance products. To research the best auto insurance companies, we compiled dozens of data points on several auto insurance companies. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Our methodology
CNBC Select analyzed more than two dozen auto insurance companies based on the availability of ride-share insurance endorsements, as well as average rates, coverage options, discounts, customer satisfaction and more.
We focused on an average annual premium for personal auto insurance policies from The Zebra. In our analysis, we incorporated customer satisfaction ratings from J.D. Power, the National Association of Insurance Commissioners and the Better Business Bureau.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Our selections have been organized by the best for Uber, best for Lyft, best for bad credit, best for delivery drivers and best for military members and veterans.
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