Auto Insurance Policies for Ride Share Companies: Everything You Need To Know

Are you curious to know which insurance companies cover rideshare drivers? In this article, we’ll be covering everything you need to know about how to select the best auto insurance policy for a rideshare company.

Choosing the Best Auto Insurance Policy for a Rideshare Company

Finding the best auto insurance policy for a rideshare company won’t be easy. However, if you know what to look for, it can make the process go by much easier and even smoother than you think.

When choosing the best auto insurance policy for a rideshare company, it may be wise to go with the policy your company recommends. If you would prefer to add on rideshare company insurance, there are a few things you should look for to make sure you can get the most out of your new auto insurance policy.

• Make sure the monthly auto insurance policy expenses are affordable and reasonable for your budget.
• Compare cheap auto insurance quotes before making your final decision.
• Check if the company has a good reputation and positive reviews.

Make sure you have done your research to find a rideshare company with good reviews, promising rates, and great benefits.

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What is a rideshare policy?

A rideshare policy can provide coverage for a vehicle being used for a commercial ridesharing service, such as Uber or Lyft. If you’ve ever wondered why it’s called rideshare, here’s a little history of where the term came from. It started during World War II when car ownership rose in popularity.

According to The National WWII Museum, around 88% of American households owned a family car by 1941. As the war persisted, the government encouraged vehicle owners to share their cars to conserve the country’s resources.

On February 22, 1942, U.S. automotive industries were ordered to stop producing cars for consumers and allocate their resources to building military vehicles for the war. Once it ended on August 14, 1945, America revitalized its automotive industry, and production of vehicles in the country nearly doubled.

How does rideshare coverage work?

The life of a rideshare driver consists of constant coming, leaving, and toggling your availability in the app as you take new jobs. If you ever get into a car accident after turning the rideshare app on, regular auto insurance will most likely not cover the incident. With rideshare insurance, you will be covered.

Do I need a rideshare policy?

Rideshare coverage is not mandatory for rideshare drivers, but coverage can be uncertain without it. For example, if you are online waiting for a ride request to appear on your app and a vehicle hits you from behind, there is a strong chance your basic auto insurance policy will not cover an incident like this. If you were to add a rideshare policy to your insurance, it would be an added layer of protection.

By enrolling in rideshare coverage, you will be protected while driving on and off the clock.

Choosing a rideshare policy also has its advantages for rideshare drivers.

• It bridges coverage gaps that fall between business and personal use.
• It prevents higher out-of-pocket auto insurance expenses for rideshare drivers.
• It ensures that your vehicle’s auto insurance will meet the requirements.

When you become a driver for Uber, Lyft, or any other rideshare company, most of them will require you to have insurance that meets state requirements. The law may also require ridesharing companies to make qualified insurance policies available to their drivers. As a result, you may notice that your company has partnered with an insurance company to provide a rideshare policy.

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Do I have to tell my insurance company that I am a rideshare driver?

If you are interested in adding rideshare to your auto insurance plan, it is essential for you to reach out to your auto insurance company and inform them that you are a rideshare driver. In order to fully provide you with the coverage you need, your insurance company cannot guarantee protection unless they know how you intend on using your vehicle.

Another reason it is vital to communicate with your auto insurance provider about adding rideshare insurance to your auto insurance policy is because there is a chance your insurance company may not offer rideshare insurance. Some car insurance companies only offer rideshare insurance in select states, while there are also some insurance companies that don’t offer rideshare insurance policies at all. Then there are those auto insurance companies that forbid drive for hire activities, like ridesharing services.

Choosing not to disclose to your auto insurance provider that you are a rideshare driver can jeopardize the status of your insurance policy in the long run. If your insurance company finds out that you are using your vehicle for ridesharing, they can cancel your insurance policy altogether. Ridesharing without the proper coverage is not recommended and depending on the terms in your contract, it can be considered breaking the law. Even if your insurance company doesn’t find out about your ridesharing job, wouldn’t you feel much safer driving passengers in your vehicle knowing that you have coverage that can protect the both of you.

Are there any alternatives to rideshare insurance?

Rideshare insurance is the most popular way to assure that your vehicle will be covered during your ridesharing job, but there are other ways drivers can get coverage while they are logged into the Uber or Lyft app. While some insurance companies offer rideshare insurance as an add-on, there are also policies that have it available as gap insurance. Many of the auto insurance options are similar in nature, but there may be some differences. For starters, there may be limitations to which auto insurance plans are available to you based on your location or your auto insurance company of choice.

What is gap insurance?

Gap insurance is a form of rideshare insurance that is generally used when a rideshare driver has a gap in their coverage. It is usually an add-on policy. Gap coverage is inexpensive and rates can start around an additional $6 a month.

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What is commercial insurance?

Another option for rideshare drivers is commercial insurance. Commercial insurance, also known as business auto insurance, provides coverage to a rideshare driver that either drives a company vehicle, or uses their vehicle for business purposes. Commercial insurance can cover a rideshare driver when they are logged on to their Uber or Lyft app, and it can potentially cover incidents that may also take place when a rideshare driver is off the clock, as well.

What is the difference between rideshare policy and a commercial insurance policy?

Although both a rideshare auto insurance policy and a commercial auto insurance policy can cover you for ridesharing, there are a few notable differences between the two. One of the biggest differences is price. Commercial auto insurance policies are generally more expensive than rideshare auto insurance policies. In terms of similarities, both options are typically add-ons to your existing auto insurance policy.

Both options can help you fulfill the insurance requirements necessary to protect you and your passengers during your ridesharing job.

Allstate Rideshare Insurance

Allstate offers rideshare insurance policies under its Allstate Ride for Hire product. The company received an A+ rating from the Better Business Bureau and an A+ rating from A.M. Best for financial strength.

Allstate auto insurance policies are available in all 50 states in the U.S.

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Esurance Rideshare Insurance

Esurance has rideshare insurance policies available. It offers one of the most affordable auto insurance policies in the country. The company received an A- rating from the Better Business Bureau and an A+ rating from A.M. Best for financial strength. 

Esurance rideshare insurance is only available in California, Illinois, and New Jersey. If you are a rideshare driver located in one of the three states the company services, Esurance auto insurance may be a good fit for you. 

Farmers Rideshare Insurance

Farmers insurance offers rideshare insurance policies through Farmers Rideshare. The company received an A- rating from the BBB and an A+ rating from A.M. Best. 

Farmers auto insurance policies are available in all 50 states in the U.S.

Geico Rideshare Insurance

Geico has rideshare insurance policies available. However, unlike most insurance companies that offer gap coverage, Geico has a unique hybrid package for its Uber and Lyft drivers. The company received an A+ rating from the BBB and an A++ rating from A.M. Best.

Geico auto insurance policies are available in all 50 states in the U.S.

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Progressive Rideshare Insurance

Progressive offers rideshare insurance policies. Generating over 30 million a year in sales, the company is one of the leading auto insurance companies in the nation. Progressive received an A+ rating from the BBB and an A+ rating from A.M. Best for financial strength.

Progressive auto insurance policies are available in all 50 states in the U.S.

State Farm Rideshare Insurance

State Farm has rideshare insurance policies available. The company received an A++ rating from A.M. Best and it earned an A+ rating from the Better Business Bureau (BBB).

State Farm auto insurance policies are available in all 50 states in the U.S.

Travelers Rideshare Insurance

Travelers offers rideshare insurance policies. The company received an A++ rating from A.M. Best and it and an A+ rating from the Better Business Bureau (BBB).

Travelers auto insurance policies are available in all 50 states in the U.S.

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USAA Rideshare Insurance

USAA has rideshare policies available. The company received an A+ rating from the Better Business Bureau and an A++ rating from A.M. Best for financial strength. USAA offers rideshare gap protection, with coverage as low as $6 a month. If you have auto insurance with USAA, rideshare insurance can be added to your policy.

An Overview of the Best Auto Insurance Policies for a Rideshare Company

There are several factors to consider when selecting the best auto insurance policy for rideshare coverage. For starters, you should consider the cost of an insurance plan. If you come across a plan that is a little outside of your price range, that’s when auto insurance discounts can come in handy.

Most drivers can save anywhere between 10% and 25% on their insurance rate by taking advantage of the discounts available. The best auto insurance policies for a rideshare company should also have online ratings from reputable sources, such as A.M. Best or the Better Business Bureau.

Now that you know everything you need to know about finding a good rideshare company, it’s time for you to find a good insurance rate. Enter your ZIP code to receive a quote today.

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