Rideshare Insurance for Uber and Lyft: Best Policies in 2025

If you’re driving for Uber or Lyft, your personal car insurance might leave you unprotected while working. Rideshare insurance bridges this gap, offering coverage during times when Uber and Lyft’s policies fall short.

Let’s break down everything you need to know about securing the best rideshare insurance for Uber and Lyft drivers in 2025, including costs, top providers, and state-specific options.

What is Rideshare Insurance?

Rideshare insurance is a specialized type of auto insurance designed for drivers who use their personal vehicles to provide ridesharing services through platforms like Uber and Lyft.

It serves to bridge the gap between personal auto insurance—which typically does not cover commercial activities—and the limited liability coverage provided by rideshare companies during specific phases of driving.

• Coverage Phases:
  • Period 0: When the driver is offline and not using the app (only personal auto insurance applies).
  • Period 1: When the driver is logged into the app but has not accepted a ride request (limited coverage).
  • Period 2: When en route to pick up a passenger (both personal and rideshare company coverage apply).
  • Period 3: When transporting a passenger (rideshare company’s full insurance applies).

Rideshare insurance typically covers liability for bodily injury and property damage, as well as potential damages to the driver’s vehicle depending on the policy selected23.

What is Rideshare Gap Insurance?

Rideshare gap insurance is a specific type of coverage that fills in the gaps left by personal auto insurance and rideshare company policies. It is particularly useful during Period 1 when drivers are logged into the app but have not yet accepted a ride request.

• Purpose: This type of insurance protects drivers from financial loss during times when they are technically working for a rideshare service but are not fully covered by either their personal or rideshare company’s insurance.
  
• Key Features: It can cover liability costs that exceed what is provided by the rideshare company and may also help with deductibles incurred during accidents while logged into the app45.

4. How to Get Rideshare Insurance

Obtaining rideshare insurance typically involves several steps:

1. Research Providers: Begin by researching major insurers that offer rideshare endorsements or specific policies tailored for rideshare drivers. Companies like State Farm, Allstate, Progressive, and Geico are popular choices in the U.S.
   
2. Contact Insurers: Some providers allow you to add rideshare coverage directly through their websites or mobile apps, while others may require you to speak with an agent. It’s advisable to call an agent even if online options are available, as they can provide personalized advice based on your situation.
   
3. Provide Information: When discussing your needs with an insurer, clearly state that you are a rideshare driver. You will need to provide details about your driving history, vehicle information, and where you will be operating.
   
4. Compare Quotes: Request quotes from multiple insurers to compare coverage options and costs effectively. This will help you find the best rate that suits your needs.
   
5. Finalize Your Policy: Once you select a provider and policy that meets your requirements, complete any necessary paperwork to activate your coverage before you start driving for rideshare services.

By following these steps, drivers can ensure they have adequate protection while working in the gig economy as rideshare providers in the United States.

Why Do I Need Rideshare Insurance for Uber and Lyft

Uber and Lyft only cover drivers during specific periods:

• Period 1: The app is on, but you’re waiting for a ride request (no collision coverage from Uber/Lyft).
• Period 2: Ride accepted, en route to pick up passengers.
• Period 3: The passenger is in the car.

Most drivers are at risk during Period 1, where personal insurance often won’t cover accidents. Without rideshare insurance, you could face out-of-pocket costs for damages or even policy cancellation.

Top 5 Rideshare Insurance Options for Uber and Lyft Providers in 2025

As rideshare services like Uber and Lyft continue to grow in popularity, the need for specialized insurance coverage has become increasingly important for drivers.

The following are the top five rideshare insurance providers in the United States for 2025, detailing their coverage options, costs, and unique perks.

1. State Farm

• Coverage: Offers comprehensive coverage across all three rideshare periods (1, 2, and 3), including liability and collision.
• Cost: Premiums typically increase by approximately 15–20% compared to standard policies.
• Perk: Drivers pay lower deductibles (State Farm’s deductible vs. Uber’s $1,000 or Lyft’s $2,500), which can significantly reduce out-of-pocket expenses during claims.

2. Allstate

• Coverage: Provides coverage for Period 1 and includes a deductible gap coverage for Periods 2 and 3.
• Cost: An additional charge of $10–$20 per month.
• Perk: Reimburses drivers for the difference between their deductible and Uber/Lyft’s deductible during claims, enhancing financial protection.

3. Farmers Insurance

• Coverage: Covers Period 1 with options to customize packages that can extend coverage during the waiting period for passengers.
• Cost: Generally around 25% higher than standard rates.
• Perk: Notably does not penalize drivers for using rideshare services, ensuring continued coverage even while driving for Uber or Lyft.

4. USAA

• Coverage: Offers coverage primarily for Period 1.
• Cost: Premiums range from $6 to $16 extra per month.
• Perk: Particularly affordable for military families, making it a great option for service members who drive for rideshare companies.

5. Liberty Mutual

• Coverage: Includes coverage for Period 1 along with bundling discounts if combined with other insurance products.
• Cost: Pricing varies significantly by state.
• Perk: Offers flexibility in terms of bundling with other policies, potentially leading to overall savings on insurance costs.

Importance of Rideshare Insurance

Without proper rideshare insurance, drivers risk significant financial liabilities in case of accidents or incidents while logged into the app but not matched with a passenger.

Many personal auto policies do not cover ridesharing activities, which can lead to denied claims by insurers if they discover that a driver was operating under a rideshare service without appropriate coverage.

In summary, selecting the right rideshare insurance is essential for Uber and Lyft drivers in the U.S. to ensure adequate protection against potential risks associated with driving for these platforms.

How much Rideshare Insurance Cost in 2025?

In 2025, the cost of rideshare insurance varies widely based on factors such as location, driving history, and the specific insurance provider. On average, drivers can expect to pay:

• Monthly Costs: Approximately $30 or less, with some providers offering rates as low as $6 per month for basic coverage.
• Annual Costs: Total yearly premiums typically range from $75 to $350. This means that, for most drivers, the average cost could be around $300 annually.

The addition of a rideshare endorsement to an existing auto insurance policy may increase rates by an average of $942. However, these costs can differ significantly depending on the insurer and the driver’s profile.

How to Choose the Best Rideshare Insurance Policy for Your State

Rideshare insurance policies vary significantly based on state regulations, provider options, and the specific needs of drivers. Below is a detailed breakdown of the best rideshare insurance providers and tips for selecting coverage tailored to your location in the United States.

California

• Top Providers: State Farm, Farmers, Allstate.
• Key Features:
  • State Farm: Offers comprehensive rideshare coverage across all phases (Periods 1, 2, and 3). Thach Ho (contact: 877-411-2221) is noted for competitive rates.
  • Farmers: Provides flexible coverage options with no penalties for rideshare driving.
  • Allstate: Includes deductible gap coverage, reimbursing drivers for Uber/Lyft deductibles.
• Tip: State Farm is highly recommended for its extensive coverage and competitive pricing.

Texas

• Top Providers: Allstate, State Farm, Liberty Mutual.
• Key Features:
  • Allstate: Offers affordable add-ons for rideshare insurance with deductible gap coverage.
  • State Farm: Provides comprehensive coverage across all rideshare phases and has high customer satisfaction ratings.
  • Liberty Mutual: Offers bundling discounts for combining rideshare insurance with other policies.
• User Story: Javier from Houston reported saving $600 annually by switching to State Farm.
• Regulations: Texas does not mandate separate rideshare insurance but requires additional liability coverage during Periods 2 and 3. Minimum requirements include $50,000 per person in bodily injury liability and $25,000 in property damage liability during Period 2.

New York

• Top Providers:
  • New York City (NYC): Commercial auto insurance (TLC) is mandatory for rideshare drivers.
  • Upstate New York: Allstate and Mercury are popular options for personal rideshare endorsements.
• Key Features:
  • NYC drivers must secure commercial insurance to meet Taxi & Limousine Commission (TLC) requirements.
  • Upstate drivers can opt for Allstate’s customizable plans or Mercury’s affordable add-ons.
• Cost Considerations:
  • Rideshare insurance in New York averages $387/month for liability-only coverage and $491/month for full coverage. CSAA offers the most affordable rates at $161/month.

Florida

• Top Providers: State Farm, Progressive, Quoteasy/Bristol West.
• Key Features:
  • State Farm: Known for low premiums starting at $84/month for liability-only coverage.
  • Progressive: Offers flexible rideshare add-ons tailored to Florida’s unique insurance requirements.
  • Quoteasy/Bristol West: Provides competitive rates with specialized options for high-risk drivers.
• Regulations:
  • Florida requires higher liability limits during Periods 2 and 3 compared to personal driving. Minimums include $50,000 per person in bodily injury liability and $10,000 in property damage liability.

Other States (e.g., Illinois, Ohio, Colorado)

• Most major insurers like Farmers and USAA offer rideshare-friendly policies tailored to state-specific regulations.
• Key providers such as Liberty Mutual and GEICO often provide bundling discounts or low-cost add-ons.

Tips for Choosing the Best Policy

1. Understand Your State Regulations: Each state has unique requirements regarding minimum liability limits and whether additional rideshare insurance is mandatory. For example:
   • Texas requires supplemental liability during Periods 2 and 3 but not a separate policy.
   • New York City mandates commercial TLC insurance for Uber/Lyft drivers.
2. Evaluate Coverage Across All Phases:
   • Ensure your policy covers all three periods of ridesharing:
     • Period 1: App on but no ride request yet (limited personal liability).
     • Periods 2 & 3: En route to pick up passengers or actively transporting them (higher liability requirements).
   • Some providers like State Farm cover all phases comprehensively.
3. Compare Costs and Perks:
   • Look for deductible gap coverage (offered by Allstate) to save on out-of-pocket expenses during claims.
   • Military families may benefit from USAA’s affordable premiums starting at $6–$16/month.
4. Seek Discounts:
   • Bundling policies with providers like Liberty Mutual can lead to significant savings.
   • Compare quotes from multiple insurers to find the best deal tailored to your driving habits.

By carefully assessing your state’s requirements and comparing provider’s offerings, you can select the right rideshare insurance for Uber and Lyft drivers, you can protect your income and vehicle. Compare quotes today a 15-minute call could save you thousands!

3 Mistakes to Avoid with Rideshare Insurance

1. Assuming Uber/Lyft covers you 24/7: Their policies only apply during Periods 2–3.
   
2. Ignoring food delivery: Apps like DoorDash require separate coverage.
   
3. Not comparing quotes: Prices vary widely – get 3–4 quotes.

What Happens If You Crash While Driving for Uber/Lyft?

• At fault: Your insurance covers liability/collision (minus deductible).
• Not at fault: Other driver’s insurance pays, but you might need to front repair costs.
• Rental cars: Return ASAP to avoid fees; contact the rental company immediately.

FAQs

Can I use my personal insurance for Uber/Lyft?
No. Most personal policies exclude rideshare activities, risking cancellation or claim denial.

Does rideshare insurance cover food delivery?
Sometimes. Farmers and Liberty Mutual offer add-ons for delivery gigs like DoorDash.

What’s the cheapest option?
USAA (if eligible) or State Farm’s bundled policies.

Can I deduct rideshare insurance on taxes?
Yes. Use apps like Stride Tax to track deductions.

Conclusion

As the gig economy continues to grow in 2025, having robust and affordable Rideshare insurance for Uber and Lyft drivers is more important than ever. Whether you drive full-time or part-time, the right insurance policy protects you from unexpected expenses, gives you peace of mind, and ensures that you can continue working without fear of financial ruin.

By understanding the phases of rideshare coverage, comparing the best policies available, and learning from real driver experiences, you can make an informed choice that fits your needs and budget. Remember, investing in the right insurance isn’t just a legal necessity—it’s a smart move for your future as a rideshare driver.

Stay safe on the road, and happy driving!