Rideshare apps like Uber and Lyft insure their drivers, but there are some major gaps in coverage. Neither they nor your personal auto policy provides full protection if you’re a rideshare driver.
That’s when you need a rideshare insurance endorsement, which covers the gaps and ensures your car is covered on and off the clock.
CNBC Select has named the best insurance companies for rideshare insurance in a variety of categories. (See our methodology for more information about how we made our picks.)
Best for affordability: Mercury Insurance
Mercury Auto Insurance
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Cost
The best way to estimate your cost is to get a personalized quote
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App available
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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-hailing coverage for as little as 90 cents 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, and includes texts with real-time updates. Repairs at designated auto shops are guaranteed for the life of your vehicle.
Best for Uber: Progressive
Progressive Auto Insurance
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Policy highlights
Progressive offers an array of riders, including rideshare insurance and a Deductible Savings Bank that deducts $50 each policy period you go without a claim. It also offers mechanical breakdown insurance, which covers unexpected major systems failures.
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Accident forgiveness
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Availability
Progressive auto insurance is available nationwide
Pros
- Available in all 50 states
- Low rates for drivers with DUIs
- Non-owner car insurance and SR-22 certificates available
- Offers vanishing deductible as well as accident forgiveness
Cons
- Below-average customer satisfaction ratings from J.D. Power
- Above-average number of complaints
- Snapshot safe-driving discount program could result in rate increase
Who’s this for? Progressive reimburses rideshare drivers for the difference between Uber’s $2,500 deductible and their own.
Standout benefits: Progressive’s rates for rideshare endorsements are the most reasonable among the companies we reviewed.
Best for Lyft: Allstate
Allstate Auto Insurance
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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.
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Accident forgiveness
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Availability
Allstate is available in all 50 U.S. states and Washington, DC
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? With Allstate’s Ride For Hire endorsement, you only have to pay the deductible you chose for your car insurance, not Lyft’s $2,500 deductible.
Standout benefits: Allstate offers up to 25% off for bundling auto and homeowners insurance.
Best for food delivery drivers: State Farm
State Farm Auto Insurance
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Policy highlights
The largest auto insurer in the U.S., State Farm has an excellent reputation for customer satisfaction and affordable rates, even for teens.
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Discounts
More than a dozen discounts, including for safe driving, bundling and good students. Drive Safe & Save program offers up to 30% off for lower mileage and safe driving habits.
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Availability
State Farm liability car insurance is available nationwide except for Massachusetts and Rhode Island.
Pros
- High customer satisfaction ratings
- Available in most states
- Affordable rates for teen drivers
Cons
- 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 rideshare policy insures drivers for delivery apps like Uber Eats and DoorDash. It even offers a business-use notation option, which can be cheaper than a full rideshare 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
USAA Auto Insurance
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Policy highlights
Available to service members, veterans and their families. Add-ons include rideshare insurance, classic cars, roadside assistance, commercial auto and rental car reimbursement.
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Discounts
20% safe driver discount, 10% off for bundling auto and home/renters insurance, 10% discount when you enroll in SafePilot telematics program and up to 30% off at renewal.
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Usage-based insurance
SafePilot Miles saves low-mileage drivers almost 20%, with variable premiums based on mileage.
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Availability
USAA auto insurance is available in all 50 U.S. states and Washington, D.C.
Pros
- Cheapest insurer for liability policies
- Stellar customer satisfaction scores
- Available in all 50 states
Cons
- 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 rideshare endorsement for as little as $6 a month.
Standout benefits: USAA has generous discounts for military families, including for garaging on base or storing your vehicle when deployed.
What is rideshare insurance?
Your regular car insurance is not in force when you’re clocked on and working for a rideshare app like Lyft or Uber (also known as transportation network companies, or TNCs).
Rideshare 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 rideshare insurance endorsement on your personal policy bridges this gap and it can provide other benefits, like roadside assistance. It can also reimburse you for the difference between your regular deductible and the rideshare company’s $2,500 deductible.
Many leading car insurance companies offer rideshare insurance endorsements for an additional monthly fee. Not all do, however, and some don’t offer it in all the states they operate. Check with your insurer before you start driving for a rideshare company.
How much does rideshare insurance cost?
A rideshare insurance endorsement typically adds 10 to 15% to your premiums.
The amount you may pay, however, depends on the provider, your driving record, the type of vehicle you’re driving and where you live.
What does rideshare insurance cover?
A rideshare insurance endorsement fills the gap between your policy and anything offered by an app. To be fully protected both on and off the clock, you’ll need your own insurance, coverage from the rideshare company and some form of rideshare 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: Rideshare insurance endorsement
- You’ve accepted a far: App’s coverage applies
- Driving a customer: App’s coverage applies
Rideshare company coverage
Coverage with Uber and Lyft is in effect from the moment you accept a ride request to the moment you drop your passenger off.
| Scenario | Coverage in effect |
|---|---|
| App is turned off | Your personal auto insurance policy |
| Aapp 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 |
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 is typically $500.
Other rideshare apps have different policies: DoorDash provides third-party auto liability for Dashers that also only applies once you’re matched with a delivery.
More on the best rideshare insurance companies
Progressive
Availability: Auto insurance is available nationwide, with a rideshare endorsement is available in 40 states
J.D. Power’s customer satisfaction ranking: Below average
A.M. Best financial strength rating: A+ (Superior)
Allstate
Founded as Sears’ financial services wing in 1931, Allstate is now the fourth-largest auto insurer in the U.S., responsible for writing more than 10% of all premiums in 2024.
Availability: Allstate is available nationwide but rideshare endorsements are not available in New York.
J.D. Power customer satisfaction ranking: Above average
A.M. Best financial strength rating: A+ (Superior)
Mercury
Availability: Policies and rideshare endorsements are available in Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia
J.D. Power customer satisfaction ranking: Below average
A.M. Best Financial Strength Rating: A
State Farm
Availability: Auto insurance is available in 48 states and Washington, D.C.; Rideshare endorsements are available in 38 states.
J.D. Power customer satisfaction ranking: Above average
A.M. Best Financial Strength Rating: A++ (Superior)
USAA
Founded by a group of Army officers in 1922, USAA (the United Services Automobile Association) is a membership-driven insurance provider open to all active-duty military, veterans and their spouses and children. While USAA is not ranked in J.D. Power’s auto insurance studies, it has the highest score in every region.
Availability: Auto insurance is available in nationwide but rideshare endorsements are only available in 42 states.
J.D. Power customer satisfaction ranking: Not rated
A.M. Best financial strength rating: A++ (Superior)
Rideshare FAQs
Do I need rideshare insurance?
In most cases, your car insurance isn’t in effect when you’re working for a rideshare company — and the coverage offered by the app is only active when there’s a passenger in the car. Rideshare 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 rideshare coverage for just the times you work.
How much is rideshare insurance?
Rideshare insurance costs can vary, though an endorsement typically adds between 15% and 20% to your premium. Getting several quotes can give you a better idea of the best price.
Is rideshare insurance tax-deductible?
If you are a rideshare driver, you may be able to deduct the cost of rideshare insurance and gas used for transporting customers, as well as repairs, maintenance, depreciation and other work-related costs. Keep records and consult with a tax professional to see what expenses qualify.
Do I need to tell my car insurance company that I’m a rideshare driver?
Yes, you need to inform your insurance company that you’re driving for a ridesharing platform, or risk cancellation or non-renewal.
Does rideshare insurance apply to delivery services like Grubhub and DoorDash?
Yes, rideshare 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 rideshare insurance isn’t available in my state?
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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
We focused on an average annual premium for personal auto insurance policies from Bankrate, with limits that included:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
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.
Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
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