Posted by Finding the best cheap rideshare insurance can be a daunting task, given that there are now so many insurers with extraordinary premium rates. This insurance is an important, though often overlooked, aspect of driving for companies like Uber and Lyft, which provides much-needed protection for both drivers and passengers.
The truth is that your car insurance policies generally won’t cover you while you’re driving for a rideshare service. Yes, some rideshare companies like Uber and the rest do provide insurance at certain stages of the trip, but that doesn’t compare to having your own coverage, as it would cover and protect you in more situations.
Some rideshare drivers do opt for normal commercial auto insurance, but that is usually more expensive. As a result, we have provided you with the cheapest rideshare insurance companies so that you can save more money while having quality coverage.
We’ll also cover some lesser-known facts about this type of insurance and share some tips on how to get the best coverage for your needs.
Let’s get started by breaking down what this insurance is all about.
What is Rideshare Insurance?
Rideshare insurance is a type of insurance designed specifically for rideshare drivers. It provides coverage when a driver is logged onto a rideshare app and is either waiting for a ride request or has accepted a ride request.
It usually covers third-party liability and uninsured or underinsured motorist protection, but it doesn’t cover damage to the driver’s vehicle.
According to NerdWallet, an insurance comparison platform in the US, the average cost of rideshare insurance in the U.S. is $50 per month. This cost also varies depending on the driver’s driving history, age, and other factors.
Benefits of Rideshare Insurance
Below are the benefits of rideshare insurance:
- Personal protection from liability
- Medical coverage
- Vehicle protection
- Lost income protection
- Peace of mind.
Personal Protection From Liability
Personal protection from liability is one of the main benefits of rideshare insurance. It covers you in case you’re sued for damages caused by an accident while you’re driving a rideshare.
Without this coverage, you could be personally liable for any costs associated with the accident, such as medical bills, property damage, legal fees, etc.
Having this protection can give you peace of mind and prevent you from facing significant financial hardship in the event of an accident.
Medical Coverage
This is another important benefit of rideshare insurance. It covers the medical costs of you and your passengers if you’re involved in an accident while driving for a rideshare company.
Without this coverage, you could be stuck with a large bill for medical expenses after an accident. Having this protection can help you get the care you need without worrying about how you’ll pay for it.
Vehicle Protection
This covers the costs of repairing or replacing your vehicle if it’s damaged in an accident while you’re driving.
Vehicle protection can also help cover costs like towing and rental car expenses if your vehicle is in the shop.
Lost Income Protection
This is a benefit of rideshare insurance that can be extremely valuable. This coverage provides reimbursement for lost wages if you’re unable to drive for a rideshare company due to an accident.
Without this coverage, you could be left without any income while you’re recovering from your injuries. But with it, you stay financially stable while you’re out of work.
It can also help you avoid the stress and anxiety that can come with not being able to work due to an accident.
Peace of Mind
Knowing that you’re protected in the event of an accident can give you a sense of security and confidence when you’re on the road.
You can focus on driving safely rather than worrying about what would happen if you were in an accident.
Having this peace of mind can make a big difference in your overall driving experience. It can also help you feel more comfortable taking on rideshare jobs, knowing that you’re protected in case something goes wrong.
Factors That Affect the Cost of Rideshare Insurance
Here are the factors that determine the cost of rideshare insurance:
Driving Record
One of the most important factors affecting the cost of your rideshare insurance policy is your driving record.
Drivers with a history of accidents or traffic violations will typically have higher rates than those with a clean record.
If you have any tickets or accidents on your record, it’s important to be honest with your insurance agent when getting a quote.
This way, you can get the most accurate estimate of your policy cost. In some cases, taking a defensive driving course or driver safety course can help you get a lower rate.
Age
Your age can also be a major factor in the cost of your rideshare insurance policy. Generally, younger drivers pay higher rates than older drivers.
This is because younger drivers are statistically more likely to be involved in accidents. As you get older and gain more experience on the road, your rates will typically go down.
However, some companies offer discounts for drivers who are over a certain age, so be sure to ask your agent about any available discounts.
Type of Vehicle
Certain types of vehicles, such as sports cars or luxury vehicles, typically have higher rates than more basic vehicles.
This is because these types of vehicles are more expensive to repair or replace if they are damaged in an accident.
If you drive a vehicle that is considered to be higher risk, you may need to pay more for your insurance.
On the other hand, some vehicles may qualify for discounts, so be sure to ask your agent about any available discounts.
Credit Score
Believe it or not, your credit score can also impact the cost of your rideshare insurance policy. Insurance companies often use credit scores to determine how likely you are to file a claim.
This is because research has shown that there is a correlation between credit scores and the likelihood of filing a claim.
However, if you have a low credit score, you may need to pay more. Be sure to check your credit report for any errors before you apply for insurance.
Location
Insurance companies consider the risk of accidents in different areas when setting rates. For example, drivers in areas with high rates of traffic accidents or car thefts may have higher rates than those in areas with lower rates of accidents or thefts.
You may also want to consider taking steps to reduce your risk, such as installing anti-theft devices or avoiding high-risk areas.
Deductible Amount
The deductible amount is another important factor in determining the cost of your rideshare insurance policy.
This is the amount you’ll need to pay out of pocket before your insurance kicks in. The higher your deductible, the lower your premium will be.
However, you’ll need to be able to pay the deductible if you have an accident. So, it’s important to choose a deductible amount that you can afford.
List of the 10 Best Cheap Rideshare Insurance
The following are the cheapest rideshare insurance firms:
- Allstate
- Geico
- Progressive
- State Farm
- USAA
- Mercury
- Liberty Mutual
- Nationwide
- Farmers
- Erie Insurance.
Overview of the Cheapest Rideshare Insurance Providers
1. Allstate
- Year Founded: 1931
- Average Monthly Premium: $15-$20
Pros
- Allstate’s policies are very affordable
- The company offers a variety of discounts, including multi-policy discounts
- Allstate has a good reputation for customer service
- The company’s mobile app is user-friendly.
Cons
- The company’s website can be difficult to navigate
- Allstate’s policies may not be available in all states
- The company has had some customer service issues in the past.
Description
Allstate is one of the largest providers of rideshare insurance in the world, as its policies cover both personal and business use and are packed with features that can help you save money, such as the company’s program, known as Your Choice Auto, which lets you customize your coverage to fit your specific needs.
It offers some of the most affordable rates for rideshare insurance, and, it’s a great option if you’re looking for the best combination of affordability and coverage.
2. Geico
- Year Founded: 1936
- Average Annual Premium: $6-$30
Pros
- Geico’s policies are very affordable
- The company offers a wide range of discounts, including multi-policy discounts and safe driving discounts
- Geico’s website is user-friendly and easy to navigate
- The company has a good reputation for customer service.
Cons
- Some customers have reported issues with claims processing.
Description
GEICO’s rideshare insurance policies are a good value for your money. The company’s premiums are often lower than those of its competitors, but its policies still offer all the coverage you need.
Its policies also come with some great extras, like a 24/7 emergency roadside assistance hotline, discounts for bundling your auto and home insurance policies, etc.
Are you looking for the best combination of affordability and coverage? then GEICO is a great choice for you.
3. Progressive
- Year Founded: 1937
- Average Annual Premium: $46
Pros
- The company has a user-friendly website and mobile app
- Progressive offers a variety of discounts, including multi-policy discounts and safe driving discounts
- Progressive has a good reputation for customer service
- The company’s claims process is generally smooth and efficient.
Cons
- Some customers have reported difficulty with the claims process
- There have been some complaints about the quality of customer service
- The company has had some issues with website outages in the past.
Description
The company offers policies in many countries and covers both personal and business use. The company offers a range of discounts, such as multi-policy discounts, safe driving discounts, good student discounts, etc.
Progressive’s policies also include gap coverage, which can be a lifesaver if you have a loan or lease on your vehicle.
And Progressive has a user-friendly app that makes managing your policy and filing a claim a breeze.
4. State Farm
- Year Founded: 1922
- Average Annual Premium: $50
Pros
- The company offers a wide range of discounts, including multi-policy discounts and safe driving discounts
- State Farm has a good reputation for customer service
- The company’s website is user-friendly and easy to navigate
- State Farm’s mobile app is easy to use.
Cons
- The company has had some issues with claims processing.
Description
State Farm’s rideshare insurance policies offer great value for your money. Compared to other top providers, State Farm’s premiums are very competitive, and the company’s customer service is second to none.
State Farm’s policies also come with all the features you need, including a user-friendly mobile app. So, if you’re looking for a reliable and affordable rideshare insurance policy, State Farm is a great option.
Plus, State Farm is known for its financial strength and stability, so you can be confident that your policy will be there for you when you need it.
5. USAA
- Year Founded: 1922
- Average Annual Premium: $70
Pros
- USAA’s policies are some of the most affordable on the market
- This company is known for its excellent customer service
- USAA’s mobile app is easy to use and has a lot of features.
Cons
- USAA is only available to current and former members of the military and their families
- The company’s policies may not be available in all states.
Description
USAA is a unique rideshare insurance provider because it’s only available to active and former members of the military and their families.
Its policies start at around $250 per year, and the company offers a variety of discounts, including multi-policy discounts and safe driving discounts.
USAA also has a great reputation for customer service, and its mobile app makes it easy to manage your policy on the go.
6. Mercury
- Year Founded: 1961
- Average Annual Premium: $86
Pros
- Mercury has a user-friendly website
- The company has a good reputation for customer service
- Mercury offers 24/7 claims service.
Cons
- The company has had some complaints about its claims process
- Mercury does not offer as many insurance products as some other companies.
Description
Mercury is a smaller, regional insurer that offers rideshare insurance in select states in the United States.
The company’s policies start at around $200 per year, and it offers a variety of discounts, including multi-policy discounts and safe driving discounts.
Mercury’s rideshare insurance policies are also available through a mobile app, which makes it easy to manage your policy on the go.
While Mercury doesn’t have the same name recognition as some of the other providers on this list, it’s worth considering if you’re looking for a good deal on rideshare insurance.
7. Liberty Mutual
- Year Founded: 1912
- Average Annual Premium: $40
Pros
- Liberty Mutual offers competitive rates for its policies
- The company’s website is user-friendly and has a lot of information
- Liberty Mutual’s mobile app is well-designed and easy to use
- The company offers 24/7 customer service.
Cons
- Liberty Mutual’s policies are not available in all states
- The company has had some complaints about its claims process
- Liberty Mutual’s website can be slow at times.
Description
Liberty Mutual is a solid choice for rideshare insurance because it offers competitive rates and a variety of discounts.
Plus, its policies come with several optional coverages, like roadside assistance and rental car reimbursement, that can be added on to give you extra protection.
And Liberty Mutual’s mobile app is very user-friendly, making it easy to manage your policy on the go.
8. Nationwide
- Year Founded: 1884
- Average Annual Premium: $15-$20
Pros
- The company’s website is easy to use and has a lot of information
- Nationwide’s mobile app is well-designed and user-friendly
- The company offers 24/7 customer service
- Nationwide’s claims process is smooth and efficient.
Cons
- The company’s customer service has been criticized by some users
- Nationwide’s website can be slow at times.
Description
When it comes to affordability, Nationwide is one of the most competitive options on the market. Its policies are very affordable, even without discounts.
And its optional coverages, like roadside assistance and rental car reimbursement, are very reasonably priced.
In addition to its affordability, Nationwide also offers some features that make it a good choice, such as a user-friendly mobile app and excellent customer service.
9. Farmers
- Year Founded: 1928
- Average Annual Premium: $27
Pros
- Farmers’ policies are very affordable
- The company offers a variety of discounts, including multi-policy discounts and safe driving discounts
- Farmers’ website is easy to navigate and has a lot of information
Cons
- Farmers’ policies are not available in all states in the United States
- Some users have reported issues with customer service.
Description
This is often considered one of the best options for rideshare insurance because it combines affordability and features.
It’s one of the more affordable options on the market, but it doesn’t sacrifice quality for a lower price. In addition to its competitive rates, Farmers offers a variety of optional coverages that can be customized to fit your needs.
10. Erie Insurance
- Year Founded: 1925
- Average Annual Premium: $6 to $25
Pros
- Erie Insurance has some of the lowest rates available for rideshare insurance
- The company’s website is easy to navigate and has a lot of information
- Erie’s mobile app is well-designed and user-friendly.
Cons
- The company does not have as many discounts as some other insurers.
Description
Erie is a regional insurer that offers rideshare insurance policies in 12 states in the United States. Its policies start at around $300 per year, and it offers a variety of discounts, including multi-policy discounts, safe driving discounts, and good student discounts.
Erie also has a good reputation for customer service, and its mobile app is easy to use. However, it’s worth noting that Erie is only available in a limited number of states, so it may not be an option for everyone.
How to Get the Best and Cheapest Rideshare Insurance
- Research your options
- Compare quotes
- Consider deductibles
- Bundle policies
- Review your policy regularly
- Drive safely
- Maintain a clean driving record
- Ask about discounts
- Choose the right company
- Understand your policy
- Ask questions.
FAQs on Best Cheap Rideshare Insurance
Do I need rideshare insurance?
Whether or not you need rideshare insurance depends on a few factors, such as your personal auto insurance policy and the TNC you drive for. In general, however, most TNCs require their drivers to have rideshare insurance or a similar type of commercial auto insurance. Even if it's not required, rideshare insurance can be a good idea for drivers who want to make sure they're fully covered while they're on the road.
Is rideshare insurance required by law?
The answer to this question depends on your state. Some states, like California and New York, have specific laws that require rideshare drivers to have rideshare insurance. Other states may not have specific laws, but the TNCs themselves may require drivers to have rideshare insurance to use their platforms. It's always a good idea to check with your state's insurance department or the TNC you're driving for to make sure you comply with all applicable laws and requirements.
How much does rideshare insurance cost?
The cost of rideshare insurance can vary depending on several factors, including your location, driving history, and the type of coverage you need. On average, you can expect to pay between $20 and $40 per month for rideshare insurance, but it's always a good idea to get a quote from a few different providers to find the best deal. Keep in mind that some providers may require you to have a minimum amount of personal auto insurance coverage to qualify for rideshare insurance.
How can I save on my rideshare insurance?
Shop around and compare quotes from different providers, make sure you're taking advantage of all available discounts, such as safe driver discounts or multi-policy discounts, maintain a clean driving record, drive carefully and avoid accidents, choose a vehicle that's less expensive to insure, such as a smaller car or an older model, limit the number of miles you drive for a TNC, talk to your insurance agent about your options, etc.
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Conclusion
Rideshare insurance can be an important consideration for drivers who use their vehicles for transportation network companies like Uber or Lyft.
It’s important to understand how it works, what it covers, and how much it costs before signing up. By shopping around and taking advantage of discounts, you can find a policy that fits your budget and provides the coverage you need.
It’s also important to be a safe and responsible driver to keep your premiums low.