The Best Rideshare Insurance for 2025
Find out what rideshare insurance covers, when you need it, and where to find it.
Written by
Ann Herro has been writing about insurance and employee benefits for over 15 years. She has covered topics as easy as insuring a car, and as difficult as transparency in healthcare costs.
Reviewed by
Cara Carlone is a licensed P&C agent with 20 years of experience. She has her P&C license in RI and TX and holds CPCU, API, and AINS designations.
You’ve decided to transform your car into your own personal taxi service, which means transporting lots of people to different locations. Whether you work for Uber, Lyft, or another rideshare service, you’ll need a special kind of car insurance coverage to protect you and your passengers. Rideshare insurance is key to helping your business run smoothly.
An independent insurance agent can help you get the right rideshare coverage for your needs. They'll equip you with coverage long before it's time to use it. But first, let’s start with an overview of rideshare insurance and what it's all about.
What Is Rideshare Insurance?
Rideshare insurance, or ridesharing insurance, is a special type of car insurance designed to cover drivers who share their personal vehicles with riders as a paid service. Personal auto insurance policies won't cover drivers who transport paying passengers. Rideshare drivers must have insurance to protect themselves, their vehicles, and their riders.
Once you activate your rideshare app, you also activate an exclusion in your personal auto policy that stops covering you since you're now operating your vehicle for business purposes. Rideshare insurance is a hybrid policy designed to fill in the gaps between your personal auto insurance and the coverage provided by your rideshare employer, like Uber or Lyft.
Do I Need Rideshare Insurance?
Most personal car insurance policies exclude coverage when you drive for business purposes. You need rideshare insurance any time you use your car for business purposes, including when you drive your car to earn money.
Not only will your insurance company not cover you for accidents that happen while you're using your car for business purposes, but it might also cancel your policy if it finds out you haven't disclosed your ridesharing job.
Companies like Uber and Lyft do provide some coverage for their drivers, but it's limited to when you are actively driving a passenger, with some minimal coverage when you're between rides.
The gaps in your coverage leave you exposed to major costs if you're involved in an accident when your coverage is in question. Rideshare coverage helps you fill the gaps.
What Does Rideshare Insurance Cover?
Ridesharing car insurance operates differently during each phase of a rideshare experience. These phases are referred to as “periods,” each associated with its own level of coverage through your personal auto insurance policy, your rideshare policy, or the rideshare company’s coverage.
Before you activate the rideshare app and start looking for customers, or while you're simply driving for personal purposes, your personal auto insurance policy covers you completely. While you’re on the job, rideshare coverage periods are defined as follows:
- Period 0: The rideshare app is off, and you're driving for personal reasons.
- Period 1: The rideshare app is on, and you’re driving around, waiting for someone to request you.
- Period 2: You’ve received a ride request notification and are en route to pick up your paying passenger.
- Period 3: The rider is in your car, and you’re transporting them to their destination.
Here’s the breakdown of what your coverage looks like for each rideshare period:
- Period 0: Your personal auto policy fully covers you while the rideshare app is off.
- Period 1: You have the rideshare app on, so your personal auto insurance policy no longer covers you. At this time, Uber and Lyft limit their coverage to liability only. If you get into an accident during this phase, your rideshare policy will fill in the gap between your personal auto policy and the rideshare employer’s coverage. While your rideshare employer would cover damage or injuries you cause to someone else, your rideshare insurance covers things like your own property damage, vehicle repairs, and medical expenses if you get injured.
- Period 2: You've got a ride request and are headed to pick up your rider. The rideshare employer's policy fully covers you (e.g., they provide liability coverage as well as things like comprehensive and collision coverage, which pay for damage to your own car).
- Period 3: Your rider is in your car, and you're headed to their final destination. The rideshare employer's policy fully covers you.
The coverage provided by rideshare employers Uber and Lyft is very similar, and both require you to pay a $2,500 deductible before their comprehensive or collision coverage kicks in. An independent insurance agent can further explain how rideshare insurance covers you and when you need it.
How Much Does Ridesharing Insurance Cost?
The cost of ridesharing insurance depends heavily on the insurance provider. Some policies offer rideshare coverage for $15 per month, while others offer comparable coverage for as low as $15 per year. Other carriers, however, charge a percentage (e.g., 15% to 20%) of your personal auto policy’s premium for added rideshare coverage.
Ridesharing insurance costs depend on the following factors:
- The value of your car: More expensive vehicles tend to cost more to repair or replace, so rideshare coverage is often pricier for them.
- Your driving record: If you have a history of accidents or traffic violations, you're likely to pay much more for your rideshare coverage, similar to regular auto insurance.
- Your location: Your location also influences the cost of your rideshare insurance based on factors like crime rates and more.
An independent insurance agent can help you find rideshare insurance quotes for your area.
Find Commercial Auto Insurance
Our independent agents shop around to find you the best coverage.
What Are the Best Rideshare Insurance Companies in 2025?
While rideshare insurance is not offered by every insurance company, it is offered by many top carriers. Here are a few of our top picks for rideshare insurance:
| Top Ridesharing Insurance Company | Company Rating |
| Progressive |
|
| Nationwide |
|
| Travelers |
|
| USAA |
|
| Allstate |
|
An independent insurance agent can help you find a rideshare insurance policy from one of these major carriers or a different provider that best meets your needs.
Best Overall Rideshare Insurance Company: USAA
USAA has long had a reputation for customer satisfaction and consistently excellent claims handling. The carrier's ridesharing insurance offers comprehensive coverage for Lyft drivers, Uber drivers, and drivers who work for app-based delivery companies (e.g., DoorDash).
Pros and Cons:
| Pros: | Cons: | ||||
|---|---|---|---|---|---|
|
|
||||
|
|
||||
|
|||||
|
|||||
|
Best Rideshare Insurance Company for Coverage Options: Progressive
Progressive allows existing customers with car insurance policies to add rideshare endorsements. Customers can then keep their Progressive car insurance's perks, like rental car reimbursement coverage, while they're on the clock driving for Lyft or Uber. Progressive also has consistently excellent customer feedback and financial strength ratings.
Pros and Cons:
| Pros: | Cons: | ||||
|---|---|---|---|---|---|
|
|
||||
|
|
||||
|
|
||||
|
Best Rideshare Insurance Company for Claims Processing: Travelers
Travelers has consistently excellent customer feedback for its ridesharing insurance. The carrier maintains outstanding claims processing satisfaction ratings as well. Travelers is also chosen by many drivers thanks to its many endorsement and discount options for car insurance overall.
Pros and Cons:
| Pros: | Cons: | ||||
|---|---|---|---|---|---|
|
|
||||
|
|
||||
|
Best Rideshare Insurance Company for Coverage Territory: Allstate
Allstate's ridesharing insurance offers the benefit of deductible gap coverage. Thanks to this, Lyft drivers don't have to pay the company's standard $2,500 all on their own if they have to file a claim. But another huge perk of Allstate's ridesharing insurance is that it's available in many states where other carriers don't offer coverage.
Pros and Cons:
| Pros: | Cons: | ||||
|---|---|---|---|---|---|
|
|
||||
|
|||||
|
Best Rideshare Insurance Company for Mobile App Users: Nationwide
Though rideshare drivers use mobile apps while driving customers to and from their destinations, they also may want to use their insurance company's mobile app to pay bills, file claims, check a claim's status, etc. Not only is Nationwide consistently ranked as excellent in terms of customer service and claims handling, but the carrier also offers a highly user-friendly mobile app for customers to pay bills, file claims, and more.
Pros and Cons:
| Pros: | Cons: | ||||
|---|---|---|---|---|---|
|
|
||||
|
|||||
|
|||||
|
How We Chose Our Top Picks
We reviewed about a dozen ridesharing car insurance companies before ultimately selecting a handful of only the best to recommend to you. We reviewed several factors for each company, including:
- Customer service ratings
- Claims satisfaction ratings
- Better Business Bureau ratings
- AM Best financial strength ratings
- Coverage territory
- Premium rates
- Coverage options
- Discounts and endorsements available
Though we found these companies to be the best, they may not be right for you. Working with an independent insurance agent can help ensure you get matched to the right ridesharing insurance coverage for your needs.
Find Commercial Auto Insurance
Our independent agents shop around to find you the best coverage.
Why Choose an Independent Insurance Agent to Help You Find Rideshare Insurance?
Independent insurance agents simplify the process by shopping and comparing car insurance quotes for you. Not only that, but they’ll also cut the jargon and clarify the fine print so you know exactly what you’re getting.
Independent insurance agents also have access to multiple insurance companies, ultimately finding the best rideshare insurance coverage, accessibility, and competitive pricing while working for you.
https://www.iii.org/article/ride-sharing-and-insurance-qa/
https://www.nerdwallet.com/article/insurance/rideshare-insurance