Mercury offers the cheapest car insurance for rideshare drivers, starting at just $0.90 a day. It covers damage to other vehicles and injuries up to your policy limits and may include coverage for car repairs, depending on your policy. Available in 11 states, Mercury provides reliable protection at a low cost.
Cheapest Rideshare Insurance for Drivers
Updated: February 12, 2025
Advertising & Editorial Disclosure
Key Takeaways
Progressive is the top choice for delivery service drivers. It allows adding rideshare coverage to a personal policy, ensuring coverage when delivering food. It's often cheaper than other rideshare policies.
Most standard policies exclude coverage for rideshare drivers. If you work for apps like Uber or Lyft, you need a specialized policy to stay covered while driving.
Rideshare companies typically provide some coverage during certain phases of the rideshare process. However, drivers need additional insurance for better financial protection after an accident.
Cheapest Rideshare Insurance
Insurance Company | Cost Estimate | Availability | Best For | Not Ideal For |
|---|---|---|---|---|
Mercury | As low as $0.90/day | 11 states | Drivers seeking an affordable policy | Drivers outside this insurer's coverage area or those seeking extra protection during Phases 2 and 3 |
USAA | As low as $6/month | 42 states | Military members, veterans and their families | Drivers who haven’t served in the military |
Travelers | Additional 15–20% to your current premium | Colorado and Illinois | Drivers in Colorado and Illinois | Drivers outside Colorado and Illinois |
State Farm | Varies as a coverage add-on | Most states | Drivers looking for robust coverage | Drivers looking for liability coverage during Phases 2 and 3 |
Progressive | Undisclosed | Most states | Delivery service drivers | Drivers outside the East Coast |
NJM | Undisclosed | Five states | East Coast drivers | Drivers who live outside these states |
Esurance | California, Illinois and New Jersey | Drivers who want a low deductible and to fill coverage gaps during all three phases | Drivers who want additional coverage in Phases 2 and 3 | |
American Family | Most states | Drivers interested in extending personal coverage |
Best Rideshare Insurance Companies
Rideshare car insurance is a newer type of auto coverage, and options can vary widely between insurers. Policies meet different needs, and the best choices often depend on your location.
Cheapest Rideshare Insurance Company: Mercury
Mercury
MoneyGeek Score:
83/ of 100
Overview
Mercury is a great choice for affordable rideshare insurance. It covers you and your vehicle when your ride-hailing app is on but no customer has been accepted yet. This helps fill insurance gaps, providing continuous coverage throughout the rideshare process.
Best Overall Rideshare Insurance Coverage: State Farm
State Farm
MoneyGeek Score:
88/ of 100
Overview
State Farm is the top choice for rideshare drivers seeking robust coverage. Its rideshare insurance ensures that medical, emergency roadside assistance and rental car reimbursement from your personal auto policy stay active while you're working for a ridesharing company.
The policy also applies your personal deductible, even when driving for a transportation network company (TNC). All coverages from your auto policy extend when the app is on and you're available for hire. After matching with or transporting a rider, all coverages remain active except for liability insurance.
Best Rideshare Insurance for East Coast Drivers: NJM
NJM Insurance Co
MoneyGeek Score:
90/ of 100
Overview
NJM offers a rideshare endorsement for East Coast drivers. This add-on bridges coverage gaps between a driver’s personal policy and the transportation network company’s (TNC) commercial insurance.
The endorsement covers liability, uninsured/underinsured motorist (UM/UIM), personal injury protection (PIP) and physical damage while a driver uses a rideshare app but hasn’t accepted a passenger.
NJM also provides limited coverage during passenger pick-up and trips. This includes PIP for the insured driver and reimbursement for the difference between the TNC's and NJM’s deductibles for physical damage after an accident.
Best Rideshare Insurance for Delivery Service Drivers: Progressive
Progressive
MoneyGeek Score:
86/ of 100
Overview
Progressive offers reliable coverage for delivery drivers who need insurance while working for companies like UberEats. Most personal auto policies exclude delivery work, but Progressive lets you add coverage to bridge the gap between your personal policy and the delivery company’s insurance.
This add-on provides flexible options, allowing drivers to customize their plans based on how often they drive during busy or slow seasons. It’s typically more affordable than other rideshare policies while ensuring delivery drivers have the necessary coverage.
Best Rideshare Insurance for Drivers in Colorado or Illinois: Travelers
Travelers
MoneyGeek Score:
88/ of 100
Overview
Travelers offers rideshare insurance for drivers in Colorado and Illinois. This endorsement, available only in these states, provides coverage when you activate your rideshare app but ends once you connect with a passenger.
Best Rideshare Insurance for Military Members, Veterans and Their Families: USAA
USAA
MoneyGeek Score:
93/ of 100
Overview
USAA offers rideshare insurance exclusively for veterans, active service members and their families. This coverage bridges the gap between turning on your rideshare app and accepting a ride. Existing USAA auto insurance customers can add this coverage for as low as $6 monthly.
Best Rideshare Insurance for Extending Personal Coverage: American Family
American Family Insurance
MoneyGeek Score:
90/ of 100
Overview
American Family offers the Rideshare Endorsement, an add-on that extends personal auto coverage to Phase 1 for rideshare drivers. This endorsement provides the same coverages as a personal policy, including bodily injury and property damage liability, collision, comprehensive, medical payments and personal injury protection (PIP).
Best Rideshare Insurance for a Low Deductible: Esurance
Esurance offers rideshare insurance through its SmartShare program, available only in California, Illinois and New Jersey. This policy eliminates coverage gaps between your personal policy and the rideshare app’s insurance. It includes collision and comprehensive coverage (if part of your personal policy), liability up to your policy limits and all other personal coverages. SmartShare also covers the difference between your Esurance and the rideshare company deductibles.
Esurance
- What it covers: Collision coverage, comprehensive coverage, liability coverage and other personal coverages
- What isn't covered: Undisclosed
- Availability: California, Illinois and New Jersey
- Cost estimate: Undisclosed
Rideshare Car Insurance: Buying Guide
Rideshare insurance fills the gap between personal and commercial coverage, providing essential protection for Uber or Lyft drivers. Use this guide to compare add-ons or dedicated policies from leading insurers. It covers coverage options, costs and location-based factors to help you find affordable, comprehensive protection.
How to Get Cheap Rideshare Insurance
Getting rideshare insurance is crucial for financially protecting yourself and your vehicle when driving for companies like Uber or Lyft. Here’s how to secure the right coverage:
- 1
Check your current policy
Review your personal auto insurance policy to confirm whether it covers rideshare activities. Most standard policies exclude coverage during commercial activities.
- 2
Contact your insurance provider
Ask your current insurer if it offers a rideshare endorsement. Adding it is often the simplest and most cost-effective solution.
- 3
Compare insurers
If your current insurer doesn’t offer rideshare insurance, research other providers. Companies like Progressive, State Farm and GEICO offer rideshare-specific coverage or endorsements.
- 4
Determine your coverage needs
Based on your driving frequency and vehicle value, decide whether you need liability coverage or additional protections like collision, comprehensive and gap insurance.
- 5
Apply and finalize
Complete the application process once you’ve selected a provider and coverage type. Ensure your policy covers all rideshare periods, from waiting for ride requests to transporting passengers.
Rideshare Car Insurance Discounts
Many insurers offer discounts to make rideshare insurance more affordable. These savings, often based on good driving habits, policy bundling or payment methods, help lower premiums while maintaining essential coverage. Common discounts include:
Safe driver discount
This discount rewards drivers with clean records, free of accidents or violations for a set period. Maintain good driving habits to qualify and keep your risk profile low.
Bundling discount
Combine rideshare insurance with other policies, such as home or renters insurance, to save on premiums. Most insurers offer discounts for bundling, making it a cost-effective option for multiple coverage needs.
Low-mileage discount
If you drive fewer miles when not working for a rideshare company, you may qualify for this discount. Insurers consider lower mileage as lower risk since you’re less likely to be involved in an accident. Provide your annual mileage to determine eligibility.
Pay-in-full discount
Save money by paying your premium upfront instead of in monthly installments. Insurers often offer lower rates for full payment, reducing administrative costs and ensuring payment.
Paperless discount
Opting for electronic billing and policy documents instead of paper mail can earn you a discount. This simple option also supports eco-friendly practices.
How Does Rideshare Insurance Work?
When driving for a transportation network company (TNC) like Uber or Lyft, the rideshare app’s commercial insurance activates once you accept a fare or transport a passenger. However, it provides limited coverage only when the app is on but no fare is accepted.
To clarify coverage periods, insurers divide the rideshare process into four periods or phases:
Phase | Description |
|---|---|
0 | Your app is off. Your personal auto insurance policy covers you. |
1 | Your app is on, and you’re waiting for a ride request. Your personal policy without rideshare coverage won’t cover any accidents that occur during this phase. Some TNCs provide liability-only coverage to their drivers. |
2 | You accepted a request and are en route to pick up a passenger or meal order. Most ridesharing and some delivery app companies offer coverage. |
3 | You have passengers or food in the car. All ridesharing and delivery apps offer coverage, but the extent of that coverage varies by company. |
Rideshare insurance covers accidents in phases that your TNC doesn't fully cover. It also helps fill gaps and reduces high deductibles associated with TNC-provided coverage.
What Does Rideshare Insurance Cover?
Rideshare insurance bridges the gap between your personal auto policy and the coverage provided by rideshare companies like Uber and Lyft. Here’s what it typically covers:
Liability
Covers bodily injuries or property damage you cause during an accident in Period 1 (app on, waiting for a ride request) if the rideshare company’s limited liability coverage falls short.
Collision and comprehensive
Covers damage to your vehicle caused by accidents, vandalism or natural disasters during Period 2 (driving to pick up a passenger) and Period 3 (transporting a passenger). Coverage applies only if you have collision and comprehensive coverage on your personal policy.
Uninsured/Underinsured motorist
Financially protects you and your passengers if an uninsured or underinsured driver causes an accident. While rideshare companies often provide this during Phases 2 and 3, it may not apply during Phase 1 without rideshare insurance.
Personal injury protection and medical payments
Cover medical expenses for you and your passengers, regardless of fault. These coverages vary by state and are often included in rideshare insurance or provided by the company for Phases 2 and 3.
Rideshare Company Coverage by Period
Rideshare insurance bridges coverage gaps, especially during Period 1, when personal and rideshare company insurance may fall short. Without it, drivers risk significant financial exposure for vehicle damage or liability claims.
Coverage Type | Period 1 (App On, No Ride) | Periods 2 and 3 (En Route/Passenger) |
|---|---|---|
Bodily injury liability | $50,000 per person/$100,000 per accident | Up to $1 million combined liability |
Property damage liability | $25,000 | Included in $1 million liability limit |
Collision/Comprehensive | None | $2,500 deductible (only if you have it on personal policy) |
Uninsured motorist | Varies by state | Varies by state |
Personal injury protection | Varies by state | Varies by state |
Medical payments | Varies by state | Varies by state |
Cheapest Rideshare Car Insurance Companies: Bottom Line
Whether you’re a full-time rideshare driver or considering it as a side hustle, understanding rideshare insurance is essential. Standard auto insurance typically doesn’t cover ridesharing, according to the Insurance Information Institute. Drivers need rideshare coverage as an add-on, a personal policy extension or a hybrid package.
Rideshare Car Insurance: FAQ
Below are answers to frequently asked questions about rideshare insurance to help you understand how it works and make choosing a provider easier:
Does my insurance cover rideshare?
Standard auto insurance policies typically don’t cover rideshare drivers. However, many insurers offer add-ons to bridge gaps between personal policies and the rideshare company’s coverage. These options provide additional protection while driving for a TNC.
What does rideshare insurance cover?
Rideshare insurance coverage varies by policy and insurer but often includes liability, UM/UIM, PIP, roadside assistance and rental car reimbursement during Phase 1 of TNC driving. Some policies extend coverage to Phases 2 and 3 and may include comprehensive and collision protection.
Why do I need rideshare insurance?
As a rideshare driver, your personal auto insurance usually doesn’t apply when driving for a TNC. This leaves you vulnerable to significant costs if an accident occurs. Rideshare insurance bridges the gap between your personal policy and the rideshare company’s coverage, ensuring continuous protection.
Best Rideshare Car Insurance: Our Review Methodology
MoneyGeek used data from trusted sources to explain how rideshare insurance works and identify the best options for various driver profiles. We strictly review our content to ensure it meets high editorial standards.
Our subject matter experts thoroughly vet recommendations to provide unbiased and reliable information and help you make informed financial decisions. Our editorial process ensures all information is accurate, valuable and easy to understand.
We rely on reputable sources, including government agencies, academic institutions and nonprofit organizations such as:
- AM Best
- J.D. Power
- National Association of Insurance Commissioners (NAIC)
- Quadrant Information Services
- State insurance departments
To explain rideshare insurance and choose the best options, we gathered data from the Insurance Information Institute and multiple insurance companies. We evaluated each provider based on coverage, affordability and availability.
Our editorial review board assesses and verifies the data's accuracy, quality and relevance. We also review our data regularly to keep it current and useful. MoneyGeek is dedicated to providing honest, insightful content to help you address your financial needs and plan for the future.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- Insurance Information Institute. "Ride-sharing and Insurance: Q&A." Accessed February 12, 2025.
- Mercury. "Rideshare Insurance." Accessed February 12, 2025.
- NJM. "Auto Insurance Endorsements." Accessed February 12, 2025.
- Progressive. "Rideshare Insurance." Accessed February 12, 2025.
- State Farm. "What Is Rideshare Coverage?." Accessed February 12, 2025.
- Travelers. "Car Insurance Coverage." Accessed February 12, 2025.
- Uber. "What rideshare and delivery drivers should know about coverage." Accessed February 12, 2025.
- USAA. "Rideshare Insurance." Accessed February 12, 2025.