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 car coverage for your needs, including Uber insurance or Lyft insurance. They'll equip you with coverage long before you need it. But first, let’s start with an overview of rideshare insurance and what it's all about.
Key Takeaways - Rideshare Insurance in 2026
Rideshare insurance is designed to protect you against incidents that occur while you're using your personal vehicle for food or passenger delivery work.
Rideshare insurance is offered as an endorsement that can be added to a personal auto policy or as a standalone policy from certain carriers.
Many rideshare companies (e.g., Lyft and Uber) don't provide enough coverage to protect you during all stages of your shift.
USAA offers the cheapest rideshare endorsement this year, averaging just $52 per month.
Working with a local independent insurance agent is strongly recommended, as they can shop for and compare rideshare insurance quotes and coverage options to find the best rate and fit for you.
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. Ridesharing auto insurance is a hybrid policy designed to fill in the gaps between your personal auto insurance and the coverage provided by your rideshare employer, a transportation network company (TNC) like Uber or Lyft. A local independent insurance agent can help you find the right TNC insurance.
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. Personal auto policies typically exclude livery use of your vehicle, further creating the need for commercial rideshare insurance.
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 liability 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. Be sure to review the terms of your Uber or Lyft auto policy.
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.
How Rideshare Insurance Works: Periods 0, 1, 2, and 3 Explained
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 divided into 0, 1, 2, and 3. Here's how these coverage periods are defined and how your auto coverage works for each:
- Period 0: The rideshare app is off, and you're driving for personal reasons. Your personal auto policy fully covers you while the rideshare app is off.
- Period 1: The rideshare app is on, and you’re driving around, waiting for someone to request you. 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 received a ride request notification and are en route to pick up your paying passenger. 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: The rider is in your car, and you’re transporting them to their 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 deductible before their comprehensive or collision coverage kicks in. Uber's deductible is $1,000, while Lyft's deductible is $2,500. An independent insurance agent can further explain how rideshare gap insurance deductible coverage works and when you need it.
How Much Does Rideshare Insurance Cost in 2026?
The average cost of rideshare insurance per month ranges from $52 from Travelers to $251 from Amica. The cost of ridesharing insurance depends heavily on the insurance provider. In general, the average cost of a rideshare endorsement runs $10 to $30 per month. Some carriers, however, charge a percentage (e.g., 15% to 20%) of your personal auto policy’s premium for added rideshare coverage. The table below compares the cheapest rideshare insurance companies of 2026.
| Car Insurance Company | Average Monthly Cost of Rideshare Insurance |
|---|---|
| USAA | $52 |
| Erie | $70 |
| Allstate | $74 |
| American Family | $81 |
| Safeco | $84 |
| Progressive | $85 |
| Mercury | $92 |
| Travelers | $98 |
| Liberty Mutual | $131 |
| Amica | $251 |
Ridesharing insurance costs also 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.
Rideshare Insurance Requirements by State
Typically, rideshare insurance is required in the amount of $50,000 in bodily injury liability coverage per person, $100,000 in bodily injury liability coverage per accident, and $25,000 in property damage coverage per incident during Period 1, and $1 million during Periods 2 and 3. However, effective at the beginning of 2026, California's SB 371 reduced its uninsured motorist coverage requirements for TNC insurance. If you live in a high-volume state for rideshare drivers, such as California, New York, Texas, or Florida, ask your independent insurance agent about increasing your ridesharing coverage.
Rideshare Insurance for Delivery Drivers (DoorDash, Uber Eats, Instacart)
DoorDash and Uber Eats rideshare insurance coverage comes with concerning gaps that are important to be aware of. Uber Eats' and DoorDash's coverage typically only provides coverage during active deliveries, while Instacart doesn't provide coverage at all because its drivers are considered independent contractors. While a rideshare coverage endorsement covers most delivery use of your vehicle, a full commercial vehicle insurance policy might be required for high-mileage food delivery drivers and dashers.
What Are the Best Rideshare Insurance Companies in 2026?
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 | Average Monthly Endorsement: |
|---|---|---|
| Progressive |
| $85 |
| Nationwide |
| — |
| Travelers |
| $98 |
| USAA |
| $52 |
| Allstate |
| $74 |
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). USAA also offers the most affordable rideshare endorsement this year, averaging just $52 per month. However, coverage is strictly limited to military members and their families.
Pros and cons:
| Pros: | Cons: |
|---|---|
Available for Uber, Lyft, and app-based delivery company drivers
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Customers must either be active or retired military or have a family member in this category to be eligible for coverage
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Flexible deductible
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Flexible coverage limits
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Outstanding customer reviews and claims satisfaction ratings
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Affordable rates
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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. The average rideshare endorsement from Progressive averages $85 per month.
Pros and cons:
| Pros: | Cons: |
|---|---|
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Lets you add rideshare endorsements on to existing car insurance policy
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More expensive rates than other carriers
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Lets you keep Progressive car insurance benefits while working for ridesharing apps
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Poor Better Business Bureau (BBB) rating
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Wide coverage territory
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Offered to rideshare drivers and delivery drivers
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Best Rideshare Insurance Company for Claims Processing: Travelers
Travelers has consistently excellent customer feedback for its ridesharing insurance. The carrier also maintains outstanding satisfaction ratings for claims processing. Travelers is also chosen by many drivers thanks to its many endorsements and discount options for car insurance overall. A rideshare endorsement from Travelers averages $98 per month.
Pros and cons:
| Pros: | Cons: |
|---|---|
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Outstanding customer service ratings
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Coverage not available nationwide
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Outstanding claims satisfaction ratings
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Premium rates can be higher than other carriers
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Many discounts and endorsements available
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Best Rideshare Insurance Company for Coverage Territory: Allstate
Allstate's ridesharing insurance offers deductible gap coverage for its Ride for Hire customers. 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. A rideshare endorsement from Allstate costs an average of $74 per month.
Pros and cons:
| Pros: | Cons: |
|---|---|
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Coverage offered in most states
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Rideshare coverage only offered to existing Allstate auto insurance policyholders
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Affordable coverage rates
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Deductible gap insurance included
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Best Rideshare Insurance Company for Mobile App Users: Nationwide
Though rideshare drivers use mobile apps while driving customers to and from their destinations, they may also 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 highly for customer service and claims handling, but it also offers a highly user-friendly mobile app for customers to pay bills, file claims, and more.
Nationwide offers rideshare coverage as a standalone commercial policy in some states, so eligibility varies from the other carriers on our list.
Pros and cons:
| Pros: | Cons: |
|---|---|
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Outstanding customer service ratings
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Coverage is not available in a couple of states
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Outstanding financial strength rating from AM Best
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Outstanding BBB rating
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Mobile app offered for bill pay, claims filing, etc.
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How to Get Rideshare Insurance: Step by Step
Wondering how to add a rideshare endorsement to your policy? It's easy when you follow these five steps:
- Notify your current auto insurance carrier that you drive a rideshare vehicle.
- Request a quote for a rideshare endorsement, which typically must be done over the phone for most carriers.
- Compare multiple quotes for coverage, including your new rideshare endorsement rate.
- Ask your carrier about various car insurance discounts, including pay-in-full discounts to reduce your premium.
- Make sure your policy is up to date before your next rideshare shift.
A local independent insurance agent can help you shop and compare quotes for car insurance with a rideshare endorsement from multiple carriers near you to find the best deal.
How We Chose Our Top Picks
We reviewed about a dozen ridesharing car insurance companies before ultimately selecting a handful of the best to recommend to you. Rates listed were re-verified against 2026 data. 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.
FAQs About Rideshare Insurance
Does my personal car insurance cover Uber or Lyft driving?
No. Personal auto policies exclude commercial use, so your coverage no longer applies the moment you turn on the rideshare app. You'll need a rideshare endorsement added to your auto policy or a separate rideshare policy to fill the coverage gap.
How much does rideshare insurance cost per month in 2026?
A rideshare ensdorsement averages $10-$30 per month for most drivers. USAA's rideshare endorsements average $52 per month, Allstate's average $74, Progressive's average $85, and Travelers' average $98.
Do I need rideshare insurance for DoorDash, Uber Eats, or Instacart?
Yes, for Instacart, since the company doesn't provide any coverage for its drivers. DoorDash and Uber Eats provide coverage only during active deliveries, which leaves the same Period 1 gap in coverage as a rideshare driver. Having a rideshare or delivery-driver endorsement bridges this gap in coverage.
What deductibles do Uber and Lyft charge for rideshare claims?
Uber charges a $1,000 deductible during Periods 2 and 3 for comprehensive and collision claims. Lyft charges $2,500. Endorsements like Allstate Ride for Hire and Progressive Rideshare can reduce this gap.
Does rideshare insurance cover the Period 1 gap?
Yes. Period 1 (i.e., app on, no ride accepted) is the biggest coverage gap, where personal auto excludes you, and Uber and Lyft only offer 50/100/25 liability limits. A rideshare endorsement extends your personal collision, comprehensive, UM/UIM, and medical coverage into Period 1.
Can I buy rideshare insurance without an existing auto policy?
It depends. Most carriers, including Progressive, Allstate, and USAA, only sell rideshare coverage as an endorsement that can be added to an existing personal auto policy. However, a couple of others, such as Nationwide, sell standalone commercial rideshare policies. An independent insurance agent can help you determine the best option for you.
Is rideshare insurance required by law?
Yes, all states require TNC drivers to have at least minimum rideshare coverage, which is typically 50/100/25 during Period 1 and $1 million during Periods 2 and 3. The TNC you drive for provides part of this coverage, but you must carry your own rideshare endorsement or separate policy to cover the rest.
Why Choose an Independent Agent for Rideshare Insurance?
Independent insurance agents simplify the process by shopping and comparing car insurance quotes for you. They can help you find the best rideshare endorsements, standalone rideshare insurance, or commercial auto coverage for your delivery vehicle.
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.
Sources
https://www.compare.com/auto-insurance/resources/coverage/rideshare-insurance
https://content.naic.org/insurance-topics/commercial-ride-sharing
https://www.iii.org/article/ride-sharing-and-insurance-qa/
https://www.nerdwallet.com/article/insurance/rideshare-insurance