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Millions of people drive for rideshare companies every day to supplement their existing income. For some, it’s a full-time job that keeps them on the road for over 10 hours a day. But, the moment rideshare workers leave home, they open themselves up to a sea of uncertainties. You can never predict an accident, and you run a much higher risk since you are behind the wheel so often.
When driving for a living, it’s imperative that you’re always prepared to handle the “what if something goes wrong” situations, especially if it’s your livelihood and safety at stake. Regardless of whether you work part time or full time for Uber, you should consider signing up for rideshare insurance.
Many personal auto insurance companies DO NOT provide property damage liability coverage or other insurance coverage for damages incurred in an accident while driving for Uber. With some insurance providers, you even stand the risk of losing your auto policy if you don’t disclose your gig as a rideshare driver to them.
If you have already started your search for the best insurance policy, you’ve likely come across one of the largest players in the game: Geico.
Since 1936, Geico has built their company into a global brand, and is known for affordable coverage for pretty much anything you’ll need to insure. So it makes sense that when rideshare drivers needed insurance, Geico stepped in to help.
But one of the most important questions for rideshare drivers to ask themselves when considering this company is:
“Does Geico offer gap insurance?”
Let’s take a look.
Does Geico Offer Gap Insurance?
As a Rideshare driver, generally, you most likely face a “gap” in coverage between your personal auto insurance and driving for business. This means that any damage resulting from an accident that occurred during the period when your rideshare app is switched on, even if you don’t have a passenger inside the car, won’t be covered by your personal auto policy. You will end up having to cover the full expenses out of pocket.
Geico does not offer gap insurance for Uber and Lyft drivers. However, they do offer their own “hybrid” auto policy which offers protection to rideshare drivers.
Marketed as “the affordable alternative that covers your vehicle for personal use, rideshare, and other on-demand services,” Geico’s rideshare insurance policy covers drivers through a wide variety of activities and periods.
How It Works
Geico’s rideshare insurance policy for rideshare drivers is a substitute for a personal vehicle policy. It provides both personal and rideshare coverage to the drivers. Regardless of whether or not you are logged into the rideshare app, have a passenger, or just are going out on your own, this policy will make sure you are covered.
Unlike other rideshare insurance policies that sometimes have limited coverage, this type of policy spans many different driver activities, whether personal or not. You don’t have to stress over who you are covered by every time you are about to drive. And you are not just limited to drive for one transportation network company (TNC).
Rather than building a policy to address only the “Insurance Gap,” Geico built a robust and flexible policy to offer more to drivers.
This policy is flexible, affordable, and falls in line with the convenient, great insurance options Geico customers have come to love.
Where Is Geico rideshare Insurance Available?
Geico is working around the clock to expand their hybrid coverage policy to as many states as possible. It’s currently available in the following states:
How Much Does Geico rideshare Insurance Cost?
According to popular insurance website Nerdwallet, a hybrid policy for Uber drivers through Geico costs around $150 per year. Taking a look at their comment section indicates it may be a bit more:
“This chart is bs nerdwallet. geico personal coverage for me is $886/year, ride-sharing is $2252/year.”
“Just purchased a car to use for rideshare. Geico insists on commercial insurance $4038/year. Not happy.”
Every case is different, and not all will apply to you specifically. The best way to check Geico rideshare insurance costs in your area is to phone your local agent, or (866) 509-9444, and ask.
Or, visit Geico’s rideshare insurance page. Fill out your basic information like your name and the rideshare companies you work for, and they will give you a quick quote online.
Does a Geico rideshare Insurance Policy Replace My Personal Policy?
According to the official FAQ page:
“Our rideshare Insurance policy is a hybrid policy and will replace your existing personal auto policy. Once you purchase our policy, you no longer need your personal auto policy.
“Note: If you have multiple vehicles, you will need to continue personal auto insurance on the vehicles not used for rideshare.”
The Downsides to Geico’s Gap Insurance Alternative
When talking about insurance policies, we need to also address the downsides.
- There is a restriction on the number of miles you can drive, which should be okay if you are a part-time driver. For full-time drivers, however, a standard commercial auto policy might be better suited.
- There is a restriction on the type of vehicle. They do not cover buses, large vans, or other high occupancy vehicles.
- If the policy isn’t offered in your state, you may have to opt for a more expensive commercial auto policy.
- The Geico rideshare policy only covers personal vehicles that are used to drive for companies like Uber, Lyft, Amazon Flex, etc. This means that taxis, limos, and other rented vehicles won’t be covered.
I won’t go into a lot of detail about all of these, as they relate to each driver differently for each state. If you’re getting a quote, ask your Geico insurance agent about how these will apply to you.
Geico rideshare Insurance FAQ
What is rideshare insurance?
rideshare insurance adds an extra layer of protection for Uber and Lyft drivers when waiting for, traveling to, or transporting riders.
There are many types of policies available, but a Geico rideshare insurance policy will replace a driver’s personal auto policy completely, and provide coverage when the driver is on and off the clock.
Can I drive for Uber with Geico Insurance?
Yes, you can drive for Uber with Geico insurance.
Most other insurance companies strictly forbid “drive for hire” activities like driving for Uber, but Geico’s hybrid insurance policy provides coverage while rideshare driving. You are not limited to just Uber. You can drive for multiple rideshare companies at the same time and still be covered.
Which car insurance companies cover Uber?
There are quite a few different companies that cover Uber drivers, and eligible coverage depends on which state you live in. The most popular insurance companies that cover Uber include:
- Erie Insurance
- State Farm
Who does Geico’s rideshare Insurance cover?
Along with you, this policy will cover any other family member in your household as long as they are driving the vehicle that’s registered on the policy.
For drivers asking, “Does Geico offer gap insurance,” the answer is no. However, what they do offer is a comprehensive policy that covers drivers not only when rideshare, but also in many other areas, including personal driving.
My thought is that if you’re going to pay for an auto insurance policy designed for rideshare driving alone, it should be cheap. However, if the company you choose marks these policies up a lot, then the policy coverage should expand into other areas, just like Geico has done with this policy.
If you’re shopping around for rideshare insurance, a Geico policy is definitely worth a look. If you already have Geico auto insurance, then the policy is an even more compelling option. We suggest speaking to a local Geico agent for insurance information relevant to your state and personal situation.
Do you have a Geico rideshare Insurance policy? What did you pay for yours? Would you recommend it to other drivers? Let us know in the comments below!
Brett Helling is the owner of Ridester.com. He has been a rideshare driver since early 2012, having completed hundreds of trips for companies including Uber, Lyft, and Postmates. In 2014 he acquired Ridester.com to share his experiences with other drivers. His insights are regularly quoted by publications such as Forbes, Vice, CNBC, and more. He is currently working on a book about working in the Gig Economy, expanding his skill set beyond the rideshare niche. Read more about Brett here.