Uber Insurance: How It Works, What It Costs, & Where to Buy

You may wonder if you need special insurance to drive for Uber, Uber Eats, or Lyft.

Uber and Uber Eats give their drivers some insurance, but it may not be enough insurance coverage to cover you if you’re in an accident.

We’ll explain whether you need more insurance to drive for Uber and Uber Eats.

We’ll also answer other questions about working for these companies. Read on to find out more.

Do You Need Insurance to Drive For Uber?

Besides needing a standard car insurance policy, the short answer is yes. In fact, when signing up for Uber, you will be required to provide proof of your auto insurance.

But, you will need additional coverage as you will be in the same bracket as other commercial vehicles.  

You will need a specific policy to work as a part-time Uber or Lyft driver.

When you use your car for work, most insurance companies add an endorsement to your policy.

Do You Need Insurance To Deliver For Uber Eats?

Definitely. Uber Eats asks that drivers have commercial auto insurance if they have an accident.

Not all drivers may like what Uber Eats coverage offers, so you might want to shop around to find coverage that suits your needs.

Drivers should consider purchasing commercial auto insurance to meet Uber Eats vehicle requirements.

Does Your Regular Car Insurance Cover Uber?

No, your regular car insurance only covers the personal use of your vehicle. To work legally as a commercial driver, you’ll require additional coverage.

This can be provided by Uber, or be obtained as part of your insurance.

You should also tell your insurance that you’re working for Uber because your personal auto policy may need a rideshare endorsement if you’re a driver for a rideshare company.

Does Uber Provide Insurance?

Uber provides its rideshare drivers with some degree of insurance.

However, the level of coverage differs depending on the driver’s status.

Uber provides the following protection on your behalf if you are waiting for a ride request or are available:

• $50,000 of personal injury coverage per person
• $100,000 of personal injury coverage per accident
• $25,000 of material damage coverage per accident

When you’re en route to pick up a rider or on a trip, Uber maintains the following:

• Liability coverage of $1,000,000 to third parties
• Coverage for bodily injury caused by an uninsured or underinsured motorist
• Comprehensive and collision coverage that covers the car’s value (along with a $1,000 deductible)

Uber’s commercial insurance policy covers the driver’s responsibility to riders.

Suppose another motorist causes the accident but doesn’t have enough insurance.

If you have collision and comprehensive coverage on your vehicle, Uber’s policy covers injuries anyone in the rideshare vehicle sustains.

Uber’s insurance policy also covers physical damage during trips, subject to a deductible.

Uber provides an optional liability policy that meets or exceeds every state’s requirements even while drivers wait for a trip.

Does Uber Pay For Insurance?

Uber pays for the insurance mentioned above while the driver works.

But, they don’t pay drivers any extra rideshare insurance if they decide to take out one on their own.

Best Insurance Companies for Rideshare Drivers

You may already have existing personal car insurance.

However, it doesn’t hurt to look at alternative policies to get the best deal for you.

Here are some of the best insurance companies for rideshare drivers.

1. USAA

USAA Ridesharing Gap coverage covers you when you sign in to your ridesharing app, and you’re waiting for a passenger.

It roughly corresponds to a trip’s “available” and “en route” stages.

Their policies cost as little as $6 extra per month on their existing auto insurance premium.

This coverage is only available to current military service members, veterans, and families.

2. Mercury

Mercury’s insurance coverage fills liability coverage gaps and gives premium rideshare insurance coverage if there’s no transportation network company coverage available.

Let’s say an Uber driver is at fault for an accident.

If that happens, Mercury pays for property damage to the other vehicle, any injuries, and repairs the Uber driver’s car at one of their repair facilities.

3. Allstate

The Allstate Ride for Hire policy does not replace your current auto insurance policy.

This rideshare insurance policy adds gap coverage up to $2,5000 while driving for Uber or Lyft. It adds an extra $10 to $20 a month to your auto insurance policy.

4. Progressive

Progressive adds rideshare coverage to their rideshare driver customers’ auto insurance policies.

This protects them when they make themselves available for work.

If an accident happens while they’re waiting on a ride request, rideshare coverage protects the driver if they are liable for injuries or damages.

It also pays to repair or replace the driver’s damaged vehicle.

5. State Farm

State Farm’s Rideshare Driver coverage expands their customers’ auto insurance to all stages of their rideshare trips.

However, drivers will not have liability insurance coverage with State Farm during the “en route” or “on trip” stages.

The coverage adds 15 to 20 percent to their insurance bill.

6. Farmers

Farmers Rideshare coverage extends their customers’ personal auto insurance to cover them while working for Uber and Lyft.

It does not replace their personal auto insurance policy.

The cost varies depending on the insurance policy.

How Much Does Rideshare Insurance Cost?

Prices vary depending on the insurance company and even by state.

Let’s take a closer look at the specific price points of six rideshare insurance policies.

1. USAA

USAA auto insurance customers pay as little as $6 a month more to add coverage to their auto insurance policy.

2. Mercury

Customers will pay as little as $27 a month added to their current auto insurance.

3. Allstate

If you go with Allstate, expect an extra $10 to $20 per month to be added to your current personal auto insurance premium.

As well, they provide commercial insurance to Uber drivers in the following states:

• Illinois
• New Jersey
• New York
• Wisconsin
• Alaska
• Idaho
• Michigan
• Minnesota
• Montana
• New Mexico
• Nevada
• Oregon
• Utah
• Washington
• Wyoming

4. Progressive

Progressive provides rideshare coverage as an add-on to an existing auto insurance policy.

5. State Farm

Their Rideshare Driver coverage extends the driver’s auto insurance to all stages of their rideshare trips.

But, the liability coverage doesn’t carry over to the rideshare trips during the “en route” or “on trip” stages.

It’s only included during the “available” phase.

6. Farmers

Their coverage extends the driver’s policy to cover them while they’re working for Uber or Lyft.

Bear in mind that the cost does vary.

It’s added to the driver’s personal auto insurance premium with Farmer’s.

How to Sign up for Insurance

To sign up for rideshare insurance, go to the insurance company’s website.

You can also contact them at their 800 number to find out how much it would cost to add rideshare insurance.

• USAA – 800-531-8722
• Mercury – 800-503-3724
• Allstate – 800-255-7828
• Progressive – 800-776-4737
• State Farm – 800-782-8332
• Farmers – 888-327-6335

Final Thoughts

Now you know how Uber insurance works, what it covers, and who to contact for more information.

There are other companies you might consider, like American Family Insurance, if you don’t have coverage with any of the companies mentioned here.

When you’re deciding whether to purchase rideshare insurance, think about how much coverage you will need to meet your state’s minimum requirements while still keeping your insurance premiums low.

With the right coverage on hand, you’ll be able to start earning safely and securely.