Car insurance for rideshare drivers is tricky because your personal auto policy may not cover you the whole time you’re driving for Uber, Lyft, or a delivery app. Coverage can change depending on whether you’re waiting for a request, on the way to pick someone up, or actively driving a passenger.
To find the best insurance for rideshare drivers, Yahoo Finance analyzed 20 major insurers across rideshare availability, full coverage rates, discounts, coverage options, and protective add-ons like accident forgiveness and gap insurance. The companies below stood out for offering the right mix of affordable rideshare coverage and policy features that matter for gig drivers.
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American Family earned the top spot for best rideshare insurance because it offers rideshare drivers many affordable options. You’ll find 11 coverage options, including accident forgiveness, a diminishing deductible, new car replacement, and gap insurance. It also has some of the most affordable rideshare coverage. If you live in one of the states where it operates, it’s one of the best choices for part-time or full-time rideshare drivers who don’t want to overpay.
American Family also scored at the top of our analysis for the best car insurance overall.
American Family pros and cons
Pros
Cons
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Average cost for full coverage car insurance: $151
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Availability: Regional (Mostly the West and Midwest)
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Crash Network grade for claims handling: C+
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Coverage offerings: 11 options
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Available discounts: 17 types
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Digital experience score: 3.95 (out of 5)
Learn more: American Family auto insurance review
Farmers has some of the best insurance for Uber drivers and other gig workers. It boasts one of the broadest coverage menus in our study and has plenty of discounts to drive prices down. If you’re someone who prefers customizing limits, endorsements, and optional protections, Farmers auto insurance for rideshare will give you plenty of room to tailor coverage to your specific risk tolerance.
Farmers scored near the top of our analysis for the best car insurance for seniors.
Farmers pros and cons
Pros
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Car insurance rates are slightly below average
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Strong lineup of protective add-ons
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Broad range of available discounts
Cons
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Average cost for full coverage car insurance: $182
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Availability: Nationwide
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Crash Network grade for claims handling: C-
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Coverage offerings: 17 options
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Available discounts: 19 types
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Digital experience score: 4.75 (out of 5)
Learn more: Farmers auto insurance review
Allstate’s ridesharing insurance stands out for how much protection you can layer into the underlying policy. The company’s range of options includes every major add-on we scored (accident forgiveness, diminishing deductible, new-car replacement, and gap insurance), which can make a difference if you’re driving frequently for Uber or Lyft.
Allstate pros and cons
Pros
Cons
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Average cost for full coverage car insurance: $180
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Availability: Nationwide
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Crash Network grade for claims handling: D
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Coverage offerings: 15 options
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Available discounts: 11 types
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Digital experience score: 4.4 (out of 5)
Learn more: Allstate car insurance review
Travelers strikes a practical balance between price and protection, making it one of the best rideshare insurance companies. Travelers’ average premium is competitive, and it offers optional add-ons such as accident forgiveness, diminishing deductible, new-car replacement, and gap insurance, among others. Travelers delivers steady value for gig workers looking to manage costs.
Travelers also made our list of the best teen car insurance.
Travelers pros and cons
Pros
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Competitive full coverage rates
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Strong lineup of protective add-ons
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A decent number of discounts
Cons
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Average cost for full coverage car insurance: $183
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Availability: Nationwide
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Crash Network grade for claims handling: C
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Coverage offerings: 14 options
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Available discounts: 14 types
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Digital experience score: 4.65 (out of 5)
Learn more: Travelers car insurance review
Liberty Mutual is built for drivers who want options. It offers one of the largest coverage menus in our analysis and has tons of unique coverage add-ons like Mexico car insurance if you accept rides that will take you across the border, and better car replacement coverage that will replace your vehicle with one model year newer.
Liberty Mutual also ranked highly for best car insurance overall, according to our analysis.
Liberty Mutual pros and cons
Pros
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One of the largest coverage selections in our analysis
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Strong lineup of protective add-ons, including niche options
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Decent number of discounts
Cons
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Website doesn’t state if it covers food delivery drivers
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Higher full coverage rates than many competitors
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Below-average claims handling grade
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Average cost for full coverage car insurance: $216
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Availability: Nationwide
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Crash Network grade for claims handling: D+
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Coverage offerings: 19 options
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Available discounts: 13 types
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Digital experience score: 4.7 (out of 5)
Learn more: Liberty Mutual car insurance review
Progressive is a practical option for drivers who switch between Uber, Lyft, and delivery platforms like DoorDash or Uber Eats. In addition to offering a rideshare endorsement, it publicly states it will cover food delivery drivers during certain phases of app use — something not all insurers clarify.
Progressive pros and cons
Pros
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Covers food delivery drivers
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Wide range of coverage options
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Strong discount availability
Cons
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Average cost for full coverage car insurance: $205
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Availability: Nationwide
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Crash Network grade for claims handling: C
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Coverage offerings: 15 options
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Available discounts: 14 types
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Digital experience score: 4.6 (out of 5)
Learn more: Progressive auto insurance review
We evaluated 20 major insurance companies to determine which offered the best rideshare insurance coverage. The top spot went to American Family, which earned 5.0 stars (out of 5). Farmers followed closely behind with 4.9 stars. Allstate and Travelers tied at 4.7 stars, while Liberty Mutual and Progressive rounded out the top tier with 4.5-star ratings.
See how all 20 insurers in our analysis ranked for rideshare insurance below.
When you drive for Uber, Lyft, or a delivery app, your coverage changes depending on what “period” you’re in. Most personal auto policies won’t fully cover you once you turn your rideshare app on. And while Uber and Lyft provide some insurance, that coverage may have gaps when you’re waiting for a ride request.
Rideshare insurance (sometimes called a rideshare endorsement) fills those gaps. It typically extends your personal policy during Period 1 — when the app is on, but you haven’t accepted a ride yet. Without it, you could be left paying out of pocket if you get into an accident during that window.
Some policies also clarify whether food delivery drivers are covered the same way as passenger drivers. If you drive for multiple platforms or switch between rideshare and delivery apps, you’ll need to confirm exactly when your coverage applies and when it doesn’t.
Rideshare coverage fills an important gap, but it doesn’t replace your core policy. You’ll still need liability coverage (required in most states), plus collision and comprehensive if you want protection for your own vehicle.
Beyond your state’s minimum required car insurance, these add-ons could be helpful for rideshare drivers:
Learn more: Most common types of car insurance explained
Auto insurance costs vary by insurer, which makes comparison shopping especially important for rideshare drivers. Even if two companies both offer rideshare coverage, base rates can differ quite a bit.
Below is how full coverage rates stack up across the 20 companies in our best rideshare insurance study, according to data from the auto insurance marketplace Savvy Insurance Solutions.
Learn more: Cheapest full coverage car insurance
Rideshare coverage adds another layer to your policy, but your rate still comes down to the basics. Insurers use the same core pricing factors for gig drivers as they do for everyone else.
Here are the common factors car insurance providers use when calculating rates:
Learn more: Car insurance rates are climbing. Here are 4 reasons why and 11 ways to save.
Here are tips for finding the best rideshare insurance.
Start by confirming whether your current insurer even allows rideshare driving. If not, you’ll need to switch companies before adding an endorsement. Include collision and comprehensive coverage if you want protection for your car. And, consider add-on coverage options that could help you save in the long run, such as accident forgiveness. The more hours you spend driving, the more important it is to protect both your vehicle and your income.
Once you know what coverage you want, compare car insurance quotes from at least three companies that offer rideshare endorsements.
Look at:
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The total premium with the rideshare add-on included
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What period(s) of driving are covered
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Whether food delivery driving is included
Learn more: How much car insurance coverage do I need?
Some car insurance discounts include multi-policy discounts, safe-driver discounts, low-mileage programs, or usage-based programs. If you don’t drive much outside of rideshare work, ask whether a telematics or a pay-per-mile program could help reduce costs.
Learn more: Best car insurance discounts
Gig work can change quickly. If you start driving more hours, switch platforms, or buy a new vehicle, update your policy. Review your coverage at least once a year to make sure your rideshare endorsement and limits still fit your needs. You may also want to shop around again and switch car insurance companies if it makes sense for your finances.
Learn more: Does buying car insurance online save you money?
Many Uber and Lyft drivers carry a personal auto policy with a rideshare endorsement added. The endorsement extends coverage when the app is on, but you haven’t accepted a ride yet (also known as Period 1). Some drivers rely solely on Uber or Lyft’s insurance, but that coverage only applies during certain periods and could come with higher deductibles.
Generally, no. Since a rideshare endorsement is an add-on, you can expect your premium to increase because you’re purchasing more coverage. The cost of rideshare insurance varies by company, location, driving history, and how often you drive. Comparison shopping can make a meaningful difference.
Learn more: Cheapest car insurance for teen drivers
The best way to lower your rideshare insurance premium is to compare quotes from multiple insurers that offer a rideshare endorsement. Maintaining a clean driving record and choosing a higher deductible, when you can afford it, can also reduce your rate. You may qualify for additional savings through bundling, low-mileage, or usage-based programs.
Tim Manni edited this article.
To identify the best car insurance for rideshare drivers, Yahoo Finance evaluated 20 major auto insurers across price, rideshare availability, discounts, coverage flexibility, and protective add-ons. Each company was scored using a standardized rubric designed to reflect what matters most to gig drivers.
All factors were converted to a standardized point scale and combined into a composite score. Rideshare endorsement availability carried the greatest weight, followed by rate competitiveness, discount breadth, total coverage options, and high-value protective add-ons.
1. Rideshare coverage availability: 30% of score. Companies received full credit if they publicly offer a rideshare endorsement or equivalent coverage designed to fill Period 1 gaps. Insurers without a rideshare offering received zero points in this category.
2. Rate competitiveness: 20% of score. Average rate estimates were provided by Savvy Insurance Solutions (“Savvy”), which operates a nationwide insurance marketplace and licensed agency. Estimates are generated using Savvy’s in-house machine learning models based on more than 3 million data points across major insurers. For this analysis, rates were modeled using a standard “full coverage” profile. Full coverage car insurance includes liability insurance, any state-required coverage, plus collision and comprehensive coverage. Insurers with more competitive full coverage rates earned higher scores.
3. Protective add-ons: 20% of score. We awarded additional points to insurers that offer high-value features that can reduce financial risk for rideshare drivers, including accident forgiveness, diminishing deductibles, new car replacement, and gap insurance. Each available add-on contributed incremental points to the insurer’s total score.
4. Discount availability: 15% of score. We evaluated the total number of publicly listed auto insurance discounts. Companies offering a broader range of discounts earned higher scores.
5. Total coverage offerings: 15% of score. Insurers were scored based on the total number of coverage options available, including standard protections and optional endorsements. Companies with greater policy options earned more points.
Unless stated otherwise, the estimates above are provided by Savvy Insurance Solutions (“Savvy”). Savvy operates a marketplace for home and auto insurance, plus an agency licensed in all 50 states. Estimates are generated using Savvy’s in-house machine learning models based on over 3 million data points, and include more than 15 of the largest insurance companies in Savvy’s nationwide data set. This includes data from more than 2 million insurance accounts connected through Trellis Connect, an in-house technology allowing consumers to “link” their insurance accounts before searching for insurance, and tens of thousands of policies bound by Savvy’s own agents. It takes into account a myriad of factors to create predictions, such as:
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Policyholder age
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Number of vehicles
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ZIP code
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Vehicle age
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Insurer
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…and more
Savvy creates estimates by running models against multiple inputs to the parameters of interest. For instance, the “teen driver” estimates were created by adjusting the policyholder age input into the pricing model while keeping all other variables steady from the baseline for “full coverage.” The models enable hyper-personalized estimates that take into account a plethora of user attribute permutations (e.g., teen drivers in specific states, teen drivers with new vehicles, teen drivers in specific states with new vehicles) to provide individuals with a unique and tailored experience. The charts above are a subset of the kinds of personalization Savvy can do.
The following are definitions used by Savvy when providing its rate estimates for various types of coverage.
Full coverage car insurance: A policy with comprehensive, collision, and liability coverage.
Average policyholder: A 48-year-old driver who owns a 13-year-old vehicle and lives in an average-income ZIP code.
Senior driver: A 70-year-old policyholder with full coverage car insurance.
Good driver: Drivers across all coverage types, vehicle types, and locations who have no tickets, accidents or DUIs.
