If you drive for rideshare companies like Uber or Lyft, you need rideshare insurance to protect yourself from coverage gaps. A standard personal car insurance policy typically excludes business use, and rideshare companies generally only protect you when you have actively accepted a ride. Without rideshare insurance, you could be missing coverage while on the clock.
Jerry has helped 518 rideshare drivers find the right insurance coverage in the last year — and over 153,970 total drivers across all coverage types. Here’s everything you need to know about it, including its costs, why you need it and how to buy it.
Jerry pulls up to 20 quotes from top rated carriers.
What is rideshare insurance?
Rideshare insurance is a special type of car insurance for drivers who use their personal vehicle to give paid rides or make paid deliveries through an app like Uber, Lyft, DoorDash or Uber Eats. It can be added to your existing car insurance policy as an endorsement (an add-on rider changes what your policy covers), or you can buy it as a separate policy. Its job is to fill the gap between your personal auto insurance and the partial coverage your rideshare company provides.
Here’s an overview of how car insurance works during ridesharing.
Key takeaway: Without rideshare insurance, you’re exposed to significant financial risk when you’re logged into the app but haven’t accepted a ride yet.
Rideshare insurance costs
Jerry customers have purchased liability-only rideshare insurance for $121-$221 per month in the last year, but your exact cost depends on several factors.
Factors that affect rideshare insurance costs include:
🕐 Driving hours: More time on the road means higher premiums.
📍 Location: Urban areas typically have higher insurance costs than rural locations.
🚗 Driving record: Having a clean record typically means lower costs.
📊 Coverage limits: Higher liability limits increase costs but provide better protection.
🏢 Insurance company: Rates vary between providers for identical coverage.
Based on Jerry customers with clean driving records who found savings in the past 12 months. Savings depend on coverage and other factors. Potential savings will vary.
Jerry recommends: While rideshare insurance typically adds 36%-73% to your base premium, it’s far cheaper than paying to replace your car out of pocket. Use the Jerry app to compare policies with rideshare insurance to find the best protection.
Jerry finds you rideshare insurance, fast
Finding rideshare insurance doesn’t need to take hours of research and phone calls. Jerry compares quotes from over 100 insurance companies to find coverage that fits your specific rideshare needs in just a few minutes.
You can quickly compare quotes now from insurers that provide rideshare coverage and choose the best protection.
Find insurance in your state
Do you need rideshare insurance?
Short answer: Yes, if you drive for any rideshare or delivery app, even occasionally, you almost certainly need rideshare insurance. The Insurance Information Institute warns that personal auto policies are not designed, underwritten or priced for commercial driving. Most explicitly exclude “livery services,” which is the legal term for transporting people for pay.
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Your personal insurer can deny all claims once they discover you drive commercially.
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You’re responsible for damages to your car, and any costs that exceed your rideshare company’s reduced liability limits when the rideshare app is on, but no ride yet accepted.
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Your policy could be cancelled immediately, even for unrelated claims.
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You’ll be marked as high-risk, making future coverage more expensive.
Key takeaway: Even occasional rideshare driving requires proper coverage so you’re financially protected and don’t risk your insurer finding out and denying claims.
Learn more: How much car insurance do you need?
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FAQ
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Do I need rideshare insurance for food delivery?
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Can I add rideshare coverage to any insurance policy?
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How much more expensive is rideshare insurance?
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Does rideshare insurance cover passengers?
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Do I need rideshare insurance if I only drive occasionally?
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What is the difference between rideshare insurance and commercial auto insurance?
Methodology
Data included in this analysis comes from policies that Jerry has quoted within the last 6 months for drivers with a clean record and that have full coverage, unless stated otherwise. Data related to violations, accidents or credit scores pull from quote data from the last 18 months. Jerry services 48 states and offers a range of insurance companies to choose from. Read Jerry’s car insurance data methodology to learn more about how we collect, verify and share real-world insurance data.
Ben Moore is a writer and editor at Jerry and an auto insurance expert. He previously worked as a writer, editor and content strategist on NerdWallet’s auto insurance team for five years. His work has been published in The Associated Press, Washington Post, Chicago Sun-Times, MarketWatch, Nasdaq and Yahoo News. He also served as a NerdWallet spokesperson, with appearances on local broadcast television and quotes in Martha Stewart and Real Simple magazine.
Ben has an extensive background in digital marketing, working on affiliate and programmatic advertising campaigns for brands like Cabela’s, H&R Block and Sears. He holds a bachelors degree in marketing from Olivet Nazarene University.
