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Does State Farm have rideshare insurance?
Yes, State Farm offers rideshare insurance as an endorsement on an existing personal policy.
Purchasing rideshare insurance from State Farm will add about 15% to 20% to your existing State Farm policy, depending on the coverage you already have, any discounts you’re eligible for, and other relevant factors.
It extends the coverage you already have while you’re working for a rideshare app. It also provides more coverage on top of the coverage maintained on your behalf by the Transportation Network Company (TNC) you work for.
State Farm’s rideshare insurance extends coverage that pays for damage to your car, such as
coverage while you’re available for hire. Once you match with a passenger,this coverage no longer applies, and your TNC insurance coverage kicks in instead.
What to do if you have State Farm insurance and drive for a rideshare app
If you drive for a rideshare app and have an insurance policy with State Farm, you should add State Farm’s rideshare insurance coverage to your policy immediately. This add-on is designed specifically to cover damages that occur while you’re driving for a rideshare company, so it’s highly likely that State Farm will not cover any damage incurred by you while working without this endorsement.
Uber and Lyft’s commercial auto insurance policies include up to $1 million in
. That coverage is only applicable when a passenger is in your car. Plus, it has a very high deductible ($1,000 for Uber drivers and $2,500 for Lyft drivers).
While State Farm’s rideshare insurance doesn’t cover bodily injury when passengers are in the car, you’ll be left without any insurance while your rideshare app is on without purchasing this endorsement. TNC coverage only kicks in when a passenger is in your car.
Neglecting to cover yourself and your vehicle while you’re waiting for passengers comes with significant financial and legal snafus, such as massive out-of-pocket costs, potential policy cancellation, and sky-high premiums in the future.
State Farm ranks as one of the best rideshare insurance coverage providers out there, but there are other options if you don’t currently hold a policy with State Farm. Other than State Farm, the following providers are the best options available for Uber and Lyft drivers right now:
If you purchase rideshare coverage from any of these providers, it will be in the form of an endorsement, or an add-on, to your existing personal insurance policy. Coverage levels and costs vary depending on your provider, but each rideshare endorsement usually includes basic liability coverage in addition to collision and comprehensive options.
You’ll have to pay more for your rideshare insurance-endorsed policy than your standard coverage. You may only end up paying as little as $20 per year—or your endorsement could cost you an extra $300 per year.
Compare insurance rates and types of coverage from at least three to five companies to find the best rideshare insurance coverage for you. If possible, speak with an insurance agent from each company to get a better idea of the coverage it provides and how this endorsement will affect your current rate.
Should I tell my car insurance company that I drive for Uber?
If you drive for Uber, you should always tell your car insurance company. We understand worries about your insurance rate inflating after your provider finds out about your new rideshare job. However, the consequences of withholding this information could be devastating.
It’s true that your premium will go up once your insurance company knows that you drive for a rideshare service. This is because driving for these services puts extra mileage on your car, exposing you and your vehicle to an increased risk of collisions.
But on the other hand, not disclosing that you work for a rideshare company could lead to paying out of pocket for damages, cancellation of your policy, and even charges for driving uninsured, which comes with serious penalties in almost every state.
When it comes down to it, it’s always a bad idea to keep your rideshare driving a secret from your insurance company. Instead, explore your rideshare insurance options before you start driving for a company to make sure you’re always adequately covered.
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