Uber’s employer-provided car insurance offers liability coverage to drivers during certain phases of the rideshare process. But gaps can still occur in your coverage, making a rideshare policy a valuable asset. Rideshare insurance costs drivers an average of $30 per month and can provide essential protection during periods when company-provided insurance is thin.
How Uber’s car insurance works
When driving for a transportation network company (TNC) like Uber or Lyft, you’ll be protected by both the company’s car insurance and your personal policy. These two policies work in tandem with one another to ensure you’re covered throughout your shift.
Here’s a breakdown of how both your personal insurance and Uber’s car insurance will work during each phase of the rideshare process:
| Phase | What’s covered | What coverage is active | When it occurs |
|---|---|---|---|
| Phase 0 | Any time your rideshare app is off, but you’re using your car for personal reasons | Personal insurance | – Bodily injury (BIL) and property damage liability (PDL) up to your policy limits – Comprehensive and collision coverage up to your policy limits (if you own a full coverage option) |
| Phase 1 | Uber app is on, and you’re waiting for a request | Uber car insurance | – Minimal contingent liability coverage |
| Phase 2 + 3 | Accepting a ride request, until drop off | Uber car insurance | – $1M third-party liability – Uninsured/underinsured motorist bodily injury insurance – Contingent collision coverage and comprehensive coverage—up to the actual cash value (ACV) of the vehicle with a $2,500 deductible |
Phase 0
Phase 0 occurs any time your rideshare app is turned off and you’re in your car for personal use reasons. Your personal auto insurance policy will cover you at this stage with no additional protections from Uber’s insurance.
Phase 1
In this phase, the Uber app is on and you’re waiting for a ride request. You’ll have insurance via your personal car insurance and Uber, but coverage gaps are a big concern at this stage.
Uber only offers liability insurance during Phase 1, which includes:
- $50,000 in bodily injury liability per person
- $100,000 in bodily injury liability per accident
- $25,000 in property damage liability per accident
It’s important to note that this 50/100/25 liability coverage won’t pay for any of your medical expenses or property damages to your vehicle. After an at-fault accident during this stage, you’ll be fully responsible for covering your medical bills, property damage expenses, and any other bills or damages that surpass the company coverage limits.
Phases 2 and 3
Once you accept a ride request, Uber ups your coverage from when you’re en route to pick up your rider until you drop them off at their destination. This additional coverage includes:
- $1,000,000 third-party liability
- Uninsured/underinsured motorist bodily injury insurance
- Contingent collision coverage and comprehensive coverage—up to the actual cash value (ACV) of the vehicle with a $2,500 deductible
Depending on state laws, Uber may also provide drivers with other protections, such as personal injury protection (PIP) or medical payments (MedPay) insurance, at this stage of the rideshare process.
You will need more than Uber’s car insurance
While Uber provides extensive coverage for their drivers, there are still gaps that can appear when you’re transitioning between your personal policy in Phase 0 to when you’re waiting on a request in Phase 1. As a result, drivers should consider purchasing rideshare insurance.
Rideshare insurance offers additional insurance coverage during periods when rideshare drivers may not be protected by their company’s insurance policy. This type of coverage is most necessary when drivers are waiting for a ride request, as drivers experience limited coverage during this stage.
Rideshare coverage is often added to your existing car insurance policy, so contact your car insurance provider if you’re interested in adding it to your package.
How much does rideshare insurance cost?
Drivers can pay as little as $6 per month for rideshare insurance, but the average cost is closer to $30 per month. To find the best rideshare policy for you, it’s a good idea to shop around and compare rates using the Jerry app.
With Jerry, you can create a customized profile and then compare rates based on your individual driver needs and coverage requirements. The entire process from signup to a secured policy takes approximately one to two hours—but searching for quotes only takes minutes.
Learn more: How to shop for car insurance like a pro
The best companies for rideshare insurance
Several auto insurance companies offer rideshare insurance, including Allstate, State Farm, and Progressive. Take a look at the different programs available with each provider, and how they can service you while you’re on the clock.
| Insurance company | Type of program | Location restrictions |
|---|---|---|
| GEICO | Hybrid rideshare insurance policy that works in tandem with your personal car insurance policy. | Not available in AK, GA, HI, KY, MI, NC, NJ, NY, TX, or UT |
| State Farm | Add-on policy option for existing policyholders. | Not available in AK, HI, IL, MA, NY, RI, or SD |
| Allstate | Ride-for-Hire package that covers the $2,500 deductible | Not available in FL, MI, or NY |
| Progressive | Customizable rideshare insurance package. Current Progressive policyholders must purchase it if they work for Uber. | Not available in AL, AR, AZ, CO, CT, DC, FL, GA, IA, ID, IL, IN, KY, LA, MA, ME, MI, MN, MO, MS, ND, NE, NM, OH, OK, PA, RI, SD, TN, TX, UT, VA, WA, WI, WV, or WY |
| Travelers | Does not offer deductibles for gap coverage—policyholders will need to pay the Uber deductible if involved in a crash. | Only available in CO and IL |
| USAA | Can cost as low as $6/month. Does not offer gap coverage deductible. | Not available in NC, MI, MT, NM, NY, SC, or VA. |
Learn more: The best car insurance companies of 2023
FAQ
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Does your personal insurance cover you when driving for Uber?
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Do you need rideshare insurance in California?
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Uber and Lyft drivers need extra car insurance?
Liz Jenson is an insurance writer who specializes in general automotive and insurance topics. Liz’s mission is to produce informative and useful content to help car owners make smart choices when buying cars and car insurance. Since joining Jerry in 2021, Liz has written nearly 4,000 long- and short-form articles on topics including state-specific insurance recommendations, common car insurance questions, and deep dives into vehicle model details. Before they came to Jerry, Liz was a full-time student at Indiana University, Bloomington working on a double major in English and French.
Kianna Walpole is an insurance writer and editor with a comprehensive background in consumer behavior and online publishing. With experience in car insurance, maintenance, and repair, she is dedicated to building informative content that helps customers reduce costs while achieving the best service. Prior to joining the Jerry editorial team, Kianna worked as a junior editor in the content marketing industry, using consumer data and key insights to create and edit content for an array of large-scale clients in the real estate, cybersecurity, and healthcare industries.
