Why does it cost more to add ridesharing coverage to my policy?

Why does ridesharing coverage cost so much more? I am adding ridesharing coverage to my policy and it's increasing my rate. I already have full coverage so it doesn't seem like it should cost me more.

Answer
“Even if you have full coverage on your current policy, adding any additional coverage will always increase your rate. This includes adding rideshare insurance.
Costs vary between car insurance companies as every carrier determines rates differently. Rideshare insurance often costs more on a policy because it is a specialized type of insurance.
Rideshare coverage is usually designed to provide coverage between your personal auto policy and the rideshare company’s insurance.
Bridging this gap can be expensive as it has to cover a variety of situations. Depending on your insurance carrier, you may need an entirely new policy for rideshare. This will also increase your rate.
If you’re unhappy with the current rate your carrier is offering, you should shop around. While not every carrier offers rideshare insurance, you should be able to find the best rate for you by comparing prices.”
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Emily Maracle
Answered on Jul 16, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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