Extra driving means an increased risk of accident, whether you give rides to passengers or deliver to people’s doors. Your personal insurance won’t cover your driving, so you’ll need more insurance to compensate.
Many rideshare and delivery services have insurance for their drivers. However, they may not have sufficient coverage for every driver.
Fortunately, many insurance providers have addressed the exploding gig economy’s needs by offering rideshare policies, endorsements, and riders. Although “rideshare” is in the name, these types of policies cover delivery drivers, too.
Consider the following companies if you’re looking to take out a rideshare insurance policy.
Geico’s rideshare insurance is a hybrid policy, meaning it replaces your current personal policy to cover you while not working, but it also covers you while you’re on the clock.
It covers all stages of rideshare trips, and it even covers your rideshare passengers.
Geico’s rideshare policy is available in every state except for Alaska, Georgia, Kentucky, Michigan, Nevada, New Jersey, New York, North Carolina, Texas, and Utah.
2. State Farm
State Farm’s Rideshare Driver add-on extends your personal insurance coverage to all of your rideshare driving for an additional 15-20% of your personal premium. However, liability coverage only applies to the “available” phase, or when you’re waiting for a request.
Once you’re en route or driving a passenger, your liability coverage is limited to your personal policy’s limits. State Farm’s policy still covers the following while en route or on trip:
- Damage to your vehicle
- Emergency road service
- Medical coverage
- Rental reimbursement
- Uninsured/underinsured driver
Allstate’s Ride For Hire offers deductible gap coverage in case of an accident, meaning it will help cover the difference between your insurance’s deductible and your rideshare company’s deductible.
One caveat: this is an add-on to Allstate insurance policies. You have to have an Allstate personal policy to get this add-on.
Still, this add-on’s low premiums may be worth it to rideshare/delivery drivers with Allstate.
USAA’s Ridesharing Gap Coverage costs as little as $6 a month as an add-on to your current USAA persona policy. It covers you while you’re waiting for requests with the app open.
USAA’s rideshare coverage is only available to military members, veterans, and their families at this time.
Farmer’s rideshare coverage — called Farmer’s Rideshare — is an endorsement you can add to your personal Farmer’s policy. It covers you during the “available” stage of driving, but not while in transit to or with a passenger.
Additionally, Farmer’s provides commercial insurance to drivers in several states through their partnership with Uber. This policy combines business and personal coverage.
Safeco rideshare coverage — which is an endorsement for your current personal Safeco policy — can be had for around $10 a month and is currently available in 14 states. It extends your coverage to the “available” phase of driving.
With rates starting under $10 a month, Mercury offers another affordable policy option. Like other options on this list, Mercury’s policy is actually an endorsement covering the “available” phase when your driving company doesn’t.
One downside: Mercury only offers insurance in 11 states — and only 8 of those have their rideshare policy available.
Although many of the policies above can work for delivery drivers, they’re designed more with rideshare drivers in mind.
But not Progressive’s policies. Progressive provides unique plans for delivery drivers that allow them to customize coverage based on seasonal driving trends. This plan is a lot cheaper than other options because of this.
Of course, Progressive covers the typical gap between personal policies and the driving company policy, too. As a result, Progressive may be a good insurer if you plan on ridesharing and delivery driving to boost your driving income.
Progressive also offers for-hire livery insurance if you don’t live in a state that qualified for the above policy.
American Family Insurance’s American Family Rideshare Endorsement extends your personal American Family coverage to your ridesharing. It covers all the same events that your personal policy covers.
American Family Insurance’s rideshare policy is available in 19 states.
Last but not least is Erie. Erie’s coverage covers all portions of your ridesharing trip — not just the “available” phase — by letting you put a “business use” designation on your personal policy with Erie.
This coverage used to be available only to delivery drivers, but now ridesharers can get it, too.
Premiums vary, but they aren’t too costly.
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