Published: June 2025
If you are working as a driver for Uber, Lyft, or any other similar taxi service in the United States, having car insurance is not just a smart option – it is absolutely necessary.
Although rideshare companies do provide insurance with limited coverage at certain times during the trip, those policies always have coverage loopholes that can lead to financial risk. Here the article is all about the best car insurance options for rideshare drivers in 2025 and how you can keep yourself protected from overpaying on insurance.
🚗 Why Rideshare Drivers Need Special Insurance
The majority of personal car insurance policies don’t include commercial driving, the category to which the employment with Uber or Lyft belongs. Not having the right protection:
- Your own insurance coverage is subject to be rejected
- You may have to pay out of your own pocket after the accident
- Your policy could be stopped because of non-disclosure
And this is the point where rideshare insurance will be of help.
🚦 The 3 Driving Periods (and Why They Matter)
Insurance companies divide rideshare driving into three periods:
| Period | What You’re Doing | Who Covers You |
|---|---|---|
| 1 | App is ON, waiting for a ride request | You (personal or rideshare add-on) |
| 2 | Accepted a ride, en route to pick up the rider | Uber/Lyft + you (limited) |
| 3 | Rider is in the car (trip in progress) | Uber/Lyft (higher coverage) |
It is common to experience most gaps in the first period. This is the reason why many of the insurance companies are providing coverage for rideshare or the so-called hybrid policies.
🏆 Best Car Insurance Companies for Rideshare Drivers (2025)
1. GEICO – Best Overall Rideshare Coverage
- What they offer: One combined hybrid policy that substitutes personal coverage
- Pros: Trouble-free coverage for all three periods
- Cons: Not provided in every location
- Bonus: No need to switch over policies or claim multiple providers
Best for: Drivers who want simplicity and full protection
2. State Farm – Best for Custom Add-Ons
- What they offer: Rideshare endorsement to a personal policy
- Pros: The cost is not high for part-time drivers
- Cons: Only handling those ventures that operate in Period 1
- Bonus: Top-rated customer service and claim support
Best for: Part-time Uber/Lyft drivers
3. Allstate – Best for Full-Time Drivers
- What they offer: Ride for Hire® policy
- Pros: It takes care of the differences between your personal and rideshare insurance
- Cons: A little bit more expensive
- Bonus: Might be accompanied by deductible gap coverage
Best for: Full-time or high-frequency drivers
4. Progressive – Best Budget Option
- What they offer: Rideshare coverage add-on
- Pros: The rates are usually low in a lot of states
- Cons: The character of the coverage can be different as per the laws of the state
- Bonus: The Snapshot® program is working to give drivers a chance to earn lower rates by following good driving practices
Best for: People who seek insurance with very low premiums
5. Farmers Insurance – Best for Flexibility
- What they offer: A rideshare endorsement in your current policy
- Pros: Variable policy options
- Cons: Agent help may be needed to personalize it
- Bonus: Discounts for multiple policies available
Best for: Individuals who have already purchased Farmers insurance
✅ What to Look for in Rideshare Insurance
Before deciding on a provider, mull over the below-mentioned:
- Does it cover all three periods?
- What’s the deductible amount during a claim?
- Are there any hidden exclusions or limits?
- Can it be bundled with other insurance for savings?
Moreover, confirm with your insurer that you are a passenger of the transport company. Failure to inform the same can result in a rejected claim or cancellation of coverage.
💸 How Much Does Rideshare Insurance Cost?
Prices depend on:
- State regulations
- Driving record
- Car model
- Company (Uber vs. Lyft)
- How often the car is driven
Ordinarily, the cost would be $15–$30/month more for rideshare coverage. That little amount can save you Much money in the event of an accident.