Rideshare drivers are paying more for insurance. Granted, with rising inflation, everything from clothing to food costs more. But auto insurance rates, in many cases, are outpacing the inflation rate — 5% in 2023.
Allstate, for instance, said in September 2022 that it was raising rates by more than 14% in a handful of locations. Rideshare coverage for Uber and Lyft drivers is an add-on to your personal car insurance policy – an endorsement.
Lauren McKenzie, an insurance broker/agent with A Plus Insurance in South Carolina, says insurance generally costs more, so rideshare insurance cost is also increasing.
“The cost for insurance is going up overall because of inflation, which means the cost for rideshare insurance is increasing as well,” McKenzie says. “Insurance companies have to increase their costs because the price of car parts is going up if a vehicle needs to be repaired/replaced in the event of a claim or accident and also the cost of labor.”
But there are ways to cut the cost. Keep reading for tips to save on rideshare insurance now and in 2023.
What are some ways to save on rideshare car insurance?
McKenzie says drivers can save on rideshare insurance by maintaining a clean driving history and staying safe on the road to avoid accidents, comparing coverage options and ensuring they have safe vehicles.
“Consider the type of vehicle you are insuring if you’re looking at purchasing a new vehicle. Look at the cost for that vehicle compared to others, consider what coverages you may need if you are financing and using the vehicle for rideshare,” she says.
“Go over different coverage options, such as increasing your full coverage deductible, removing full coverage if the vehicle is older, and removing any additional coverages such as roadside or rental reimbursement.”
Here are other ways to save on car insurance:
- Estimate your insurance costs, and shop around at renewal time to ensure you have the lowest rates.
- Ask about discounts such as bundling with homeowners insurance, loyalty discount, discount for years insured, multiple vehicles and more.
- Maintain a good insurance record and dispute any inaccuracies.
- Keep a high credit score.
- Buy a vehicle with a high safety rating and anti-theft devices.
Which companies offer rideshare insurance?
Here are a few companies that offer a rideshare endorsement.
Allstate’s ride-hailing insurance endorsement
Allstate’s Ride for Hire program offers car insurance for drivers who work for a transportation network company(TNC). Ride for Hire provides deductible gap coverage for up to $2,500 and fills in the gaps from a TNC’s coverage.
Farmers rideshare insurance
Farmers offers rideshare endorsement by contacting an agent or calling 1-855-808-6599.
Mercury rideshare car insurance
Mercury provides rideshare insurance coverage for as little as $0.90 per day (this is for the endorsement and will depend on personal factors). This is in addition to your personal coverage.
Progressive’s rideshare insurance
Progressive offers a personal policy and fills in the rideshare coverage gaps under one policy. The company also offers deductible reimbursement for the difference between a rideshare company’s deductible and your personal deductible.
State Farm rideshare driver coverage
State Farm’s endorsement adds about 15% to 20% to a personal policy premium, so contact an agent to ensure you have the cheapest rates for rideshare driver coverage.
USAA rideshare gap protection coverage
USAA offers rideshare coverage as an addition to a personal auto policy to drivers in all states except Hawaii, North Carolina, Michigan, Montana, New Mexico, New York, South Carolina and Virginia. USAA is only available for members of the military community, veterans and their families.
You might also be interested in the following:How much does rideshare car insurance cost?
McKenzie says that when it comes to the cost of the rideshare endorsement costs around $50 per month for a driver with no violations for full coverage.
“Not all insurance companies will cover this type of vehicle usage, so it is important to disclose that to the insurance company when setting up a policy to make sure you and your passengers are properly covered,” she says.
“A driver who may have violations on their record could pay more for the rideshare endorsement, just depending on the type of violation, when it occurred, and the type of vehicles/coverages and location.”
Resources & Methodology
Sources
Allstate. “Allstate Announces August 2022 Implemented Auto Rates.” Accessed February 2024.
CNBC. “Lyft cuts 13% of its workforce.” Accessed February 2024.
Fox Business. “Car insurance premiums going up? Blame inflation.” Accessed February 2024.
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