What is rideshare insurance? 

Rideshare insurance helps fill in the gaps that your personal auto policy doesn’t do. While it isn’t necessarily obligated, it is wise to purchase. Consider this: Your personal insurance policy doesn’t cover the transportation of people from various places, nor does it protect you from accidents that may arise in this driver-focused job. For many, it makes sense to get that added coverage.

Types of Rideshare insurance There are several ways you can purchase ridesharing insurance. Some come with more intensive coverage, but the general types include: 

Endorsements: These are offered by some insurers that work as an add-on to your existing policy.

Commercial policy: As rideshare coverage is not available in every state, commercial policies are available for potential drivers. They can be a bit more costly but do not leave you on the hook for any accidents.

Hybrid insurance: This typically combines both your personal and business coverage into one policy.

As with most insurance policies, determining the price for these policies would be dependent on several different factors, most of which we have touched on in previous insurance articles like the best car insurance for DUI or the best car insurance for poor credit. 

It is always good to speak to your local agent before deciding on the type of coverage you are looking to get.

What kind of rideshare insurance does All-State offer?

Although their rates are not expressed on their website, Allstate’s Ride for Hire insurance can help policyholders save as little as “pennies a day.” The key to note is that this is an endorsement that keeps your existing policy active while you are protected from any gaps in coverage. Allstate offers their endorsement in 47 out of 50 states.

What is interesting about ridesharing insurance is that the coverage is applied during work periods. In the case of Allstate, it would be used as follows:

Period 1: You are covered solely by your existing personal auto policy when the rideshare app is off. 

Period 2: While the app is on and you are waiting for an assignment, your existing policy does not cover you, and the ridesharing company will offer limited - if any, coverage. The endorsement will help fill in the gaps between your rideshare company coverage and your existing policy.

Period 3: You have accepted a passenger! Your rideshare policy is in effect but with a possible high deductible should you be in an accident. The rideshare endorsement will help reduce your out-of-pocket expenses. 

You can always check with your local Allstate to see if this endorsement is offered and speak to an agent on what coverage works best.

Best Rideshare Insurance companies

Though we highlight Allstate as a great provider for ridesharing insurance, there are some other credible options available. Outside of Allstate, Investopedia currently ranks the following companies as the best insurance companies for ridesharing insurance:

Progressive

State Farm

Mercury

Farmers

Each of these insurance companies offers ridesharing endorsements at various coverage limits and prices.

How to choose the best rideshare insurance 

1. Honesty is the best policy

Before purchasing rideshare insurance, you need to take some critical steps to ensure that you can reap maximum benefits from the coverage. Being honest with your insurance company with a ridesharing side hustle will help them avoid cancelling your plan or raising your rates.

2. Compare rates

Comparing insurance companies and the rates they offer is incredibly important to help guide you make your decision. You can look at factors like your premium, coverage limits, customer experience and discounts to see if the company would be the right fit for you.

Understand the coverage you need

You want to understand the type of coverage you will need once you are aware of what your ridesharing company will cover. To protect yourself financially, understanding this aspect of the buying process will help you avoid any unnecessary payments later down the line should you get into an accident.

Why rideshare insurance? At the end of the day, rideshare insurance has become such an invaluable piece of protection as the demand for services like Uber and Lyft continues to rise. The chance of an accident is always something to keep in mind, regardless of how long you have had a clean record.