How Uber Drivers Can Get the Best Car Insurance

Over 3.5 million people drive for the ridesharing service Uber. If you’re one of them, it’s crucial to have car insurance that protects you in various situations. 

According to a new Clearsurance report, Best Insurers for Uber Drivers, the coverage Uber offers their drivers may not be sufficient. Drivers likely need to purchase extra coverage to protect their finances from accidents and liability.

Here are some of the best car insurance companies for Uber drivers in 2022, plus an overview of your coverage options.

How Rideshare Insurance Works for Uber Drivers

Rideshare companies typically give you basic commercial auto protection to cover your time driving on the job. For example, Uber’s insurance offers you liability, uninsured/underinsured motorist, comprehensive, and collision coverage when you pick up a passenger and have a passenger in your vehicle. However, while you wait to accept a trip request, you only get liability coverage. 

Clearsurance says Uber drivers need to purchase their own rideshare insurance, so they have necessary coverage at every phase of work for the app. 

Types of Rideshare Insurance

If you need additional insurance beyond the coverage Uber offers, Clearsurance says you have three options: 

  1. Additional protection plan – fills in most of the insurance gaps of your rideshare company’s coverage.
  2. Personal insurance extension plan – extends the limits and auto coverages you already have.
  3. Hybrid policy – insures you when driving your car for a rideshare company or personal reasons.

Insurers That Cover Rideshare Drivers

Apps like Uber and Lyft are so widespread that every large auto insurer offers rideshare coverage. According to Clearsurance, some of the most popular insurance companies for Uber drivers include: 

  • State Farm
  • Farmers
  • USAA
  • Mercury
  • Allstate
  • Progressive

Each company’s rideshare insurance varies in coverage and cost, so it’s essential to shop and compare which option offers the best policy for your needs and budget.

Do You Need Rideshare Insurance?

Whether you need rideshare insurance depends on how often you drive for Uber, says Clearsurance. It never hurts to shop around and see how much it would cost for the added protection. Plus, knowing you’re safe in all driving situations can give you terrific peace of mind.

For example, Uber Eats insurance coverage costs about $273.08 a month. If you make enough each month to cover the cost, it may be wise to have the added coverage. 

Your State’s Minimum Rideshare Insurance Requirement

Your state may require you to purchase minimum coverage to drive for a rideshare app, such as Uber or Lyft. For example, California-based rideshare drivers must carry personal car insurance that includes a minimum of: 

  • $15,000 bodily injury coverage per person injured in an accident
  • $30,000 of bodily injury coverage per accident
  • $5,000 of property damage coverage per accident

Clearsurance recommends checking your state guidelines to make sure you meet the requirements. However, having the minimum may not be enough to protect your finances if you get into an accident. 

Importance of Having Rideshare Insurance

Whether you drive for Uber part- or full-time, having adequate coverage is a must. Getting into just one accident could wipe out all the hard-earned money you’ve made with the app.

If you’re not sure how to find affordable car insurance coverage as an Uber driver, start by comparing quotes from the companies listed above until you find a policy and price that suits your needs.

Read Clearsurance’s complete report: Best Car Insurance Companies That Cover Uber (2022)

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