Ridesharing’s popularity has risen over the years, giving customers a convenient alternative to public transportation and providing drivers the chance to gain extra cash on the side.
However, many rideshare drivers soon discover that standard car insurance doesn’t provide coverage to them or their passengers while ridesharing.
If you’re looking for the best car insurance for Lyft drivers, you need to research your options carefully and gather competing quotes from at least three companies.
Not all insurance providers offer rideshare coverage, and of those that do, most don’t have it available in all states.
Use this guide to get a head start on the process, and soon enough you’ll be shopping for car insurance with ease.
What’s the Cost of Car Insurance for a Lyft Driver?
In most cases, rideshare coverage is more of an endorsement than a specific type of coverage, since it extends the scope of the coverage that your policy outlines.
Personal auto insurance policies don’t cover vehicles used for commercial purposes; you’d need commercial auto insurance for that.
Therefore, if you’re in an accident while working as a Lyft driver, your regular insurance coverage isn’t applicable.
A rideshare endorsement modifies the scope of your coverage, so your insurance covers any damages in the case of an accident.
Unlike other types of goods and services, there isn’t a set price for car insurance.
To do this, your provider takes into account how great of a risk you pose to the company when factoring your premium—that is, how likely you are to file a claim.
Your insurer uses a complex algorithm that weighs a variety of factors to determine your level of risk.
Some of these relate directly to your driving, such as how many traffic citations you’ve received, while others seem entirely unrelated to how likely you are to cause an accident.
For example, companies might take into account your marital status or your level of education.
For this reason, two people who live in the same city, have the same coverage and drive similar vehicles may pay different premiums.
A few of the factors that can influence your premium include:
- Credit score
- Whether you own or rent your home
- Where you park your vehicle at night
- Driving history
- Previous insurance coverage
- Claims history
- The deductible and policy limits you choose
- Years of driving experience
- Geographic location
- Annual mileage
According to a recent survey, the vast majority of Lyft drivers are over the age of 41, and Lyft’s policies require that all drivers have clean driving records.
Generally, experienced drivers who haven’t received traffic citations enjoy low rates on insurance coverage.
They’re also eligible for various savings, such as good driver and claims-free discounts.
To give insight into what a rideshare driver who fits this demographic could pay for coverage, we’ve provided the average costs of car insurance for California, one of the largest ridesharing states, for those who fit Lyft’s criteria.
- A male driver with 16 to 40 years driving experience and a clean driving history can expect to pay between $1,130 and $6,990 (averaging $2,849) annually for a standard (full) policy on a Honda Accord in Los Angeles County.
- A female driver with 16 to 40 years driving experience and a clean driving history might expect to pay between $1,268 and $4,139 (averaging $2,257) annually for a standard (full) policy on a Toyota Prius in Fresno County.
These scenarios assume a driver is behind the wheel approximately 12,600 to 15,000 miles annually which is much less than most Lyft drivers accumulate.
Actual insurance rates would probably increase as mileage increases.
Companies with the Best Car Insurance for Lyft Drivers
As you shop around for insurance, consider which companies provide the type of coverage you need as a Lyft driver.
Here’s some information on some of the top auto insurance companies in the nation.
Progressive offers rideshare coverage as an added endorsement to a personal auto insurance policy.
It covers drivers when they are logged into a ridesharing app and waiting for a trip request or driving to a customer.
To keep the cost of coverage affordable, Progressive provides discounts to good drivers, which can benefit those looking for Lyft drivers’ insurance.
QuoteWizard doesn’t underwrite auto insurance policies, but it can help you find the best car insurance for Lyft drivers by comparing coverage options, discounts, and policy limits through its wide selection of partner companies.
Not all insurers offer coverage for rideshare drivers, so finding one that does can be challenging.
With QuoteWizard, you simply provide your demographic information and the make, model, and year of your vehicle and you’ll receive personalized quotes from top insurers.
Esurance was purchased by Allstate in 2011 and provides low rates for drivers through its extensive list of discounts.
Drivers can choose from an array of options, including emergency roadside service, loan and lease gap coverage, and medical payments coverage, along with collision, comprehensive, and liability insurance.
California customers can sign up for Esurance’s ShareSmart program, which provides Lyft drivers’ insurance for the times that their regular insurance policy isn’t active.
Examples include when the app is open before accepting a passenger, when a driver is en route to a passenger, and when a passenger is in the car.
Liberty Mutual is among the top insurers in the country, holding roughly 5 percent of the U.S. market.
This provider offers different discounts, including vehicle safety features, hybrid vehicles, multi-car, and multi-line discounts.
While Liberty Mutual doesn’t have special rideshare coverage, it’s rideshare-friendly policies makes it one of the best car insurance for Lyft drivers.
It won’t cancel a policy if the holder is a rideshare driver, as other insurers sometimes do.
If a customer wants Lyft drivers’ insurance, they can get it with Liberty Mutual.
Allstate, the sixth largest insurance provider in the country, boasts a vast network of local agents and numerous coverage options.
Drivers can save money by taking advantage of the insurer’s various discounts, including safe driving, vehicle safety features, and homeowner discount.
In addition to its standard insurance policy offerings, Allstate’s ride for hire program provides auto insurance coverage while Lyft drivers are working, such as when they’re signed into the app and when they’ve accepted a trip or a passenger.
Allstate Ride for Hire can cost as little as $15 a year, making it an affordable option.
Travelers has different types of auto insurance coverage, including its rideshare coverage endorsement, only available to policyholders in Colorado and Illinois.
This coverage is among the best car insurance for Lyft drivers since it protects drivers from when they sign on to the Lyft app up to when they pick up a passenger.
Since Lyft drivers’ insurance isn’t available nationwide, Travelers also has commercial auto insurance available, which includes liability insurance, uninsured and underinsured motorist coverage, and physical damage coverage.
USAA provides auto insurance to U.S. military veterans, those who currently serve in the military, and the immediate family members of service personnel.
This provider has some of the best car insurance for Lyft drivers, since it has different options available, such as emergency roadside assistance, rental reimbursement, accident forgiveness, and rideshare insurance coverage.
While standard USAA auto coverage doesn’t cover the gap between when a Lyft driver signs in to the app and when they pick up a passenger, the ridesharing gap coverage does.
In some cases, this coverage may cost as little as $6 a month, significantly less than the cost of a commercial auto insurance policy.
Ridesharing gap coverage from USAA is not offered in every state, so speak with an agent to find out if it is available in your area.
State Farm’s insurance policies for Lyft drivers are among the best, providing protection where standard personal auto insurance policies don’t.
It’s rideshare insurance coverage, which is available to standard policyholders, covers rideshare drivers while they are active on the Transportation Network Company’s app.
Any coverage on your policy, such as your medical payments, emergency roadside assistance, or rental car reimbursement, is in effect while you’re driving for Lyft.
Insurance available through the TNC generally doesn’t protect drivers in the event of a crash-related injury.
If you have an accident while you are logged into the app, you deal directly with State Farm to file and settle the claim, sparing you the hassle of filing a claim with your TNC.
MetLife has been serving customers for more than a century and provides a full suite of auto insurance products.
Those looking for the best car insurance for Lyft drivers should research the company’s rideshare insurance policy, which contains an endorsement that covers rideshare drivers at each stage of the trip, from the time they log into the Lyft app to the time they deliver passengers to their destination.
It’s important to note that this insurance is only available from MetLife in a handful of states; speak with a local agent to find out if it’s an option for you.
Kelly Klee is a privately owned insurance broker that specializes in working with individuals who have a high net worth.
Rather than guesstimating your insurance needs and building your policy, you work with a coverage advisor who helps you evaluate your assets, providing customized recommendations of the types of coverage you need.
Coverage advisors are a great option when searching for the best car insurance for Lyft drivers.
How to Reduce the Cost of Your Car Insurance for Lyft Drivers
Lyft drivers typically enjoy affordable rates thanks to their driving experience and clean driving record, but drivers on a budget may be on the lookout for ways to save even more money on premiums.
In addition to taking advantage of available discounts, you can trim your premium by raising your deductible, passing on optional coverage, and choosing a vehicle with safety and anti-theft features.
Also, to get the best-quoted rate, you should provide your insurance agent with several pieces of necessary information, including:
- Your vehicle’s identification number, make, model, year, and trim package
- Your age, as well as the ages of anyone else on your policy
- Where you live
- Whether you rent or own your home
- Your marital status
- Your preferred deductible and coverage
- The amount of time you plan to drive as a Lyft driver
The above information should help you in your search for the best car insurance for Lyft drivers.
With a little research and some quote-shopping, you should be able to find a great policy at an affordable rate.
*While we make every effort to keep our site updated, please be aware that “timely” information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.