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The ins and outs of rideshare driver coverage

Understand your new coverage needs when becoming a rideshare driver.

Image of a woman sitting in a car using a cell phone.

Drivers and riders have embraced the ridesharing economy, but before you jump on that bandwagon and offer your driving services, make sure you understand how your insurance coverage works.

Doesn't my personal auto insurance policy work — no matter why, when or who I’m driving?

The short answer is, no. If you are "unavailable for hire," according to your rideshare app, then your personal auto insurance policy applies. In any other availability status, such as "matched with rider" or "transporting," your personal auto insurance policy may not provide any coverage or only limited coverage.

But the rideshare company provides insurance. Why do I need extra coverage?

Most insurance provided by rideshare companies works only in a couple of conditions. If the app is off, that rideshare insurance does not provide coverage. If the app is on, and you are waiting for a match, there’s generally a small amount of liability coverage provided. Once you’re matched with a rider or giving a ride, higher coverage may kick in — but it doesn’t extend to damages to your car, and policy limits may vary by state and company.

How does State Farm® Rideshare Driver CoverageFootnote Reference1 work?

After the rideshare insurance coverage is purchased, your status on the rideshare app determines coverage. If the app is on and you’re available for hire, coverage extends from your personal auto policy and may include liability coverage for property damage and injury to others, physical damage coverage for damage to your car, and emergency roadside service. Once you’re matched with a rider or are transporting him or her, the same coverage — minus liability to others — may apply. (Actual limitations may vary by state.) This coverage endorsement typically adds about 15% to 20% to your current premium.Footnote Reference 2

Will my deductible change if I add Rideshare Driver Coverage?

The deductible you have for any Collision Coverage or Comprehensive Coverage on your policy will not change by adding Rideshare Driver Coverage.Footnote Reference1

Before you become a rideshare driver, it’s best to check with your State Farm agent for detailed coverage questions, as states have different limits and requirements.

Return to Footnote Reference1 The described State Farm Rideshare Driver Coverage is provided by the State Farm "Transportation Network Company Driver Coverage" endorsement. This e-newsletter provides only a general description of coverages and is not a statement of contract. All coverages are subject to all policy provisions and applicable endorsements. For more information, see your State Farm agent.

Return to Footnote Reference2 This amount may change over time and can vary by state.

This is only a general description of coverages and is not a statement of contract. Details of coverage or limits vary in some states. All coverages are subject to the terms, provisions, exclusions, and conditions in the policy itself and in any endorsements. For further information, see your State Farm agent.

Our endorsement is called Transportation Network Company Driver Coverage except in DC, which is Private Vehicle-For-Hire Company Operator Coverage.

The information in this article was obtained from various sources not associated with State Farm® (including State Farm Mutual Automobile Insurance Company and its subsidiaries and affiliates). While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. State Farm is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. State Farm makes no guarantees of results from use of this information.



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