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How Much Is Rideshare Insurance in 2022?

October 2, 2019

How much is rideshare insurance? Learn the cost of rideshare insurance online at Buckle. If you're wondering how much does rideshare insurance cost, we have you covered. Discover how much is rideshare insurance from Buckle today!

Updated July 20, 2022

As a rideshare driver, you need the right insurance coverage to protect you and your biggest business asset, your vehicle. Unfortunately, the insurance coverage provided by the rideshare companies has limits, gaps, and high deductibles. Plus, you still need an insurance plan outside of the rideshare company’s coverage. Understanding how much is rideshare insurance varies greatly depending on the insurance company and the type of coverage you acquire.

To make money as a rideshare driver, you must keep your operational costs low. Affordable insurance matters for successful rideshare businesses. You need to know your options and requirements for auto insurance coverage as a rideshare driver.

At Buckle, we offer an innovative auto insurance solution designed specifically for rideshare drivers. We’ve studied the rideshare industry to understand why traditional coverage just doesn’t work for this new part of the gig economy. Buckle rideshare auto insurance provides the coverage you need at a price you can afford to cover personal and business drive times.

Understand Your Financial Risks

Auto insurance costs matter, but so does the big financial picture. When you don’t carry the correct auto insurance as a rideshare driver, you’re at risk. Passengers or other individuals involved in an accident can sue you to cover their expenses related to an accident.

Like other rideshare expenses, auto insurance cuts into your profits. However, the financial risk is too great to skip the right rideshare coverage. Explore your options. Understand the required coverage, both by your state and the rideshare company.

In almost every case, you need an individual auto insurance plan for a rideshare business. While rideshare companies do offer insurance to give passengers peace of mind, they may not provide all the coverage you need as a driver.

Types and Cost of Rideshare Insurance

Personal Coverage – The Biggest Risk

Your personal auto insurance policy does not cover your rideshare business. If you only have a personal auto insurance policy, you are at a big risk as a rideshare driver!

Rideshare companies offer minimal insurance coverage; however, they require you to also carry a primary insurance policy. Most personal policies won’t cover an accident for rideshare driving under the standard policy without added rideshare coverage. This means when you notify your personal auto insurance company about the accident, they will likely cancel your policy. In other words, choosing to only carry personal auto insurance for a rideshare business doesn’t work. In the long run, it will cost you much more than the rideshare policy rates.

Commercial Coverage – The Most Expensive Option

Commercial insurance coverage offers the highest level of coverage for rideshare drivers; however, you’ll pay a steep price. In fact, the price may range up to $2,400 per year or more for a one passenger car.

If your geographic area doesn’t offer rideshare endorsement as an add-on to your personal auto insurance policy, you must purchase commercial coverage. Remember, the rideshare companies (like Uber or Lyft) options only work in addition to other insurance coverage, like commercial coverage.

Endorsement Coverage – An add-on to a Personal Policy

Rideshare endorsement coverage adds on to a personal auto insurance policy. This means both your personal policy and rideshare endorsement policy must come from the same company. Not all companies or states allow for rideshare policy add-on.

Even with a rideshare endorsement policy, you’ll have gaps in the coverage. First, the coverage only applies when you log in to the rideshare app. Second, many policies provide different levels of coverage depending on driver activity. For example, when parked and waiting on a rider, most insurance companies provide less liability coverage than when you actively drive a passenger.

How much does rideshare insurance cost for endorsement coverage? The cost estimates for rideshare add-on coverage differ between companies. Some companies quote a starting rate for as little as $20 per year while others quote around 20% of your standard premium. Remember, the rideshare endorsement rate is in addition to your personal auto insurance premium. Also, most companies determine your premium based on the risks associated with your credit score.

Rideshare Company Coverage – Minimal Coverage

The gaps in coverage from rideshare companies are one of the biggest misunderstandings with rideshare insurance. The amount of liability coverage ties to the current rideshare activity. For example, when parked and waiting for a rider, rideshare companies offer much less coverage than when a rider is present.

Depending on the situation, rideshare company's insurance plans can carry high deductibles ranging from $1,000 to $2,500. You cannot count on the rideshare company to cover your financial risks in the event of an accident. You must carry a personal auto policy with a rideshare endorsement or a commercial auto policy in order to offset your potential financial risk.  

Buckle – The Right Policy for Rideshare Drivers

To protect your rideshare business, partner with Buckle for all your auto insurance needs. Buckle provides auto insurance specifically for rideshare drivers. With Buckle, you no longer need to juggle multiple insurance accounts or policies, we offer the coverage you need for personal and business use under one policy.

The cost of rideshare insurance from Buckle is affordable because we’ve tailored our coverage specific to rideshare driver needs. Plus, we are fully licensed and regulated by the same state laws as other insurance companies. You’ll have the protection you need based on state requirements and the requirements of the top rideshare companies.

Buckle Provides Affordable Auto Insurance for Rideshare Drivers

Buckle is the smart auto insurance solution for rideshare drivers. We offer affordable rates without the complexity of other insurance companies. Our business model is simple. We offer our clients one auto insurance policy to cover personal use and rideshare service driving for your vehicle.

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