Rideshare driving has become a go-to gig for people looking to earn flexible income, and Uber remains one of the most popular platforms. But there’s one critical detail that many drivers overlook: insurance. Driving for Uber without the proper insurance could put your finances and your car at serious risk.
In this post, we’ll break down what insurance for driving Uber really means, what Uber covers, what you need to get on your own, and how to find the best policy for your needs in 2025. We’ll also review top companies offering rideshare coverage and share some tips that can save you time and money.
Why You Need Special Insurance to Drive for Uber
If you’re thinking, “I already have car insurance, why do I need more?” you’re not alone. But here’s the truth: standard personal auto insurance doesn’t cover rideshare driving. If you’re logged into the Uber app and an accident happens, your insurer could deny the claim if they weren’t informed you were driving commercially.
Uber does offer some level of protection, but it’s limited and not designed to replace full coverage. You must fill the gaps with your own policy to stay properly insured.
Understanding Uber’s Insurance Coverage
Uber provides its own insurance for drivers, but it works in three distinct periods:
🚗 Period 0: App Off
- No coverage from Uber.
- Your personal auto insurance is responsible for any incident.
🚕 Period 1: App On, No Ride Accepted
- Uber provides limited liability coverage:
- $50,000 per person for bodily injury
- $100,000 per accident
- $25,000 for property damage
- No collision or comprehensive coverage.
- Damage to your vehicle won’t be covered unless you supplement it.
🚙 Periods 2 & 3: En Route to Passenger or During a Trip
- Uber provides:
- $1 million in third-party liability coverage
- Uninsured/underinsured motorist bodily injury
- Comprehensive and collision coverage (if you carry it on your personal policy)
- With a $2,500 deductible as of 2025
While the coverage in Periods 2 and 3 is solid, Period 1 remains a risky gap that must be filled with your own rideshare insurance.
What Type of Insurance Do Uber Drivers Need?
Depending on how often you drive and your state requirements, you have several coverage options:
Rideshare Endorsement
- Add-on to your personal policy.
- Covers you during Period 1.
- Affordable and widely available.
Hybrid Policy
- Combines personal and commercial use.
- Coverage adjusts based on your Uber app status.
- Offered by companies like GEICO and Progressive.
Commercial Auto Policy
- Required if you drive full-time or in specific jurisdictions.
- Expensive but offers full protection.
Gap or Deductible Coverage
- Some insurers offer deductible gap coverage to reduce your Uber policy deductible from $2,500 to a lower amount.
Top Insurance Companies for Uber Drivers (2025)
Here are the best companies offering insurance for driving Uber in the U.S. this year:
1. GEICO
- Offers a single hybrid rideshare policy.
- Covers both personal and rideshare use.
- More about GEICO Rideshare
2. State Farm
- Offers a Rideshare Driver Coverage endorsement.
- Keeps everything in one affordable policy.
- Visit State Farm’s Rideshare Page
3. Progressive
- Offers both hybrid and commercial options.
- Strong reputation and support.
- Learn More at Progressive
4. Allstate
- “Ride for Hire” endorsement available.
- Some plans reduce Uber’s deductible.
- Explore Allstate Rideshare Options
5. USAA
- Ideal for military families.
- Offers rideshare options with competitive pricing.
- See USAA’s Rideshare Coverage
How Much Does Uber Driver Insurance Cost?
The cost varies based on several factors:
- Your location
- Driving history
- Vehicle type
- How often you drive for Uber
Rideshare endorsements typically cost an additional $20–$50/month on top of your regular premium. Hybrid policies can be slightly more, and commercial auto policies may range from $150–$300/month.
What Happens If You Don’t Tell Your Insurer?
Not telling your insurer that you drive for Uber is a major mistake. If they find out:
- Your claims can be denied
- Your policy could be canceled
- You may be placed in a high-risk pool with much higher premiums
Always be upfront. It’s better to pay a bit more now than face thousands in uncovered damages later.
How to Find the Best Insurance for Driving Uber
Here are steps to make sure you get the right coverage:
- Contact Your Current Insurer
- Ask if they offer a rideshare endorsement or hybrid coverage.
- Compare Quotes
- Use The Zebra or Insure.com to compare prices.
- Understand Deductibles
- Remember Uber’s $2,500 deductible in case of damage to your car during a trip.
- Review State Requirements
- Some states require drivers to have rideshare-specific policies.
- Drive Smart
- Safe driving keeps premiums low and helps you avoid claims altogether.
Final Thoughts: Don’t Cut Corners on Uber Insurance
Driving for Uber in 2025 is a great way to earn money but it comes with responsibilities. One of the biggest is making sure you’re properly insured. Uber’s own insurance has coverage gaps, especially when you’re waiting for a ride. Failing to get additional coverage puts your car, wallet, and safety at risk.
By securing the right insurance for driving Uber, you ensure that you’re protected at every stage of the trip. Whether it’s a rideshare endorsement, hybrid policy, or commercial auto insurance, investing in coverage now can save you thousands later.
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