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If you work in the gig economy — and drive for a rideshare or delivery service — it’s critical that you have the proper insurance. Many companies, such as Uber, Lyft and Postmates, provide some type of commercial auto insurance to their drivers, but it won’t cover you in every situation. Find out what kind of gig car insurance you’ll need to cover you in every situation.
Yes. If you use your car for both personal use and to earn a living, you’ll need a special policy that extends coverage to using your car for business purposes. Even if the rideshare or delivery company offers commercial insurance, you may still need this kind of policy, because you may not have full coverage in every situation.
For example, if you’re on the app but haven’t received a ride or delivery request, your coverage is typically more limited than when you’re en route to a gig or have a passenger in your car. At the same time, your personal auto insurance policy may not cover you at all. Adding a rideshare endorsement or policy can potentially save you thousands in out-of-pocket costs if you get into an accident.
In general, your personal car insurance policy won’t cover you while you’re driving for work. It may, however, provide limited coverage if you’re available on the app but haven’t yet accepted a delivery or ride request.
To be safe, talk to your insurance provider before doing any job that requires using your personal vehicle for work. If you get into an accident during one of those gray areas, you may have your claim denied, and you may be held personally responsible.
There are a number of key considerations to take into account when purchasing part-time car insurance for gig workers.
Consider these providers for some of the best car insurance for gig workers.
Progressive
Finder score
What we like: Progressive offers some of the most comprehensive rideshare coverage we've found. For example, any endorsements you've added to your personal policy — such as roadside assistance — still apply under your rideshare coverage. It also offers deductible coverage, which reimburses the difference between the rideshare company's deductible and the deductible on your personal policy.
Progressive also boasts competitive prices and more discounts than many other car insurance providers, including a discount for maintaining continuous coverage before you switched to Progressive. Altogether, it has more than a dozen discounts for drivers, plus accident forgiveness.
| Telematics | Snapshot |
|---|---|
| Gap insurance | Loan/lease coverage |
| Telematics | Snapshot |
|---|---|
| Gap insurance | Loan/lease coverage |
Pretected
Finder score
What we like: Pretected is an insurance marketplace that provides quotes from multiple providers, including big names such as Allstate and Progressive. After answering questions based on your personal and driving details, it uses a “smart matching” system to connect you to appropriate insurers. But there isn't an option to specify rideshare coverage, and the site sometimes redirects you to other comparison sites.
| Telematics | Varies by provider |
|---|---|
| Gap insurance | Varies by provider |
| Telematics | Varies by provider |
|---|---|
| Gap insurance | Varies by provider |
Allstate
Finder score
What we like: Allstate offers rideshare coverage that, combined with your personal policy, can cover you where insurance through a rideshare or delivery service falls short. Allstate's rideshare coverage includes deductible gap coverage up to $2,500 — a standard deductible required by rideshare companies — if your vehicle is damaged, which minimizes out-of-pocket costs. It also offers gap insurance up to $50,000 as a separate add-on, which might make sense if you have a car loan.
Plus, Allstate typically offers competitive insurance prices and has a number of discounts you might be able to use to lower your premiums, including up to 40% off for safe drivers. However, its rideshare endorsement isn't available in all states.
| Telematics | Drivewise |
|---|---|
| Gap insurance | Yes |
| Telematics | Drivewise |
|---|---|
| Gap insurance | Yes |
USAA
Finder score
What we like: Military members, veterans and their family members who work in the gig economy can add a rideshare endorsement to their existing policy. And its rideshare coverage is available in 42 states, which is more than many other major insurers offer.
USAA is typically one of the cheaper car insurance options, so eligible members may be able to save money on its rideshare coverage as well. You'll need an existing auto insurance policy with USAA, though, because it doesn't offer a standalone policy. But, it has significant car insurance discounts available and a number of other membership perks, such as access to affordable health insurance and roadside assistance (at a discount) even if you're not covered.
| Telematics | SafePilot |
|---|---|
| Gap insurance | No, but it has car replacement assistance |
| Telematics | SafePilot |
|---|---|
| Gap insurance | No, but it has car replacement assistance |
State Farm
Finder score
What we like: With almost 20,000 agents, State Farm provides a widespread, personalized experience across the country. Its rideshare insurance offers additional coverage whether you're available for hire, en route to a passenger or have a customer in the vehicle with you.
Rideshare coverage could raise your premiums from 15% to 20%, on average. But, it offers less expensive options for delivery drivers who don't carry passengers, whereas some insurers lump rideshare and delivery drivers together. Plus, State Farm lets you choose whether to have a deductible and how much, giving you flexibility on your premium costs.
| Telematics | Drive Safe and Save |
|---|---|
| Gap insurance | No |
| Telematics | Drive Safe and Save |
|---|---|
| Gap insurance | No |
Finder’s insurance experts analyzed dozens of insurance providers to find ones that offer the best options for gig workers. We ultimately chose ones that had competitive rates, multiple discounts and good satisfaction ratings.
Some of the criteria we evaluated included:
Finder also maintains strict editorial integrity and independence. Our content and suggestions are fair, accurate and trustworthy, and our advertisers or partners don’t influence our opinions. To learn more, check out our editorial guidelines here.
You should be able to deduct your auto insurance from your taxes if you use your car for work. But, if you also use your car for personal use — as most rideshare drivers do — you can only deduct a portion of your insurance premiums. For example, if you only use your car for work 30% of the time, you can only deduct 30% of your premiums.
You may also be able to deduct a portion of other vehicle expenses, such as repairs, maintenance, oil and gas and other costs. It might be a good idea to talk to a tax professional to find out all the tax breaks you’re eligible for as a rideshare or delivery driver.
If you drive for a ridesharing or delivery service, make sure you’re covered both on and off the job. Your personal vehicle policy typically only covers you when you’re off the clock, and a commercial policy offered by the rideshare service only covers you when you’re active on the app. Adding a rideshare endorsement or purchasing a separate commercial policy can help to cover any gaps in your existing insurance so you don’t get caught without coverage.
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At a minimum, gig workers who drive for a living need a personal auto insurance policy that meets your state requirements. In most cases, your rideshare company provides commercial coverage for when you’re working.
If those two bases are covered, you’re not required to have additional coverage. However, you could be leaving yourself open to potential gaps in coverage or only limited coverage in some cases.
Some insurance providers may lump rideshare and delivery drivers into the same policy, whereas others may distinguish between the two. It’s a good idea to inquire with multiple providers to see how much coverage you actually need if you aren’t carrying passengers versus if you are.
Not all car insurance providers offer rideshare coverage in every state. You may need to purchase a commercial policy or switch to a new provider that offers coverage in your area. Do a little research to figure out which is the most economical option.
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