# Interesting and Revealing Rideshare Insurance Article



## Unleaded (Feb 16, 2018)

Regarding Your Rideshare Insurance:
For customers with a personal auto policy, the additional costs quoted by companies like Farmers and Erie for rideshare insurance are usually from $6 to $25 per month. Allstate offers their rideshare coverage for only $15 to $20 per year. Rideshare insurance costs less than many drivers would think, making it well worth the price. However, prices vary and it's important to look carefully at what each company covers. Costs often vary because companies structure this relatively new type of policy in very different ways.

Rideshare coverage is based on four periods of activity. In Period 0, you are driving your car for personal use. In Period 1, you have turned on your ridesharing app and are waiting for a ride request. Period 2 covers your drive to the location where you will pick up your passengers. Period 3 covers the time when passengers are in your car. The major rideshare companies like Uber and Lyft provide their drivers with coverage whenever their app is on (Periods 1-3). However, the coverage is minimal in Period 1.

Insurance companies are developing rideshare policies to fill in the gaps between your personal coverage and your rideshare company's coverage. They fill the gaps differently.

Rideshare Insurance Coverage by Company & Situation


CompanyPeriod 0: Personal DrivingPeriod 1: Waiting for Rideshare RequestPeriod 2: Driving to Pick Up PointPeriod 3: Driving PassengersUber/LyftNOT CoveredCOVERED (minimal liability)COVEREDCOVEREDFarmersCovered by personal policyCOVEREDNOT CoveredNOT CoveredAllstateCovered by personal policyCOVEREDCOVERED (deductible gap coverage)COVERED (deductible gap coverage)State FarmCovered by personal policyCOVEREDCOVEREDCOVEREDGEICOCOVEREDCOVEREDNOT CoveredNOT Covered
Most other companies that offer rideshare insurance cover Period 1 only. State Farm is one of the few that enables you to increase your coverage for all three ridesharing periods. Their policy also allows you to bypass the insurance company hired by your rideshare company if you have a claim. There have been many complaints about the customer claims service from these insurers.

Allstate's Period 2 and 3 coverage doesn't increase your coverage types or limits, but it does help with the high deductibles in your Uber or Lyft coverage. Uber's insurance comes with a $1,000 deductible. Lyft's is even higher-$2,500. If you get into an accident during periods 2 or 3, Allstate pays you the difference between these deductibles and those on your personal auto policy. So, if your personal deductible is $500, Allstate will give you $500 if you drive for Uber or $2,000 if you drive for Lyft to help pay your bills.

You must have your personal auto and rideshare insurance with the same insurer. Rideshare is add-on coverage, not a stand-alone policy. If you like your current auto insurance company and their rideshare insurance seems reasonable and gives you a comfortable level of coverage, buy from them. If you're not satisfied with what you're offered, consider switching companies. Comparison shop for the best overall deal-personal and ridesharing-that you can get.


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## Trafficat (Dec 19, 2016)

I bought rideshare gap insurance from Mercury before Uber covered period 1. I have no collision coverage. Unless it goes over Uber's liability limit I doubt my Mercury insurance is doing me any good. But I got a traffic ticket and they didn't raise my rates afterwards so I'll keep it hush hush and not complain about the premium I'm paying for their gap insurance. If they raise my rates though I might call them up and cancel my gap policy, maybe move to another company altogether.

For the most part I'm not concerned too much about insurance coverage paying out. I'm more concerned about maintaining a legal insurance status.

I'd rather avoid insurance claims if I can. For minor collisions you probably save money in the long run by paying out of pocket anyway rather than them jacking up your premium for years.


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