Tag Archives: Allstate

Ride Sharing Insurance

Uber, Lyft and other ride share drivers are being offered new insurance products. These products can cover both personal auto use and ride-sharing insurance.

State Farm is offering a ride sharing endorsement in Colorado.

Farmers has expanded their coverage to Arizona, Minnesota, Wisconsin, Nevada, Oklahoma, Ohio and Texas. Many of these states are seeing ride share coverage for the first time.

USAA has expanded their ride sharing insurance coverage options to California.


Available for Uber drivers in Callifornia, Illinois and Washington Metromile offers per mile insurance. This means therefore that the more you drive, the more you pay. They give you a special dongle. You plug this into your car. It then tracks how far you travel.

This company has partnered with Uber to create a unique offering by tracking your car with their dongle. It matches up with your Uber rides. Metromile can thus see which rides are personal and which are business. The business miles are subtracted and you are then only charged for your personal miles.

The insurance company is only integrated with Uber. They therefore will only subtract trips accepted through the Uber app.

If you’re an Uber driver and live in California, Illinois or Washington, you can therefore use their website to get a quote.


Available in Virginia, Maryland, Texas, Georgia, Connecticut, Ohio and Pennsylvania.

Geico’s ride sharing insurance appears easy to understand. Their product is much cheaper than Geico’s other commercial auto insurance products.


This product is available in Pennsylvania.

Their rates are close to a personal auto insurance policy. Progressive told the Post Gazette that the rates would be adjusted based on the mileage driver as a ride share driver. They did not however say how they would gather the data.


Available in California, Colorado and Texas.

Instead of coming up with an entirely new commercial insurance product, USAA’s ride sharing insurance extends your existing personal policy to the tune of $6 to $8 extra per month. This makes getting ride sharing insurance an easy and therefore cheap process for existing USAA customers.


Available for all ride share drivers in Arkansas, Arizona, Colorado, Kansas, Minnesota, Ohio, Oklahoma, Texas, Utah and Wisconsin.

Their ride sharing insurance exists as an additional endorsement. This is on top of their personal auto insurance product. Farmer’s product will cover personal miles as well as the insurance gap. It will not however cover drivers while a passenger is in their car. Farmer’s ride share insurance product will cost drivers an additional 25% on their existing Farmers auto insurance coverage.


Allstate has a product called Allstate Ride for Hire. Ride for Hire is an additional endorsement. This is on top of your normal Allstate auto insurance that specifically covers ride sharing. They estimate that it will thus add an additional $15 to $20 to your premium every month.

Innocent auto drivers

Innocent auto drivers unexpectedly pay higher premiums. However, the guilty driver expects to pay an increase in premiums.

The Consumer Federation of America sourced quotes from five auto auto insurers.  Drivers pay the most in  New York City and Baltimore  They pay even if innocent. In addition, higher income drivers  pay less penalties. However, middle income bracket drivers are charged heavy penalties. Furthermore, innocent auto drivers in Chicago and Kansas City faced penalties as well.

The insurance industry disputed the above conclusions. They stated that  drivers should not be compared because some drivers had no previous insurance, whilst other drivers had prior insurance.

The CFA discovered the following: –

* Progressive surcharge drivers aggressively using the not-at-fault penalty except in states which ban this practice.
* Geico and Farmers raise rates by ten per cent at times.
* Allstate penalise drivers occasionally.
* State Farm do not increase premiums for these no-fault accidents.

The CFA compared two female drivers in each city. They lived at the same address. Both were 30 years old. They had been licensed for 14 years. They drove a 2006 Toyota Camry clocking up 10, 000 miles per year.

The upper income driver was married. She owned a home. She worked as a bank executive with a Master’s degree. The middle-income driver worked as a bank teller. She was single and rented an apartment. The middle-income driver had earned a high school diploma.

In comparison, the following was revealed: –

* Higher-income drivers pay $78 on average after a no-fault accident.
* Middle-income drivers pay $208 more on average after a no-fault accident.
* Higher-income drivers pay a 6.6 per cent  penalty after a no-fault accident.
* Middle-income drivers pay 9.6 per cent penalty on average after a not-at-fault accident.

Robert Hunter, a CFA director said that drivers should not be penalised if someone else hit them.

In conclusion, the CFA asked state lawmakers to forbid penalties on innocent drivers.

California and Oklahoma have such regulations in place. The American Insurance Association says consumers should shop around when buying auto insurance.