Does Geico Offer Rideshare Insurance?

Rideshare driving for Uber, Lyft, and other services has become an increasingly popular side gig. But most standard personal auto policies don’t cover accidents that happen while driving for pay.

That’s why rideshare insurance has become essential for these drivers. It fills the gaps between personal and company-provided coverage.

So does Geico, one of the largest U.S. auto insurers, offer this important protection for rideshare drivers?

Does Geico Have Rideshare Coverage?

No, Geico stopped offering rideshare coverage in 2021. Existing Geico customers who want to drive for Uber or Lyft will need to purchase a separate commercial policy.

Geico previously offered rideshare insurance endorsements. These add-ons provided tailored coverage for rideshare driving under a personal auto policy.

But now Geico directs rideshare drivers to get coverage through their commercial policies division instead.

So Geico no longer provides rideshare endorsements or options for rideshare drivers under regular private passenger auto policies.

Why Did Geico Stop Selling Rideshare Insurance?

It’s not entirely clear why Geico discontinued rideshare coverage. The company has not provided an official reason.

Industry experts speculate it may be due to profitability concerns. Some hypothesize that Geico found rideshare drivers were more likely to file claims, especially with worn-out vehicles.

Offering rideshare insurance requires specialized underwriting and claims handling. Geico may have decided focusing on standard personal auto coverage provided a better return.

In any case, current Geico policyholders who want to drive for Uber or Lyft will need to look elsewhere for rideshare coverage now.

What are Geico Rideshare Drivers’ Options?

Since Geico no longer offers rideshare endorsements or options, customers who want to drive for Uber or Lyft have a couple choices:

Switch Auto Insurers

One option is to switch to an insurance company that provides rideshare coverage. Top options include:

• State Farm
• Allstate
• USAA
• Farmers
• Progressive

Most insurers charge an additional $10-$30 per month for rideshare endorsements. This covers gaps between personal and Uber/Lyft insurance.

Geico may offer discounts to retain customers. But even with discounts, standalone rideshare coverage from another insurer likely costs less than commercial insurance.

Get a Geico Commercial Policy

Current Geico auto insurance customers who want to drive for Uber or Lyft will now need a commercial policy, per the company’s guidance.

Geico’s commercial auto insurance division offers both commercial liability and physical damage coverage.

A commercial auto policy provides coverage when you have the rideshare app on, which personal auto insurance does not. This gives you full protection while transporting passengers.

However, commercial policies have significant drawbacks:

• Cost – Commercial coverage often runs $1,000 to $2,500 per year, compared to around $100 annually for a rideshare endorsement.

• Usage – Commercial policies are designed for full-time rideshare drivers. They limit personal use of the vehicle when not working.

Still, Geico commercial insurance may make sense for drivers extensively using their vehicle for paid rides. Those who drive occasionally may want to switch insurers.

Why Rideshare Drivers Need Rideshare Insurance

Let’s discuss why rideshare endorsements or commercial policies are so crucial:

Personal Auto Insurance Has Gaps

Your regular car insurance (whether Geico or another company) does not cover rideshare driving. Personal auto policies exclude driving for commercial purposes.

So if you have an accident while the Uber or Lyft app is on, your insurer may deny any claims for injuries or damage to your car.

At best, your insurer may non-renew your policy for violating terms by using your vehicle commercially without notifying them.

Rideshare Company Insurance Has Limits

Uber, Lyft, and other rideshare platforms provide some insurance while you are en route to pick up passengers or carrying riders.

But this insurance has substantial gaps:

• No coverage while parked and waiting for requests
• No coverage for your vehicle damage
• Very high deductibles ($1,000 – $2,500)

Rideshare insurance fills these gaps and reduces deductibles.

Meet Your State’s Requirements

Most states require some level of commercial coverage if using your vehicle to transport passengers for pay. Rideshare endorsements or policies meet these requirements.

So having proper insurance protects you from legal penalties of driving commercially without appropriate coverage.

Cost of Geico Rideshare Insurance

When Geico offered rideshare insurance, the company charged an additional $15-$20 per month for coverage. This is in line with what other top insurers charge as an endorsement fee.

Now that Geico directs rideshare drivers to commercial policies, the cost is far higher. Geico’s commercial auto insurance costs around:

• $1,500 annually for light use
• $2,500 annually for full-time drivers

Other major insurers like State Farm and Allstate still offer rideshare endorsements for just $10-$30 per month extra.

So currently, Geico customers pay far more for Uber/Lyft coverage than with other insurance providers that feature rideshare options.

The Bottom Line

Geico no longer offers rideshare insurance for drivers on its personal auto policies. Customers who drive for Uber or Lyft will need commercial coverage.

While you can get a Geico commercial policy, it is expensive compared to rideshare endorsements from other insurers like State Farm.

For affordable rideshare coverage, Geico drivers should consider switching to an insurer with dedicated rideshare insurance options. This provides specialized protection without the high cost of commercial insurance.

But a Geico commercial policy does offer full coverage for rideshare drivers too. Evaluate your options to pick the best solution for your situation.