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Navigating Auto Insurance as a Gig Driver: Challenges and Solutions with Insurify

Written by The Ualett Team | Jun 30, 2025 2:06:41 PM

Driving for a living has never been more complex—or more expensive. From soaring gas prices to rising vehicle maintenance costs, gig drivers today face mounting financial pressures. One of the biggest and often most overlooked challenges is auto insurance.

Most gig drivers rely on personal vehicles to earn income, yet standard auto policies don’t cover commercial activities like ridesharing or delivery. This leaves many drivers caught between risky coverage gaps and costly commercial insurance they can’t afford.

The Rising Cost of Coverage

It’s no secret that auto insurance premiums have been climbing—but gig drivers feel this more acutely than most. A 2024 report by Insurify revealed that rideshare drivers pay 12% more for insurance compared to standard personal-use drivers. 

Similarly, The Zebra found that adding rideshare coverage to an existing policy can add 15% to their premium in 2021, depending on the level of commercial coverage required. 

On top of that, rideshare drivers face rising insurance costs due to factors like higher accident rates, greater mileage, and the wear and tear associated with gig driving. These expenses quickly erode already thin margins for many gig workers—especially as platform rates remain flat or decline and costs for gas and vehicle maintenance continue to climb. 

Coverage Gaps and Risks

Here’s the tricky part: most personal auto insurance policies exclude coverage when you’re driving for pay. If you’re in an accident while working for a rideshare or delivery app, your claim could be denied—leaving you responsible for repairs, medical bills, or even lawsuits.

Common gaps include:

  • Period 1 coverage (logged into the app but waiting for a ride/order)
  • Period 2 coverage (actively driving to a passenger/order)
  • Period 3 coverage (actively driving with a passenger)
  • Limited liability limits or no collision/comprehensive coverage during work periods

As a result, many gig drivers either unknowingly drive uninsured or overpay for costly commercial policies that don’t fit their flexible schedules.

Challenges for Gig Workers

For many drivers, this creates difficult choices:

  • Driving without proper coverage, which becomes a major financial risk
  • Overpaying for full commercial policies, which is unsustainable for part-time drivers
  • Navigating confusing policy language around periods 1 through 3

As The Zebra notes, “it’s critical to ensure that you are properly covered when driving for a living.”

How Ualett x Insurify Help

At Ualett, we go beyond cash advances to help gig workers succeed. Through our partnership with Insurify, Ualett users can:

  • Compare quotes from top insurers offering rideshare and delivery-friendly policies
  • Find flexible coverage that adapts to their gig driving needs—no more paying for full-time commercial insurance if you’re a part-time driver
  • Save time and money with Insurify’s easy online comparison tools and exclusive discounts

Getting started is simple:

  1. Visit the Ualett x Insurify partner section on the Ualett app
  2. Enter basic information about your vehicle and gig work
  3. Compare quotes and customize your policy
  4. Purchase your coverage online in minutes

By making insurance options more transparent and accessible, we’re helping gig workers drive forward with greater confidence.

Drive Protected

Ualett is proud to advocate for fairer, more accessible solutions for gig drivers through partnerships like this one. Whether you’re delivering part-time or ridesharing full-time, having the right auto insurance is essential.

Ready to drive protected? Learn more about our partnership with Insurify here and take control of your coverage today.