Here is the short answer: if you are eligible for USAA, get a quote from them first, because its rideshare endorsement is priced well for military families and sits on top of rates that are already friendly to them. If you are not eligible, State Farm’s rideshare endorsement is one of the most widely sold in the country and often prices competitively for safe drivers who bundle. The real question is not which company wins some imaginary trophy. It is which one will sell you the endorsement in your state, what it costs on your actual premium, and how it treats the awkward stretch when your app is on and no passenger has requested a ride yet.
Video: USAA vs. State Farm: Which Auto Insurance Is Better?
Eligibility: Where This Comparison Lives or Dies
Let us not dance around it. USAA only serves military members, veterans, and eligible family members. That means current and former service members, their spouses, their children, and a few other qualifying groups. If you never served and nobody in your immediate family did, you cannot buy a USAA policy, which means you cannot buy its rideshare endorsement either. military eligibility decides this comparison before it starts. For roughly everyone else, that settles the debate in a single sentence.
State Farm, on the other hand, will happily sell you a policy as long as you live in a state where they write business and your driving record does not scare them off. No service record required. That openness is the whole reason State Farm’s rideshare endorsement is the default choice for most civilian drivers: it is simply available to them.
So step one is brutally simple. Are you eligible for USAA? If yes, keep reading, this article is for you. If no, you can skip the USAA daydreaming entirely and focus on State Farm plus a couple of comparison quotes. You are not missing a secret discount. You were just never in the club.
Availability: Check Your State First
Both companies sell their rideshare endorsement in many states, and both skip some states. USAA offers its endorsement in many states where it writes auto insurance, but not everywhere. State Farm offers its Transportation Network Company Driver Coverage, which is the official name on the paperwork, in many states as well, though availability varies and a handful of states are excluded. These things shift over time, so treat any state list you find online as a rumor until you confirm it with the company or an agent.
Why does this matter so much? Because endorsements are state products. Your neighbor’s perfect quote in Ohio says nothing about your price in Arizona. Before you fall in love with either option, confirm the endorsement is even sold where you garage your car. USAA’s rideshare page and State Farm’s rideshare page both spell out the basics, and a two minute quote tells you the rest.
The Waiting Gap: What Both Endorsements Cover
Here is where the actual insurance lives, so stay with me. When you drive for Uber or Lyft, your time splits into periods. App off is personal time, covered by your regular policy. Period 1 is the app on but waiting stretch, and it is the famous gap: your personal policy typically excludes it, while Uber and Lyft provide only limited contingent liability there and nothing for your own car. Periods 2 and 3, from accepting a ride through drop off, get Uber and Lyft’s big liability coverage.
Both the USAA and State Farm products are endorsements, meaning add ons to your personal auto policy rather than standalone commercial policies. Their whole job is to extend your personal coverages into Period 1 and to fill in what Uber and Lyft leave uncovered. In practice, that means your liability coverage, and your collision and comprehensive for your own car if you carry them, apply while the app is on and you are waiting for a request. If you want the full anatomy of that waiting stretch, our explainer on Period 1 walks through it.
One detail worth knowing: Uber’s own physical damage coverage comes with a $2,500 deductible, which is exactly why drivers care about their personal collision coverage following them into the app on periods. An endorsement keeps you from being stranded between two policies pointing at each other. Exact limits and deductibles vary by state and by the coverages you already carry, so neither endorsement is a magic blanket, but both close the gap that gets drivers denied. The Insurance Information Institute has a plain English Q and A on rideshare coverage if you want the industry’s own explainer.
Cost: The Rough Math
Now the part everyone actually wants. As a generic industry range, rideshare endorsements typically add roughly $15 to $30 a month to a personal auto policy. That is a ballpark, not a promise. Your driving record, your car, your limits, and how many hours you drive all move the number.
State Farm is unusually transparent here: its own page says the endorsement typically adds about 15 to 20 percent to your current premium. So if your six month premium is $900, you are looking at roughly $135 to $180 more per six months, though your actual quote could land elsewhere. State Farm also has a reputation for pricing that rewards safe drivers and bundling, so if your home or renters policy already lives there, the combined picture often looks better than the endorsement cost alone suggests.
USAA does not publish a neat percentage the same way, but military families routinely find its overall auto pricing competitive, and the endorsement rides on top of that base. The honest answer for both companies: quote them both if you can, on identical coverages and deductibles, or you are comparing apples to floor mats. We dug deeper into State Farm’s numbers in our State Farm rideshare cost breakdown.
A Quick Side by Side
- Eligibility: USAA requires military membership, veterans, or eligible family. State Farm is open to the general public.
- Product type: both are endorsements added to your personal auto policy, not separate commercial policies.
- The gap they close: both extend your personal coverages into the app on waiting period, where Uber and Lyft offer only limited liability and nothing for your car.
- Availability: both are sold in many states, neither in all of them. Confirm your state before anything else.
- Cost shape: endorsements generally run about $15 to $30 a month industry wide. State Farm cites roughly 15 to 20 percent of premium on its own page. Both vary a lot by driver.
- Best fit: USAA suits eligible military families who already like the company’s pricing. State Farm suits safe drivers who bundle, and anyone USAA cannot take.
Which Driver Are You?
Picture this. You are a National Guard member who drives Uber between drill weekends in San Antonio. You already bank with USAA, your car and renters insurance are there, and your record is clean. For you, quoting USAA’s endorsement is a no brainer first stop. The membership you already hold does half the work.
Now picture a 28 year old in Columbus with a clean record, a State Farm renters policy, and 15 hours a week on Lyft. No military connection at all. USAA is not on the table, and that is fine: State Farm’s endorsement plus the bundling discount often lands in a sweet spot, and you can still shop two or three other endorsements alongside it. We compared two other big names head to head if you want a feel for how these matchups usually go.
Then there is the part timer who only drives airport runs on Friday nights and assumes it is not worth mentioning to the insurer. It is worth mentioning. Every time. An undisclosed rideshare habit is how claims get denied, and no endorsement from either company protects a policy built on silence. If you are not sure how to bring it up, our guide on adding a rideshare endorsement walks through the conversation.
Switching Without Leaving a Gap
Made your choice? The switch itself is simple, but the timing matters. First, tell your current insurer about your rideshare work before you change anything. A mid switch accident with undisclosed driving is a mess nobody wants. Second, get the new quote with the endorsement already attached, not as an afterthought, so the price you see is the price you pay. Third, line up the endorsement’s effective date with the day your old coverage ends. Same day overlap is cheap peace of mind. Finally, upload your new insurance card to Uber or Lyft right away so your driver profile never shows a gap. The platforms check, and a lapsed document can pause your ability to accept rides.
FAQs
Can I get USAA rideshare coverage through my spouse’s military service?
If your spouse is an eligible USAA member, you generally can. USAA membership extends to spouses and children of members, and once you hold a USAA auto policy, the rideshare endorsement is available wherever USAA sells it in your state. Eligibility rules have fine print, so confirm your specific situation on USAA’s site or with a representative.
Does State Farm’s endorsement cover food delivery, or just Uber and Lyft?
State Farm’s Transportation Network Company Driver Coverage is built around passenger rideshare driving. Food and package delivery is treated differently, and State Farm has said delivery drivers may only need a business use notation rather than the full endorsement. If you split time between Uber and DoorDash, tell your agent about both and get the answer in writing.
Do both endorsements cover the Period 1 waiting gap?
Yes, that is the core purpose of both products. Period 1, when the app is on and you are waiting for a request, is where personal policies typically exclude coverage and Uber and Lyft provide only limited liability. Both endorsements extend your personal coverages into that window, though exact limits follow the coverages you carry and vary by state.
Which one is cheaper for rideshare drivers?
There is no universal winner, and anyone who names one is guessing. USAA’s base rates are often friendly to its eligible members, while State Farm’s endorsement typically adds about 15 to 20 percent to a premium and rewards safe drivers and bundling. The only honest method is quoting both with identical coverages and deductibles, plus one or two other insurers for good measure.
What happens if I drive for Uber without telling either company?
The same thing that happens with any insurer: you risk a denied claim. Personal auto policies typically exclude rideshare activity, so an accident during app on time can leave you uncovered, and the insurer can even cancel the policy. Disclose the driving, add the endorsement, and keep proof. It costs a little and protects a lot.
The Bottom Line
If you are eligible for USAA, start there. The endorsement is solid, the company’s pricing treats military families well, and you already know the service. If you are not eligible, State Farm’s endorsement is the easy default: widely available, transparently priced at roughly 15 to 20 percent of premium, and often kinder to safe drivers who bundle. Either way, the endorsement is the easy part. The hard part is being honest with your insurer about the driving you do, because the cheapest policy in the world is worthless if a claim gets denied. Quote both where you can, pick the one that fits your state and your wallet, and get the endorsement on the policy before your next ride request, not after.