Rideshare Insurance in New Jersey (2025)

Companies like Uber and Lyft provide liability insurance to New Jersey rideshare drivers, but you need to purchase your own policy as well.1 A rideshare endorsement can eliminate any gaps in coverage between your personal policy and what the transportation network company (TNC) provides.

Rideshare insurance doesn’t have to be expensive — you can save on your insurance costs by shopping around and comparing quotes from several companies. Here’s a look at how rideshare insurance works and how New Jersey drivers can find the right coverage.

Cost of rideshare insurance in New Jersey

New Jersey drivers pay average monthly premiums of $193 for rideshare liability insurance and $337 for full-coverage rideshare insurance, which is higher than the rates in many other states. This may be partly because New Jersey requires rideshare drivers to obtain higher minimum-coverage levels than other states.

The table below shows the cheapest rideshare insurance companies in New Jersey and the average rates for each.

Best rideshare insurance companies in New Jersey

Not all auto insurance companies offer rideshare insurance, so your options are more limited. Here’s a look at the best rideshare insurance companies for New Jersey drivers.

NJM: Best for cheap rates

Plymouth Rock: Best for customized coverage

Mercury: Best for bundling your policies

Rideshare insurance requirements in New Jersey

New Jersey’s rideshare regulations for Lyft and Uber drivers break driving activities into three distinct phases:2

• Phrase 1: During phase one, the driver drives for personal use and the rideshare app isn’t on. Since the driver isn’t using the app or driving for work purposes, their personal auto insurance will cover them if they get in an accident.

• Phase 2: During this phase, the driver is driving with the rideshare app turned on but has yet to accept a ride request. It gets tricky because although they haven’t accepted a ride yet, they’re technically working since the app is on. During this phase, the company’s rideshare insurance applies.

• Phase 3: At this point, the driver is driving with the rideshare app on and is either on the way to pick up a customer or driving someone to their destination. Anytime a driver is transporting a passenger, the company’s rideshare insurance applies.

Requirements to drive for Uber and Lyft in New Jersey

You don’t need a special permit to become a rideshare driver in New Jersey, but you must meet certain requirements. Here’s an overview of the vehicle and driver requirements to ensure passenger safety.3

Types of rideshare insurance coverage

These are the different types of rideshare coverage you can pick from:4