Rideshare Insurance in New Jersey (2025)
In New Jersey, rideshare insurance comes with an average monthly premium of $265.
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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.
Quick Facts
Liability rates for rideshare insurance in New Jersey average $193 per month, and full-coverage rates average $337 per month, according to Insurify data.
NJM, Plymouth Rock, and Mercury are the best rideshare insurance companies in New Jersey.
The three phases of rideshare driving affect which type of insurance covers you.
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.
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
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.
Good to Know
New Jersey law requires all rideshare companies to provide at least $50,000 per person in bodily injury liability, $100,000 per accident in bodily injury liability, and $25,000 in property damage liability. In addition, all rideshare companies must maintain $1.5 million in uninsured/underinsured motorist coverage.
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
Rideshare car requirements
Your vehicle can’t be more than 15 years old.
You drive a four-door vehicle with five to eight seats, including the driver’s.
Your vehicle is registered in the state of New Jersey and has a valid license plate.
It can’t be on the list of ineligible subcompact vehicles.
Rideshare driver requirements
You must be at least 21 years old.
You have at least one year of driving experience, or three years if you’re younger than 25.
You’ve undergone a background check that reviewed your criminal and driving history.
You have a valid personal auto policy — rideshare insurance isn’t necessary, though it’s a good idea.
Types of rideshare insurance coverage
These are the different types of rideshare coverage you can pick from:4
Rideshare insurance FAQs
New Jersey rideshare drivers need rideshare insurance in addition to their personal auto policy. Here’s some more information about buying rideshare insurance in New Jersey.
Do you need rideshare insurance in New Jersey?
Yes. New Jersey rideshare drivers need a rideshare endorsement. Using your personal auto insurance policy could leave you with gaps in coverage since most policies won’t cover you once you turn the rideshare app on.
Do Uber drivers in New Jersey have to carry commercial auto insurance?
Yes. New Jersey rideshare drivers need either a rideshare endorsement or some type of commercial auto insurance to cover them while they’re working.
Do you really need rideshare insurance if you have personal auto insurance?
Yes. You’ll need a rideshare endorsement along with your personal auto insurance policy. This ensures no gaps in coverage and provides you with extra protection, so you won’t be liable for damage and out-of-pocket expenses.
What happens if you get into an accident while ridesharing without insurance?
If you get into an accident while ridesharing with insurance, you’ll be personally liable for any injuries and damages to the other driver. You may be responsible for medical costs, legal fees, and vehicle repairs, which can add up to thousands of dollars in out-of-pocket expenses.
It’s also illegal to drive without insurance in New Jersey, so you could face fines, license suspension, and more.
Does DoorDash count as rideshare for insurance?
No. DoorDash and other delivery services aren’t categorized as rideshare services since you’re transporting goods instead of people. But your personal auto insurance won’t cover you while you’re driving for DoorDash, so you’ll need to purchase an additional commercial auto policy.
How does a rideshare insurance claim work?
If you’re involved in an accident during a rideshare, contact the police, take photos of the damages, and get the other driver’s insurance information. You can file a claim with Uber or Lyft through your driver app. If you have an additional rideshare endorsement, you’ll also contact your insurance company with details about the claim.
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