Health Insurance for Rideshare Drivers: 5 Options That Fit

By Marlon Mills, Licensed Health Insurance Agent · Reviewed by Heather Sprague, Licensed Health Insurance Agent

The main options for health insurance for rideshare drivers are marketplace plans, Bronze plans with an HSA, short-term coverage and add-ons. Because drivers are self-employed, marketplace savings are based on your net income after car expenses.

That's good news for health insurance for rideshare drivers, since mileage can cut your income on paper by thousands. Below are five options and how to choose. Questions? Call 888-730-6031.

Why Do Rideshare Drivers Need Their Own Health Plan?

Most app-based drivers work as independent contractors, so no employer offers them a health plan. That leaves you to find health coverage for app-based drivers on your own.

HealthCare.gov treats you as self-employed if you have business income but no employees. In that case, you can use the individual marketplace, according to its page for self-employed workers.

For a broader look at plans for people without an employer, see our pillar guide to self-employed health insurance. Our post on coverage for gig workers also covers delivery and task apps.

Health Insurance for Rideshare Drivers: 5 Options

Five options fit most drivers. The right one depends on your income, health and state.

1. A Marketplace Plan

Marketplace plans cover pre-existing conditions and essential benefits. If your income is between 100% and 400% of the poverty level, you may get a tax credit. Below 250%, a Silver plan may also lower your deductible.

2. A Bronze Plan With an HSA

Every marketplace Bronze plan now works with a health savings account. HSA deposits are tax-deductible and lower the income the marketplace counts. Compare tiers in our Bronze, Silver and Gold guide.

3. A Short-Term Plan

In approved states, Vivna offers short-term health insurance from UnitedHealthcare. It is not ACA coverage, may exclude pre-existing conditions and requires health questions. Still, it can bridge a gap until open enrollment.

4. Accident or Hospital Coverage

Drivers spend hours on the road, so some add an accident plan. These plans pay fixed cash for covered injuries, regardless of other coverage.

However, they are supplements, not health insurance. Learn more about supplemental plans.

5. Medicaid or CHIP

If your net income is low, you or your children may qualify for Medicaid or CHIP. These programs accept applications all year. In states without full expansion, see our guide to coverage options without Medicaid.

How Do Driving Expenses Lower Your Marketplace Income?

The marketplace uses your expected net income, which is fares minus business expenses. For drivers, mileage is usually the biggest expense.

The IRS business mileage rate is currently 76 cents per mile, according to its standard mileage rate page. Because the rate can change, check it each year. Other costs, such as your phone, may also count.

Illustration only. A tax professional should figure your real numbers.

In this example, the driver earns about 167% of the poverty level for one person. As a result, the driver may qualify for a tax credit and lower deductibles on a Silver plan. Our guide to self-employed health deductions explains other write-offs.

How to Choose Health Insurance for Rideshare Drivers

Start with your health needs, then match them to your budget and state. These steps help you narrow the list of gig driver health plans.

1. Estimate your net income: use fares minus mileage and other costs.
2. List your doctors and drugs: these decide which networks work for you.
3. Check your savings: see whether you qualify for a tax credit or Medicaid.
4. Compare total yearly cost: add premiums, deductible and out-of-pocket maximum.
5. Consider an add-on: an accident plan may help if an injury would stop your income.

Your income will likely change during the year. So, update your marketplace application whenever your driving hours rise or fall. Watch the 400% subsidy cliff if you drive full time with a working spouse.

Rideshare Driver Health Insurance FAQs

Does the rideshare app give drivers health insurance?

Generally, no. Most drivers are independent contractors, so the apps don't offer an employer health plan.

That's why 1099 driver health insurance usually means buying your own plan. Check your app's terms for any other protections, and plan to buy your own medical coverage.

Can I get coverage outside open enrollment if I start driving?

Starting to drive is not, by itself, a qualifying life event. However, events like losing job-based coverage or moving can open a 60-day window.

If you have no event, a short-term plan may bridge the gap in approved states. Read our UnitedHealthcare short-term FAQs for details.

What if I drive part time and have another job?

First, check whether your other job offers affordable coverage. When it does, you may not qualify for marketplace savings.

If not, add your wages to your net driving income to estimate your total. Our guide to part-time health insurance walks through those choices.

Next Steps for Health Insurance for Rideshare Drivers

Health insurance for rideshare drivers starts with one number: your net income after expenses. First, total your mileage. Next, compare a marketplace plan with any add-on you need.

Want help with health insurance for rideshare drivers? Call a licensed Vivna agent at 888-730-6031, Monday through Friday, 9 a.m. to 6 p.m. Eastern.

You can also see our health insurance options for freelancers. For tax questions, talk to a tax professional about your situation.

Sources

1. HealthCare.gov: Health coverage if you're self-employed
2. HealthCare.gov: Reporting self-employment income
3. IRS: Standard mileage rates
4. IRS: Gig economy tax center
5. healthinsurance.org: Will you receive an ACA premium subsidy?
6. UnitedHealthcare: Accident insurance

Related Guides

• Self-employed health insurance guide
• Health coverage for gig workers
• Health insurance without an employer
• Short-term vs. ACA plans

Vivna Insurance is a licensed independent agency, not a government website. Our help is free; we are paid by the insurance companies we work with. This article is general information, not tax advice; plan availability, rates and savings vary by state and income.