If you are a rideshare driver for a company like Uber or Lyft, a standard car insurance policy may not provide the coverage you need. Insurance providers usually require you to have commercial insurance if you're driving for business. Fortunately, many car insurance companies now offer rideshare insurance to cover the gaps.
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Rideshare insurance vs. personal car insurance
Personal car insurance covers you for damages that occur while you're driving for personal reasons, but it does not cover you for accidents that happen if you're using your car for business. Rideshare insurance covers business-related accidents, including transporting passengers.
Do I need rideshare insurance?
If you drive for a rideshare company, we recommend you carry rideshare insurance. Otherwise, you risk having to pay for accidents out of your own pocket. Uber and Lyft do provide some car insurance coverage for their drivers, but it is limited in scope.
Rideshare insurance covers the issues that your personal auto insurance and Lyft or Uber's insurance will not cover.
What does rideshare insurance cover?
The extent of coverage that rideshare insurance offers depends on what phase, or "period," of a rideshare trip you are in when the accident occurs. These periods are:
- Offline – The rideshare app you use for business is not on.
- Period one: Available – You are logged in to the app and are waiting for a ride request.
- Period two: En route – You have accepted a ride request and are en route to the passenger.
- Period three: Begin trip – The passenger is in your car and you're driving to their destination
During this period, you are covered by your standard car insurance in the event of an accident.
While waiting for a ride request, the insurance that Lyft or Uber provides covers liability insurance if you're in an accident. It does nothing to cover your own damages or injuries. During this phase, rideshare insurance provides:
These coverages end as soon as you register the drop off of the passenger. Your rideshare insurance may include additional coverage points, such as roadside assistance and rental car reimbursement.
En route and begin trip
Once you've accepted the ride and are en route to the passenger, you are protected by your rideshare company's liability, uninsured/underinsured motorist, comprehensive and collision insurance coverages. However, Uber has a $2,500 deductible that you're responsible for paying. Rideshare insurance helps fill that gap, as long as you personally carry collision and comprehensive coverage.
Please note that this coverage ends as soon as you record the passenger drop off.
How to get rideshare insurance
The first thing you'll want to do is notify your auto insurance company that you're driving for a rideshare company. If your insurer discovers that you're working as a rideshare driver without proper coverage, they can cancel your car insurance. A discussion with your car insurance company about rideshare insurance can help you avoid any unnecessary coverage gaps.
Below is a table showing which auto insurers offer rideshare insurance in which states, including cost of a policy when available.
|State Farm||AL, AZ, CA, CO, CT, DC, DE, FL, GA, IA, ID, IN, KS, KY, LA, ME, MI, MN, MO, MT, MS, ND, NE, NH, NJ, NM, OH, OK, OR, PA, SC, TN, TX, UT, VA, WA, WI, WV|
|Progressive||AL, AZ, AR, CO, DC, FL, GA, ID, IL, IN, IA, KY, LA, ME, MA, MI, MN, MS, MO, NE, NM, ND, OH, OK, PA, RI, SD, TN, TX, UT, VA, WA, WV, WI, WY|
|Allstate||Every state except NY|
|Farmers||AZ, DC, DE, GA, HI, IA, IN, KS, MD, MI, ND, NE, NV, PA, SD, VI, WV|
|Erie||DC, IL, IN, KY, MD, OH, PA, TN, VA, WI, WV|
|Mercury||AZ, CA, GA, IL, NV, OK, TX|
|USAA*||AL, AZ, AR, CA, CO, CT, DE, DC, FL, GA, ID, IL, IN, IA, KS, KY, LA, MD, MA, ME, MN, MS, MO, NE, NV, NH, NJ, ND, OH, OK, OR, TN, TX, UT, VT, WA, WV, WI, WY|
|*USAA only available to currently serving and veteran military, as well as their families.|
If your car insurance company doesn't provide rideshare insurance, take this opportunity to compare quotes from other providers. Not only can you get the rideshare coverage you need, you may find a better price for your standard car insurance.
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