Are you a Lyft or Uber driver, or do you plan on becoming one? Here’s what you need to know to make sure you have the required rideshare insurance to protect yourself and your car.
Your personal auto insurance policy won't cover ridesharing, because ridesharing is considered work. But commercial insurance isn't sensible. It's expensive, and you probably don't want a commercial insurance policy on your personal vehicle.
Many car insurance companies now fulfill demand by offering coverage options tailored to Uber and Lyft drivers. It's called rideshare insurance or a TNC (transportation network company) endorsement. If you're interested in ridesharing insurance, this article covers these topics:
Rideshare auto insurance covers drivers that work for rideshare companies like Uber and Lyft. Many companies offer rideshare insurance, and you can often bundle rideshare insurance with your personal auto insurance company for a price discount. That’s a good route to take if you’re a part-time driver and need personal auto insurance too.
It’s not a good idea to keep your ridesharing driving to yourself if you want your claims to be paid. Be aware that your rates may go up when you alert your auto insurance company, and in some cases, drivers have had their coverage cancelled.
Each state requires drivers to have some amount of liability coverage. So, you’ll need at least that if you want to be a “street legal” rideshare driver. You’ll also need collision and comprehensive coverage if you want Lyft’s or Uber’s contingent coverage if your vehicle is damaged.
Uber and Lyft provide some forms of insurance, but it's not comprehensive. A rideshare trip is divided into three periods, and Uber and Lyft's insurance policies only cover your expenses during periods two and three:
Uber and Lyft insurance policies won’t cover your expenses during period one, when you're waiting for a ride request. They do provide liability coverage for others in case you cause an accident, but that does not protect you. Comprehensive coverage only kicks in during period two and ends after period three, or when you drop the passenger off.
A normal personal car insurance plan will often cover you until you log into the rideshare app and begin period one. Period one is known as a gap. That's because there's a gap in insurance when you aren't picking up or driving a passenger. Your personal insurance and Uber or Lyft’s extensive coverage aren't in effect during that time.
Rideshare insurance is designed to cover you during the gap. Otherwise, you could be out a lot of money if an accident happens during that the gap.
The cost of rideshare insurance is affordable. Prices range from a few dollars to $25 a month. What you pay depends on several factors:
If you're lucky, you can bundle a rideshare policy with your personal car insurance at a fair rate.
Many car insurance companies now offer rideshare coverage. Options and prices vary depending on what state you live in and what provider you use.
Rideshare Insurance Companies by State and Rates
|Allstate||AZ, CA, CO, DC, GA, HI, IA, ID, IL, IN, KS, KY, MD, ME, MN, MO, NE, NM, NV, OH, OK, SC, TN, TX, UT, WA, WI, WV||$20 / Year|
|Erie||DC, IL, IN, KY, MD, OH, PA, TN, VA, WI, WV||$9-$15 / month|
|Farmers||AL, AR, AZ, CA, CO, FL, GA, IA, ID, IL, IN, KS, MD, MI, MN, MO, MT, ND, NE, NJ, NM, NV, OH, OK, OR, TN, TX, UT, WI||$15 / month|
|GEICO||AL, AZ, AR, CT, CO, DE, DC, GA, ID, IL, IN, IA, KS, LA, ME, MD, MN, MS, MO, NE, NM, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, VT, VA, WA, WV, WI, WY||$13 / month|
|American Family||AZ, CO, GA, ID, IN, KS, MO, ND, OH, SD, UT, WI||$23 / month|
|Metlife||CA, CO, IL, TX, WA.||Cost Per Mile|
|Mercury||AZ, CA, GA, IL, NV, OK, TX||$ .20 / Day|
|Progressive||MI, PA, TX||Get A Quote|
|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.||$20 / Month|
|USAA||AL, AZ, CA, CO, CT, GA, IA, IL, IN, KS, KY, LA, MA, MD, MO, ND, NE, NH, NV, OH, OK, OR, TN, TX, WA, WY||$6 / Month|
|Safeco||AZ, CO, IL, IN, KS, MN, MS, OK, OR, TN, UT, WA, WI||$10 / Month|
|Travelers||CO, IL||Get A Quote|
|MetroMile||Discontinued rideshare insurance coverage|
|Pemco||OR, WA||Get A Quote|
|The rates displayed are estimated costs. Drivers rates can vary based on location, driving record and vehicle|
Want to find the cheapest rideshare insurance? Compare rideshare auto insurance quotes from multiple providers.
Not all states have rideshare car insurance options. Some companies refer to rideshare insurance as a TNC (Transportation Network Company) endorsement. Consider switching to another provider that does offer rideshare insurance. If you can't find one, you may have to consider a commercial insurance policy if you want comprehensive coverage.
Both Lyft and Uber provide auto insurance coverage to their drivers. These are their company insurance coverage limits:
|Company||Insurance Coverage Limits with a Passenger||Insurance Coverage Limits Without a Passenger (before accepting request)|
|Uber||$1 Million Liability / $1 Million Uninsured/ Underinsured Motorist Injury||$50,000 individual / $100,000 per incident / $25,000 property damage|
|Lyft||$1 Million Liability / $1 Million Uninsured/ Underinsured Motorist Injury||$50,000 individual / $100,000 per incident / $25,000 property damage|
Uber insurance covers you with a $1 million liability policy. It starts covering you once you've received a ride request, until you've dropped your passenger off.
Uber insurance also includes a $1 million uninsured/underinsured motorist policy . This covers bodily injury to the occupants of the Uber vehicle if it's in an accident with an underinsured driver. Uber's deductible is $1,000.
Between trips, Uber also offers insurance for drivers that are looking for riders but have not yet accepted a trip. This Uber insurance is also liability coverage for bodily injury. The coverage limits are $50,000 per person, $100,000 per accident, plus $25,000 for property damage. Your own expenses will not be covered by Uber if an accident occurs during this time.
Lyft provides drivers with a similar baseline insurance as Uber. Drivers who are on the app waiting for a ride request have limited liability coverage.
Liability insurance only covers the other drivers or riders in an accident you caused when waiting for a ride request. Your expenses will be paid for by your own insurance policy or out of pocket.
Lyft offers $1 million liability and $1 million uninsured motorist coverage. This protects you when you're in route to pick up a rider or dropping them off. They also have a comprehensive/collision coverage up to $50,000 with a $2,500 deductible.
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