Rideshare Insurance for Lyft and Uber Drivers
Here’s what you need to know to make sure you have the required rideshare insurance when driving for Uber or Lyft.
Your personal auto insurance policy typically won't cover rideshare driving because ridesharing is considered driving for work, which requires commercial insurance. But commercial insurance isn't usually sensible for rideshare drivers. It's expensive, and you probably don't want a commercial insurance policy for your personal vehicle. Rideshare insurance bridges that gap, and it's relatively affordable.
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 rideshare insurance, this article covers these topics:
- What is rideshare insurance?
- Do you need rideshare insurance?
- Cost of rideshare auto insurance
- Rideshare insurance companies
- Uber and Lyft rideshare insurance policies
What is rideshare car insurance?
Rideshare auto insurance covers drivers that work for rideshare companies like Uber and Lyft. Many companies offer rideshare insurance, and you can often buy it with your personal auto insurance company. That can be a good route to take if you’re a part-time driver and need personal auto insurance, too.
Do I have to tell my car insurance provider that I drive for Uber or Lyft?
It’s not a good idea to keep your rideshare 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, your coverage could be cancelled.
Do I need rideshare insurance?
Each state requires drivers to have some amount of liability coverage, so you’ll need at least that minimum 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 insurance policies only cover your expenses during periods two and three. In period one, they provide limited coverage if your personal policy does not:
- Period 1: The driver is logged into the app but is waiting for a ride request.
- Period 2: The driver has received a ride request and is en route to the passenger.
- Period 3: The passenger is in the car and the driver is en route to their destination.
Uber and Lyft insurance policies won’t cover your expenses during period one, when you're waiting for a ride request. They 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 typical 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. Lyft’s contingent liability coverage are in effect during that time, but not the extensive liability policy. Uber's liability policy is also in effect during this time, but not with the full limits that you have during period three.
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 gap.
How much does rideshare car insurance cost?
The cost of rideshare insurance is relatively affordable. Prices typically range from a few dollars to $25 a month. What you pay depends on several factors:
- Your insurance provider
- The make and model of your vehicle
- Your driving record
- Your age
- Where you live
Cheap rideshare car insurance companies
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||$15-20/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, ID, IL, IN, IA, KS, LA, ME, MD, MN, MS, MO, NE, NM, ND, OH, OK, OR, PA, RI, SC, SD, TN, 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||$6/month|
|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||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, AR, CA, CO, CT, DE, DC, FL, GA, ID, IL, IN, IA, KS, KY, LA, MD, MA, MN, MS, MO, NE, NV, NH, NJ, ND, OH, OK, OR, TN, TX, UT, VT, WA, WV, WI, 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|
|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 your cheapest rideshare insurance? Compare rideshare auto insurance quotes from multiple providers.
What if rideshare car insurance isn’t available in my area?
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 offers rideshare insurance. If you can't find one, you may have to consider a commercial insurance policy if you want comprehensive coverage.
Uber and Lyft rideshare insurance policies
Both Uber and Lyft 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)|
||$50,000 individual / $100,000 per incident / $25,000 property damage|
||$50,000 individual / $100,000 per incident / $25,000 property damage|
Uber rideshare driver policy requirements
Uber insurance covers you with at least a $1 million liability policy, but coverage limits vary by state. It starts covering you once you've received a ride request until you've dropped your passenger off.
Uber insurance also includes at least a $250,000 uninsured/underinsured motorist policy, but coverage limits vary by state. This covers bodily injury to the occupants of the Uber vehicle, including the driver, if it's in an accident with an underinsured driver.
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 and $25,000 for property damage. This policy only applies if your personal insurance doesn't provide coverage or your limits are less than these amounts. If it's required in the state where you're driving, the policy may also cover PIP or uninsured/underinsured motorist coverage. Otherwise, your own expenses will not be covered by Uber if an accident occurs during this time.
Lyft rideshare driver policy requirements
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:
- $50,000 per person
- $100,000 per incident
- $25,000 for property damage
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 uninsured motorist coverage that varies by state. This protects you when you're en route to pick up a rider or dropping them off. They also have comprehensive/collision coverage for the actual cash value of your car or the cost of repair, whichever is less, with a $2,500 deductible.
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