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Rideshare Insurance for Uber & Lyft Drivers

Rideshare Insurance for Uber, Lyft, and Other Rideshare Drivers

Driving for a ridesharing company can be a great way to bring in a little extra money, but your normal insurance coverage won’t be enough when you’re using your personal vehicle to transport paying passengers.

Rideshare Image

How Insurance Works for Uber And Lyft

While you’re using a rideshare app, your personal auto insurance is suspended. Rideshare companies provide insurance for your vehicle from the time you accept a ride until you drop your passengers off. During this time period, there are different stages in which their insurance coverage kicks in.

  • Period 0: You’re offline and your personal insurance is in effect.
  • Period 1: The app is on and you’re waiting for a ride request. Coverage is limited to liability car insurance.
  • Period 2: A request has been accepted, but no passengers are in your car. The rideshare company’s comprehensive and collision policy is in full effect.
  • Period 3: Passengers are in your car and en route to their destination. The rideshare company’s policy is still in full effect.

During stages 2 & 3, your employer will provide comprehensive and collision insurance, but there will still be limits on these. Both Uber and Lyft’s policies are contingent on your personal auto insurance having at least the same limits as them. Both companies offer the following limits:

  • $50,000 per person for bodily injuries
  • $100,000 per accident for bodily injuries
  • $25,000 per accident for property damage

Deductibles vary by company, but Uber has set theirs at $1,000 while Lyft’s is set at $2,500. Some rideshare insurance will cover you while you are in periods 2 and 3 and will help pay deductibles in the case of an accident.

What is Rideshare Insurance?

No passengers in your car means no coverage for you or your vehicle. That means you will have to pay out-of-pocket for any damages or injuries sustained if an accident occurs during that time.

Rideshare insurance covers you during that lapse in coverage. It extends your insurance policy and options chosen for your personal auto policy while you’re working for companies like Uber or Lyft but haven’t accepted a ride yet. Once a passenger is in your car, your employer’s policy takes over. Rideshare insurance doesn’t replace your personal insurance policy. It ‘s simply an add-on feature of your existing policy.

Do You Need Rideshare Insurance?

Majority of insurance providers will exclude coverage for any incident that happens while ridesharing. Rideshare insurance provides you coverage during that lapse in coverage. An insurance company could cancel your policy at any time if they discover your car is being used to transport paying passengers without their knowledge.

Having ridesharing insurance makes sure they know the intended purpose of your car and so they can’t cancel your policy. Uber and Lyft insurance requirements don’t require you to have rideshare insurance, but it is your best option to stay covered at all times.

There are other options, like commercial insurance, that replace your normal policy and ensure coverage at all times, but the premiums and deductibles can be a little pricier. Commercial insurance might be your only option if rideshare insurance options aren’t provided where you live.

How Much Is Rideshare Insurance?

Until recently, many insurance carriers didn’t offer rideshare insurance, allowing those who did to charge significantly higher premiums. With more and more companies offering rideshare options, rates are becoming more affordable. Policy rates will vary by state and company, however.

Typically, rideshare insurance will increase your premium by $15 a month, but there are cheaper options. A few insurers offer rideshare insurance as cheap as $15 a year. Many insurance companies offer estimates on their sites, so shopping around is your best bet to find the perfect option for your needs.

How Do You Get Rideshare Insurance?

Since driving for rideshare companies is becoming more and more popular, rideshare insurance is also becoming more easily accessible. Many insurance companies, including even the most well-known providers, now offer rideshare insurance options making it simple to find a policy that will work for you. It is important to note that rideshare insurance isn’t a stand-alone policy and you will have to use the same company for both your personal and rideshare insurance.

While shopping for insurance, make sure you disclose that you are driving for a rideshare company. Ask for quotes for both rideshare and commercial insurance to determine the best price and option that will work with your company’s policy.

Cheap Car Insurance provides free car insurance quotes to help you find the cheapest options. Get a quote today to find the best rideshare insurance coverage and stay covered at all times.