Rideshare Insurance

What is rideshare insurance?

If you drive for a ridesharing service such as Uber or Lyft, rideshare coverage protects you and your car. While ridesharing firms may provide some insurance to drivers who use their platforms, your coverage may be restricted while you wait to find a rider or when you have a passenger in your car. Many insurers provide rideshare insurance that may be added to your own vehicle policy to assist address coverage gaps.

 

Before driving for a ridesharing service, get a quote for rideshare coverage. If you want to drive for Uber, Lyft, or any other ridesharing platform, insurance providers make it simple to obtain rideshare insurance. Simply add rideshare coverage to your personal vehicle policy to ensure that you are covered as soon as you begin working. If an accident occurs while you're waiting for a ride, your ridesharing coverage may protect you if you're held accountable for injuries or damages, as well as pay to repair or replace your own damaged car.

 

Is ridesharing insurance required?

State law often requires rideshare businesses to offer coverage for its drivers. However, because your rideshare company's policy may not cover you while waiting for a customer, most insurers require you to add rideshare insurance to your personal vehicle policy if you drive for Uber, Lyft, or any other ridesharing service. You may extend your protection beyond what your ridesharing company's insurance policy provides by acquiring rideshare coverage.

What if I don't inform my insurance company about my rideshare driving?

Engaging in ridesharing activities exposes you to possible liabilities that your personal auto policy may not cover, therefore an insurer may cancel or refuse to renew your coverage if they discover you're driving for a rideshare service and haven't informed them. Before you begin ridesharing, always check with your car insurance company to ensure you are not breaking the conditions of your policy and to add rideshare coverage.

Important: Some insurance carriers may not provide ridesharing coverage, or just in specific states. If yours does not, you may either switch to a firm that does or consider purchasing a commercial car coverage. In fact, certain states and ridesharing services may mandate you to get a commercial coverage instead. Commercial insurance is usually more expensive, but in some cases it is the only option to get ridesharing coverage.

What is the procedure for obtaining ridesharing insurance?

During a normal ride on a platform like Uber or Lyft, your coverages may vary as follows:

  • When you're not online: During this time, any insurance supplied by Uber or Lyft will be null and void. Instead, your personal vehicle insurance policy with the coverages you've chosen will apply.

  • When you're waiting for a ride: The ridesharing business may provide insurance that covers bodily injury and property damage liability. Make sure to check with your ridesharing provider to see how you're protected. Typical ridesharing insurance coverage includes:
     

    • Comprehensive and collision coverages are subject to the same deductible as your own insurance.
       

    • Uninsured/underinsured motorist protection (UM/UIM): The types and limitations of uninsured/underinsured motorist coverage are typically the same as your own insurance, with the exception that coverage is given exclusively for the driver during this period.
       

    • Additional coverages: If you have them on your insurance, you may be able to get roadside assistance, rental car reimbursement, and other benefits.

 

  • When you accept a request: Up to the policy's limits, the ridesharing firm may provide some insurance covering responsibility for physical injury and property damage. It may also include contingent coverage for physical damage to your car and bodily injury coverage for uninsured/underinsured motorists. Coverage for ridesharing may also include:
     

    • Roadside assistance, rental car reimbursement, and other coverages may also apply during this period if they are included in your insurance.
       

    • Deductible reimbursement: Depending on your insurance provider, you may be paid for the difference between your policy's deductible and the deductible of the ridesharing business.

What if I cause an accident and my customer gets hurt?

Any liability coverage provided by the ridesharing company's policy may cover injuries to your passengers up to the liability limitations of the policy.

 

What if I wish to share rides in my business vehicle?

A commercial auto coverage, often known as livery insurance, is generally required if you operate a taxi, limousine, or any other vehicle utilized by a business to transport passengers for a charge. 

 

How much does rideshare insurance cost?

While inexpensive, adding ridesharing coverage to your personal vehicle policy will raise the cost of your policy. The amount of the increase varies depending on a number of criteria, including your vehicle, state, driving history, and the existing coverages and limitations on your policy.

 

What is the difference between rideshare endorsement vs. Transportation Network Provider (TNC) coverage?

State law typically requires your TNC to provide insurance coverage for their drivers. However, your ridesharing company's insurance coverage may not protect you as well as you believe. TNCs may not cover you while you wait for a rider, and your personal vehicle policy may not, unless you add a ridesharing endorsement.

 

While any insurance provided by your ridesharing company's insurance coverage may provide liability protection while you wait to match with a passenger, you are usually responsible for any physical damage to your car. If your car is damaged in a covered event while using insurance rideshare coverage, your personal auto policy's comprehensive and collision coverage will apply.

 

Is rideshare insurance available for delivery services such as Uber Eats and DoorDash?

Rideshare insurance supports drivers who work on delivery service platforms such as Uber Eats or Door Dash in the majority of states. The specific coverages that apply between your own vehicle policy with ridesharing insurance and any insurance supplied by the delivery business may differ depending on your state.