A Complete Guide to Rideshare Insurance for Drivers

June 30, 2019

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By: Tommy Andrews

If you are driving with Uber, Lyft, or any rideshare service, you need to know what your options are with rideshare insurance. You drive your vehicle more than the average driver which means you are more than likely to get into an accident at no fault of your own.

Keep reading to learn everything you need to know about rideshare insurance.

Why Uber and Lyft Drivers Need Rideshare Insurance

You’ll want to get rideshare insurance because your personal auto insurance will likely not cover any accidents that happen while you’re working for a rideshare company. This accident can even cancel your personal policy, especially if you haven’t told your insurance that you drive for a rideshare company.

This is also true if you drive for app-based delivery services. If you don’t have rideshare insurance, know that neither your insurance company your rideshare company will cover you while you are waiting for a request.  So if someone hits you during this period and they don’t have insurance, you will probably have to deal with getting reimbursed for your costs from the party that hit you.  This means that you will be out of pocket the cost of repairing your car.  In some cases, this could be as high as $20,000 depending on the damage.  Also if you get injured during this period you will again be out of pocket all your medical costs since your auto insurance will not cover you.

This non-insured period of time is known as period 1; your fuller coverage will kick in once you’ve accepted a ride and have passengers in your car. Here’s how the rideshare insurance periods (also known as phases) break down.

Period 0

This is when your app is off. You rideshare policy doesn’t cover you here, but your personal policy does.

Period 1

This is when your app is on, and you are waiting for a ride request. Without ridesharing coverage, your personal policy won’t cover you. Your rideshare insurance will cover you with limited liability but no collision or medical coverage.  Without rideshare insurance, this critical period is when you are on your own.

Period 2

This when your request has been accepted and you on your way to pick up a passenger. Your rideshare company policy will cover you.

Period 3

This is when you have passengers in the car. During this time your rideshare company policy is also in full force.

What If My Location Doesn’t Have Rideshare Insurance?

You should know the rideshare policies aren’t always available everywhere. If you can’t get a rideshare policy in your area, then you will need to get a commercial insurance policy. This way you are fully insured which will prevent you from getting dropped by your carrier if you are in an accident while driving for a rideshare company.

Be aware that these plans do have higher liability limits compared to a typical policy. This also means the prices are more expensive.

How Much Does Rideshare Insurance Cost?

According to insurer’s websites, a policy that has rideshare coverage will cost up to  $15 more a month. While other companies are cheaper like Allstate says this coverage can be as low as  $15 to $20 per year. Whereas State Farm says rideshare policies cost around fifteen to twenty percent more than a personal auto policy without any rideshare coverage.

How To Buy Rideshare Insurance

You should know that rideshare insurance is either an add-on from your personal auto insurance, or a hybrid policy. However, rideshare insurance it is not stand-alone coverage. Which means you cannot have Progressive for your personal auto policy and then get rideshare insurance from Geico.

When you are selecting rideshare insurance, you should make sure you do the following. You need to tell your personal auto insurer that you are driving for a rideshare company.

You also need to find out what the gaps are between your rideshare company’s policy and your personal policy. Lyft and Uber both have a one million dollar liability coverage if you’re a driver carrying passengers. But keep in mind, that with smaller and newer companies the policies might vary.

You will want to ask your current insurer if it offers any rideshare insurance to fill any gaps in coverage. If they can’t, then see if they can give you a quote for a commercial policy.

What Happens If You Have Accident While Driving With Uber or Lyft

If you have an accident and you’re driving during periods two or three with passengers in your car, both Uber and Lyft’s policies will cover any damages or medical expenses caused up to one million dollars.

If the accident was caused by another driver who does not have enough or no insurance, then Uber will cover your damage and any injuries up to one million dollars. If the underinsured or uninsured driver hits you while you are driving for a rideshare service, then the amount the policy covers will vary state by state.

You also can draw on collision and comprehensive coverage from your ridesharing company, but only if you have that coverage on your personal policy. Be warned that deductibles can be high and policies apply only if you accepted a ride request or have passengers in your car.

If you cause an accident during period one, then you will need to file a claim with your insurance provider. Unless your rideshare insurance policy or your state law specifies otherwise.

If the claim gets denied or you’re not fully reimbursed, then the rideshare’s insurance will kick in. But know that ridesharing companies’ limits with these cases tend to be pretty low. This is the gap between rideshare’s insurance and your personal carrier is meant to cover.

How to Report an Accident and File A Claim

If you are in an accident while driving for rideshare, here are some things you should do next.

Call The Police

If your accident happens while ridesharing or not, the first thing you should do is call the police. Depending on what type of accident you were in and the rules of your rideshare company, you may have to show proof of your personal insurance and or rideshare company’ certificate.

You also will want to exchange information with the other driver, like you would in any other car accident.

How To File A Claim 

Now you will need to tell your personal auto insurer about the accident. Here you will see if you need to file a claim.

Even if you can rely on your rideshare employer to cover the damage, you still need to tell you personal insurer about the accident. It’s always best that this report comes directly from you, and not the driver who you go into an accident with.

If you aren’t honest about your driving status to your insurer, then you might risk getting dropped by your insurance. You will also need to tell your ridesharing company about the accident. If you can use the company’s coverage, then a representative will help guide you through the process.

Get Rideshare Insurance Today

Now that you know everything you need to know about rideshare insurance, make sure you’re covered today. Talk to your rideshare company and see what your options are. For more rideshare resources, be sure to check out our blog.

Rideshare Insurance Availability Table By State

StatesYes/NoFarmersGeicoState FarmErieMountain AmericaMetromile
Uber Only
AllStateUSAAMetlife
Lyft Only
AlabamaYesYesYesYes
AlaskaNo
ArizonaYesYesYesYesYes
ArkansasYesYes
CaliforniaYesYesYesYesYesYes
ColoradoYesYesYesYesYesYesYesYes
ConnecticutYesYesYes
DelawareNoYesYes
FloridaYesYes
GeorgiaYesYesYesYes
HawaiiNo
IdahoYesYesYesYes
IllinoisYesYesYesYesYesYesYesYes
IndianaYesYesYesYes
IowaYesYesYesYes
KansasYesYesYes
KentuckyYesYesYes
LouisianaYesYesYes
MaineYesYesYes
MarylandYesYesYesYes
MassachusettsYesYes
MichiganYesYes
MinnesotaYesYesYesYes
MississippiYesYesYes
MissouriYesYes
MontanaYesYes
NebraskaYesYesYesYes
NevadaYesYes
New HampshireNo
New JerseyYesYesYes
New MexicoYesYesYes
New YorkTNC / NA
North CarolinaNo
North DakotaYesYesYesYes
OhioYesYesYesYesYesYes
OklahomaYesYesYesYes
OregonYesYesYesYes
PennsylvaniaYesYesYesYes
Rhode IslandYesYes
South CarolinaYesYes
South DakotaYesYes
TennesseeYesYesYesYesYesYes
TexasYesYesYesYesYesYes
UtahYesYesYes
VermontYesYes
VirginiaYesYesYesYesYes
WashingtonYesYesYesYesYesYes
Washington DCYesYes
West VirginiaYesYesYes
WisconsinYesYesYesYesYes
WyomingYesYesYes

 

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