Find the best insurance options for rideshare drivers
Get insurance coverage while you’re on the clock with Uber or Lyft.
What is Rideshare Insurance?
Rideshare companies like Uber and Lyft have made it possible for anyone with a smartphone and a car to pick up passengers and make a few extra bucks, or even start a full-time job. But while most of these drivers have car insurance – after all, it’s required by law in almost every state – many of them don’t realize that their personal policy doesn’t cover the time when they’re working. Insurance carriers provide insurance for drivers, but there’s a grey area when the rideshare app is turned on and you’re on the clock. Rideshare insurance varies by carrier, but generally covers defined periods in that grey area. To be clear, this is insurance that acts as a supplement or in addition to the insurance provided by the rideshare companies. The exception to all of this is New York - where commercial auto insurance is required.
How Rideshare Insurance Periods Work
The easiest way to understand rideshare insurance is to consider the different periods of coverage when driving.
- Period 1: When you have your rideshare app open but haven’t matched with a passenger.
- Period 2: When you’ve matched with a passenger but haven’t picked them up yet.
- Period 3: When you have a passenger in the car.
Rideshare companies provide insurance to drivers, but during Period 1 – when a driver has not yet matched with a passenger – the coverage provided may be limited. In Periods 2 and 3, more comprehensive coverage is provided through the rideshare company, albeit with a high deductible.
Rideshare insurance is often provided as an add-on to an existing personal policy that kicks in during Period 1 to bridge the gap in coverage and offer full protection. Some policies also cover Periods 2 and 3, when your policy’s personal deductible may be more manageable than that of the rideshare company’s policy.
While many popular companies provide rideshare insurance, you should check the coverage amounts, cost, and eligibility before you buy. Many providers only offer rideshare insurance in certain states, and while some policies are only an extra $30 a year, others may cost 3x more than a traditional personal car insurance policy.
Who Needs Rideshare Insurance
It’s easy to say that anyone driving for Uber needs rideshare insurance, but drivers for any rideshare company – Uber, Lyft, Gett, Via, Juno, or any others – should probably have it. At the very least, you should inform your carrier that you drive for one of the rideshare companies. You could face issues if you get into an accident while on the clock - and your insurer could deny your claim.
Who Sells Rideshare Insurance
Many major car insurance companies have options for rideshare insurance, which are usually modified versions of their standard policies. However, there may be limits on which states policies are available in. Some of the most popular providers of rideshare insurance are:
- State Farm
- Mercury Insurance
- American Family Insurance
Recently Written By Our Experts
Uber, Lyft, and other rideshare drivers now have insurance options
Uber is no stranger to controversy, especially controversy over how they treat their drivers. At the heart of these controversies is this central question: How much is Uber – or any rideshare company – responsible for?
The insurance secret that Uber doesn’t want you to know
Since we published this story, insurance options for rideshare drivers have started to appear. Click here to see our round-up of insurance options for rideshare drivers. However, complete auto insurance coverage is still unavailable to the vast majority of rideshare drivers.
Every type of insurance Uber drivers need
Uber drivers have the benefit of setting their own hours, driving around their cities, and getting to meet a lot of interesting people. Unfortunately, they face the same challenge that all freelancers do: a lack of insurance benefits.
Will self-driving cars replace Uber and Lyft drivers?
Ridesharing companies like Uber and Lyft created an entire industry seemingly overnight. Now almost anyone with a car and a smartphone can be on the clock, taking passengers across cities and making money just like a taxi service.