[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.agilerates.com\/advice\/auto\/rideshare-insurance\/#BlogPosting","mainEntityOfPage":"https:\/\/www.agilerates.com\/advice\/auto\/rideshare-insurance\/","headline":"Rideshare Insurance: What Coverage Do Drivers Need?","name":"Rideshare Insurance: What Coverage Do Drivers Need?","description":"If you have a driving gig, rideshare insurance can provide the coverage you need in case of an accident. Learn all about rideshare insurance before you get started. Considering becoming a driver for a rideshare or on-demand delivery service? It\u2019s time to consider rideshare insurance.  Although rideshare companies will offer coverage with a passenger in […]","datePublished":"2022-05-23","dateModified":"2023-06-23","author":{"@type":"Person","@id":"https:\/\/www.agilerates.com\/author\/mark-romero\/#Person","name":"Mark Romero","url":"https:\/\/www.agilerates.com\/author\/mark-romero\/","image":{"@type":"ImageObject","@id":"https:\/\/www.agilerates.com\/wp-content\/uploads\/2022\/06\/Mark-Romero-150x150.png","url":"https:\/\/www.agilerates.com\/wp-content\/uploads\/2022\/06\/Mark-Romero-150x150.png","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Agile Rates","logo":{"@type":"ImageObject","@id":"https:\/\/dev.agilerates.com\/wp-content\/uploads\/2019\/11\/unnamed.png","url":"https:\/\/dev.agilerates.com\/wp-content\/uploads\/2019\/11\/unnamed.png","width":600,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.agilerates.com\/wp-content\/uploads\/2022\/05\/Rideshare-Insurance.jpg","url":"https:\/\/www.agilerates.com\/wp-content\/uploads\/2022\/05\/Rideshare-Insurance.jpg","height":1065,"width":1600},"url":"https:\/\/www.agilerates.com\/advice\/auto\/rideshare-insurance\/","about":["Auto","Insurance Advice"],"wordCount":1322,"articleBody":"If you have a driving gig, rideshare insurance can provide the coverage you need in case of an accident. Learn all about rideshare insurance before you get started.Considering becoming a driver for a rideshare or on-demand delivery service? It\u2019s time to consider rideshare insurance. Although rideshare companies will offer coverage with a passenger in the car (more on that later), you may pay out of pocket for those expensive car repairs or medical bills in the unfortunate event of an injury or car accident. So, before you sign up to drive and head out to pick up your first passenger, protect yourself with everything you need to know about rideshare insurance.What is rideshare insurance?Rideshare insurance \u2014 sometimes referred to as ride-hailing insurance \u2014 is coverage that fills the gap between your car insurance policy and the rideshare company\u2019s commercial policy. This type of car insurance is beneficial for two reasons: Personal coverage won\u2019t cover moments when you\u2019re transporting paying passengers from place to place Rideshare employers will often cover the minimum, along with additional restrictionsTransportation Network Companies (TNCs) like Lyft and Uber driver insurance may extend additional coverage, but those are only for specific periods. If an accident occurs while waiting to receive a ride request, your rideshare coverage will offer the best protection if you’re liable for injuries and damages. It will also potentially pay to repair or replace your damaged vehicle. Is rideshare insurance a legal requirement for drivers?Drivers aren\u2019t legally required to purchase rideshare insurance. But because rideshare drivers are constantly on the road, it\u2019s always a good idea to consider investing in added protection from accidents that could cause damage and injury to themselves or third parties. Though rideshare insurance may not be legal, your car insurance policy may require it if you\u2019re driving for a ride-sharing company. Before signing up and picking up passengers, check with your car insurance provider to ensure you\u2019re meeting your policy\u2019s outlined requirements.Is rideshare insurance a requirement for Lyft and Uber?Lyft drivers must only have a personal car insurance policy that meets their minimum state coverage requirements. The rideshare company recommends buying rideshare insurance for complete coverage. Uber maintains commercial car insurance on the driver\u2019s behalf while online on the Driver app. However, the company recommends rideshare insurance for additional protection. You can also use their website to find insurers in your state that will match your lower personal car insurance deductible when purchasing comprehensive collision coverage. When does Lyft and Uber\u2019s insurance apply?To understand when your rideshare app provides coverage, it\u2019s important to know the three phases while the rideshare app is active: Available: The driver is available to pick up.En route: The driver has accepted a ride request and is on the way to pick up.On the trip: The driver has the passenger and is on the way to their destination.Your auto insurance will be in effect when the rideshare app is off. Once your rideshare app is on, Lyft and Uber provide coverage that depends on the phases above. Understanding your coverage is the key to ensuring you and your car are properly protected. Here\u2019s a breakdown of what each company offers below.Uber\u2019s rideshare driver coverageIf your auto insurance doesn\u2019t apply, this is what Uber will cover, depending on the phase of the rideshare app while it\u2019s active.When the app is on, and the driver is available and waiting for a ride request, Uber\u2019s third-party coverage covers:$25,000 in property damage coverage per accident$50,000 in bodily injury coverage per person$100,000 in bodily injury coverage per accidentWhen the app is on, and the driver has accepted a ride or is on a trip, Uber\u2019s coverage provides:Uninsured\/underinsured motorist bodily injury coverage$1 million third-party liability coverageContingent comprehensive and collision coverage up to the actual cash value of the car (with a $1,000 deductible)Lyft\u2019s rideshare driver coverageLike Uber, Lyft\u2019s third-party coverage is also contingent on the three phases while the rideshare app is active. If your auto insurance doesn\u2019t apply, this is what Lyft will cover, depending on the phase of the rideshare app. When the app is on, and the driver is available and waiting for a ride request, Lyft\u2019s third-party coverage covers:$25,000 in property damage coverage per accident$50,000 in bodily injury coverage per person$100,000 in bodily injury coverage per accident When the app is on, and the driver has accepted a ride or on a trip, Lyft\u2019s coverage provides:Uninsured\/underinsured motorist bodily injury and first-party coverage$1 million liability coverageContingent comprehensive and collision coverage up to the actual cash value of the car (with $2,500 deductible)Rideshare insurance for delivery app driversNot all on-demand delivery apps are created equal. Check the policy carefully if you\u2019re driving for a delivery app that offers car insurance. Each company is different and limited in all cases. Some delivery companies like Instacart and Grubhub don\u2019t provide any insurance to their drivers, so you\u2019ll need to ensure your insurance provider is informed and provides the coverage you need. Other delivery companies like DoorDash will only offer liability insurance while you\u2019re delivering the food.Delivery app coverage phasesJust like the rideshare phases of coverage, any delivery app insurance will depend on the period you\u2019re in while the app is active:Period 0: The app is off, and your policy is in effect. Period 1: The app is on, and you\u2019re awaiting a delivery request. Your personal policy (without rideshare insurance) won\u2019t cover you, as your vehicle is then used for commercial purposes. Period 2: A delivery request has been accepted, and you\u2019re en route to pick up a delivery. Some companies may offer coverage. Period 3: You\u2019ve picked up the food, and your employer\u2019s policy (if applicable) is in effect.How much does rideshare insurance cost?Because it\u2019s intended for people who use their vehicles for part-time commercial use, rideshare insurance is significantly less expensive than commercial car insurance. Many top car insurance companies offer rideshare insurance, with monthly costs as low as $6. Your car insurance quotes will vary depending on your profile and policy, but generally speaking, most drivers have rideshare auto insurance for as low as $30 per month. FAQsDoes my car insurance policy already cover rideshare driving?Most personal auto insurance policies do not include coverage while you\u2019re driving for a rideshare company. If your policy includes existing rideshare protection, check to ensure it offers the protection you need. Many policies will cover only damage to other people and their property but not damage to you or your car. Ask your insurance company or agent to be sure.Do I need to tell my insurance company about my driving gig, even if I\u2019m not enrolling in rideshare insurance?Yes. Your insurer needs to know if you\u2019re driving for a rideshare company. If not, you run the risk of a denied claim if it\u2019s learned the vehicle was being used for business purposes previously unbeknownst to the insurer. How to get rideshare insuranceIf you\u2019re considering driving for rideshare or on-demand delivery app, you should notify your insurance company and strongly consider adding rideshare insurance to your coverage. Every insurance company and transportation network company\u2019s policies will vary, so get car insurance that ensures you and your property have the coverage you need.\u00a0Compare rideshare insurance in your area here.Related content:DoorDash Drivers: What Kind of Car Insurance Do You Need?Uber Eats Auto Insurance RequirementsLyft Insurance: How It Works & What’s CoveredBest Car Insurance For DoorDash Drivers For 2023Dollar-a-Day Car Insurance: A Lifeline for Struggling Drivers in NJ"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Advice","item":"https:\/\/www.agilerates.com\/advice\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Auto","item":"https:\/\/www.agilerates.com\/advice\/\/auto\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"Rideshare Insurance: What Coverage Do Drivers Need?","item":"https:\/\/www.agilerates.com\/advice\/auto\/rideshare-insurance\/#breadcrumbitem"}]}]