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insurance rideshare drivers

Insurance for Rideshare Drivers

Driving for Uber or Lyft is a popular, and growing, profession. While there are benefits to driving with these companies, it’s important to make sure that you are protected on the job. Lyft and Uber have some supplemental coverage for its drivers. However, if you want to be fully protected, you will need to get your own insurance coverage.


What Insurance Do They Provide?

Lyft and Uber’s insurance coverage tends to be minimal. The coverage is only applicable if you have the app on and are waiting for a request or driving. The coverage also depends on what “phase” you are in: waiting for a request, going to pick someone up, or driving the passenger. So unless you are driving to pick up a passenger or actively driving them, you may not be adequately protected.

The insurance that Uber and Lyft provide may also have higher deductibles, depending on the phase you are on. Or their limited coverage may not be enough to cover damages. When assessing your insurance coverage, consider the limits of coverage and the deductible. Can you afford to pay the deductible in an accident? If the accident is bad, will is surpass the coverage limits?


Quick Breakdown of Phases:

  • Period 0: The App is off. Your personal policy covers you. Uber or Lyft insurance coverage does not cover you.
  • Period 1: The Lyft or Uber app is on, and you are waiting for ride request. Here, your personal auto insurance won’t cover you. Uber and Lyft insurance have limited coverage.
  • Period 2: You accepted the request, and you are on your way to pick up a passenger. Here the Uber or Lyft insurance coverage is in full action.
  • Period 3: The passengers are in your car. Uber or Lyft’s  policy is still in action.


Can I Get Rideshare Insurance?

Depending on the state you are in, you may be able to find specialty rideshare insurance coverage. These policies are designed to help protect Uber and Lyft drivers in the event of an accident. When shopping around for insurance, make sure that the insurance policy covers the gaps between your policy and Uber/Lyft’s. Your insurance agent can help you figure out how much coverage you need.


What If I Can’t Find Rideshare Insurance?

You may not be able to find specialized rideshare insurance policies in your area. If that is the case, then look for a commercial auto insurance policy. Commercial auto insurance helps cover vehicles used for business purposes. In this case, driving for Uber or Lyft would be a business purpose. Your personal auto insurance coverage may not protect you if you get into an accident while driving for a rideshare company.


Tell Your Insurance Company You’re Driving for Uber or Lyft

Driving for Uber or Lyft may jeopardize your personal auto insurance coverage if you don’t tell your insurance provider. You can also ask if they have any add-on policies that would cover you as a rideshare driver. Otherwise, ask them about commercial coverage. Sometimes insurance companies will offer discounts for have multiple coverages with the same carrier.


Call an Encharter agent today at 888.754.8299 and ask about coverage for rideshare drivers!


Additional Sources:

NerdWallet: Rideshare Insurance For Drivers

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