Rideshare Insurance for Drivers: Where to Buy It, What It Covers

many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. however, this does not influence our evaluations. Our opinions are our own. A note about the pandemic: Amid the COVID-19 pandemic, many indemnity companies are extending coverage to automatically include a driver ’ second personal fomite when they are delivering food, medicine and other essentials for a delivery ship’s company. For more information, see NerdWallet ’ s coronavirus and car insurance steer .
indemnity for Uber and Lyft drivers — on crown of those companies ’ coverage — is the best way to be in full covered on the job. Often called rideshare insurance, these loanblend policies include coverage for personal car use and for the times drivers are signed in to a ridesharing app but not covered by Lyft ’ s or Uber ’ mho policy .
Drivers for on-demand manner of speaking companies like Grubhub, Instacart and Uber Eats besides need rideshare indemnity to avoid a coverage gap.

Why delivery, Uber and Lyft drivers need rideshare insurance

You need rideshare indemnity in any position where you drive your cable car to earn money, whether you drive for ridesharing companies like Uber or Lyft, or an app-based delivery serve .
not alone is your personal car insurance company unlikely to cover any accidents that happen during your ridesharing gig, but it could even cancel your policy if it finds out you haven ’ t disclosed you drive the cable car for money. tied if you have coverage from the party you rideshare for, it likely won ’ t apply the entire meter you ’ re on the problem .
Rideshare insurance international relations and security network ’ t available everywhere. If you can ’ deoxythymidine monophosphate get it, you would need a commercial policy policy to be in full insured and debar being dropped by your carrier. These plans have higher liability limits than distinctive policies — and higher prices to match. According to insurance agent group Trusted Choice, the average commercial policy for a passenger car costs from $ 1,200 to $ 2,400 a year or more .
» MORE: 1-minute learn : Why rideshare insurance is a must

Lyft and Uber Insurance

Uber indemnity or Lyft insurance provides minimal coverage while you have the app on and are waiting for a request — known as Period 1. Fuller coverage kicks in once you ’ ve accepted a ride and are carrying passengers .
here ’ s how the rideshare indemnity periods ( sometimes called “ phases ” ) work :

  • Period 0: App is off. Your personal policy covers you.
  • Period 1: App is on; you’re waiting for a ride request. Personal auto insurance without ridesharing coverage doesn’t cover you. Your rideshare employer’s policy is limited to liability coverage.
  • Period 2: Request accepted, and you’re en route to pick up a passenger. Your Uber or Lyft insurance policy is in full force.
  • Period 3: You have passengers in the car. Your Uber or Lyft insurance policy is in full force.

Lyft indemnity and Uber insurance are about identical. however, the deductible amounts for comprehensive and collision insurance are different. A deductible is your contribution of haunt costs before your insurance company pays the rest of a title. Lyft ’ mho deductible is $ 2,500, while Uber ’ second is $ 1,000 .

Lyft and Uber insurance by period

Period Insurance type*
Period 1 Liability only:

  • $50,000 bodily injury per person.
  • $100,000 bodily injury per accident.
  • $25,000 property damage per accident.
Periods 2 and 3

  • Liability: $1 million per incident.
  • Uninsured/underinsured: Varies by state.
  • Comprehensive and collision**: Up to the value of your car if you also have comprehensive and collision coverage on your personal policy.
*Coverage may be modified to comply with state and local laws.

**You must pay a deductible before coverage applies.

Rideshare insurance for delivery app drivers

If you ’ re drive for an on-demand rescue overhaul that does offer cable car insurance, check its policy carefully — coverage differs from company to party and is limited in all cases .
For case, Grubhub and Instacart don ’ thymine provide any car policy, but you ’ ll need your own coverage to drive for them. meanwhile, DoorDash offers only liability indemnity while the food you ’ re deliver is in your car .
As with a rideshare company, the indemnity your manner of speaking app provides will depend on the period you ’ re in :

  • Period 0: App is off. Your personal policy covers you.
  • Period 1: App is on; you’re waiting for a request. A personal policy without ridesharing coverage doesn’t cover you. Some delivery app companies offer coverage.
  • Period 2: Request accepted, and you’re en route to pick up a delivery. Some delivery app companies offer coverage.
  • Period 3: You have the food or goods in the car. Your employer’s policy is in full force.

here ’ s a dislocation of the car policy offered by some on-demand manner of speaking companies :

Rideshare insurance offered by delivery app companies

  DoorDash Postmates* Uber Eats
Period 1 No employer coverage Liability only:

  • $50,000 bodily injury per person.
  • $100,000 bodily injury per accident.
  • $25,000 property damage per accident.
Period 2 No employer coverage Liability: $1 million per incident

  • Liability: $1 million per incident.
  • Comprehensive and collision**: Up to the value of your car if you also have comprehensive and collision coverage on your personal policy.
Period 3 Liability: $1 million per incident
*In addition to car insurance, Postmates offers occupational medical insurance, which applies for Periods 2 and 3. **$1,000 deductible applies.

Where to get rideshare insurance

You can get rideshare insurance from many of the largest car insurers in the state, including State Farm, Farmers and Progressive. But rideshare policy international relations and security network ’ metric ton available everywhere .
See our calculator below to find rideshare indemnity in your state of matter .

How much rideshare insurance costs

A policy with ridesharing coverage costs around $ 15 more a month, according to insurers ’ websites, although some say it ’ randomness much cheaper. For exemplar, Allstate says coverage can be a bum as around $ 20 per year. State Farm, on the early hand, says its rideshare insurance typically costs 15 % -20 % more than a personal car policy without rideshare coverage .
not all insurers contribution estimated rates, but here ’ s a snapshot of some that do .

Rideshare insurance costs by company

Company Cost above traditional policy*
*Pricing according to insurers’ websites.
**USAA is only available to military, veterans and their families.
Allstate About $20 per year.
Erie $9 to $15 per month.
Mercury Starting at about $27 per month.
Safeco Likely under $10 per month.
State Farm 15%-20% of premium.
USAA** Starting at $6 per month.

How to buy rideshare insurance

Rideshare insurance is either a hybrid policy or an addition from your personal car insurance company, not stand-alone coverage. For exemplar, you can ’ t have Progressive for your personal car policy and buy rideshare insurance from Farmers .
When selecting rideshare insurance, be certain to :

  • Tell your personal auto insurer you’re driving for a ridesharing company.
  • Figure out the gaps between your personal policy and your rideshare company’s policy. Uber and Lyft both provide $1 million in liability coverage for drivers carrying passengers. Among smaller and newer companies, policies can vary.
  • Ask your current insurer whether it offers rideshare insurance to fill in coverage gaps, or to quote you a commercial policy. If both types are available, get both quotes so you can compare costs.

» MORE: Compare car indemnity rates

What happens if you have an accident while driving for Uber, Lyft or other app?

If you cause an accident during Periods 2 or 3 — while you ’ rhenium carrying passengers or on your way to a menu — the policy policies for Postmates, Uber Eats, Uber and Lyft will cover checkup expenses and other damages you cause up to $ 1 million. The $ 1 million limit is much higher than most drivers — even taxi drivers in many major cities — carry in liability coverage .
If an uninsured or underinsured driver hits you while driving for Lyft or Uber, the amount its policy covers varies by state. No pitch company offers coverage for this situation .
You can besides draw on comprehensive and collision coverage from ridesharing companies and Uber Eats, but only if you besides have such coverage on your personal policy. Beware, though : Deductibles can be senior high school, and the policies apply only once you ’ ve accepted a request or while you ’ rhenium carrying passengers or food .
If you cause an accident during Period 1, you ’ ll want to file a claim with your indemnity supplier unless your state law or rideshare policy policy specifies otherwise. If the claim is denied or you ’ re not in full reimbursed, Lyft ’ s or Uber ’ second indemnity ( for both Uber and Uber Eats drivers ) should cover the rest. But ridesharing companies ’ limits in these cases are relatively broken — this is the “ opening ” that rideshare insurance from your personal carrier wave is designed to cover .

How to report an accident and file a claim

Call the police. Whether or not you ’ re in rideshare mood when a car accident happens, your beginning step should be to call the police. Depending on the type of accident and your rideshare company ’ mho rules, you might have to provide your personal proof of insurance or the rideshare company ’ s certificate. Exchange information with the other driver as you normally would.

How to file. Next, inform your personal car insurance company. even if you can rely on your employer to cover the price, your personal insurance company will find out about any accidents, and it ’ sulfur best they hear it from you. Drivers who haven ’ thymine been honest about their repel status can find themselves in a rugged site : If you choose not to tell your insurance company, you risk being dropped .
ultimately, notify your ridesharing company or delivery app employer. If you can take advantage of the company ’ south coverage, a congressman can help you start the claims process .

Rideshare insurance: Key takeaways

Rideshare insurance has gaps. Rideshare companies offer full insurance coverage after you’ve accepted a ride request and while you’re driving passengers only. Delivery companies’ coverage varies, but all offer less insurance than Uber or Lyft.
You probably need a rideshare policy. Drivers should look at what’s covered in both their personal policies and the rideshare company’s insurance. To be fully covered, you’ll probably need either rideshare insurance or a commercial auto policy.
Availability is spotty. Not all insurance companies offer rideshare insurance policies, nor is coverage available in all states. Commercial policies are more widely available.
You may risk your personal coverage. Even if your company offers full coverage during all phases of the job — before, during and after requests — your personal auto insurer could drop you if you don’t disclose that you use your car to make money.

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