Are you looking to flex your side hustle muscle with Uber, Lyft, or a similar rideshare service? Ridesharing Arizonans should be aware that standard car insurance policies can leave you unprotected. Read on to discover how rideshare insurance works, the applicable laws, and the requirements you must fulfill to start counting extra cash.
And if you’re ready to put your foot on the pedal and start picking up passengers, head over to Insurify to find the coverage your rideshare vehicle needs at a price you can afford.
How Rideshare Insurance Works
Generally, rideshare plans are available in one of two forms: you can add on a rideshare endorsement to an existing personal insurance policy or buy a separate commercial policy.
Curious how Uber & Lyft insurance provides you with ridesharing coverage?
Here’s how it works: Uber and Lyft‘s commercial coverage is divided into four stages: “offline,” “available,” “en route,” and “on trip.” At each part of the journey, Uber and Lyft offer various levels of coverage to their drivers. See below.
When you buy a personal auto insurance policy, your liability coverage includes both bodily injury and property damage coverage. And you may also have comprehensive and collision coverage, medical payments, and uninsured and underinsured motorist coverage.
Similarly, Uber’s and Lyft‘s respective commercial policies safeguard drivers, but only after you move out of the “offline” portion of a ridesharing trip. So, once you’ve activated your ridesharing app and moved to the “available” mode, your vehicle is the least protected. What if a serious accident happens when you start your shift before you even accept a ride?
To fill the void, several insurance providers have created endorsements, packages, and policies to either provide you with added protection or to combine your personal and commercial insurance coverage. Additionally, drivers may consider supplemental coverage as specialized rideshare insurance from an independent provider to guarantee sufficient coverage when driving for Uber and Lyft and during offline, personal use.
>>>MORE: Car Insurance for Uber Drivers
Arizona Laws on Rideshare Insurance Requirements
Because driving for Uber or Lyft is a commercial activity, your personal insurance policy may deny claims if you’re in an accident while working. In addition, the Arizona law made effective February 29, 2016, says that rideshare companies, called transportation network companies (TNCs), the TNC driver (that’s you), or both need proper insurance when transporting passengers on behalf of the TNC.
Under Arizona Revised Statutes §28-4038, the minimum required liability insurance coverage is $25,000 per person and $50,000 per accident bodily injury coverage and $25,000 for property damage coverage, commonly abbreviated as 25/50/25. The following shall maintain the mandated coverage:
- A personal auto policy held by the TNC driver when signed in and taking fares
- A rideshare company‘s policy
- A commercial auto insurance policy
>>> MORE: How Much Car Insurance Do I need?
Rideshare Insurance Companies in Arizona
Arizona drivers are in luck because there are over 19 insurance companies ready to offer rideshare coverage. Below are the insurers, starting with the cheapest on average. But your rates will vary by your location, vehicle, and unique driver profile. Check out Insurify for a list of personalized rideshare insurance quotes, today!
|Arizona Insurance Provider||Average Monthly Cost of Rideshare Insurance|
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Arizona Requirements for Rideshare Drivers
For those driving in Phoenix, Arizona, local regulations stipulate that all rideshare drivers display a decal when online. The decal should be on your front passenger windshield and face outward. You can remove it when you’re not working. Uber says a “pro tip” is to keep the paper that comes with the decal. Other cities may have similar ordinances.
Check out the specific requirements for Uber and Lyft so that you can get a head start on the process.
>>>MORE: Cheap Auto Insurance in Arizona
Minimum driver requirements
To drive for Uber, you must:
- Meet the minimum driving age in your city.
- Have at least a year’s worth of licensed driving experience in the U.S. (three years if you are under 23 years old).
- Possess a valid U.S. driver’s license.
- Drive an eligible four-door vehicle.
You must have the following documents:
- A valid U.S. driver’s license
- Proof of residency in your city, state, or province
- Proof of car insurance if you plan to drive your own car
- A forward-facing, centered, and easily recognizable driver profile photo
- Vehicle registration (both official and temporary are accepted, and not in your name is OK)
Your vehicle must be:
- A 15-year-old vehicle or newer (20 years old or newer for Uber Eats)
- A four-door vehicle
- In good condition without cosmetic damage
- Free of commercial branding
- Capable of passing a vehicle inspection
Minimum driver requirements
To drive for Lyft, you must:
- Possess a valid driver’s license (temporary and out-of-state licenses are also acceptable).
- Be age 25 or older.
- Pass a driving history and criminal background check.
- Own a smartphone that can run the Lyft Driver app.
You must have the following documents:
- A driver profile photo
- Vehicle registration
- Personal car insurance
- Lyft’s Arizona vehicle inspection
Your vehicle must have:
- Four doors
- Five to eight seats, including the driver
- Eligibility (excludes taxi, stretch limousines, and certain subcompact vehicles)
- Clean title (not a salvage, non-repairable, rebuilt, or any other equivalent classifications)
Filing a Claim after an Accident As a Rideshare Driver in Arizona
For coverage, if you were offline, your personal policy applies. If you were simply available to accept ride requests, Uber or Lyft‘s 50/100/25 bodily injury and property damage covers you. If you were on your way to pick up passengers or with passengers in the vehicle you, Uber and Lyft‘s highest level of coverage kicks in, protecting you against damages or injuries you cause up to $1 million.
After an accident, whether or not you’re ridesharing, first call 911. Then, it’s on to photos, your quick notes or report of what happened, and a call to insurance. If you were driving for Uber or Lyft, you could contact the accident helplines through the respective apps. They’ll walk you through the claims process and whether you need to pay the deductible that could be as high as $2,500.
Find Cheap Rideshare Insurance in Minutes
At this point, your side hustle muscles should be strong enough to make Arnold Schwarzenegger jealous. In Arizona, you can sweat without the gym by opening the door for your rideshare clients any time the sun shines. But you can’t swipe to “available” quite yet. You still have to lock in an insurance rate that won’t tear into your profits.
Skip calling insurance agents, and head over to Insurify’s free comparison website to find the most affordable rideshare insurance. Also, if bundled savings is your thing, glance at the homeowners or renters insurance, too. With over four million rideshare insurance quotes, Insurify’s AI technology offers you the lowest prices from top providers, all in a manner of minutes.
Get your Lyft or Uber insurance policy today with fast, free, and finance-friendly quotes from Insurify.
Bonus Tip: While using Insurify, be sure to select “Rideshare Driver” to receive quotes for rideshare policies tailored to your profile. See below.
Rideshare Insurance in Arizona
Do you need rideshare insurance in Arizona?
Yes, Arizona Revised Statutes §28-4038 requires ridesharing companies and rideshare drivers to carry adequate coverage through every stage of the trip. Rideshare policies may combine coverage on a personal auto insurance policy or provide coverage through a stand-alone commercial policy.
How much does rideshare insurance cost in Arizona?
The total average monthly cost of rideshare insurance in Arizona was $205. For perspective, since so many people move from these places, that's cheaper than California’s and Michigan's averages but slightly more expensive than Illinois’s. And one Arizona insurance agency reports that the ridesharing endorsement adds about $10 per month to a personal policy, but your pricing may vary.
Which car insurance companies in Arizona provide rideshare insurance?
In the Grand Canyon State, rideshare insurance options include AssuranceAmerica, Bristol West, Clearcover, Commonwealth Casualty, Dairyland, Freedom National, Hallmark, Infinity, Kemper, Liberty Mutual, Mercury, MetLife, Midvale Home & Auto, Motion Auto, Progressive, Safeco, Sun Coast, The General, and Travelers.