If you’re a rideshare driver for Uber or Lyft or even a delivery driver for meals or groceries, you deserve an insurance policy that fully protects you. Any time you use your vehicle to earn income, your personal car insurance policy won’t cover you. You’ll either need to purchase commercial car insurance or a rideshare endorsement to avoid a coverage gap

While rideshare insurance adds an extra expense, some providers offer cheaper rates for this type of coverage than others. The best way to find a policy that fits your budget is to use Insurify to compare rates across multiple insurance providers. Just tell us you’re looking for rideshare insurance when you provide your information, and our artificial intelligence technology will get to work finding you the cheapest deals. 

How Rideshare Insurance Works 

Rideshare companies in Illinois are required to provide liability coverage, and in some situations, they may provide full coverage as well. The level of coverage provided by the ridesharing or transportation network company (TNC) varies depending on if you’re waiting for a request or picking up a passenger. There are situations when Lyft or Uber drivers could potentially be on the hook for damages in an at-fault car accident. That’s why rideshare coverage is important. 

Here’s how each policy covers you in the following periods:

  • When the rideshare app is off: When you’re offline and not driving for the rideshare service, your personal auto insurance policy will protect you. 
  • When you’re waiting for a request: Ridesharing companies provide liability insurance while the app is on and you are waiting for a request. However, Lyft and Uber insurance won’t provide comprehensive or collision coverage during this time, nor will your personal policy apply. That means you’d be on the hook for damage to your vehicle in an accident you cause. 
  • When you’re en route to passengers or on rides: Once you’re on your way to pick up a passenger or driving them to their destination, the rideshare company will provide:
  • Third-party liability coverage: This covers medical expenses for injuries to another person or repairs for damages to their property in an accident caused by the rideshare driver
  • Uninsured/underinsured motorist bodily injury coverage: This covers injuries to rideshare drivers and passengers if another driver causes an accident and doesn’t have sufficient insurance coverage
  • Contingent comprehensive and collision coverage: If you have a full-coverage personal policy, the rideshare company’s insurance will cover damage to your vehicle from a non-collision event or an accident you cause. However, this coverage comes with a high deductible. Some rideshare insurance policies cover the difference between your personal deductible and the $2,500 deductible that comes with Uber and Lyft insurance policies

>>>MORE: Best Car Companies for Rideshare Drivers

Illinois Laws on Rideshare Insurance Requirements

In Illinois, rideshare drivers are required to purchase a policy with higher limits than the state minimum. By law, Uber and Lyft drivers need to have:

  • $50,000 per person in bodily injury liability coverage
  • $100,000 per incident in bodily injury liability coverage
  • $25,000 per incident in property damage liability coverage

Rideshare companies are also required to provide those same coverages in the event that the TNC driver’s policy doesn’t apply. Once a driver accepts a ride request, the TNC must also cover:

  • $1 million in third-party liability coverage
  • $50,000 in uninsured motorist coverage

It’s also important to remember that insurance companies aren’t required to cover accidents that occur during business use of the vehicle unless you have a commercial policy. Furthermore, if you don’t inform your insurer of your rideshare activities and they find out you have been driving for a TNC, they can cancel your policy. 

If you don’t have commercial insurance, look for car insurance companies that provide a rideshare endorsement as an add-on to your personal policy. This can extend your personal coverage to your rideshare activities. 

>>> MORE: Cheap Car Insurance in Illinois

Rideshare Insurance Companies in Illinois 

There are several insurance providers in Illinois that can offer affordable rates on insurance for rideshare drivers. Premiums are cheaper for rideshare drivers in Illinois than they are in many other states, including Florida, Texas, and California. According to Insurify’s proprietary data, you can expect to find the cheapest premiums from the following companies:

Illinois Car Insurance Company Average Monthly Premium for Rideshare Insurance
Kemper Specialty $98
Mile Auto $103
National General $115
Direct Auto $120
Travelers $124
Safeco $126
Clearcover $127
Elephant $140
Bristol West $152
First Chicago $170

Check out Insurify for a full list of personalized rideshare insurance quotes tailored to your driver profile!

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Illinois Requirements for Rideshare Drivers

Uber and Lyft have the following requirements for drivers and their vehicles in Illinois:

Uber Lyft
Vehicle Requirements
  • 15 years old or newer
  • 4 doors
  • Good condition with no cosmetic damage
  • No commercial branding
  • Pass a vehicle inspection
  • 2001 or newer
  • 4 doors
  • 5–8 seats
  • Valid license plate
  • Pass a vehicle inspection
  • Not an ineligible subcompact
Driver Requirements
  • Valid driver’s license
  • Minimum age to drive in your city
  • At least one year of driving experience (or 3 if you’re under 23)
  • Pass a driver screening and background check
  • Valid driver’s license
  • A smartphone capable of running the Lyft app
  • 25 or older
  • 1 year of driving experience
  • Pass a driver screening and background check
Required Documents
  • Driver’s license
  • Registration
  • Proof of residency
  • Proof of insurance
  • Profile photo
  • Driver’s license
  • Registration
  • Proof of insurance
  • Profile photo

 

Filing a Claim after an Accident As a Rideshare Driver in Illinois

Both Uber and Lyft have a process for reporting an accident, and each app will walk you through the steps. You’ll also want to call your insurance agent for your personal policy or file a claim through your provider’s website or app. 

Your insurance company will likely follow up with the ridesharing company and schedule an inspection of your vehicle. If you had rental car reimbursement coverage on your policy, they would also arrange to find you a rental at this time. 

Depending on when the accident occurred, you may get payments for covered expenses (minus your deductible) from your insurance company, the rideshare company, or both. 

Find Cheap Rideshare Insurance in Minutes

The cost of adding rideshare insurance varies by provider, and the easiest way to find the best deal is to get a free quote from Insurify. You’ll just need to answer a few questions about your vehicle and driving history to get started. Be sure to check the box for rideshare insurance so you get accurate rates. 

From there, you’ll get quotes from multiple insurance companies on one easy-to-navigate page. You can toggle between coverage limits and deductible amounts until you get the policy that meets your needs and then choose the provider offering the best price.

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Rideshare Insurance in Illinois: Frequently Asked Questions

Do you need rideshare insurance in Illinois?

While rideshare drivers aren’t required to have a rideshare endorsement in Illinois, they are held to higher minimum coverage limits by state law. If you drive for Uber or Lyft, you’ll need at least $50,000 per person and $100,000 per accident in bodily injury liability insurance and $25,000 in property damage coverage. But to avoid gaps in coverage, you should also have rideshare insurance.

How much does rideshare insurance cost in Illinois?

Based on premium data from more than 500 drivers in the state, the average cost of rideshare insurance in Illinois is $172 per month. That’s more affordable than in other states, and you may be able to get a cheaper rate if you compare quotes from different insurance companies.

Which insurance companies in Illinois provide rideshare insurance?

You can purchase rideshare insurance from the following companies in Illinois: Allstate, Clearcover, Travelers, Kemper, Erie, GEICO, and USAA. Check out which provider is willing to insure you through Insurify today!

Updated July 22, 2021

Lindsay Frankel is a full-time freelance writer specializing in personal finance and insurance topics. Her work has been featured in publications such as LendingTree, The Balance, Coverage.com, Bankrate, NextAdvisor, and FinanceBuzz. For the past year, she has written about car insurance for Insurify.