Rideshare insurance requirements in Arizona
As a rideshare driver, your minimum liability coverage from your personal auto insurance policy may not cut it.
“Many rideshare drivers do not have enough coverage, either because they are unaware of the minimum-coverage requirements or because they choose a policy with lower limits in order to save money,” says John Espenschied, owner of Insurance Brokers Group.
Arizona requires that you have coverage for each phase of the rideshare process, such as driving with the app off, driving with the app on while waiting for a ride request, and driving with a passenger.
It’s worth noting that your insurance company may not provide auto coverage when your app is on but you’re not transporting any passengers. So, you’ll need to ensure your TNC offers enough coverage in that phase to meet Arizona’s minimum insurance requirements.
Phase 1: Driving for personal use with rideshare app turned off
In this phase, you’re offline and not currently accepting passengers, so your personal auto insurance should suffice. However, if you drive for a rideshare company, it’s vital to notify your insurance company so it can help you purchase adequate rideshare coverage.
Arizona requires all drivers to have the following minimum liability coverage in this phase:
$25,000 per person for bodily injury liability
$50,000 per accident for bodily injury liability
$15,000 per accident for property damage liability
If you choose to purchase uninsured/underinsured motorist coverage, the policy limits must be $25,000 per person for bodily injury liability and $50,000 per accident for bodily injury liability.
Phase 2: Rideshare app is on while waiting for a ride request
Even if you’re not carrying passengers, you’ll still need coverage as long as your app is on and you’re waiting to receive passengers’ requests.
In this phase, Arizona requires the following coverage limits, either through the TNC’s insurance or your personal policy:
$25,000 bodily injury coverage for one person
$50,000 bodily injury coverage for two or more people
$20,000 for property damage
Uber provides $50,000 in bodily injury coverage per person, $100,000 in bodily injury coverage per accident, and $25,000 in property damage coverage per accident during phase two. Meanwhile, Lyft offers $25,000 in bodily injury coverage, $50,000 in bodily injury per accident, and $20,000 in property damage per accident.
While TNCs provide drivers with the minimum liability coverage needed to rideshare in Arizona, you may want more coverage. Uber and Lyft only offer liability coverage. Rideshare insurance from your personal auto insurance company may provide more coverage — like comprehensive, collision, and underinsured or uninsured motorist coverage — during this phase.
If you want to purchase more coverage from your insurance company, ensure that you’re opting for a rideshare endorsement instead of a commercial policy.
“Many rideshare drivers use a commercial policy, which can be more expensive than a non-commercial policy,” says Espenschied.
Phase 3: Driving to pick up a passenger and transporting them
In phase three, your rideshare app is on, and you’re actively driving a passenger or on your way to them. In this case, your personal auto insurance coverage doesn’t apply, but the rideshare company’s coverage does.
Arizona requires rideshare drivers to have at least $250,000 for bodily injury and an endorsement for uninsured motorist coverage during phase three. In this phase, Lyft and Uber provide the following coverage for Arizona rideshare drivers: 
$1 million in bodily and property liability coverage
First-party insurance, which may include underinsured/uninsured motorist, personal injury protection, and medical payments coverage
Comprehensive and collision coverage up to the actual cash value of your vehicle (with a $2,500 deductible)