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Rideshare Requirements and Policies: Insurance Quotes, Safety Tips for 2022
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If you use your car to make money for a rideshare company, you’ll need some kind of rideshare insurance. “Wait a minute,” you might say. “I already have a personal auto insurance policy, and Lyft and Uber have insurance coverage for while I’m driving, too. Now you’re telling me I need more insurance coverage?”
Unfortunately, yes. You need rideshare insurance to cover those moments that your rideshare app is on but you haven’t accepted your first ride request. Read on to learn how to get cheap rideshare insurance coverage. Then, once you’re up to date, you can use Insurify’s free, fast service to help you compare quotes specific to rideshare coverage and find a policy.
Uber drivers and Lyft drivers have almost identical insurance requirements, and their policies are similar to other transportation network companies (TNCs), which include rideshare services as well as delivery services like Doordash. So how does rideshare insurance work?
First of all, all rideshare companies require you to have a personal auto insurance policy that meets the minimum coverage limits for the state you’re driving in. But so does the government, so you ought to have that taken care of. But that’s not enough to drive for a rideshare company and be fully protected.
If you already have a commercial policy that provides auto insurance coverage for your livery, limo service, or other passenger service, your commercial policy covers your rideshare driving, too.
This new industry is a bit tricky, so here’s an overview of how rideshare insurance works:
But there’s a big catch: Uber and Lyft will only provide full coverage—as in comprehensive coverage and collision coverage—if your personal auto insurance also has full coverage.
So it’s really crucial to find rideshare coverage that gives you full-coverage car insurance for all the time you spend on the road. You’ll want to make sure that you have full coverage on your personal policy and a rideshare endorsement from your insurance company that gives you full coverage while your rideshare app is on and you’re about to accept your first ride request.
If you’re wondering if you’re even eligible to drive for Uber and Lyft, here’s a quick rundown of their requirements:
To drive for Uber, you must:
Driver requirements for Lyft are less clear on their website. Age requirements vary by city, and you have to pass a background check, vehicle inspection, and driving history checkup.
That’s just the beginning of the application process to become a rideshare driver. The details will depend on what city you want to drive in.
A rideshare company provides its drivers with car insurance coverage while they’re working for the company. But the coverage is limited to liability insurance, and unless your personal auto insurance policy has comprehensive coverage and collision coverage, you won’t be covered by the company’s insurance policy.
Additionally, there’s a short window of time that neither your car insurance company nor your rideshare company has you covered. That’s the time you’re on the road with the rideshare app open but before you’ve accepted your first ride request. If you get in a wreck or hit something in that time, you might be on the hook for expensive repairs or medical bills for you and/or others.
This is why lots of insurance companies offer rideshare insurance that closes this gap and doesn’t cost all that much per month. But for almost all personal car insurance policies, you need rideshare insurance in order to be covered any time you’re driving and making money for a rideshare company.
When it’s sold as an addition or extension to your personal car insurance policy, rideshare insurance can cost a small percentage of your current premium, or as little as $10 extra per month.
If you’re buying a rideshare insurance policy for a car that you only use for rideshare work or you want your new policy to supersede your personal car insurance policy, we’ve found the most affordable car insurance for rideshare drivers plans to be as low as $103 per month, with all the top 10 cheapest rideshare insurance providers coming in below $200 per month.
While lots of legacy insurance companies are offering additional coverage for rideshare drivers in the form of gap coverage and extensions, this kind of coverage isn’t for everyone. Smaller companies are selling great policies in select states, and finding the best policy for your situation and location is especially tricky when it comes to ridesharing.
The best way to know you have the best rideshare insurance coverage you could possibly get is to use Insurify’s quote-comparison tool to source real-time quotes—tailored to you and your status as a rideshare driver—all for free. It only takes a few minutes. Give it a try and see what you can save!
Cheap rideshare insurance goes hand in hand with your current personal auto insurance policy. So while you’re updating one, shouldn’t you make sure you have the best deal you can get on the other?
At any given time, most people are overpaying for car insurance. What’s stopping them from saving more money? The time it takes to find the best company to switch to. Enter Insurify, which gathers you a free list of quotes in no time so you know where your money is best spent. Try it ASAP!
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