Rideshare Insurance in Colorado (2023)

If you drive for a rideshare company in Colorado, like Uber or Lyft, or make deliveries for a service like DoorDash, it’s a good idea to purchase rideshare insurance. Rideshare insurance fills the gaps between your personal car insurance policy and the rideshare company’s insurance policy during certain phases of a trip.

Colorado doesn’t legally require drivers to purchase rideshare insurance. However, rideshare coverage is beneficial whether you’re a full-time or part-time driver. Here’s how Colorado rideshare insurance applies to Uber and Lyft rides and how much it costs in Colorado.

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Rideshare insurance requirements in Colorado

When driving for rideshare services, also called transportation network companies (TNCs), the insurance coverage that protects you depends on the phase of the trip. When driving for a TNC, you have three main phases:

• Phase 1: You’re driving with the rideshare app turned off. If you get into an accident, your personal auto insurance policy covers you.

• Phase 2: You’re driving and logged into the app, but you haven’t yet accepted a trip request from a customer. If you get into an accident during this time, Lyft’s and Uber’s insurance policies provide 50/100/25 liability coverage.^{[1] [2]} Your personal car insurance policy may not provide any coverage during this time. If you get into an accident, you may have to pay out of pocket for any damage to your car.^[3]

• Phase 3: You’ve accepted a trip request from a customer and are driving to pick them up, or you’ve picked them up and are taking them to their destination. Uber and Lyft both provide up to $1 million in third-party liability insurance and uninsured/underinsured motorist coverage during this phase.^{[1] [2]} If your personal car insurance policy includes collision and comprehensive insurance, Uber and Lyft also provide contingent collision and comprehensive coverage during phase 3, which has a $2,500 deductible.^{[1] [2]}

Although rideshare insurance isn’t legally required in Colorado, your insurance company might require you to add a rideshare endorsement to your personal policy if you drive for Uber or Lyft. Also, because personal car insurance policies don’t typically cover business use of your vehicle, your insurer might not pay for a claim unless you have rideshare coverage.

Uber and Lyft requirements in Colorado

The requirements for Uber and Lyft are slightly different in every state. Additionally, some cities within Colorado have specific requirements. For example, in Vail, Colorado, TNC drivers must carry a special permit that costs $35 per year.^[4] If you’re planning to drive for a TNC in Colorado, it’s a good idea to check your town or city’s requirements before you apply.

Rideshare car requirements

If you want to drive for a TNC in Colorado, your vehicle must meet certain requirements. These are the specific vehicle requirements for Lyft vehicles in Colorado:

• Must be a 2008 model or newer

• Must have four doors

• Must have between five and eight seats, including the driver’s seat

• Can’t be a taxi, limousine, or rented vehicle

• Can’t have a salvage, non-repairable, or rebuilt title

Uber has similar requirements, but vehicles must also be in good physical condition with no cosmetic damage and have no commercial branding on the outside, like a taxi logo. UberXL, Uber Black, and Uber Black XL have more requirements.

In addition, Lyft requires drivers to get a vehicle inspection before driving for the TNC. Once the driver has approval, they must get annual vehicle inspections.

Rideshare driver requirements

Rideshare companies have requirements for drivers too. Here are the requirements that drivers must meet in order to drive for Lyft and Uber in Colorado:

• Must have a valid driver’s license (out-of-state licenses are accepted)

• Must be at least 25 years old

• Must pass a driver screening test, which checks driving record and criminal background

• Must have a reliable smartphone that can run the Lyft or Uber app

The age requirements for Uber are slightly different. All Uber drivers must have at least one year of driving experience in the U.S. or three years of driving experience if they’re younger than 25.

For Uber and Lyft drivers, the Colorado PUC also has additional requirements around the amount of time that a rideshare driver can work:^[5]

• Drivers can’t work more than 12 consecutive hours in driver mode in a single day.

• Drivers can’t spend 16 cumulative hours in driver mode in a single day. If drivers want to continue working, they must take an eight-hour break before resuming work.

• Drivers can’t spend more than 70 total hours in driver mode in a single week.

How much does Colorado rideshare insurance cost?

The average cost of Colorado rideshare insurance is $156 per month for liability-only coverage and $317 per month for full coverage. Rideshare insurance is generally more expensive than personal car insurance due to the increased risk of transporting passengers.^[6]

However, the cost of rideshare insurance in Colorado depends on various factors.

“The factors that impact the cost of rideshare insurance are similar to the factors that impact the cost of a standard auto insurance policy,” says Amanda Moss, a licensed insurance agent with Colorado-based A Plus Insurance. “These factors include the type of vehicle you own, your personal driving history, your credit score, where you live, and your chosen coverage limits.”

The insurance company that provides your rideshare insurance will also influence the cost. Rideshare insurance premiums range from $105 to $403 per month for full coverage, according to Insurify data.

The table below includes rideshare insurance companies with the cheapest rates in Colorado.

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Types of rideshare insurance coverage

A rideshare insurance policy provides various coverages that protect you during certain phases of a trip. Here are the coverages most policies include:

• 

  Liability coverage

  Liability insurance protects you legally and financially when you cause an accident. It pays for another person’s medical expenses, as well as property damage, like vehicle repairs. It also pays for your legal expenses if a driver sues you.

• 

  Uninsured/underinsured motorist coverage

  Uninsured/underinsured motorist coverage applies when you get into an accident with a driver who is uninsured or doesn’t have enough coverage to pay for your losses. It includes coverage for bodily injuries and property damage.

• 

  Collision and comprehensive coverage

  Collision and comprehensive insurance cover physical damage. Collision insurance pays for your vehicle’s repairs after an at-fault accident, and comprehensive insurance covers noncollision losses, like theft, vandalism, and weather-related damage.

• 

  Deductible options

  If you get into an accident while driving for Uber or Lyft, you may have to pay multiple deductibles — a deductible for the TNC insurance policy and a deductible for your personal car insurance policy. A rideshare insurance policy often pays the difference between these deductibles.

Colorado rideshare insurance FAQs