Best Rideshare Insurance in Colorado: Quotes, Discounts 2022

The idea of ridesharing is still relatively new but has already become a popular way for people to get from A to B. It’s also a great way to earn extra income, but being a rideshare driver comes with additional responsibilities. Colorado motorists often need increased insurance coverage beyond their own personal policy before they start offering rides through Uber or Lyft.

If being a rideshare driver is calling to you, it’s imperative that you understand your auto insurance options. Drivers who need to enroll in supplemental coverage can find the best prices using Insurify. Simply answer a few basic questions about your insurance needs, and you can get real-time quotes from a variety of carriers, allowing you to select the best option for you.

Nearly every major insurance carrier offers rideshare insurance; however, car insurance companies like USAA, State Farm, Farmers, Allstate, Progressive, and GEICO may not be the most affordable. Colorado residents may find lower rates similar to these quotes:

Remember, insurance quotes will vary based on your unique needs and the level of coverage you currently have on your personal auto policy. Some insurance companies may offer a commercial policy instead of a rideshare add-on, so it’s important to check with your carrier to explore all of your options.

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Residents of Colorado who want to begin offering rideshare services are encouraged to enroll in specific auto coverage that acts as an add-on to their personal auto policy. Unlike a traditional auto insurance policy, rideshare insurance is only in effect during certain times that are referred to as “periods.” Each period includes its own coverage stipulations as follows:

• Period 0: When your rideshare app is turned off, your personal auto policy covers you in the event of an accident. Rideshare coverage will not pay toward a claim under any circumstances during this period.
• Period 1: When your app is turned on and you’re waiting for a ride request, your personal car insurance policy protection is not applicable. Instead, your rideshare insurance kicks in along with Uber or Lyft liability coverage.
• Period 2: Once you’ve accepted a ride request and you’re on your way to pick up your passenger, the only policy working to cover you is Uber or Lyft insurance, which includes liability coverage, uninsured motorist coverage, and comprehensive coverage.
• Period 3: At any time a passenger is in your vehicle, Uber or Lyft insurance is in effect. In most cases, you’ll be covered up to the full limit provided by the rideshare company ’s insurance policy.

Essentially, once your rideshare app has been turned on, your personal auto insurance policy will not cover any claims. Rideshare insurance, also called a rideshare endorsement, is designed as a type of gap coverage that provides protection beyond liability only during period 1. Activities during periods 2 and 3 are fully protected by the rideshare company ’s policy.

Keep in mind that working for a delivery service, like UberEats, may not feature the same types of insurance coverage, although enrollment in rideshare insurance may still be a prerequisite. Delivery app companies might offer some additional coverage, but it’s recommended that you fully understand your scope of liability before you hit the road.

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At the outset of ridesharing, insurance laws were a bit confusing when determining liability during various periods of activity. In 2015, Colorado became the first state to pass regulation across the entire ridesharing industry, making it clear for rideshare drivers exactly what expectations would be in place.

Known as the Transportation Network Company Act (or TNC Act), legislators stipulated that both Uber and Lyft were required to carry their own coverage on behalf of their drivers. Both companies must carry $1 million in both liability coverage and uninsured motorist coverage as well as $50,000 per accident for comprehensive coverage.

Additionally, rideshare drivers are required to carry insurance on their personal vehicle. Most insurers offer rideshare insurance policies and encourage rideshare drivers to enroll in this add-on protection. Failing to report rideshare activities to car insurance companies will likely result in the denial of a car accident claim.

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It’s an exciting idea to think about becoming a rideshare driver to earn extra income, but the state of Colorado, along with Uber and Lyft, won’t let just anyone offer rides to passengers. The TNC Act set in place strict eligibility requirements for rideshare drivers, and both Uber and Lyft have their own set of stipulations to consider as well.

Vehicle Requirements

Colorado hasn’t designated regulations around the type of personal vehicle you can use while ridesharing, but both Uber and Lyft have created a checklist to consider. Uber states that vehicles must have four doors, be no more than 15 years old, be in good condition, and not have any commercial branding.

Lyft, on the other hand, is far more specific when it comes to vehicle requirements. Personal vehicles must have both four doors and five to eight seats and cannot be titled as salvage, rebuilt, or non-repairable. Taxis and stretch limousines are prohibited from being used, and your ridesharing vehicle cannot be on Lyft ’s list of ineligible subcompact cars.

It’s also required for your vehicle registration to be kept current and for rideshare drivers to be able to provide proof of registration at any time. Colorado ’s TNC Act also prohibits out-of-state vehicles from being used for ridesharing activities, so if you’re a new resident, you’ll need to update your vehicle registration first.

Driver Requirements

It’s not just your vehicle that needs to meet a list of criteria to become a Lyft or Uber driver, as each motorist needs to fulfill certain requirements before they get behind the wheel. All rideshare drivers must have a current license and undergo a medical exam and criminal background check per Colorado ’s TNC Act.

While Colorado stipulates that all rideshare drivers must be at least 21 years old, Lyft requires individuals to be at least 25 years of age. Uber defers to each state’s minimum age requirement but also says that drivers must have at least one year of licensed driving experience or, if younger than 23, three years of time behind the wheel.

Document Requirements

As with any new job, there’s a fair amount of paperwork that needs to be submitted before you can begin ridesharing. Both Uber and Lyft ask for similar documentation that also falls in line with Colorado legislation, making the process pretty straightforward. Here’s what you’ll need to provide:

• Your current Colorado vehicle registration

• A copy of your personal auto insurance policy

• A driver profile photo

• Your completed Colorado vehicle inspection (both Uber and Lyft operate specific inspection hubs that thoroughly examine your car)

• Colorado’s Driver Fitness Self-Certification form affirming that you are mentally and physically fit to engage in ridesharing

Some cities in Colorado also require additional documentation, including business licenses and permits. It’s recommended that you check with your local county clerk to find out if you’ll need to apply for any permits before you begin driving.

Insurance Requirements

Colorado rideshare drivers are required to maintain a current auto insurance policy; however, neither Lyft, Uber, nor the state itself has designated what your personal auto insurance coverage must look like. Some motorists often enroll in rideshare insurance as an add-on to their current coverage, although it’s not legally required.

It’s advised that your personal auto insurance include limits for property damage and bodily injury protection, also referred to as liability insurance. You may want to enroll in additional upgrades to help pay for medical expenses or roadside assistance and could find that a commercial insurance policy is the right option for you.

Only you know which combination of coverage options and deductibles makes the most sense for your driving needs, so it’s best to explore all of your choices before you enroll in a policy. Adding on a rideshare endorsement might be the best selection for you, or you could decide to simply increase your limits on your personal auto insurance.

If you’re involved in an accident as a rideshare driver, the process of filing a claim doesn’t look very different from other types of incidents. Above all else, you’ll want to call the police and exchange personal information with anyone else involved in the accident. You may be asked to provide proof of insurance when filing an accident report.

Your personal auto insurance company should be notified of any accidents that occur, even if you’re driving during a rideshare activity period where Uber or Lyft coverage is applicable. It’s smart to inform your rideshare company or delivery app in the event of an accident so they can begin the claims process if needed.

Shopping for insurance coverage used to be very time-consuming, as motorists would have to obtain a quote from each individual insurance company before making a decision. When you add rideshare insurance into the mix, things might feel even more complicated. Insurify simplifies your experience, allowing you to compare free quotes with ease.

Whether you live in Colorado or Wyoming, West Virginia or Illinois, Insurify can help you save on your insurance coverage. After answering a few questions about your driving history and habits, you can compare real-time quotes for rideshare insurance in your state and even enroll in your new policy online. Save time and money by using Insurify for your coverage needs.