6+ years writing about insurance, travel, and personal finances
Contributor to brands like Credible
In addition to insurance, Nick specializes in writing about business, entrepreneurship, personal finance, and travel. He’s been featured in myriad web publications, including Fox Business.
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7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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Jacob Gee is a member of Insurify’s agent team, with more than six years of experience in auto, home, and life insurance. Prior to joining Insurify, he was a senior sales representative for Amica Insurance, where he evaluated new business applications, provided data insight for underwriting decisions, and trained new representatives. His career also encompasses work with the Lear Corporation, and Hilton and Omni Hotels.
Updated October 3, 2024
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Table of contents
Driving for a rideshare company is a unique scenario as far as car insurance goes. Services like Uber and Lyft are considered transportation network companies (TNCs), which are different from traditional taxicab services.
New Jersey state law requires all drivers of Uber, Lyft, and other TNCs to maintain a minimum amount of rideshare insurance in addition to all minimum-coverage requirements the state has for private drivers. Here’s what you need to know about rideshare insurance to ensure you’re fully covered.
New Jersey requires rideshare insurance for anyone driving for Lyft, Uber, or another rideshare service.
Your personal auto insurance isn’t enough to protect you fully when you work as a rideshare driver.
Many well-known insurers offer rideshare insurance.
Uber and Lyft requirements in New Jersey
The freedom and flexibility that Uber and Lyft offer drivers can be attractive, but you can’t simply sign up and start driving if you don’t meet certain requirements. Uber and Lyft require both rideshare vehicles and their drivers to meet specific standards.
All drivers must have current vehicle registration, but rideshare drivers in New Jersey (and their vehicles) must meet some additional requirements.
Uber has the following minimum requirements for vehicles:
Vehicle age of 16 years or fewer (6 years or newer for Uber Black and Uber Black SUV)
Four doors
Good condition without cosmetic damages
No commercial branding
Not all vehicle makes and models are eligible, either. If you’re hoping to earn more money by accepting fares above the basic levels, you’ll need to meet additional requirements, such as needing five seats for an UberX fare or seven seats for an UberXL fare.
Ride options vary from city to city, but you should be aware that other factors like leg room and interior color could also affect your eligibility for categories like Uber Premier or Uber Comfort Electric.
Uber also requires that the driver of the vehicle meet all New Jersey state coverage requirements with a policy in their own name. All vehicles must be registered in New Jersey as well, but they don’t need to be registered under the driver’s name.
Lyft has the following minimum requirements for vehicles:
Vehicle year of 2008 or newer
Four doors
Five to eight seats, including driver’s
Not a taxi, limo, or non-Express Drive rental vehicle
No title that’s rebuilt, non-repairable, salvage, or another equivalent classification
Similar to Uber, Lyft also has specific qualifications for enhanced ride options. For example, Lyft Lux must be a high-end vehicle with leather seats, and Lyft Lux Black XL must be a premium SUV vehicle with a black exterior, leather interior, and space for six passengers.
Rideshare driver requirements
Minimum age of 18
Pass a driver screening
A valid in-state license
One year of driving experience in the U.S., or three years if younger than 25
Minimum age of 25 years
Pass a driver screening
A valid driver’s license, including a temporary or out-of-state license
A smartphone that can download and run the Lyft Driver app
Rideshare insurance FAQs
Whether it’s your full-time career or your weekend side hustle, make sure your policy covers you before, during, and after your rider pickup.
Here’s some additional information you may find helpful if you’re shopping for rideshare insurance in New Jersey.
Do you need rideshare insurance in New Jersey?
Yes. New Jersey state law requires all TNC drivers to have rideshare insurance in addition to their personal car insurance coverage. This includes all drivers of Uber, Lyft, and other companies categorized as transportation network companies. The driver, the TNC, or both can provide the insurance as long as it meets minimum requirements.
Do Uber drivers in New Jersey have to carry commercial auto insurance?
Yes. Drivers in New Jersey must carry rideshare insurance, which is considered a form of commercial auto insurance.
Do you really need rideshare insurance if you have personal auto insurance?
It depends. In some states, rideshare companies provide drivers with a minimum amount of commercial auto insurance for when they’re actively engaged in a rideshare dropoff or delivery. Because your personal auto insurance only covers a select period up to and after the dropoff or delivery, there are gaps that may leave you unprotected in the event of an accident.
What happens if you get into an accident while ridesharing without insurance?
You may face fines, community service, license suspension, insurance surcharges, and other penalties if you’re involved in a ridesharing accident. You’re legally responsible for maintaining the minimum insurance requirements under New Jersey state law.
Does DoorDash count as rideshare for insurance?
Yes. If you want to become a DoorDash driver, you’ll need to maintain the minimum amount of insurance required by New Jersey law. Although DoorDash provides drivers a commercial insurance policy, it only covers bodily/property damage you cause another person/structure while on an active delivery.
Related articles
More cities in New Jersey
Sources
- National Association of Insurance Commissioners. "Commercial Ride-Sharing."
- State of New Jersey Department of Banking & Insurance. "Get Legal with New Jersey's Basic Auto Insurance Policy."
- New Jersey Motor Vehicle Commission. "Transportation Network Companies."
- Lyft. "Insurance coverage while driving with Lyft."
- Uber. "Insurance for rideshare drivers using Uber."
- New Jersey Motor Vehicle Commission. "Insurance Requirements."
- Insurance Information Institute. "What is covered by collision and comprehensive auto insurance?."
Nick Dauk is a freelance writer specializing in business, entrepreneurship, personal finance, and travel. His work has been featured in Fox Business, BBC, The Edge, Business Insider, and Bisnow. Nick is a first-generation college graduate, having majored in Interdisciplinary Studies at the University of Central Florida. His eclectic coursework, combined with previous managerial roles in the retail and broadcast television industries, have helped him develop an interdisciplinary approach to writing.
For nearly a decade, Nick has created content for mom-and-pop businesses and global corporations. As a travel writer, his global adventures have also been featured on Inside Hook, Houston Chronicle, Culture Trip, and Matador. When he's not traveling, Nick can be found in Orlando spending time with his wife and toddler.
7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
Featured in
Jacob Gee is a member of Insurify’s agent team, with more than six years of experience in auto, home, and life insurance. Prior to joining Insurify, he was a senior sales representative for Amica Insurance, where he evaluated new business applications, provided data insight for underwriting decisions, and trained new representatives. His career also encompasses work with the Lear Corporation, and Hilton and Omni Hotels.