Rideshare Insurance in New Jersey (2024)

If you’re a rideshare driver in the Garden State, it’s important to understand which types of insurance cover you during the different phases of your ride.

Nick Dauk
Written byNick Dauk
Nick Dauk
Nick Dauk
  • 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.

Featured in

media logomedia logomedia logo
Ashley Cox
Edited byAshley Cox
Headshot of Managing Editor Ashley Cox
Ashley CoxSenior Managing Editor
  • 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

media logomedia logomedia logomedia logo
Jacob Gee
Reviewed byJacob Gee
Jacob Gee
Jacob GeeDigital Insurance Agent

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 July 11, 2024

Save up to $852 by comparing quotes from the top 100+ insurance companies

Excellent
Secure. Free. Easy-to-use.
ProgressiveLiberty MutualAllstate
Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.

Cheapest recent rates in New Jersey for rideshare drivers

Drivers using Insurify have found quotes as cheap as $56/mo for liability only and $88/mo for full coverage in New Jersey.

*Quotes generated for Insurify users from New Jersey within the last 10 days. Last updated on July 11, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from July 11, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

*Quotes generated for Insurify users from New Jersey within the last 10 days. Last updated on July 11, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from July 11, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

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.

Quick Facts
  • 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.

Find New Jersey Car Insurance

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Shopper Approved
ProgressiveLiberty MutualAllstate

Rideshare insurance requirements in New Jersey

Rideshare insurance coverage can be a little confusing for new drivers, and different coverage applies when you’re driving as an independent contractor, as a contracted employee of the rideshare company, or as a private citizen.

Loretta Worters, vice president of media relations for the Insurance Information Institute, suggests that personal insurance policies for rideshare drivers provide the best coverage and financial protection while on the job.

“Often called rideshare insurance, these hybrid policies include coverage for personal auto plus the times drivers are signed into a rideshare app but not covered by Lyft’s or Uber’s insurance.”

To make it clear, the rideshare process is separated into three phases.[1] Since New Jersey requires rideshare insurance, the type of coverage that applies depends on which phase you’re in when an accident or incident occurs.

The three phases of the rideshare process

Phase 1

Phase 1 is when you’re driving for personal use with your rideshare app turned off. During this phase, you’re considered a private driver who isn’t acting as an independent contractor or employee. You’ll need to maintain the minimum amount of car insurance required by New Jersey state law during Phase 1, which is:[2]

  • illustration card https://a.storyblok.com/f/162273/100x100/26eb27a188/rideshare-coverage.svg

    Bodily injury

    $25,000 per person, $50,000 per accident

  • illustration card https://a.storyblok.com/f/162273/x/7b43b14514/damage-from-aircraft.svg

    Property damage

    $25,000 per accident

  • illustration card https://a.storyblok.com/f/162273/x/f2ca9fa443/protection-for-passengers.svg

    Personal injury protection (PIP)

    $15,000 per person or accident

  • illustration card https://a.storyblok.com/f/162273/x/5285c4cd74/uninsured-or-underinsured-motorist-coverage.svg

    Uninsured/underinsured motorist protection

    Up to $25,000 or more based on liability coverage amount

Essentially, your personal auto insurance policy is the only coverage you have during an accident or incident in Phase 1.

Phase 2

Phase 2 is when you’re actively using the rideshare app but haven’t yet received a ride request. Phase 2 is important to understand, as your insurance company and the rideshare company may have contradictory views on your status.

Although it may feel like you’re still driving as a private citizen, your insurer will likely categorize you as “working” because you’re actively seeking passengers. However, because you aren’t currently on your way to pick up or transporting passengers, your rideshare company will likely categorize you as “not working.”

In New Jersey, state law requires the following insurance minimums while operating a rideshare vehicle during Phase 2:[3]

  • Primary automobile liability insurance with coverage limits of at least $50,000 for death or bodily injury per person, $100,000 for death or bodily injury per incident, and $25,000 for property damage

  • Primary personal injury protection benefits

  • Uninsured and underinsured motorist coverage

This is where additional rideshare coverage through your insurer can cover any gaps. Although rideshare companies may provide commercial insurance during Phase 2, they might limit it to only covering the person or property that you damage.

Both Lyft and Uber provide the following third-party liability insurance for Phase 2:[4] [5]

  • $50,000 in bodily injury per person

  • $100,000 in bodily injury per accident

  • $25,000 in property damage per accident

Phase 3

Similar to Phase 1, Phase 3 has minimal gray area. Phase 3 means you’re actively using the app and are either transporting a passenger or driving to retrieve a prearranged ride.

In New Jersey, you must have the following insurance coverage minimums during Phase 3:[3]

  • Primary automobile liability insurance with at least $1.5 million for death, bodily injury, and property damage

  • Primary automobile insurance for medical payments that covers at least $10,000 per person per incident

  • At least $1.5 million in uninsured and underinsured motorist coverage

In Phase 3, both Uber and Lyft provide:

  • At least $1 million in third-party auto liability

  • Underinsured/uninsured motorist and first-party coverages

  • Contingent comprehensive and collision coverage with a $2,500 deductible, up to the cash value of your car (if you have comprehensive and collision coverage on your personal auto policy)

Learn More: What is Gap Insurance for Cars?

Learn More: What is Gap Insurance for Cars?

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

How much does New Jersey rideshare insurance cost? 

Rideshare insurance costs in New Jersey range from as low as $141 per month to as high as $370 per month for full coverage, according to Insurify data.

Similar to personal car insurance quotes, your quote for rideshare insurance will vary based on a variety of factors specific to you and your vehicle. Your driving history, type of car, age, and location all affect your rates. That’s why it’s best to compare quotes from multiple insurers before selecting a policy.

The below rates are estimated rates current as of: Monday, July 1 at 12:00 PM PDT
Insurance CompanyAverage Monthly Quote: Full CoverageIQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
NJM$2219
Plymouth Rock$2230
CSAA$2348
GEICO$2819
Mercury$2998
Foremost$3997
Midvale Home & Auto$4198
Bristol West$5125
State Farm$5179
Progressive$5748
Travelers$6699
Allstate$8509
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Cheapest recent rates in New Jersey for rideshare drivers

Drivers using Insurify have found quotes as cheap as $56/mo for liability only and $88/mo for full coverage in New Jersey.

*Quotes generated for Insurify users within the last 10 days. Last updated on July 11, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from July 11, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

*Quotes generated for Insurify users within the last 10 days. Last updated on July 11, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from July 11, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

Types of rideshare insurance coverage

In most cases, traditional car insurance policies don’t provide coverage when you’re driving for a rideshare company like Uber or Lyft — even if you’re using the same vehicle. Many insurers provide this additional coverage option to fill any gaps you’re responsible for while acting as a rideshare driver.

Types of rideshare insurance coverage include:

  • illustration card https://a.storyblok.com/f/162273/x/169fdfde11/liability-coverage.svg

    Liability coverage

    This pays for damages that you cause in an at-fault accident. But it doesn’t cover medical expenses.

  • illustration card https://a.storyblok.com/f/162273/x/5285c4cd74/uninsured-or-underinsured-motorist-coverage.svg

    Uninsured/underinsured motorist coverage

    This protects you if you’re in an accident with a driver who has no or limited insurance coverage.[6]

  • illustration card https://a.storyblok.com/f/162273/x/665da91bf7/comprehensive-coverage.svg

    Collision and comprehensive coverage

    Collision coverage applies to damages to your car caused by anything your vehicle collides with, such as a telephone pole or in the event of a rollover. Comprehensive coverage applies to damages caused by other incidents like damages from wildlife, weather, theft, vandalism, or fire.[7]

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.

Sources

  1. National Association of Insurance Commissioners. "Commercial Ride-Sharing."
  2. State of New Jersey Department of Banking & Insurance. "Get Legal with New Jersey's Basic Auto Insurance Policy."
  3. New Jersey Motor Vehicle Commission. "Transportation Network Companies."
  4. Lyft. "Insurance coverage while driving with Lyft."
  5. Uber. "Insurance for rideshare drivers using Uber."
  6. New Jersey Motor Vehicle Commission. "Insurance Requirements."
  7. Insurance Information Institute. "What is covered by collision and comprehensive auto insurance?."
Nick Dauk
Nick Dauk

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.

Ashley Cox
Edited byAshley CoxSenior Managing Editor
Headshot of Managing Editor Ashley Cox
Ashley CoxSenior Managing Editor
  • 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

media logomedia logomedia logomedia logo
Jacob Gee
Reviewed byJacob GeeDigital Insurance Agent
Jacob Gee
Jacob GeeDigital Insurance Agent

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.

Compare Car Insurance Quotes Instantly

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Shopper Approved
ProgressiveLiberty MutualAllstate

Latest Articles

View all