Rideshare Insurance in New York (2024)
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Written byMelanie Lockert
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10+ years writing on personal finance topics
Host of the Mental Health and Wealth podcast
Melanie is a blogger, author, and speaker specializing in personal finance and debt management. She’s also the author of the blog and book “Dear Debt.”
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Updated November 20, 2024
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Table of contents
If you drive in New York for a rideshare company like Uber or Lyft, you naturally want to make sure you have the appropriate auto insurance coverage. While your personal car insurance can protect you when the app is off, you may be at risk if you’re driving and using a transportation network company (TNC). Rideshare insurance can fill the coverage gaps.
New York doesn’t require rideshare insurance, but it is an available add-on. Read on to learn the ins and outs of rideshare insurance in New York.
Quick Facts
Several rideshare requirements, for both driver and vehicle, vary based on whether you’ll be driving in New York City or the rest of the state.
Rideshare insurance costs in New York can range from $248 to $603 per month.
The rideshare process has three phases, and the type of insurance that covers you depends on which phase you’re in.
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Rideshare insurance requirements in New York
As a rideshare driver in New York, you must maintain certain auto insurance coverages to drive with a TNC, such as Uber or Lyft.
These coverages are required by the state and include:
Minimum financial responsibility insurance, or liability coverage[1]
Personal injury protection coverage
Uninsured motorist coverage
Financial responsibility coverage through the TNC when using the app
This means whether your own insurance or the TNC’s will cover an incident depends on what phase of the rideshare process you’re in.
Phase 1
You’re driving in your vehicle for personal use, and the rideshare app is off. If an incident occurs, your personal auto insurance policy will cover this instance.
Phase 2
You’re driving with the rideshare app turned on and are waiting for a ride to come through. In this case, most rideshares offer third-party liability coverage in the following amounts:
$50,000 in bodily injury protection per person
$100,000 in bodily injury protection per accident
$25,000 in property damage coverage per accident
Phase 3
You’re driving with a rideshare app currently turned on and with a passenger heading to their location, or you’re on your way to pick up a passenger. In this situation, Uber and Lyft provide:
$1 million in liability coverage
Uninsured or underinsured motorist coverage bodily injury coverage or medical payments
Contingent comprehensive and collision coverage
Both companies have a deductible of $2,500
Liability insurance coverage helps pay for damages to another party if they’re injured or their property is damaged. Uninsured or underinsured motorist coverage and medical payments can help pay if you sustain injuries as a rideshare driver or your passengers are hurt and the other party doesn’t have enough insurance to cover the incident.
The contingent comprehensive and collision coverage is available if you have both coverage types as part of your personal policy. This coverage will provide benefits if you’re online and driving and there’s damage to your vehicle. It can provide coverage up to the actual cash value of your vehicle. But remember, you must pay the $2,500 deductible first. This coverage provides protection whether you’re at fault or not.
“Rideshare insurance provides coverage for drivers who use their personal vehicles for commercial purposes like ridesharing services,” says Nick Musica of Cash For Your Junk Car. “Driving without proper insurance can pose significant financial risks to both the driver and passengers involved in any accident.”
Important Information
Rideshare insurance in New York can also be helpful if you get into an accident while waiting for a ride or if you don’t want to pay a higher deductible. That’s because rideshare insurance is designed to offer you protection during any gaps in coverage and may include higher limits of coverage.
Uber and Lyft requirements in New York
To qualify to be a rideshare driver in the state of New York, you need to meet certain eligibility requirements based on the company you work for.
Have a current NY driver’s license
Must be at least 21 years of age
One year of experience driving in the United States
If younger than 25, you must have three years of driving experience
Drive a qualifying vehicle
Agree to and pass a background check
Have a current NY driver’s license
Must be at least 25 years or older (though this number drops to 19 years of age in New York City)
Complete and pass a driver’s test and background check
Have a smartphone that can run the Lyft app
Rideshare drivers in New York City must also meet additional requirements through the Taxi & Limousine Commission (TLC). You must have plates through the TLC and have specific commercial auto insurance coverage.
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Rideshare car requirements
To earn money as a rideshare driver in New York, you also need to meet specific car requirements.
For Uber, the requirements may differ in New York State and New York City.
New York State
In New York State, your vehicle must:
Be no more than 16 years old
Have four doors
Have four seats with seat belts
Be in good condition with no visible damage
Not have any commercial branding
For Lyft, the vehicle requirements in New York State are:
From 2007 or newer
Has four doors
Includes five to eight seat belts, including the driver’s seat belt
Not a taxi, limo, or non-Express Drive rental car
Doesn’t have a salvage or rebuilt title or anything similar
New York City
In New York City, Uber requires that your vehicle:
Has four doors and is a car or minivan
Be no more than 6 years old if driving for Uber Black
Be in good condition with no visible damage
Doesn’t have any commercial branding
Pass an emissions inspection at a qualified facility
In New York City, the Lyft vehicle requirements are similar but a bit different:
From 2007 or newer
Has four doors
You must have an active TLC license
Includes five to eight seat belts, including the driver’s seat belt
Doesn’t have a salvage or rebuilt title or anything similar
Rideshare driver requirements
Driving for transportation network companies like Uber and Lyft also requires certain documentation or protocols.
New York State
Uber in New York State requires:
Current New York driver’s license
Valid vehicle registration
Proof of insurance that’s related to the vehicle you’re driving while using the app
Banking information (for payment)
Photo of yourself
Background check
The requirements for Lyft in New York State:
Current NY driver’s license
A minimum of 25 years of age
Pass a driving test
Pass a background check
Smartphone that can run Lyft Driver app
Photo of yourself
New York City
Uber requirements:
Valid Social Security number (SSN)
19 years of age or older
Six points or less within the last 15 months on your driver’s license
No outstanding tickets
Complete the TLC application
Class E or CDL license
Obtain a TLC medical exam
Take a defensive driving course from a TLC-approved provider
Take a 24-hour for-hire vehicle course
Take a drug test at a qualifying TLC location
Get fingerprinted
Take a wheelchair accessible vehicle course
Lyft requirements:
Pass a TLC inspection
Get a TLC license
Current NY driver’s license
Appropriate vehicle insurance
How much does New York rideshare insurance cost?
Getting rideshare insurance in New York can range from $248 per month to $603 per month for full coverage, based on Insurify data. The price you end up paying for coverage with a rideshare endorsement depends on the insurance company as well as your driving history, location, and more.
The lowest monthly cost is an average of $248 with Safeco for full coverage, based on Insurify data. That’s the most competitive price, as rates hike up to over $300 per month quickly.
Liberty Mutual rideshare insurance in New York is an average of $352 per month, while USAA is the most expensive option, at $603 per month.
The below rates are estimated rates current as of: Friday, November 1 at 12:00 PM PDT.
Insurance Company ▲▼ | Average Monthly Quote: Full Coverage ▲▼ | IQ 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. ▲▼ |
|---|---|---|
| CSAA | $205 | 8 |
| Safeco | $208 | 8 |
| Liberty Mutual | $332 | 8 |
| Progressive | $424 | 8 |
| Erie | $572 | 9 |
| USAA | $595 | 9 |
| Bristol West | $638 | 5 |
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 York for rideshare drivers
Recent New York car insurance prices for Chevrolet, Mazda , and more.
*Quotes generated for Insurify users within the last 10 days. Last updated on November 20, 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 November 20, 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 November 20, 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 November 20, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
Types of rideshare insurance coverage
Rideshare insurance in New York State may not be required as an endorsement, but you’ll be required to have the minimum-coverage requirements as mandated by the state. If you’re driving in New York City through a TNC, you’ll need commercial insurance and plates.
But if you’re using your personal vehicle for business purposes driving for a rideshare company, your insurance company may require it. Even if it’s not a requirement, it can be beneficial to make sure you’re protected at all times. The rideshare insurance coverage available may vary based on the insurance company, but some typical options include the following:
Liability coverage
This can provide protection for bodily injury and property damage to another party. This can help if you’re waiting for a rider.
Uninsured/underinsured motorist coverage
This provides protection if there’s an incident with another driver who doesn’t have enough coverage to pay for any damages. This may also be helpful when waiting for a ride.
Collision and comprehensive coverage
Collision coverage includes accident-related damage, whether it’s with a vehicle or object, and comprehensive coverage includes coverage for particular weather events, theft, or even vandalism. Getting this type of coverage may cover any gaps if you’re waiting for a rider.
Deductible options
Having rideshare insurance in New York as an endorsement can mean paying your personal insurance deductible. Progressive also has a deductible reimbursement option that pays the difference between the TNC deductible and your personal policy.
Rideshare insurance FAQs
Before getting started with ridesharing in New York as a driver, check out this additional information.
Do you need rideshare insurance in New York?
Rideshare insurance in New York as an endorsement policy isn’t a legal requirement. However, it’s generally recommended. It’s important to note that rideshare drivers in New York State must obtain state-minimum requirements for coverage. Drivers in New York City do have additional requirements and must get commercial auto insurance and TLC plates.
What are the laws about rideshare insurance in New York City?
In New York City, rideshare drivers must carry commercial insurance as well as plates from the Taxi & Limousine Commission.
Do Uber drivers in New York have to carry commercial auto insurance?
No. Rideshare drivers in New York State don’t need to carry commercial auto insurance but must meet minimum-liability coverage requirements.
However, rideshare drivers in New York City do, and they must meet other plate requirements through the Taxi & Limousine Commission.
Do you really need rideshare insurance if you have personal auto insurance?
It’s generally recommended to get rideshare insurance even if you have personal auto insurance, to make sure you’re covered at all levels. Though the gaps in coverage may seem small, you can be fully protected with a rideshare endorsement and may have better coverage options.
What happens if you get into an accident while ridesharing without insurance?
If you get into an accident while ridesharing without rideshare insurance, your personal auto insurance or the transportation network company insurance may be used. What insurance coverage is used depends on what phase of the rideshare process you’re in. In order to be approved for ridesharing, you’ll need to obtain personal insurance, at a minimum.
Does DoorDash count as rideshare for insurance?
It depends. For some insurance companies, DoorDash may be eligible for rideshare insurance. For example, Progressive covers delivery drivers using Uber Eats and DoorDash.
Related articles
More cities in New York
Sources
- New Yourk State. "TNC FAQ."
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Melanie Lockert
Melanie Lockert is the founder of the blog and author of the book, "Dear Debt." Through her blog, she chronicled her journey out of $81,000 in student loan debt. Her work has appeared on Allure, Business Insider, Credit Karma, Fortune, and more. She is also the co-founder of the Lola Retreat and host of the Mental Health and Wealth show podcast. She lives in Los Angeles and enjoys jazz music, traveling, coffee, and spending time with her two cats and partner.
15+ years in content creation
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
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