Rideshare Insurance in Pennsylvania (2024)
Ridesharing offers an opportunity to make extra income. But you’ll need to factor additional insurance costs into your ridesharing activities.
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Written bySarah Sharkey
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7+ years writing insurance and personal finance content
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A passionate personal finance advocate, Sarah’s writing has graced the pages of many of the personal finance and insurance industries’ top web publications.
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Updated November 20, 2024
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Table of contents
Table of contents
Rideshare companies present a way for everyday drivers to earn money. Pennsylvania drivers who take advantage of this opportunity should consider their insurance coverage carefully. While rideshare companies provide some level of insurance, drivers must cover the gaps through their own auto insurance policies.
As a rideshare driver, it’s important to get crystal clear on your insurance needs. Pennsylvania rideshare drivers must maintain a minimum level of car insurance. Without this coverage, you could be on the hook for repairing or replacing your vehicle and other vehicles after an accident.
Quick Facts
The type of rideshare insurance coverage that applies depends on how the driver is using the app.
Rideshare app usage comes in three phases.
Many insurance companies offer rideshare insurance coverage.
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Rideshare insurance requirements in Pennsylvania
Rideshare companies, or transportation network companies (TNCs), often provide some level of coverage for drivers using their app. But when you start driving for a service like Uber or Lyft, it’s important to know that the company’s commercial policy may have gaps.
Pennsylvania state laws on rideshare insurance requirements include:[1]
The rideshare company must provide primary automobile insurance that recognizes the driver as a company driver that uses a vehicle to transport passengers for pay.
The rideshare company must provide automobile liability insurance of at least $50,000 for death and bodily injury per person, $100,000 for death and bodily injury per incident, and $25,000 for property damage per incident while the driver is logged into the rideshare app but isn’t engaged in a prearranged ride.
While engaged in a prearranged ride, there must be primary auto liability insurance of at least $500,000 for death, bodily injury, and property damage and first-party medical benefits of $25,000 for passengers and pedestrians and $5,000 for the driver.
The insurance requirements may be satisfied by either auto insurance maintained by the rideshare driver or the rideshare company.
Essentially, this breaks down the coverage requirements into three phases. The phases break down as follows, according to the National Association of Insurance Commissioners:[2]
Phase 1
The driver is using their car for personal use with the rideshare app turned off. In phase 1, your personal auto insurance policy provides the protection you need. But when you switch on the app, the rideshare company provides coverage through a commercial policy.
Phase 2
The driver is in the car with the rideshare app turned on but hasn’t received a request for a ride yet. In phase 2, Uber and Lyft provide the following levels of liability coverage:[3] [4]
$50,000 in bodily injury per person
$100,000 in bodily injury per accident
$25,000 in property damage per accident
Phase 3
The driver is in the car with the rideshare app turned on and is either driving to pick up a passenger or taking the passenger to their destination. In phase 3, Uber and Lyft provide the following coverages through their commercial policies:
$1 million in third-party liability (bodily injury and property damage)
Contingent comprehensive and collision for up to the actual cash value of the vehicle with a $2,500 deductible; but you’ll need to carry comprehensive and collision insurance on your personal policy to qualify
Uninsured/underinsured motorist bodily injury or first-party injury
The level of coverage you have varies depending on the phase of driving you’re in. Regardless of your phase, your personal auto insurance coverage may not be honored if you don’t report rideshare activities to your insurance company. But choosing to purchase rideshare insurance increases your level of protection.
In general, it’s a good idea to purchase a rideshare insurance policy or add a rideshare endorsement to your personal auto insurance policy. Without this extra coverage, you could be open to legal issues.
Uber and Lyft requirements in Pennsylvania
Ridesharing offers a way to bring in cash. But you’ll need to meet some requirements before you can hit the road with a ridesharing app.
Rideshare car requirements
15 years old or newer
Four doors
In good condition, without cosmetic damage
Free of commercial branding
Pass a state vehicle inspection
Covered under a personal insurance policy that meets the state’s laws
Fewer than 350,000 miles
Four doors
2008 model or newer
Five to eight seat belts
Not be titled as salvage, non-repairable, rebuilt, or an equivalent classification
Rideshare driver requirements
Must have a valid driver’s license
Must provide proof of residency in your city, state, or province
Must provide proof of vehicle insurance if you’re planning to drive your own car
Must provide a driver profile photo
Must pass a screening that considers your driving record and criminal history
Must be the minimum driving age for your city
Must have at least one year of experience driving with a license in the U.S., or three years of experience if younger than 25
Must have a valid driver’s license
Must be at least 25 years old
Must pass a driver screening, which includes your driving history and criminal background check
Must have access to a smartphone that can support the app
How much does Pennsylvania rideshare insurance cost?
Pennsylvania drivers can find relatively affordable rates for their rideshare insurance needs. For example, the average monthly quote through Mile Auto is just $90 for full coverage, according to Insurify data.
Jesse Cunningham, owner of Bauple and licensed insurance agent, offers some tips on tapping into a lower rate. “This includes improving your credit score, keeping a clean driving record, and driving a car that costs less to insure. Hint: the less it costs to repair and replace a car, typically, the lower the rates will be.”
Also, don’t forget to shop around to find the best rates for your unique situation.
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. ▲▼ |
|---|---|---|
| Mile Auto | $89 | 8 |
| State Farm | $133 | 9 |
| Erie | $153 | 9 |
| Plymouth Rock | $164 | 0 |
| Auto-Owners | $168 | 9 |
| National General | $187 | 7 |
| Safeco | $190 | 8 |
| GEICO | $199 | 9 |
| Travelers | $199 | 9 |
| Progressive | $203 | 8 |
| CSAA | $211 | 8 |
| Allstate | $226 | 9 |
| Direct Auto | $227 | 7 |
| Foremost | $250 | 7 |
| Nationwide | $257 | 9 |
| USAA | $262 | 9 |
| Liberty Mutual | $263 | 8 |
| Bristol West | $280 | 5 |
| Infinity | $288 | 0 |
| The General | $294 | 7 |
| Chubb | $306 | 7 |
| Dairyland | $356 | 7 |
| State Auto | $365 | 9 |
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 Pennsylvania for rideshare drivers
Drivers using Insurify have found quotes as cheap as $42/mo for liability only and $86/mo for full coverage in Pennsylvania.
*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
As a driver, you can choose to carry different types of insurance coverage. Here’s a breakdown of your options:[5]
Liability coverage
Bodily injury liability coverage pays for injuries you cause other people, such as medical expenses. And property damage liability coverage pays for damage you inflict on someone else’s property.
Uninsured/underinsured motorist coverage
If you’re in an accident caused by a driver who doesn’t have enough insurance, this coverage can kick in to help pay for your damages and injuries.
Collision and comprehensive coverage
Collision coverage pays to repair or replace physical damage to your vehicle after an accident. Comprehensive coverage pays to repair or replace your vehicle after damage from anything other than an accident, such as vandalism or a natural disaster.
Rideshare insurance FAQs
If you’re looking for rideshare insurance in Pennsylvania, this additional information may help as you research your options.
Do you need rideshare insurance in Pennsylvania?
Yes. Drivers who provide rideshare services must maintain car insurance that meets the state’s minimum requirements. In addition to carrying this personal coverage, the rideshare company must provide a predetermined level of insurance for drivers while they’re using the app. Pennsylvania requires drivers to provide proof of this insurance whenever required by law enforcement officers.
Do Uber drivers in Pennsylvania have to carry commercial auto insurance?
Uber drivers in Pennsylvania need to carry a minimum amount of personal auto insurance. This personal coverage provides protection when driving for personal reasons. When you’re using the app, Uber maintains an auto insurance policy on your behalf. If you want comprehensive and collision coverage from Uber’s policy, you’ll need to maintain both comprehensive and collision coverage on your own personal policy.
How does a rideshare insurance claim work?
The process of filing a claim varies based on your activities during the accident. If your rideshare app was off, you’d file a claim with your personal auto insurance policy. If your rideshare app was on, you can file a claim with your rideshare company’s insurance policy. For example, after you meet the $2,500 deductible, Uber will help you pay to repair or replace your vehicle.
Do you really need rideshare insurance if you have personal auto insurance?
Some insurance companies require you to let them know if you’re working with a rideshare app. When you let the insurance company know about this activity, they might require you to add rideshare insurance. Your personal auto insurance policy won’t offer protection if you’re using a rideshare app. Rideshare insurance offers extra protection for rideshare drivers.
What happens if you get into an accident while ridesharing without insurance?
Drivers actively using the rideshare app are covered by the rideshare company’s insurance policy. But the coverage may be limited if you aren’t carrying personal auto insurance. For example, Uber’s coverage involves contingent comprehensive and collision insurance. If you aren’t carrying comprehensive and collision insurance on your personal auto insurance, Uber’s policy won’t help you pay to repair or replace your vehicle.
Does DoorDash count as rideshare for insurance?
While DoorDash doesn’t count as a ridesharing service, it does involve using your vehicle to transport goods. With that, you may need to get additional auto insurance. Commercial auto insurance or rideshare insurance may be appropriate for your situation. For example, Progressive’s rideshare insurance offers coverage for DoorDash drivers in most situations.
Related articles
More cities in Pennsylvania
Sources
- Pennsylvania General Assembly. "Public Utility Code and Vehicle Code."
- National Association of Insurance Commissioners. "Commercial Ride-Sharing."
- Uber. "Insurance for rideshare drivers using Uber."
- Lyft. "What Lyft’s insurance covers."
- Insurance Information Institute. "What is auto insurance?."
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Sarah SharkeyInsurance Writer
Sarah Sharkey is a personal finance writer who enjoys helping people make savvy financial decisions. She covered insurance and personal finance topics. You can find her work on Business Insider, Money Under 30, Rocket Mortgage, Bankrate, and more. Connect with her on LinkedIn.
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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