Best Rideshare Insurance in Pennsylvania: Quotes, Discounts (2022)

Ridesharing is a great way to make extra income. Two popular rideshare services are Uber and Lyft. However, suppose you choose to work for Uber or Lyft. You should know that these companies only provide limited liability insurance for your new vehicle or used car, with full coverage applying once you turn on the app.

Adding rideshare insurance to your auto policy or purchasing a commercial policy adds extra protection to make sure you are adequately protected with no gaps. Whether you own a new car or you have a used vehicle, you can use Insurify to find the best insurance quote for insurers offering Pennsylvania rideshare coverage.

See More: Compare Car Insurance

While your insurance policy covers you at most times, your personal auto insurance policy typically will not provide adequate liability insurance coverage to protect you if you are involved in a car accident while providing rideshare services.

To help you get started in your search for affordable rideshare insurance, you can use this table to find average rideshare insurance rates from popular insurance companies in Pennsylvania. The average cost across all companies in Pennsylvania is $195 per month.

See More: Cheap Car Insurance in Pennsylvania

Rideshare companies (often referred to as a transportation network company or TNC) like Uber and Lyft may provide some coverage for their drivers while they use their personal vehicles. But that coverage may not be enough to protect you if your car is involved in an accident.

Adding additional rideshare insurance is a way to fill in the coverage gap for your personal auto policy, especially since the insurance company only pays out the car’s actual cash value (ACV) if your vehicle is a total loss after a collision.

According to the National Association of Insurance Commissioners (NAIC), there are three periods in the ridesharing operation.

• Period 1: This is the beginning of the process while you have your app on and are waiting for a ride request.
• Period 2: Period 2 begins when you accept a ride request, but no passengers are yet in your vehicle.
• Period 3: This is the last phase of the rideshare transaction when passengers enter your vehicle.

Rideshare companies require their drivers to have car insurance coverage meeting their state’s minimum liability insurance requirements before gaining access to their rideshare app. When buying a new vehicle, make sure to add liability coverage before you leave the dealership. Uber and Lyft do not provide any insurance coverage while your app is off.

When your rideshare app is on and you are awaiting a ride request, the company provides third-party liability coverage. However, if your app is off and you’re using your vehicle for personal use, your personal auto insurance coverage applies.

The third-party liability limits that Uber and Lyft provide are:

• $50,000 per person for bodily injury
• $100,000 per accident for bodily injury
• $25,000 per accident for property damage

Uber’s and Lyft's coverages only kick in after your personal insurance policy has paid its part of the claim. The rideshare company's coverage pays any excess in a third-party liability claim that your car insurance policy doesn't pay.

See More: Best Companies for Rideshare Insurance

Pennsylvania is a “choice no-fault” insurance state, meaning that it is your choice whether you choose an at-fault or no-fault policy to cover personal injuries after an accident.

Pennsylvania law requires rideshare drivers to maintain liability insurance on their vehicles.

Pennsylvania laws on rideshare insurance requirements include:

• 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, $100,000 for death and bodily injury per incident, and $25,000 per incident for property damage while the driver is logged into the rideshare app but is not 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, 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.

Regardless of state insurance law, your insurance provider will not provide any insurance coverage if you don’t report rideshare activities. Note that these requirements might be different if you drive for a delivery service like Doordash or Postmates.

See More: Cheap Car Insurance in Pennsylvania

Uber and Lyft have a set of qualifications before you are approved as a rideshare driver. You must:

• Meet minimum age requirements for drivers in your city
• Have no less than one year of licensed driving experience in the U.S. or three years for drivers under 25
• Hold a valid U.S. driver’s license

In addition to providing a valid U.S. driver’s license, you must provide the following documentation:

• Proof of residency for your city, state, or province
• Proof of car insurance
• A driver’s profile photo that is forward-facing, in focus, centered, and well lit with only a picture of the driver in the frame

Once you meet the requirements and provide the needed documentation, you will have to undergo an online screening that reviews your driving record and criminal history before you are approved as an Uber or Lyft driver.

In addition to the requirements listed above, there are also vehicle requirements that vary by city. For example, Lyft has these vehicle requirements for drivers in Philadelphia:

• Vehicle model must be 2006 or newer
• Must have four doors
• 5 to 8 seats, including the driver's seat
• Have a valid license plate
• Not a taxi, a limo, or another for-hire vehicle
• No black cars

If you are involved in an accident as an Uber or Lyft driver, first call 911 for any emergencies. You will also need to file a claim both with the rideshare service and with your insurance company.

After ensuring everyone is safe, here are the steps to take in reporting a rideshare claim:

• Assess the damage to your vehicle and take pictures if possible.
• Gather the other driver’s insurance information.
• Contact your insurance company.
• File a claim with your rideshare service.
• File a claim with your personal auto insurer.
• File a police report.

Once you’ve filed a police report and reported the claim to the rideshare company and your auto insurance provider, await instructions from the claims adjuster to inspect the vehicle, and provide any documentation either the rideshare company, the insurance company, or the claims adjuster requests.

Without the proper coverage, an accident can be costly. After a covered claim, your personal auto policy will pay off your auto loan to your lender, but only if you have purchased the required rideshare insurance.

The good news is that Insurify makes it easy to get a quote from top insurers with affordable rates. You can compare rideshare insurance options in your state side by side to help you save money while finding the most comprehensive rideshare insurance coverage.