Rideshare Insurance in Pennsylvania (2023)

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.

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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

Rideshare driver requirements

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 State Farm is less than $94, 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.

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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