Rideshare Insurance Requirements and Policies

If you use your car to make money for a rideshare company, you’ll need some kind of rideshare insurance. “Wait a minute,” you might say. “I already have a personal auto insurance policy, and Lyft and Uber have insurance coverage for while I’m driving, too. Now you’re telling me I need more insurance coverage?”

Unfortunately, yes. You need rideshare insurance to cover those moments that your rideshare app is on but you haven’t accepted your first ride request. Read on to learn how to get cheap rideshare insurance coverage. Then, once you’re up to date, you can use Insurify, the free, fast service to help you compare car insurance quotes with rideshare coverage and find a policy.

Cheapest Car Insurance for Rideshare Drivers

According to Insurify’s database, these are the cheapest companies offering rideshare coverage in the United States. You’ll notice that none of the insurance giants are on this list. This should make it even more clear that the best rideshare coverage might come from a company you’ve never heard of, so it’s important to shop around!

See More: Best and Worst Sites to Compare Car Insurance

How much does car insurance cost for rideshare drivers?

Insurance rates for a rideshare insurance policy vary by the type of coverage you’re buying, what add-ons you need (like underinsured/uninsured motorist coverage), the amount of liability coverage you need, and your coverage limits and deductibles for comprehensive coverage and collision coverage. But it’s all better than buying a commercial insurance policy for your car.

Unlike a commercial auto insurance policy, some insurance providers offer what’s called gap coverage as an addition to your personal auto insurance policy that provides you the coverage you need. This is also called a rideshare endorsement, and sometimes, they only cost 15 or 20 percent of your current auto insurance premium.

Rideshare insurance rates vary by state. In California, rideshare drivers pay an average of $255 per month for insurance coverage, while in Georgia, an average insurance policy costs $348. On average, Uber drivers and other rideshare workers pay insurance rates of $290 in Florida and $256 in Texas.

Uber vs. Lyft Driver Insurance Requirements

Uber drivers and Lyft drivers have almost identical insurance requirements, and their policies are similar to other transportation network companies (TNCs), which include rideshare services as well as delivery services like Doordash. So how does rideshare insurance work?

First of all, all rideshare companies require you to have a personal auto insurance policy that meets the minimum coverage limits for the state you’re driving in. But so does the government, so you ought to have that taken care of. But that’s not enough to drive for a rideshare company and be fully protected.

If you already have a commercial policy that provides auto insurance coverage for your livery, limo service, or other passenger service, your commercial policy covers your rideshare driving, too.

This new industry is a bit tricky, so here’s an overview of how rideshare insurance works:

• When you’re not working, your personal car insurance policy covers your personal use of the car according to your policy.

• While you’re en route to a ride and doing your work, most transportation network companies provide liability insurance that includes comprehensive coverage and collision coverage.

• For Uber and Lyft, this includes $1 million in third-party liability insurance for bodily injury, along with uninsured/underinsured motorist coverage. Both companies also provide comprehensive coverage and collision coverage with a $2,500 deductible.

• While your rideshare app is on but you’re waiting for a ride request, you do NOT have full coverage from the rideshare company. This is where rideshare insurance comes in. During this time, Uber and Lyft only provide:

• $50,000 in bodily injury liability per person ($100,000 per accident)

• $25,000 in property damage liability per accident

• NO comprehensive coverage or collision coverage

But there’s a big catch: Uber and Lyft will only provide full coverage—as in comprehensive coverage and collision coverage—if your personal auto insurance also has full coverage.

So it’s really crucial to find rideshare coverage that gives you full-coverage car insurance for all the time you spend on the road. You’ll want to make sure that you have full coverage on your personal policy and a rideshare endorsement from your insurance company that gives you full coverage while your rideshare app is on and you’re about to accept your first ride request.

Uber vs. Lyft Driver Requirements

If you’re wondering if you’re even eligible to drive for Uber and Lyft, here’s a quick rundown of their requirements:

To drive for Uber, you must:

• Have a valid U.S. driver’s license, be old enough to drive in your city (Uber has varying ages for different locales), and have had a license for at least a year (or three years if you’re under 23 years old).

• Have a vehicle with at least four doors, and if it’s 10 years old or older, it can’t have more than 150,000 miles on it.

• Then, you have to present documents like your driver’s license and proof of residency, submit a photo of yourself, and pass an online screening that includes a background check and a driving history report.

Driver requirements for Lyft are less clear on their website. Age requirements vary by city, and you have to pass a background check, vehicle inspection, and driving history checkup.

That’s just the beginning of the application process to become a rideshare driver. The details will depend on what city you want to drive in.

Best Rideshare Insurance Companies

If you’re driving for Lyft and/or Uber, they provide a list of insurance companies that are used to offering rideshare insurance: Allstate, GEICO, Progressive, Farmers, Liberty Mutual, State Farm, and USAA. These insurance companies provide extensions to your coverage that keep you insured while your app is on and you’re still waiting for your first ride request.

But there are tons of insurance companies out there that are offering rideshare coverage to rideshare drivers, and every state is slightly different. There are some cheap rideshare insurance companies out there with more limited operations, so it’s best to shop around and look for the best rates you can find.

If you start work for a rideshare company, it’s absolutely imperative that you tell your current insurance company that you’re doing so. Otherwise, if you are in an accident, you won’t have any support from your personal insurance company.

Tips for Cheaper Car Insurance for Rideshare Drivers

If you drive for a rideshare service full-time, insurance coverage is an extremely important part of your business, and finding the right insurance company to provide you with liability insurance is critical to your well-being. Follow these tips to get the best rideshare insurance at the best price.

Learn about Your Personal Auto Insurance Policy

Rideshare drivers have made up a brand-new part of the workforce in the last 10 or so years. And rideshare coverage varies between different states, insurance companies, and rideshare companies. Before you accept your first ride request, find out how your personal auto insurance policy will cover you and, if so, on what terms.

Explore Your Coverage Options and Policy Limits

The best way to keep your insurance rates low is to make sure you have gap coverage that keeps you insured, with policy limits that make sense for your vehicle. Know what your vehicle is worth—that will help you understand whether comprehensive coverage and collision coverage make sense for you.

Watch Out, New York

If you have a job as a delivery driver for Uber Eats or other courier services offered by Uber, the company’s insurance does not cover accidents occurring in New York state. You’ll want to make sure your rideshare insurance has liability insurance for those accidents since it won’t be on Uber’s insurance coverage.

Consider Gap Coverage

Gap coverage for rideshare insurance is a small addition to your personal car insurance policy that keeps you covered in the short window that you aren’t covered by your rideshare company insurance nor personal car insurance. It’s sold by most large car insurance companies and can be a small addition to your monthly premium.

Choose a High Deductible

It’s a really good idea to have comprehensive coverage and collision coverage if you’re driving for a rideshare company full-time. But that can be expensive! If you raise your deductible, your premium can come down a bit, so when you’re on the phone with your insurance company finalizing a rate, ask them how it might help you.

Shop Around for Car Insurance

The best rideshare insurance is not always from big companies like Allstate, GEICO, or Progressive. Don’t overpay for the first policy you stumble upon. Before you buy a rideshare insurance policy, make sure you use Insurify, the free service that shows you a list of real-time quotes to get started. Your quotes will be tailored to your needs as a rideshare driver.

The Best Way to Compare and Get Cheaper Car Insurance

Cheap rideshare insurance goes hand in hand with your current personal auto insurance policy. So while you’re updating one, shouldn’t you make sure you have the best deal you can get on the other?

At any given time, most people are overpaying for car insurance. What’s stopping them from saving more money? The time it takes to find the best company to switch to. Enter Insurify, which gathers you a free list of quotes in no time so you know where your money is best spent.

Rideshare Coverage By State

Like other kinds of insurance, rideshare driver insurance requirements vary by state. Read up on unique rules and regulations wherever you drive.