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Updated June 15, 2022
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.
The cheapest insurer we found for rideshare drivers is Amigo USA, with average monthly premiums of $102.
All Uber and Lyft drivers must have a personal car insurance policy in addition to the coverage that the rideshare companies provide.
Using an insurance comparison site, like Insurify, is the best way to find an affordable insurance policy.
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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
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.
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.
Frequently Asked Questions
A rideshare company provides its drivers with car insurance coverage while they’re working for the company. But the coverage is limited to liability insurance, and unless your personal auto insurance policy has comprehensive coverage and collision coverage, you won’t be covered by the company’s insurance policy.
Additionally, there’s a short window of time that neither your car insurance company nor your rideshare company has you covered. That’s the time you’re on the road with the rideshare app open but before you’ve accepted your first ride request. If you get in a wreck or hit something in that time, you might be on the hook for expensive repairs or medical bills for you and/or others.
This is why lots of insurance companies offer rideshare insurance that closes this gap and doesn’t cost all that much per month. But for almost all personal car insurance policies, you need rideshare insurance in order to be covered any time you’re driving and making money for a rideshare company.
When it’s sold as an addition or extension to your personal car insurance policy, rideshare insurance can cost a small percentage of your current premium, or as little as $10 extra per month.
The best way to know you have the best rideshare insurance coverage you could possibly get is to use Insurify’s quote-comparison tool to source real-time quotes—tailored to you and your status as a rideshare driver—all for free. It only takes a few minutes. Give it a try and see what you can save!
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Data scientists at Insurify analyzed over 40 million auto insurance rates across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. With these insights, Insurify is able to offer drivers insight into how their car insurance premiums are priced by companies.