Does Geico offer gap insurance?
Does Geico offer gap insurance?
No. Geico offers a hybrid policy. If your anticipated mileage is high, they will only sell you a commercial policy. Additionally, in some states, like North Carolina, they will only issue a commercial policy.
California Rideshare Insurance Options for Uber and Lyft Drivers.
Driving for Lyft or Uber in California? Buy proper California rideshare insurance with liability, property, and collision coverage today.
Comparison Shop Rideshare Insurance Costs with Coverhound.
Coverhound launches new rideshare insurance cost comparison tool.
Driving for Lyft or Uber and wish you could compare rideshare insurance policies? Well, a new tool is now available for drivers to do just that. Coverhound, the auto insurance comparison shopping site, has launched a rideshare portal. It lets you compare rates for rideshare insurance from a number of companies including: Safeco, Progressive, Mercury, Foremost, State Auto, CSE, Kemper, and National General.
Currently, Coverhound’s ridehare portal provides quotes in the following states.
AZ, AR, CA, CO, GA, IL, IN, KS, MD, MN, MO, MT, NC, NV, NM, OH, OK, OR, SD, TN, TX, UT, WA and WI.
Not every company listed above offers insurance in all of these states.
Does Coverhound work and send you back actual rideshare insurance quotes?
Yes, it does. On the first screen, you enter your zip code, and the number of vehicles and drivers you want to insure.
Source: Coverhound.com
After that, you enter your vehicle information and how much coverage you want, and you get comparison quotes from different companies. Some companies give a quote, others ask you to call them. I asked for a quote for a rideshare policy on a 2017 Toyota Camry. I got back quotes from multiple companies, at multiple coverage levels! The Coverhound rideshare insurance comparison engine even lets you see how much the cost is if you pay in installments vs. all at once.
Source: Coverhound.com
As you can see, minimum coverage for a 2017 Toyota Camry will cost $163 per month through Safeco. This is for a policy with limits of $50k for liability and $20k for property, and has a $1,000 deductible. However, Coverhound also shows you basic, superior, and deluxe coverage levels.
Source: Coverhound.com
If I want to stay with Safeco, but have slightly better coverage, the cost will be $177. For that, I would get a policy with a liability limit of $100 for bodily injury and $25k for property. Also, my comprehensive deductible would be $500 instead of $1,000. However, according to Coverhound, I can get a similar policy on Mercury for just $143 per month. That’s less than the minimum coverage policy offered by Safeco. It definitely pays to comparison shop when looking for rideshare insurance.
Have you used Coverhound’s rideshare portal, and what was your experience? Let us know below?
What Types of Rideshare Insurance are available for Lyft and Uber drivers?
Should I buy a rideshare insurance policy?
If you drive for Uber or Lyft, you should strongly consider buying a rideshare insurance policy. Your personal auto insurance is unlikely to cover any accident related expenses while you are driving for Lyft or Uber. In fact, many insurance companies will cancel your policy if they find out you are driving for Lyft or Uber.
Uber and Lyft divide their insurance coverage into three periods. Period one is when you’re online, and waiting for a ride request. Period two is when you’re on the way to pickup a passenger. Period three begins when you start the trip, and ends when you end the trip.
Source: Uber.com
So, imagine you’re waiting for a ride request to come in (period one). If you have an accident, you’re going to be on the hook for the expense of fixing your vehicle. The reason is that neither Uber or Lyft provide collision coverage during period one. True, you could lie to your insurance company and not tell them you were rideshare driving. However, that’s a crime, so I can’t recommend doing that.
Additionally, in period one, Uber and Lyft’s liability coverage only kicks in if your personal insurance doesn’t provide coverage. If you call Uber or Lyft and tell them about the hypothetical accident above, both companies will tell you to report it to your insurance company. But, if you tell your insurance company you were driving for Lyft or Uber, they may cancel you. Also, they likely won’t provide coverage. See the problem?
So, if you want peace of mind, your best bet is to purchase a rideshare insurance policy. To find an insurer offering rideshare coverage in your state, visit our 50 state rideshare insurance database.
For more detailed information on the insurance coverage Uber and Lyft provides to drivers, see, How does Uber and Lyft driver insurance work?
What types of rideshare insurance policies are available?
If you want to be fully covered while driving for Lyft, Uber, or another sharing service, you will need to purchase a rideshare insurance policy to replace or enhance your personal auto insurance policy. Today, insurance companies offer one of two types of rideshare insurance policies, gap coverage and full coverage.
Gap Coverage
Gap coverage policies extend your personal auto insurance policy into Period one, when you are waiting for a trip request. This type of policy provides liability coverage for bodily injury, so if someone is hurt during an accident, you’re covered. It can also provide underinsured and uninsured motorist coverage, so if you have an accident with someone who doesn’t have insurance, you’re also covered. Finally, it can provide collision coverage, so the damage to your vehicle is covered.
Gap coverage generally covers period one only. However, some companies offer policies that cover towing or rental car expenses through all three periods.
You can purchase a gap coverage rideshare insurance policy from one of the companies below.
[table id=3 /]
Full Coverage
Full coverage rideshare policies act as your primary insurance whether you are driving to the grocery store, waiting for a trip request on Lyft, or driving an Uber passenger to work.
Purchase a full coverage rideshare insurance policy from one of the companies below. Of the companies below, Erie tends to have the most competitive rates.
[table id=4 /]
How much does rideshare insurance cost?
Much depends on the company and the coverage limits you select. Gap coverage can often be added for between $5-$20. Full coverage that extends part or all of your auto policy into periods 2 and 3 will cost more. To see all the insurers offering rideshare insurance in your state, visit our main 50 state rideshare insurance database.
How does Uber and Lyft driver insurance work?
Rideshare driver coverage changes depending on whether you’re on a trip or not.
If you’re a driver for Uber or Lyft, your insurance coverage differs when you’re on a trip versus waiting for a request. As you can see below, rideshare companies like Uber and Lyft (as well as most delivery companies like Instacart) divide the insurance coverage into three periods.
Source: Uber.com
Period One – You’re online waiting for a ride request.
When you’re online and waiting for a rider request, Uber and Lyft offer contingent liability coverage. They provide up to $100K in liability coverage for bodily injury ($50K max per person). They also provide $25K in coverage for property damage. It’s contingent coverage because it only kicks in if your primary personal auto insurance doesn’t provide coverage. Most personal auto policies do not provide coverage during period one.
In a few states, Uber and Lyft provide coverage with higher liability limits, or offer primary coverage. During period one, neither Uber or Lyft provide collision coverage. Collision coverage covers damage to your vehicle.
Source: Lyft.com
Period Two – You’ve accepted a ride request and are enroute to the passenger.
After you’ve accepted a ride request, Uber and Lyft provide $1,000,000 in liability coverage and $1,000,000 in underinsured/uninsured driver coverage. They also provide contingent collision and comprehensive coverage. Uber’s coverage limit is “up to actual cash value” with a $1,000 deductible. Lyft’s coverage limit is $50,000, with a whopping $2,500 deductible. It’s contingent because you only have this coverage if your personal auto insurance policy has it. In other words, if you don’t have collision coverage in your personal auto policy, you don’t have it when you’re driving for Lyft or Uber.
Period Three – You’ve started the trip.
During period three, the insurance coverage provided by Uber and Lyft is the same as during period two. Both provide $1M in liability coverage and $1M in underinsured/uninsured driver coverage, and also provide contingent collision and comprehensive coverage.
Period three begins when you start the trip, and ends when you end the trip.
How do I get more rideshare insurance coverage?
If you want to have collision coverage, or more liability coverage during period one, you should consider purchasing rideshare insurance. Auto insurance companies offer one of two types of rideshare insurance coverage.
The first type of rideshare insurance is called gap coverage. This type of coverage extends your personal auto insurance coverage into period one, when Uber and Lyft offer low liability coverage and no collision coverage. Once you accept a ride, Uber or Lyft’s insurance takes over. Most insurance companies offer a variation of this type of rideshare policy.
The second type of rideshare insurance is total coverage. This type of insurance covers you when you’re offline and driving for personal use. It also provides primary insurance coverage when you’re driving for Lyft or Uber, during all three periods.
I’ll cover the different types of rideshare insurance coverage in more detail in tomorrow’s post.
For more information in the meantime, check out our Rideshare Central Insurance Marketplace to see which companies offer rideshare insurance in your area, and what type of coverage they offer.