optOn Lyft Uber insurance

Your Guide to Opton Rideshare Insurance

Auto insurance is a necessity for all drivers, but finding rideshare coverage can still be tricky if you Drive With Lyft or Uber.

Opton, a new rideshare insurance provider, is hoping to make getting coverage much easier, using an app based on demand approach.

What Is optOn Insurance?

Opton offers mobile (app based), on demand rideshare insurance policies for Lyft and Uber drivers. The app is available for Apple and Android phones.

Instead of requiring customers to sign up for six- or 12-month terms, its policies are set for four-hour increments.


Opton is available on demand through the app, so Lyft and Uber drivers are able to access short-term coverage instantly.

optOn Get Coverage


There are three policy tiers. Each offers traditional coverage areas, but they’re not designed to replace a traditional insurance policy. Instead, they work as a compliment to your personal coverage and that of the service you work with.

Where Is optOn Insurance Available?

Currently, the company only offers insurance for drivers in Illinois, but it has a plan for market expansion in the future.

How Does optOn Work?

Every micro policy is set for four hours of drive time, and once it’s activated, the app begins a countdown. However, you have the option to end coverage before the four-hour mark, as well as extend it as needed.

optOn Active Policy


The entire process takes place through the app, and changes are effective immediately.

The system sends a notification 15 minutes before each policy expires. At this time, you have the option to renew it before it ends. If you don’t make a selection, your coverage automatically stops when the timer on the screen runs out.

One of the coolest features of the app is the accident detection. If an accident occurs and is jarring enough to trigger the system, the app will guide you through what you need to do.

You can also file claims with Opton directly through the app or by calling the support number.

The Opton number to call in event of an accident is 866-789-5699.

What Does It Cost?

Opton charges not by time but by miles driven.

The app tracks your on-the-road movements to determine the final charges.

Before you select a policy, the app shows you the per-mile costs for each option. When you activate your desired plan, it locks in the mileage cost for the duration of the policy.


The micro-policy rates are determined by your vehicle and driving habits. Their algorithm also considers circumstantial factors, such as the time of day and location.

Once you activate a policy, Opton also puts a temporary $50 hold on your linked account. However, it’s automatically lifted once the coverage ends and the final charges are applied.


On top of the per-mile charge, drivers are charged a state-specific administration fee.

In Illinois, it’s set at $0.99. For policies that don’t end up reaching the $1 minimum, there’s also a premium charge – usually around $1.

These elements are pretty standard for insurance companies, but if you drive full-time for Lyft or Uber, you face around $4 in additional costs for an eight-hour shift. Over a week, that’s another $20 out of your profits on top of your insurance expenses.


As with most auto coverage, there’s also a deductible. The out-of-pocket costs range from $500 to $1,000. Lower coverage is associated with a higher deductible and vice versa.

Opton Coverage Options

Opton offers three different levels of rideshare insurance: Primary, Preferred, and Premier.

All three tiers offer liability, collision, and medical coverage. They also include financial protection against uninsured motorists.

The biggest differences between Opton’s policy levels are the out-of-pocket costs and coverage limits. Here’s a closer look at each variation.


The Primary micro policy is the basic plan. It offers the lowest per-mile rates, but it’s also accompanied by a $1,000 deductible — the highest of all tiers.


The Preferred micro policy is Opton’s mid-level coverage plan. The mileage rates are slightly higher than the Primary policy, but the deductible is only set at $750. On top of a lower deductible, the policy offers higher coverage limits than the lower plan.

optOn select insurance coverage



The Premier policy is designed to provide the maximum amount of protection through Opton. It’s associated with the highest per-mile rates, but it features the lowest deductible at $500. The individual coverage limits for liability, collision, and medical are all higher than the lower two tiers as well.

How to Sign Up for Opton

Opton makes purchasing micro-coverage incredibly easy. Start by downloading the Opton app for your Apple or Android phone and then follow these three steps.

Step 1: Create an Account

Opton requires your legal name, driver’s license number, vehicle VIN, and a payment method. The provider accepts debit and credit cards, but isn’t yet linked to PayPal.


Step 2: Evaluate Your Options

Once you’re in the system, it’s time to choose a policy. The app will show you options as well as the current per-mile rate. The amount shown is locked-in for the duration of the micro-coverage, so you don’t have to worry about rate increases as you drive.

Step 3: Make a Selection

After deciding on a plan, tap “purchase.” This initiates the policy countdown. When you’re done driving, simply tap “end coverage” and review your receipt. Or, if you approach the four-hour mark and still need to make more trips, tap “renew” before your time expires.

optOn And Choosing the Right Rideshare Insurance

Opton offers an innovative approach to rideshare insurance.

The coverage is customizable and convenient, and will likely appeal to part time Lyft and Uber drivers.

However, if ridesharing is your primary job, you may find traditional selections better in the long run.

Not sure which coverage style is right for your needs? Learn more about your options with our rideshare insurance guide.


Lyft driver requirements

Lyft Driver Requirements

What Are The 2019 Lyft Driver Requirements?

Last updated: [last-modified]

The rideshare industry has exploded in popularity over the past few years. As the demand for rides goes up, so does the need for rideshare drivers. As one of the industry’s top competitors, Lyft is currently expanding its fleet and operation areas, which is creating ample opportunity for people to launch a new career as one of their drivers. If you’re interested in driving for Lyft, take a deep dive into the Lyft driver requirements below.

Becoming a Rideshare Driver: The Lyft Requirements

Lyft drivers operate as independent contractors, so you’ll choose your own schedule. Drivers are also largely in control of their earning potential. This arrangement means you can work full or part-time and set your own income goals, making it incredibly appealing to individuals from all walks of life. Yet, before you can become a driver, you need to make sure that you meet their qualifications.

Since drivers work directly with customers, Lyft holds their partners to very high standards. As such, you have to meet a few criteria before they’ll even consider allowing you to join their fleet. Lyft requirements are broken down into the following categories:

  • Age
  • Licensing
  • Insurance
  • Driving Record
  • Criminal Record

Here’s a closer look at each of the requirements to help you pinpoint exactly what the company is looking for.


To join the Lyft fleet, you need to be at least 21 years old. Unfortunately, if you don’t meet the age requirement, it automatically eliminates you from the hiring process. Since the company utilizes your social security number when processing your application, there’s no way around this requirement. However, if you’re under 21, you can still sign up as a delivery driver for places like Doordash or Caviar.


All Lyft drivers must have a current driver’s license. To ensure their drivers are adequately experienced, Lyft requires each applicant to be licensed for at least a year before they apply. If you passed your test recently or just had your license reinstated, then you’ll have to wait until you’ve hit the 12-month mark to apply.


Lyft drivers and their vehicles must be fully insured based on their state’s laws. If you plan to drive someone else’s car, you have to be listed on their insurance policy to meet the Lyft requirements. The company doesn’t require their drivers to take out additional coverage, but drivers can purchase additional rideshare insurance to ensure they’re properly protected on the road.

Driving Record

The Lyft driver requirements are fairly strict regarding applicant driving histories. You can’t have more than three minor violations on your record, like speeding tickets, or a single major issue, like a suspension, within the last three years. All driving charges related to being under the influence of alcohol or drugs have to be more than seven years old or you’re disqualified. The company completes a DMV check to evaluate each candidate’s driving history in full.

Criminal Record

Lyft also completes a background check on their drivers to ensure the safety of their passengers. Any violent or sexual crimes on your record will flag your application and prevent you from moving further in the process. Individuals with felonies or drug-related charges are also eliminated from the driver pool. Additionally, applicants with a history of burglary, theft, or causing property damage aren’t eligible to work with Lyft.

Other Lyft Requirements

There are also other Lyft requirements that you should consider, with the most notable being the Lyft car requirements. There are base vehicle standards which will qualify you for their economy ride options. If your vehicle meets the requirements for their higher-end ride styles, you can make more money per trip.

Lyft requirements

It’s also important to remember that a driver position is a customer-facing role. While it’s not technically a Lyft requirement to be a people-person, the ability to practice great customer service can affect your pay. Passengers often tip drivers who made their journey enjoyable, so being able to read people and their demeanor to determine the best way to interact with them is a valuable trait in the industry.

Alternatives to Lyft

If you don’t meet the Lyft driver requirements, it doesn’t mean you’re out of money-making options. Age is the biggest factor for many prospective rideshare drivers, but there are other options with lower requirements. In addition to the delivery services mentioned above, Postmates and Instacart also have a minimum driver age of 18. They’re also less restrictive regarding the vehicle you utilize because you aren’t hauling passengers around.

You can also boost your income by charging electric scooters for companies like Bird and Lime, both of which have fewer requirements to sign up than Lyft or Uber. To become a Bird charger or LimeBike juicer, you only need to be 18 years old, own a vehicle, and live close to one or more of their service areas. While you may not be able to make a full-time living charging scooters, this option is good for anyone looking for a side hustle. The potential payoff is much higher than the actual work involved.

Meet The Lyft Driver Requirements and Earn More

If you meet the Lyft requirements, then you’re one step closer to starting your new career. Follow our handy guide—How to Become a Lyft Driver—to set yourself up for success! We also offer a huge range of other articles to help you successfully navigate the rideshare and bikeshare industries. If you’d like to amplify your potential earnings even further, sign up to become a driver using our Lyft driver promo code. It can help you earn up to $2500 in bonuses, depending on your location.

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Uber Insurance Florida - South Beach

Florida Rideshare Insurance For Uber And Lyft Drivers

Rideshare Insurance Florida: Where To Get Lyft & Uber Insurance In The Sunshine State


Return To The Main Rideshare Insurance Page

Florida is one of the largest rideshare markets in the country. Major Uber and Lyft hotspots include Miami, Jacksonville, Tampa, Daytona Beach, Orlando, and St. Petersburg. While it seems like Lyft and Uber have been in Florida forever, they only actually started operating here in the summer of 2014. When they arrived, state and local regulators were pretty hostile. This hostility carried over to insurance carriers who wanted to offer rideshare insurance in the state. In fact, up until 2017, Florida rideshare insurance did not exist.

Farmers was the first insurer to enter the Florida rideshare market, offering coverage through their Foremost subsidiary. With the passage of statewide rideshare legislation that went into effect on July 1, 2017, other companies joined Farmers and began offering coverage for rideshare drivers in the state.

Which companies offer rideshare insurance in Florida?

Currently, you can get rideshare insurance in Florida from:

  • Farmers Insurance (through Foremost)
  • Geico
  • Infinity
  • Mercury
  • Prime Insurance
  • Progressive
  • State Farm
rideshare insurance florida


Wait, don’t Uber insurance and Lyft insurance provide rideshare coverage in Florida?

Uber and Lyft provide decent coverage when you have a passenger in the car, or are on your way to a passenger. However, when you’re waiting for a ride request to come in, they provide no collision coverage for your vehicle. They only provide limited liability and property damage coverage. So, if you have an accident while waiting for a ride request, Uber or Lyft will not pay for any damage to your vehicle, or any medical expenses you may incur. They only cover damage to the other vehicle or the passengers in that vehicle.

Doesn’t my personal auto insurance cover me if I have an accident while waiting for a ride request?

No, it does not. Unless you have a rideshare friendly policy, your insurer will not cover you for any accidents that occur while you are driving for Lyft or Uber. Even worse, if they find out you are a rideshare driver, they may cancel your policy. This is the main reason why it’s very important to have a rideshare insurance policy, or a rider on your personal insurance that permits driving for Lyft or Uber.

So, if you want to be fully covered driving Uber or Lyft in Florida, please consider getting a rideshare policy.

With all the competition, rideshare insurance rates have come down. While they’re a little higher in Florida compared to other states, it’s mainly because the coverage you get in Florida is better than in other states. The cost for adding rideshare coverage varies, but usually adds an extra 5% – 15% to the cost of the policy.

Even great drivers have an accident sometimes. So, be sure you’re fully covered – just in case. Contact one of the insurers listed above, or call the agent below to get the best rates on Florida rideshare insurance.

Stay safe out there, and drive profitably.

Florida Rideshare Insurance Agents

Quoteasy Insurance – Florida Rideshare Specialists – (800) 568-2209

Florida Rideshare Insurance Quoteasy logo

We provide rideshare insurance that covers you during personal use as well as during PERIOD 1. We also provide Commercial Auto insurance for Uber Eats/Amazon Deliveries, Etc! We pride ourselves on offering personalized customer service. Call us for a consultation or quote!


Enacted Florida Rideshare Insurance Legislation: Senate Bill 340
Lyft Florida Rideshare Insurance Certificate.
Uber Florida Rideshare Insurance Certificate.

woman offering cash for an Uber ride

Back Door Ubering – Why You Should Never Take A Cash Ride

If you’ve been driving Uber or Lyft for a few weeks, someone has probably asked you to take cash for a ride, instead of paying through the Lyft or Uber app. It may have been an acquaintance. “Hey, can you drive me to the airport tomorrow for $20 cash?” Or a rider may have requested to pay cash on a long trip. Whoever makes this request of you, the answer should always be the same – NO.

I know there are many drivers out there who take cash rides. Some even do it daily. It’s become so prevalent, there’s even a name for it – Back Door Ubering. I understand. The allure of cash rides is strong, especially since the introduction of Upfront Pricing. Passengers like them because they save a few bucks. Drivers like them because they make a little more, and they have the cash in hand right after the ride. Also, there’s the added satisfaction of beating the system.

However, whether you’re a passenger or driver, you should never, ever, take a cash ride. The risks are simply too great. For a driver, the risks of taking cash, instead of completing the ride through Uber or Lyft, are substantial. For one thing, if you get caught, both Lyft and Uber will likely deactivate you. But that’s not even the largest risk.

Lyft & Uber Cash Rides Are Not Insured

The biggest risk is that cash rides have absolutely no insurance coverage. Zip, zero, ziltch, nada. No coverage whatsoever.

Both Uber & Lyft offer $1,000,000 liability insurance while on a trip, along with contingent collision and comprehensive coverage. So, if you’re on a trip, and you have an accident where someone is injured, the driver has insurance coverage. On Uber, your out of pocket expenses would be limited to $1,000. On Lyft, they would top out at $2,500. While that’s expensive, if you want to know what the likely cost would be if you didn’t have insurance, just add a zero or two to the Lyft number – $25,000 – $250,000. Depending on the extent of the injuries caused by the accident, the total liability could be even higher. Yup, without insurance, the cost of having an at fault accident while driving Lyft or Uber would drive most people into bankruptcy.

What Happens In The Event Of An Accident On A Cash Uber or Lyft Ride?

Well, if you take a cash ride, Uber or Lyft do not provide insurance for that ride. The driver would not be covered, and the passenger wouldn’t be covered either. If you’re a passenger, obviously you won’t be liable for damages caused in an accident. But, if you are injured in an accident on a cash ride, you also won’t be able to get any of your medical expenses covered, because the ride is uninsured.

If you’re a driver, there’s no easy way to put this. You’re totally screwed if you have an accident on a cash ride. Uber or Lyft won’t provide coverage, and neither will your insurance company. But I have rideshare insurance, you say? It doesn’t matter. Almost every rideshare policy in existence only provides coverage for rides given on a TNC network (Uber or Lyft). Many rideshare policies don’t even cover driving for Amazon Flex or Instacart!  The only way you can conceivably do cash rides that are covered by insurance is if you have a full commercial policy. Most drivers don’t have full commercial coverage because it runs in the neighborhood of $400 – $600 per month. Also, since rideshare coverage exists and is now available in most states, most drivers simply don’t need full commercial coverage.

But What If I Don’t Tell My Insurance Company I Was Doing A Cash Ride?

I’ve heard many stories of drivers having an accident and not telling their insurance company that they were doing rideshare. This was especially common before rideshare insurance was widely available, and the practice still persists today. You really don’t want to do this. For one thing, your insurance company may find out, in which case the won’t provide coverage. Also, lying to your insurer about the fact that you were doing a cash ride is called something else – insurance fraud. While the odds of prosecution are really low, I’m pretty sure it’s a felony.

But Nothing Is Going To Happen On My Uber Or Lyft Cash Ride

You’re probably right. The likelihood of an accident on an individual cash ride is low. You’ll probably complete the ride and nothing out of the ordinary will happen

However, if you’re considering giving or taking a cash ride, consider whether the extra five or ten bucks is really worth risking every cent you have in the bank, or a felony conviction. If you think about it, it’s just not worth it.

So, if someone asks you to take cash for a ride, remember that D.A.R.E. assembly, and Just Say No!

If you drive in a market where Uber accepts cash (mostly certain markets outside the U.S.), this article doesn’t apply to you. Take all the cash rides you want.

rideshare insurance

Why Uber And Lyft Drivers Need Rideshare Insurance

Uber, Lyft, and insurance companies divide a rideshare trip into three periods. If a rideshare driver has an accident while waiting for a ride request (period 1), they will often need to pay for the damages. This is because Uber and Lyft only provide coverage when the driver is on the way to pick up a passenger (period 2), or the passenger is in the vehicle (period 3).

Regular personal auto policies will not cover accidents that occur during period 1. In fact, they will not provide coverage at any time when a driver is online with a rideshare company.

This creates a situation  where there is essentially a gap in coverage for Uber and Lyft drivers. While waiting for a ride request, drivers are not covered by their personal auto policy, and they’re also not covered by Uber or Lyft. Rideshare insurance helps eliminate this problem by offering coverage during period 1.

Even though rideshare services like Uber and Lyft are quite different compared to the traditional taxi services, their drivers still require proper insurance. So, if you drive for Uber or Lyft, it’s very important to get rideshare insurance so you’re fully protected every minute you’re on the road.

Where can you get rideshare insurance?

Luckily, Uber and Lyft drivers can now get rideshare insurance in most states. In fact, 48 states now have at least one company offering rideshare insurance for Uber and Lyft drivers. And while adding rideshare coverage does add a little to the premium price, it’s usually only an extra $5 to $20 per month. Also, it’s well worth it since you’ll have the protection you need in the event of an accident.

Is rideshare insurance really necessary?

Yes, it is necessary. To reiterate, insurance companies will not cover any issues (like accidents) that occur while driving for Uber or Lyft. The reason is simple, insurers consider driving for Uber or Lyft commercial activity with increased risks. Regular auto policies do not cover commercial activity because those policies don’t take into account the additional miles (more miles, more risk) you’ll be on the road as a rideshare driver.

So, getting rideshare insurance is a very good idea if you want to lower your risks while also receiving the best possible coverage on the market. Plus, if you have rideshare insurance, your insurer will know that you are driving for a ride-sharing company and you won’t be at risk of having your policy cancelled because you drive for Uber or Lyft.

Additionally, some rideshare insurance policies offer coverage that replaces or enhances Uber and Lyft’s coverage during periods 2 and 3. Allstate, for example, offers rideshare coverage that can help you cover the high Uber ($1,000) and Lyft ($2,500) deductibles. This can significantly lower your out of pocket costs if you have an accident.

[su_box title=”Recommended Agents” style=”soft” box_color=”#d1a927″ title_color=”#d1274f”]California – Allstate – Doug Eisold

Washington – Allstate – Colin Johnson[/su_box]

Is it safe to drive for ridesharing companies without proper insurance?

No, it’s actually quite dangerous, and can wind up being enormously expensive. At least a few times a month, I hear about a driver who had an accident during period 1 without proper rideshare insurance. In most cases, the driver was on the hook for more than $5,000 in repair expenses. All of these situations could have been avoided if the driver had paid the extra $5 – $20 per month for rideshare insurance. Thankfully, no one was injured in the cases I heard about, or the costs would have been even higher.

While it’s true that rideshare companies do offer some protection, you have to read their terms and conditions to see exactly what they cover. When you do, you’ll notice they don’t cover everything and much of their coverage is contingent. This makes it hard for you to get the support you need and makes it very challenging to drive for these companies without any added protection.

The fact is that you can’t rely on the basic protection afforded by rideshare companies. So, any additional protection you can get will be very helpful. Plus, you need to think about your safety too. Most accidents appear out of nowhere, so you never know when you need the right protection on the road. That’s why having rideshare insurance makes a lot of sense. You have constant protection regardless of what happens, for a small increase in your monthly premium. This can come in handy, and it also offers that peace of mind that you are looking for while you drive for Uber or Lyft.

Is this supplemental or regular coverage?

Rideshare insurance is considered to be supplemental coverage. It’s not necessary for everyone. In fact, only people that drive rideshare even need this coverage. However, every rideshare driver should have rideshare coverage. So, if you are an Uber or Lyft driver, then it’s a very good idea to opt for this type of coverage. It makes a lot of sense, it’s inexpensive, and it delivers all the convenience you want in a single package.

One thing to keep in mind about rideshare insurance is that the rates vary from one state to the other, and from company to company. So, coverage in certain states, or from certain companies may be more expensive than other states or companies. Certain states still only have one or two insurance companies that offer rideshare coverage. In those states, premiums may be slightly higher. Also, some insurers offer additional coverage outside of period 1. Those policies also tend to be more expensive.

[su_box title=”Protecting Yourself – Incorporation” style=”soft” box_color=”#d1a927″ title_color=”#d1274f”]
All rideshare drivers should consider incorporating or setting up an LLC. Having a corporation or an LLC can provide you with additional legal protection in the event of an accident or other incident that occurs while you’re driving for Lyft or Uber.[/su_box]

Rideshare insurance is now easy and affordable to buy

The thing to keep in mind about rideshare insurance is that it’s easy to customize according to your needs. You can select how much coverage you need, and what type of additional coverage you want.

Most, but not all, insurers also allow drivers to add rideshare coverage to an existing policy. When companies first started offering rideshare insurance, this wasn’t the case. You had to purchase a new policy if you want rideshare insurance.

Given the current availability and affordability of rideshare insurance, it simply makes no sense to go without it if you drive for Uber or Lyft. It’s usually very inexpensive, and helps eliminate many of the issues discussed without a lot of effort. So, if you drive for rideshare companies, it’s very important to purchase rideshare insurance right away, or add it to your existing policy. Doing so will help remove the stress you have on the road, since you know that you will be properly covered if anything happens.

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uber insurance

Rideshare Insurance Guide For Uber & Lyft Drivers

The 2018 Rideshare Insurance Guide For Uber And Lyft Drivers

At Rideshare Central, we get a lot of questions from drivers about rideshare insurance. “What is rideshare insurance?” is the most common question, followed closely by “Do I need Uber insurance?” We know you probably have other questions on this topic. So we’ve put together a comprehensive guide that answers the above questions, and many of the other questions Uber and Lyft drivers are asking about rideshare coverage.

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Frequently Asked Rideshare Insurance Questions

Don’t I already have coverage through the Lyft or Uber Insurance Policy?

Yes. Both The Lyft and Uber insurance policies provides $100,000 in contingent liability coverage when you are online waiting for a ride request (period 1). They both also provide $1 million in liability coverage and $50,000 in collision coverage if you have an accident while you are on your way to pick up a passenger (period 2), or while a passenger is in the vehicle (period 3).

However, in most markets, neither Uber or Lyft provide collision coverage during period 1. Even worse, your personal auto insurance policy will not provide collision coverage if you have an accident while online for Uber or Lyft. Here’s how this could be a problem for a rideshare driver.

Say a driver is online with Uber and waiting for a passenger request (period 1) and has an accident that was their fault. No one is injured, but the driver’s car is damaged. Uber will not pay to fix the driver’s car because the Uber insurance coverage doesn’t take effect until a ride request comes in. If the driver’s insurance company knows the driver was online with Uber when the accident happened, they won’t pay for the car repairs either. In this case, the driver will be on the hook for all the vehicle repairs. To add insult to injury, the driver’s insurance company may cancel the policy after finding out the policyholder was driving for Uber. That seems like a lot of trouble, which the driver could have avoided if they had rideshare insurance or an insurance policy with a rideshare endorsement.

What is rideshare insurance (aka Uber Insurance)?

Basic rideshare insurance provides liability and collision coverage when you are online and waiting for a passenger request. Essentially, it extends your personal auto insurance into period 1. Once you accept a ride, Lyft or Uber’s insurance takes over. This type of insurance is often called gap coverage. If the driver in the example I gave above had this type of coverage, their insurance company would pay for their vehicle repairs.

USAASafeco, FarmersMercury, American Family, and Travelers are some of the companies offering gap coverage.

Extended rideshare insurance includes gap coverage, but also extends parts or all of your personal auto policy into periods 2 and 3.

State Farm, Geico, Progressive, Erie, and Metlife are some companies that offer extended rideshare insurance.

Do I need rideshare insurance?

Yes. If you’re going to drive rideshare, and you want to be fully covered, you absolutely need to get rideshare insurance. Some of the most heartbreaking stories I’ve heard are about drivers who had an accident while waiting for a ride request. Their insurance would not cover the repairs and usually cancelled the policy.

The fact is that you can’t depend on either Lyft or Uber insurance during Period 1. But now that rideshare insurance is more widely available for a reasonable cost, it’s easy to avoid this type of terrible situation.

Do I have to get rideshare insurance if I Drive With Lyft or Uber?

No. Lyft and Uber only require that a driver have their name on a personal auto insurance policy that was written in the state where the driver will be working. However, it’s still a very good idea to purchase a rideshare insurance policy.

Lyft and Uber only require a personal insurance policy because they don’t want uninsured drivers on their platforms. However, while the coverage levels on the Lyft and Uber insurance policies are pretty high, a driver may still face out of pocket expenses in the event of an accident. Both companies tend to shift the expense of accidents over to drivers, in the form of high deductibles, and the lower coverage levels during period 1. That’s why it’s incumbent on drivers to look out for themselves and make sure they have proper and complete auto insurance coverage. Spending a little now can save a lot down the line.

Why is it important to have rideshare insurance?

Peace of mind. It’s a lot cheaper to pay a little extra now to avoid a very expensive headache later. Having proper insurance is key if you want to avoid unnecessary costs. If you have good rideshare coverage, your expenses in the event of an accident will likely be a lot lower.

For example, if the accident happens during period 1, instead of having to pay the full cost of repairing your vehicle, you’ll only be responsible for the deductible. If the accident isn’t your fault, you probably won’t even have to pay that.

Certain rideshare insurance policies also can help lower your out of pocket expenses if you have an accident during periods 2 and 3. Even though Uber and Lyft provide coverage once you accept a trip request, your out of pocket expenses in the event of an accident can still be thousands of dollars. For example, Uber has a $1,000 deductible and Lyft’s is an enormous $2,500. Some rideshare insurance policies can lower your deductible costs for accidents during periods 2 and 3, and even cover rental car expenses.

I tried to get rideshare insurance once, but it wasn’t available in my state. Have things changed?

The current rideshare insurance situation is a vast improvement from a couple of years ago. At that time, very few companies offered any rideshare insurance coverage, and coverage was only available in a few states. Even if you could find rideshare insurance, it was usually very expensive.Most Uber or Lyft drivers at that point were forced to buy commercial insurance if they wanted full coverage while rideshare driving.

In most states, there are far more insurance options for rideshare drivers now. In fact, most places have at least two rideshare insurance options for Uber and Lyft drivers, and many have four or more. Companies like Erie Insurance and Mercury were two of the earliest entries into the rideshare markets like Pennsylvania and Illinois. In the past year, the large national companies like Allstate, State Farm, USAA, and Farmers have all started offering rideshare policies around the country.

Can I get rideshare insurance in my state?

We’re glad you asked. Unless you live in North Carolina, the answer is yes. Rideshare insurance is now available pretty much everywhere else, If you live in Texas, California, Idaho, Georgia, Florida, or even Hawaii and Alaska, you have at least one option for rideshare insurance. Nationally, there are now at least 15 companies that offer some type of rideshare insurance policy.

Even in Massachusetts, which resisted allowing rideshare coverage for a long time, you can now purchase a rideshare policy through USAA.

In New York City, drivers must carry commercial insurance, usually purchased through an insurance broker. In New York state, rideshare coverage is available, but unnecessary. A recently passed state law mandates that Lyft and Uber insurance cover drivers during period 1 (waiting for a ride request).

To see who is offering rideshare insurance in your state, head on over to our 50 state rideshare insurance database.

We’ve heard from some drivers that some insurance agents do not seem to be aware that their company offers rideshare insurance. To help with this issue, we’ve begun adding recommended insurance agents to our rideshare insurance database. These agents are familiar with the rideshare policies their company offers. If you know of a great rideshare insurance agent, let us know.

What do rideshare insurance policies cover?

Rideshare policies differ by insurance carrier, but there are two main types of rideshare coverage:

Rideshare Insurance Type 1: Extended Coverage

Extended coverage offers coverage during period 1, but also extends your personal auto insurance policy into periods 2 and 3. For example, Lyft and Uber provide very good liability coverage during periods 2 and 3, but their collision coverage have very high deductibles. If you have an extended coverage policy, you will only be responsible for the deductible on your personal auto insurance policy. That alone can save you hundreds or thousands of dollars.

Extended rideshare coverage differs from company to company. Some insurers offer a policy that provides coverage at all times, essentially replacing Uber and Lyft’s coverage entirely. Other companies offer a hybrid policy that adds to Uber and Lyft’s coverage. All extended insurance policies offer coverage during period 1.

Rideshare Insurance Type 2: Gap Coverage

Gap coverage extends your personal auto insurance into period 1, when you are waiting for ride requests. Essentially, this coverage fills the gap between your personal auto policy and when Lyft and Uber’s full coverage takes effect (period 2). This is the rideshare insurance option most drivers choose. It’s relatively inexpensive and offers coverage where Uber and Lyft’s coverage are weakest.

How much is rideshare insurance?

You can get gap coverage added to most policies for an extra $6 to $20 per month.

Extended coverage policies that offer protection during periods 2 or 3 generally cost more. While there is a lot of variability in the costs based on the amount of coverage you want, most extended rideshare insurance policies will cost $30 to $50 more per month. While this seems like a lot, these policies do provide the most coverage and protection in the event of an accident.

Does rideshare insurance cover both Uber and Lyft?

Almost all insurance companies offer rideshare insurance that covers both Uber and Lyft. Metlife is the only exception, as they only cover drivers when they are on the Lyft platform.

Most insurers only offer coverage for drivers on TNC platforms like Uber and Lyft. If you are driving for Amazon Flex, Instacart, DoorDash, Grubhub, or another non transportation network platform, be sure to check with the rideshare insurers in your state to see if they offer coverage. Don’t assume that if your rideshare insurance coverage is good for Lyft and Uber, that it’s good for every platform.

Do Uber and Lyft insurance provide enough coverage?

It depends how much coverage you want to have. In terms of liability coverage when you’re on the way to a passenger or have a passenger in the car, their coverage is pretty high – $1,000,000. However, it’s still lower than the liability coverage amounts on most commercial policies. Certain extended rideshare insurance policies offer a higher amount of coverage.

When you’re waiting for a ride request, Uber and Lyft’s liability coverage is pretty low – $100,000. Rideshare Central recommends at least $300,000 in liability coverage at all times. The reason is that if an accident results in high medical expenses, $100,000 is often not enough. Medical bills add up quickly and if it’s a bad accident where someone winds up in the hospital, the costs can easily exceed $100,000.

Final Take: Driving for Uber or Lyft without rideshare insurance makes no sense.

In 2018, rideshare insurance or an auto policy with a rideshare endorsement is usually a very inexpensive addition to your auto insurance costs. Usually, basic rideshare insurance only adds $6 to $20 a month to your auto insurance costs. Given that, it simply makes no sense to not have rideshare insurance.

Think about it. You can pay a few extra bucks a month, and be fully covered while driving for Lyft or Uber. Or, you can not get a rideshare insurance policy, and risk thousands of dollars in unnecessary expenses that you could have avoided.

Seems like a pretty easy choice to me.

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