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.
| Insurance Company | States Available |
|---|---|
| Allstate | AZ, CA, CO, DC, GA, HI, IA, ID, IL, IN, KS, KY, MD, ME, MN, MO, NE, NM, NV, OH, OK, SC, TN, TX, UT, WA, WI and WV. |
| Farmers | AR, AZ, CA, CO, FL, GA, IA, ID, IL, IN, KS, MD, MI, MN, MT, ND, NE, NJ, NM, NV, OH, OK, OR, TN, TX, UT, WA, and WI. |
| Mercury | AZ, CA, GA, IL, NV, OK, and TX. |
| Metlife | CA, CO, IL, TX, and WA. |
| State Farm | AL, CA, CO, CT, DE, GA, IA, ID, IN, KY, LA, ME, MN, MS, ND, NE, OH, OK, OR TN, WA, WI, and WV. |
| USAA | AZ, CA, CO, IL, MA, OH, TX, and WA. |
| American Family | AZ, CO, GA, ID, IN, KS, MO, ND, OH, SD, UT, and WI |
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.
| Insurance Company | States Available |
|---|---|
| Erie | DC, IL, IN, KY, MD, OH, PA, TN, VA, WI, and WV. |
| Geico | AL, AZ, CT, CO, DE, DC, GA, ID, IL, IN, IA, KS, LA, ME, MD, MN, MS, MO, NE, NM, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, VT, VA, WA, WV, WI, and WY. |
| Progressive | PA and TX. |
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.
