Rideshare Insurance explained for Uber and Lyft drivers
As covered on the prior Auto Insurance Basics page , there are some basic coverages that may be required by the State you live in. There are additional coverages that can be customized to provide more protection for pennies on the dollar and we cover those here.
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PJS Insurance Services offers Rideshare Insurance from multiple companies to provide the best protection when needed at the lowest price. You save more and have more options.
Commonwealth - Ride Sharing Coverage - If any vehicle on the policy is driven for ride share purposes such as Uber or Lyft, we offer an endorsement that will provide coverage during the time where the umbrella policy provided by the transportation network company (TNC) will not. Our rideshare coverage applies the same deductible as you carry with our policy as opposed to the higher deductibles that the TNC umbrella policy provides. All drivers that drive for the TNC must be listed on the policy.
Safeco rideshare insurance - Designed to cover you if you are a rideshare driver for a popular company like Uber or Lyft that already has a company insurance policy. These policies often have coverage gaps that might leave you vulnerable during the gap period where the app is turned on, but you haven’t yet collected a passenger.
Progressive - When you add rideshare coverage to your Progressive auto policy, you get greater convenience and peace of mind. Here are just some of the things that make us stand out:
One policy, one payment: You can fill your ridesharing coverage gaps and still be covered for personal driving, all under one insurance policy.
Extended coverages: Drive easily knowing your coverages apply while logged in and waiting for passengers.
Deductible reimbursement: We'll reimburse you for the difference between the ridesharing company's insurance deductible and the deductible on your personal policy. So, if the policy provided by the ridesharing company has a $1,000 deductible, and you have a $500 deductible, we'll pay you $500.
Rideshare Insurance in Arizona & Ohio - Do I need it?
What is rideshare insurance?
Rideshare insurance is a type of car insurance coverage that fills the gap between the commercial car insurance policy provided by your rideshare employer and your personal car insurance. Individual insurance policies do not cover the transport of paying customers from place to place, and employer-provided policies often only cover the minimum and set restrictions on when you are covered. For example, Lyft insurance and Uber driver insurance only extend additional coverage during specific periods, so if you, your vehicle, or other people are injured outside of those windows, you may incur high out-of-pocket expenses as a result.
Why do Uber and Lyft drivers need rideshare insurance?
It’s important to know that employer insurance policies do not keep rideshare drivers covered from end to end. Usually, a rideshare employer’s commercial policy only covers you and your vehicle while picking up and dropping off a customer. Ridesharing businesses like Uber and Lyft typically divide coverage periods into the following categories:
Offline - When you’re not logged in to your rideshare driver app, or you’re using your vehicle for personal business, you are not covered by commercial car insurance provided by Uber or Lyft. Instead, offline driving is typically covered by your personal car insurance policy.
Period 1 – Waiting for Request: If you’re logged in for work with your rideshare company, but you have not been assigned a customer yet, you are ineligible for employer-provided coverage. And since you’re technically on the clock during this time, your personal insurance is also likely to be inactive. This leaves a gap in your insurance coverage, leaving you and your vehicle financially vulnerable should an incident occur.
Period 2 – On the Way to Pick Up a Customer: Your commercial insurance kicks in once you accept a customer and start driving to pick them up. However, even though you are covered during this period, rideshare companies tend only to provide limited liability insurance. Both Uber driver insurance and Lyft driver insurance provide bodily injury liability coverage of $50,000 per person, bodily injury liability coverage of $100,000 per incident and $25,000 for property damage coverage.
Period 3 – Ride in Progress: Like period two, you’re also covered by your commercial auto policy after you pick up the customer and for the duration of the ride. Upon dropping off your customer, you return to period one status, where you most likely do not qualify for either your personal insurance coverage or your employer-provided coverage.
People also ask
Do I need to tell my car insurance company that I am driving for Uber or Lyft?
Suppose you want your car insurance policy to keep you covered from the start of your workday until the end. In that case, you should inform your auto insurance provider that you are a rideshare driver so you can add on extra endorsements or purchase a separate policy as needed.
Do I need extra rideshare insurance if I already have personal and employer-provided policies?
Even with personal policy coverage and employer-provided insurance, you can be left vulnerable during certain parts of your workday as a rideshare driver. Rideshare insurance Mesa AZ, bridges the gap between those two policies, keeping you safe even when you aren’t transporting a customer.
Do contract delivery drivers need rideshare insurance?
When it comes to car insurance, contract delivery drivers are often similar to rideshare drivers. If you deliver for a service like Uber Eats or GrubHub, or drive for a service such as Uber or Lyft you are only covered by your personal car insurance policy during certain times. For instance, you might be covered while driving to a restaurant to pick up an order or a customer, but not covered while logged into the app and waiting to accept an order. Because of that, purchasing rideshare insurance Toledo OH, as a delivery driver could be important to protect yourself financially.
Serving Mesa, Gilbert, Queen Creek and the state of Arizona. PJS Insurance Services should be your first and last stop when looking for Arizona Rideshare insurance.
There is a difference. To find out how our Independent insurance agent in Mesa can help you find the right Arizona Rideshare insurance coverage, please contact PJS Insurance Services. Give us a call today at (602) 750-0616.
Experience the difference. To find out how your Toledo Independent insurance agents can help you find the right Ohio Rideshare insurance coverage, please contact PJS Insurance Services. Give us a call today at (419) 318-9130.
Auto Insurance in Arizona or Ohio-have more questions?
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