Whether you drive for ridesharing companies like Uber or Lyft, or an app-based delivery service, you need rideshare insurance. When you’re on the clock and using your personal vehicle during your shift as a driver for a ridesharing company, your personal auto insurer is unlikely to cover any accidents that happen during your gig. Here’s the lowdown when it comes to rideshare insurance.

Lyft and Uber Insurance

Uber and Lyft have commercial policies that provide their drivers with minimal coverage while they have the app on and are waiting for a request. There’s a catch though. To understand the fine print of this commercial insurance, you’ll need to understand the four phases while a rideshare app is on.

  • Offline– The app is off so the driver is not on the clock.
  • Available– The driver is idle and available to pick up a passenger.
  • En route– The driver has accepted a ride and is on the way to pick up the passenger.
  • On the trip– The driver has picked up the passenger and is on the way to the passenger’s destination.

When an Uber or Lyft driver’s rideshare app is off, their personal auto insurance applies. But when the app is on, Uber and Lyft provide some coverage on the driver’s behalf. However, that coverage is minimal while you have the app on and are waiting for a request- known as the “available” phase. Fuller coverage kicks in once you’ve accepted a ride and are carrying passengers.

There’s gaps in these commercial policies which is why we suggest adding a rideshare policy. For example, rideshare companies don’t provide collision or comprehensive insurance when the app is on and the driver is waiting for a ride request. And a personal auto policy that includes collision and comprehensive likely won’t cover that period. So if you accidentally back into a pole, you’d have no insurance for the damage. Without the additional rideshare coverage from their personal auto insurer, drivers may find their existing coverage may not apply to damages that occur while they are acting as a rideshare driver during that “available” period. It’s a tiny detail that many drivers overlook when signing on to work for Uber or Lyft.

What Does a Rideshare Policy Cover?

To ensure adequate protection while driving for Uber and Lyft, you might want to explore additional coverages in the form of dedicated rideshare insurance from an independent company (aka Prosper!). Here’s a breakdown of what’s covered on a rideshare policy.

  • Additional Protection– A policy of added protection (usually in the form of “gap coverage”) while you’re online with your rideshare service. Policies like this often account for what might not be covered through Uber or Lyft’s commercial coverage.
  • Personal Insurance Coverage Extension– Some insurance companies call on rideshare drivers to extend their personal coverage into certain stages of the ridesharing trip. These plans are often integrated into the driver’s existing personal insurance policy through the same provider.
  • Hybrid Insurance Package– These policies replace your personal auto insurance with a rideshare-friendly plan.

If you’re a driver for a ridesharing company and are seeking a little extra protection, give us a call! We’ll set you up with a great policy at a great rate!

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