What Is Rideshare Insurance

Rideshare insurance provides additional coverage for drivers who work for app-based ride-hailing or delivery services such as Uber, Lyft, and DoorDash. While these organizations may provide their own insurance for drivers, insurers often require app-based delivery and ride-hail workers to obtain rideshare insurance to supplement their existing coverage.

Here’s everything you should know about ridesharing insurance.

Do I need rideshare insurance?

Most major insurers prohibit you from using your personal auto insurance or umbrella coverage for commercial activities. You must have rideshare insurance if you drive your car to make money, whether for ride-hailing firms like Uber or Lyft or an app-based delivery service like DoorDash.

Your personal auto insurer is unlikely to cover incidents that occur during your ridesharing gig, and it may cancel your coverage if it discovers you did not disclose that you drive the car for money. 

Though firms such as Uber and Lyft give coverage when you’re driving a passenger, you’re only partially covered in between journeys. A regular personal insurance policy will not cover you, either. You will need to add rideshare coverage to your own policy through your insurance provider. Without the additional coverage, you will have gaps in your auto insurance.

How rideshare insurance works for Uber or Lyft drivers

Rideshare insurance for ride-hailing services such as Uber or Lyft provides limited coverage while the app is active and you are waiting for a request. When you accept a ride and carry passengers, you will receive more comprehensive coverage.

During a shift, both a personal policy with ridesharing insurance and a rideshare company’s insurance would be most relevant:

Uber and Lyft provide coverage for any injuries or damage you may cause to others or their property while ridesharing. The ridesharing firm will pay damage to your car caused by an accident only if your personal policy contains comprehensive and collision insurance, sometimes known as full coverage.

If you have full coverage and damage your car while ridesharing, you’ll need to pay Lyft or Uber’s deductible, which is your portion of the repair costs, before their insurance will pay out. Both companies require a $2,500 deductible.

Rideshare insurance for delivery app drivers

If you’re driving for an on-demand delivery business that provides car insurance, read the policy carefully. Coverage varies by company and is limited in all circumstances.

Grubhub and Instacart, for example, do not provide auto insurance, so driving for them will require you to have your own ridesharing or commercial policy in place. Meanwhile, DoorDash often provides liability insurance just between the moment you accept a delivery request and finish the service, or when the order is canceled.

Where to buy rideshare insurance

Rideshare insurance is typically a combination of the coverage provided by your ridesharing provider and rideshare coverage added to your personal auto policy. Rideshare insurance cannot normally be purchased as a standalone policy. For example, you cannot have Progressive for your personal auto coverage while also purchasing Farmers ridesharing insurance.

However, not all insurers provide ridesharing insurance. Those that do may not offer it in all states.

When looking for ridesharing insurance, be sure to:

• Inform your personal auto insurer that you are considering driving for a ride-hail or app-based delivery company.
• Determine the gaps between your personal policy and the ride-hailing or delivery company’s policy.
• Inquire with your insurer about ridesharing insurance to fill up coverage gaps or to obtain a price for a commercial policy. If both types are available, request both estimates to compare costs.

If your current insurer does not provide rideshare insurance, you might look to the following list of major car insurance providers that do. Consider working with an independent agent to assist you identify insurers, both major and small, who provide it in your area.

What happens if I have an accident while driving for Uber or Lyft?

If you get into a car accident while driving for a ride-hailing or delivery service, what happens next is primarily determined by the company you’re driving for, your own insurance coverage, the state you live in, and the nature of the event.

Here are some typical events and outcomes when driving for Uber or Lyft in most states:

• You get in an accident while picking up or driving a passenger. Uber and Lyft’s insurance will cover up to $1,000,000 in liability for injuries and property damage caused in an accident. As long as you have comprehensive and collision coverage on your own policy, Uber or Lyft will pay to repair or replace your vehicle if it is damaged, regardless of fault. If you are wounded in an accident, Uber or Lyft may cover your hospital bills and other expenditures.
• An uninsured or underinsured driver hits you. Depending on your place of residence, Uber or Lyft insurance may protect you if you were on your way to pick up a fare or had passengers in your car.
• You get into an accident while waiting for your next ride request. You will need to file a claim with both your insurance company and Uber or Lyft. The ridesharing company’s insurance will only provide liability coverage, which means that any injuries or damage you cause to others or their property will be covered. Damage to your vehicle is only covered if your personal policy includes comprehensive and collision insurance.