Uber & Lyft Insurance – What You Need to Know

Providing rideshare services part time or full can bring great income to you, especially with the two big players in the space, Uber and Lyft. Being able to drive for Uber or Lyft you will have to understand what companies will insure you for rideshare services, or what rideshare insurance coverage’s are offered by Uber and Lyft.

When driving for Uber or Lyft it is not required that you have rideshare insurance when driving, but you should have the most optimal coverage available when you are driving. With some insurance companies this is a bit of a grey area at times depending on the insurance company that you are with, your personal car insurance may not be able to cover you when you are driving for Uber or Lyft. Since most companies categorise ride sharing services as commercial use, depending on your coverage you might have to opt for a new one. The reason for this is simple, your insurance coverage may not be enough to cover you and your passengers insurance claims in the case of an accident.

How Insurance Works

With Uber and Lyft, if you decide to go ahead with their insurance policies. They have it broken down into 4 different stages, where insurance coverage differs so you are optimally insured during your time on the road working for them. Here are the 4 stages where insurance has a play when you are ride sharing:

  • Uber/Lyft App is Offline
  • When You are Online
  • On Route to Pick Up
  • On the Trip

For the first time reader this can be a bit confusing as to how insurance is divided differently in these scenarios.

1) App Off

When the app is off, your personal insurance company and coverages is what you are being insured with. If in the instance that you are offline and get into an accident you will not be covered by Uber or Lyft insurance coverages.

2) Online

As soon as you turn the app online you will be automatically insured by Uber or Lyft. The reasoning behind this is that, you would be circling around or waiting for a potential passenger to take with you on a trip. You will be covered with liability insurance. Here is the breakdown:

  • $50,000 Bodily Insurance
  • $100,000 Total Insurance Coverage
  • $25,000 Property Insurance Coverage

3) The Rest of Your Trip

  1. Accepting the Ride
  2. Beginning of the Trip
  3. End of the Trip

No matter what happens, after you have accepted the trip, picked them up and just before you end your trip Uber or Lyft has insured you with optimal coverage. So when you are on the road you are fully covered for both you and your passengers. Here is what they cover:

  • 1M Liability Insurance Coverage
  • 1M Underinsured/Uninsured Injury

For Uber:

For Lyft:

  • Comprehensive and Collision insurance based on your current coverage. This is contingent on the actual cash value of your vehicle. You will be required to make a $2,500 deductible.

We understand that all of these logistics behind an Uber and Lyft insurance policy can be a tad bit daunting. With the information in this article, you should have a better understanding. Although if you feel like the information was not informative enough please do call your local insurance company for more information about rideshare insurance policies when you are driving with Uber or Lyft.

We highly recommend taking the time to do more research by either calling Uber or Lyft to understand the entirety of their insurance policies. Stay insured and drive safely.