What types of insurance are available for rideshare?

Ridesharing insurance is a sort of auto insurance that bridges the gap between your rideshare employer’s commercial auto insurance policy and your own personal auto insurance. Employer-provided insurance policies frequently only cover the bare minimum and have restrictions on when you are covered, so it is difficult to get coverage for the transportation of paying customers. Additionally, if you or your vehicle or other individuals are hurt outside of the windows that Lyft and Uber driver insurance offers additional coverage to, you may face hefty out-of-pocket payments.

To protect themselves and others in the event of accidents, rideshare drivers have the option of purchasing additional rideshare insurance, even though they are not legally obligated to do so. Because they make their living by driving, rideshare drivers should consider purchasing more comprehensive insurance than the average commuter.

Rideshare insurance may be an excellent investment if your company requires you to drive consumers from one location to another. As your personal and business auto insurance plans do not cover you during periods of non-insured driving, rideshare insurance provides the additional coverage you need to be financially protected at all times.

It’s critical to understand that rideshare drivers are not insured end-to-end by their employers’ insurance policy. A rideshare company’s business coverage typically only protects you and your vehicle when you are picking up and dropping off a passenger. According to Uber and Lyft, coverage periods are divided into the following categories:

Uber and Lyft’s commercial automobile insurance does not cover you if you are not logged in to your rideshare driver app or if you are using your vehicle for personal business. Rather, your personal car insurance coverage normally covers offline driving.

A rideshare driver who is logged in for work but has not yet been assigned a customer is ineligible for employer-provided insurance. Your personal insurance may also be inactive at this time since you are theoretically working. In an accident, you and your vehicle are left without enough insurance coverage. In an accident, you and your vehicle are left without enough insurance coverage.

Your business insurance begins to kick in when you accept a customer and begin driving to pick them up. You’ll be insured throughout this period, but rideshare firms tend only to offer limited liability insurance. Both Uber and Lyft driver insurance provides $50,000 coverage for each person injured, $100,000 per incident, and $25,000 for bodily injury liability coverage for property damage.

Like period two, you are covered for the duration of the ride by your commercial auto coverage when you pick up the customer. When you drop off a customer, you return to period one status, which means that you will not be eligible for your health insurance or employer-provided insurance.