Are you thinking about becoming an Uber or Lyft driver? While it may not be the top of the list, car insurance is something you should consider when making your decision to become a rideshare driver.

Before we delve into the complicated world of auto insurance for a rideshare driver, we want to be clear that at this time; we do not provide insurance coverage if you are an Uber or Lyft driver. While insurance companies recognize the need for rideshare coverage, many are only testing the waters, and availability varies by state and company.uber lyft insurance

It’s also important to understand that your personal auto insurance policy does not cover these activities and in the event of a claim, while signed into the app, there will be no coverage.  The insurance company may also cancel your policy due to the tricky nature of when you are “online” or “offline.”

But don’t let it deter you from earning some extra money,  Uber and Lyft do offer their drivers coverage under a commercial insurance policy.  Please be sure to read the coverage under these policies, and you fully understand how they protect you.

Uber and Lyft Insurance Coverages

Your personal auto insurance may provide coverage to you as a driver if you are “offline” but it is important to discuss it with us if you are confused about the coverage.

The commercial coverage provided to you while driving for Uber or Lyft is separated into stages, or periods, throughout your trip. These stages include offline, available, en route, and on a trip.

Uber and Lyft give a different coverage amount to their drivers at based on the stage of their trip.

uber driver coveragesFor Uber drivers when you are “Available” Liability amounts are 50k/100k/25k these limits represent Bodily injury/Total Per Accident/Property Damage

When “En route” Liability amounts are $1 million and Uninsured/Underinsured Motorist are $1 million.

During the “Trip” (meaning you have passengers) Uber offers a $50,000 Comprehensive/Collision Limit with a $1000 deductible.

For Lyft drivers when you are “Available” Liability amounts are 50k/100k/25k these limits represent Bodily injury/Total Per Accident/Property Damage

When “En route” Liability amounts are $1 million and Uninsured/Underinsured Motorist are $1 million.

During the “Trip” (meaning you have passengers) Lyft offers a $50,000 Comprehensive/Collision Limit with a $2500 deductible.lyft driver coverages

What if I am in an accident?

If you are in an accident during your trip or on the way to a fare, Lyft and Uber will cover medical expenses and other damages up to $1 million, even if an uninsured or underinsured driver is involved. The $1 million limit is much more robust limit than most drivers carry, even taxi drivers in many major cities carry lower limits, this limit should cover most accidents.

You also have a bucket of money to draw from with the comprehensive and collision coverage given by the ridesharing companies, the caveat being you have identical coverage on your personal insurance. Keep in mind that the deductibles are high, and the coverage only applies while you’re carrying passengers.uber lyft accident

If you the accident occurs while waiting for a fare, you’ll need to file a claim with your insurance provider unless your state law or ridesharing endorsement specifies otherwise. If the insurance company denies the claim or you’re not entirely paid back, coverage from Lyft and Uber will kick in. However, ridesharing companies’ limits in these situations are relatively low.  If you have ridesharing coverage with your personal insurance company, it is designed to cover this gap.

 Reporting the accident and filing the claim

Call the police: Whether your accident is a result of ridesharing or not, your first step should be to call the authorities. Depending on the nature of the accident and the rules of your ridesharing company, you might have to show your personal proof of insurance or your company’s certificate. Just like in any other accident, exchange information with the other driver.

Filing the Claim: After the accident, you will need to file the claim with your insurer. Regardless if your ridesharing company will cover the damage, your personal insurer will want to know about any accidents. If you haven’t been honest with your insurer about your employment status, this can be a difficult situation. If you opt to not tell your insurer about the accident,  you risk being dropped if the company finds out. Your ridesharing company will need to be notified as well even if it isn’t covering the claim. If your ridesharing company’s coverage is available to you, a rep can help you start the claims process.