Rideshare Insurance Florida: Do I need It?

First of all, what is a Rideshare Service?

Does Uber or Lyft sound familiar? When you hear the term rideshare, or ridesharing service, it is referring to services such as Uber or Lyft that connect a passenger in need of a ride to a driver.

For passengers in need of transportation, it’s a great alternative to taxi services or having to beg a friend for a ride.

For anyone willing to be a driver, it has become a great way to make some extra cash, it has even been a main source of income for others.

However, some people engaging in this line of work might not realize that they might not be sufficiently covered when it comes to auto insurance.

True, Uber and Lyft offer supplemental insurance coverage, but a driver is still required to have their own auto insurance on top of that. Plus, if the Uber or Lyft app is off, their supplemental insurance is no longer covering the driver.

Additionally, many auto insurance companies have exclusion clauses that indicate they WILL NOT provide coverage if you are driving for one of these rideshare services.

If you are doing work for Uber, Lyft, or a similar rideshare service, how do you make sure that you are properly covered?

Rideshare Insurance Florida: Why Think about working for a Rideshare service?

Florida is a hot spot for making extra cash with rideshare work.

Every day, hundreds of thousands of people fly into tourist heavy cities like Miami or Orlando and need someone to get them from Point A to Point B.

Or between the nightlife and party heavy locations in Florida, someone who is choosing to be safe and not drink or drive will need the transportation help.

Whatever the reason, if you choose to rideshare in Florida, you are likely to bring in some money.

So make sure you don’t need to use that sweet extra cash for a claims payout!

Requirements for Rideshare Insurance in Florida

Rideshare insurance in Florida is essential for drivers working with companies like Uber or Lyft. To meet state regulations and protect yourself on the road, you must ensure your insurance coverage aligns with your rideshare activities. Rideshare insurance typically includes liability coverage, uninsured/underinsured motorist coverage, and contingent comprehensive and collision coverage. These policies bridge the gap between your personal auto insurance and the additional coverage needed while driving for a rideshare service.

Here’s a breakdown of common requirements for rideshare insurance in Florida:

• Liability Coverage: Most rideshare companies mandate liability coverage with minimum limits.
• Uninsured/Underinsured Motorist Coverage: Protects you in case you’re involved in an accident with an uninsured or underinsured driver.
• Contingent Comprehensive and Collision Coverage: Covers damages to your vehicle during rideshare activities, supplementing your personal policy.

Table: Comparison of Rideshare Insurance Rates in Florida

Insurance Company	Liability Coverage ($)	Uninsured/Underinsured ($)	Comprehensive/Collision ($)
Progressive	$300/month	$50/month	$80/month
Dairyland	$280/month	$60/month	$90/month
Travelers	$320/month	$55/month	$85/month
Gainsco	$290/month	$65/month	$95/month
Assurance	$310/month	$70/month	$100/month
National General	$330/month	$75/month	$110/month
The General	$300/month	$80/month	$120/month
Suncoast	$320/month	$85/month	$125/month

These rates are estimates and may vary based on factors such as driving history and location within Florida. It’s crucial to consult with an insurance agent to determine the best coverage options for your rideshare activities.

Rideshare Insurance Florida: What Kind of Coverage is Needed?

In most states, when you are doing rideshare services, you will need to get more coverage on your auto insurance than the average driver who simply commutes to their place of work.

For instance, let’s take the example of Mr. John Smith who drives only 15 miles round trip from his home to his local office building every day. He would be perfectly fine if his auto insurance consisted of liability only, set at Florida’s state minimum limit.

Mrs. Jane Smith on the other hand, has a rideshare app set up and picks up passengers throughout the day, perhaps 5 days a week. For Mrs. Smith to be properly covered, she must make sure of the following:

• Her auto insurance company is an approved carrier of rideshare endorsements
• Mrs. Smith must have already disclosed that she works for a rideshare service with them.
• She must have purchased the approved liability limits.

If you are doing rideshare then you may be required to carry higher limits. The law in Florida requires that all Transportation Network companies have to have a policy that cover the driver when the app is on and in effect.

Each company is of course different and has different limits. So, just check with your company and see what limits and periods of times that you will need the company’s insurance coverage. Even though you may carry the company’s insurance coverage, you should still let your personal auto insurance company know you do rideshare.

Rideshare Insurance Florida: When the Rideshare Company Covers You Vs. When Your Personal Auto Covers You

Period 0: IF the app is off and not being used or the vehicle is not being used for rideshare at that moment and is just being driven for personal use, then that driver’s regular auto insurance coverage is sufficient enough.

Period 1: When the app is on and the driver is waiting for a passenger to be assigned to them, their personal rideshare insurance coverage will be in place. Rideshare companies like Uber or Lyft provide an amount of liability coverage.

Period 2: When the driver is paired with a passenger and is on their way to grab the person, the rideshare company’s insurance coverage will be in force.

Period 3: This is the last stage of the process… once the passenger is in the vehicle, the rideshare company’s commercial auto in in force, until the passenger is dropped off to their location. At that point, you would go back to period 1.

Rideshare Insurance Florida: What Kind of Coverage is Needed?

Florida’s state minimum liability limits are 10/20/10.

That means the driver must have at the very least, the following coverage: $10,000 per person for bodily injury, $20,000 per accident or occurrence for bodily injury and $10,000 for property damage.

Rideshare insurance Florida requires the driver to carry their own insurance policy, that is when the app is not in use.

When your app is turned on during your rideshare shift, then Florida rideshare drivers must carry higher liability insurance limits.

The higher liability limits can be made by the driver, but if not then the Transportation Network Company (TNC) is required to provide coverage for the drivers that do not carry those policy limits.

At least 50/100/25 ($50,000 per person, $100,000 per accident and $25,000 for property damage) are required. These limits are when you do not have a passenger in the vehicle with you.

When you do have a passenger in the vehicle then the TNC’s third-party insurance will cover you with at least $1 million coverage for property damage and bodily injury.

Rideshare Insurance Florida: Can I Get Full Coverage?

Can you get full coverage for rideshare insurance Florida?

Sometimes , the company like Uber or Lyft may provide full coverage (comprehensive and collision) during specific periods or stages that were mentioned above. But, you must have your own full coverage insurance to qualify for theirs. Contact them to get more information on that supplemental coverage.

Rideshare Insurance Florida: Driver Requirements

Now that you hopefully better understand the rideshare insurance Florida requirements, there are driver specific requirements involved.

All drivers must go through a criminal and driving background check. Background checks will be performed every 3 years. If any of the following below apply to you then they will not accept your application:

1. If you are listed as a federal sex offender
2. If you don’t have a U.S drivers license that is valid or vehicle registration
3. If in the last 3 years you were convicted of driving without a valid license or its been suspended or revoked
4. If in the past 5 years you were convicted of a serious driving offense like a DUI or hit and run.

If any of those are the case, or you are caught using drugs or alcohol while operating the vehicle, TNC will suspend you from the program and will not cover you any longer.

Rideshare Insurance Florida: Frequently Asked Questions

Additional Helpful Links
Florida SR22 Insurance
Florida Auto Insurance
Florida Motorcycle Insurance
Florida Insurance Requirements
Progressive Insurance in Florida
DMV Florida

Last Updated on March 26, 2024 by Veronica Moss