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Rideshare Insurance

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Avoid Gaps in Coverage With a Rideshare Insurance Policy

If you use your personal car as a rideshare driver for companies such as Uber or Lyft, the insurance they provide may not cover what you’d expect. This can lead to gaps in coverage. Typically, rideshare companies provide coverage once a driver logs in to the app, but coverage may be limited until a ride is accepted. During this period, a driver’s personal policy may have exclusions as well. As an Uber or Lyft driver, you’ll need additional auto insurance protection that isn’t included with your personal insurance policy.

How Does Rideshare Insurance Work?

Ridesharing is any transportation service that arranges one-way transportation on short notice. The two biggest ridesharing companies are Uber and Lyft. Customers use an app to request a ride and designate their drop-off location. The rideshare driver picks up the client and drops them off at a pre-specified location. Unlike a taxi, no cash is ever exchanged because payments are processed electronically through the app.

Although insurance coverage is provided when the driver logs in to the app, coverage is often limited until the driver accepts a request for a ride. This causes a gap in coverage.

  • Rideshare insurance extends coverage from your personal auto policy to cover you when driving for a Transportation Network Company (TNC) such as Uber or Lyft.
  • Other coverage on your personal auto insurance policy, such as medical coverage, roadside assistance, and rental car reimbursement, is in effect when you’re driving for Uber or Lyft (requirements vary by state). Your Uber insurance or Lyft insurance may not provide protection if you’re injured, however.
  • Adding rideshare insurance to your personal insurance policy puts your personal insurance deductible into effect, even when you’re driving for a ridesharing company. If your personal insurance policy deductible is lower than the deductible for your TNC, you’ll pay the lower amount.

How Much Does Rideshare Insurance Cost?

Rideshare insurance is added to your existing personal car insurance policy, so your rates will increase depending on the coverage you choose and other factors. Some companies charge an additional $10 per month, while others charge an additional 15-20% on top of your regular premium. When you request a rideshare insurance quote from Freeway, we’ll help you find the coverage that fits your needs and budget.

Buy Rideshare Insurance

To learn more about rideshare insurance and to find out if it is available in your state, give us a call at 800-777-5620.