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What Is Rideshare Insurance And Do You Need It?

Ryan Brady is a lead writer at NerdWallet and authority on car insurance and life insurance. Ryan enjoys unraveling complex insurance topics to help people make smarter financial decisions. His work has appeared in TechCrunch, MarketWatch, Yahoo, Nasdaq and more.

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You need rideshare insurance or a commercial policy if you drive your car for a ride-hailing or delivery service app.

Rideshare insurance fills gaps in coverage between your own personal policy and any insurance the ride-hailing or on-demand delivery company offers.

Not all insurance companies offer rideshare insurance, and those that do may not offer it in every state.

Rideshare insurance is extra coverage for people who drive for app-based ride-hailing or delivery services, like Uber, Lyft or DoorDash. While these companies may provide their own insurance for drivers, insurers typically require app-based delivery and ride-hail workers to get rideshare insurance to fill gaps in their coverage.

Here’s everything you need to know about rideshare insurance.

Do I need rideshare insurance?

Most major insurers don’t allow you to use your personal car insurance or umbrella policy for business purposes. You need rideshare insurance in any situation where you drive your car to earn money, whether you drive for ride-hailing companies like Uber or Lyft or an app-based delivery service like DoorDash.

Your personal auto insurer likely won’t cover accidents that happen during your ridesharing gig, and it could cancel your policy if it finds out you haven’t disclosed you drive the car for money.

Though companies like Uber and Lyft provide coverage while you’re driving a passenger, you’re only minimally covered when you’re in between rides. A standard personal insurance policy won’t cover you, either. You’ll need to add rideshare coverage to your personal policy through your insurer. Without the added coverage, you’ll have gaps in your auto insurance.

Rideshare insurance isn’t available everywhere. If you can’t get it, you’ll need a commercial auto insurance policy to be fully insured and avoid being dropped by your carrier.

How rideshare insurance works for Uber or Lyft drivers

Rideshare insurance for ride-hailing services like Uber or Lyft provides minimal coverage while you have the app on and are waiting for a request. More complete coverage kicks in once you’ve accepted a ride and are carrying passengers.

Here’s when a personal policy with rideshare insurance and a rideshare company’s insurance would primarily apply during a shift:

Personal policy with rideshare insurance

Uber and Lyft insurance

App is off.

✓

App is on and you’re waiting for a ride request.

✓

Limited to liability coverage only

Request accepted, and you’re en route to pick up a passenger.

✓

You have passengers in the car.

✓

You’ve dropped off your passenger, the app is on, and you’re waiting for your next ride.

✓

Limited to liability coverage only

Uber and Lyft offer coverage for injuries or damage you may cause to others or their property while you’re ridesharing. Damage to your car from an accident is covered by the ridesharing company only if your personal policy includes comprehensive and collision insurance , sometimes called full coverage.

If you have full coverage and damage your car while ridesharing, you’ll need to pay Lyft or Uber’s deductible, which is your share of repair costs, before their insurance pays out. Both companies have a $2,500 deductible.

Rideshare insurance doesn’t cover you if you rent out your car using Turo. For that, you’ll need to buy Turo car insurance or get your own commercial policy.

Rideshare insurance for delivery app drivers

If you’re driving for an on-demand delivery service that offers car insurance, check its policy carefully. Coverage differs from company to company and is limited in all cases.

For example, Grubhub and Instacart don’t provide car insurance, so you’ll need your own rideshare or commercial policy to drive for them. Meanwhile, DoorDash generally offers liability insurance only between the time you accept a delivery request and complete the delivery or the order is canceled.

Delivery services aren’t always covered under rideshare insurance policies. When getting rideshare insurance, check to make sure your delivery service platform is covered before you hit the road with your next order.

Where to buy rideshare insurance

Rideshare insurance is usually a hybrid of the coverage offered by your ridesharing company plus rideshare coverage added to your personal auto policy. You typically can’t buy rideshare insurance as a stand-alone policy. For example, you can’t have Progressive for your personal auto policy and buy rideshare insurance from Farmers.

But not every insurer offers rideshare insurance. And those that do may not offer it in every state.

When seeking out rideshare insurance, be sure to:

Tell your personal auto insurer you’re considering driving for a ride-hail or app-based delivery company.

Figure out the gaps between your personal policy and the ride-hail or delivery company’s policy.

Ask your insurer whether it offers rideshare insurance to fill in coverage gaps or to give you a quote for a commercial policy. If both types are available, get both quotes so you can compare costs.

If your current insurer doesn’t offer rideshare insurance, you can turn to the following list of major car insurance companies that provide it. You can also consider working with an independent agent to help you find insurers — both large and small — that offer it in your area.

Company

Call for a quote

State Farm

844-364-0100

Progressive

855-347-3939

Geico

866-904-5657

Allstate

800-726-6033

USAA*

800-531-8722

Farmers

855-808-6599

American Family

800-692-6326

Travelers

866-523-8735

*USAA is only available to military, veterans and their families.

What happens if I have an accident while driving for Uber or Lyft?

If you get in a car accident while driving for a ride-hailing or delivery service, what happens next largely depends on the company you’re driving for, your own insurance policy, the state you live in and the nature of the accident.

Here are some common scenarios and outcomes when driving for Uber or Lyft in most states:

You get in an accident while picking up or driving a passenger: Uber's or Lyft’s insurance will provide up to $1,000,000 in liability coverage to pay for injuries and property damage you cause in an accident. As long as you have comprehensive and collision insurance on your own policy, Uber or Lyft will also pay to repair or replace your car if it gets damaged, regardless of fault. And if you’re injured in an accident, Uber or Lyft may cover your own medical costs and related expenses.

An uninsured or underinsured driver hits you. Uber's or Lyft’s insurance may cover you if you were on your way to pick up a fare or had riders in your car, depending on the state you live in.

You get in an accident while waiting for your next ride request. You’ll need to file a claim with your insurance company and with Uber or Lyft. The ridesharing company’s insurance will provide only liability coverage, which means injuries and damage you cause to others and their property are covered. Damage to your car is covered only if your personal policy includes comprehensive and collision coverage.

For extra peace of mind, Uber and Uber Eats drivers can purchase Optional Injury Protection, which gives you additional coverage for medical expenses, disability benefits, survivor benefits and more if you’re injured while using the app during a driving shift.

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