Rideshare Insurance: Is It Worth It?


If you regularly pick up rideshare gigs, your personal auto insurance policy simply won’t cut it. Not only are they likely to deny coverage if you get in an accident while on the job. They may even cancel your policy altogether. Beyond that, you only get minimal coverage from Uber and Lyft. This could leave you at risk of serious personal losses if anything happens along the way. Thankfully, you can get a specialized rideshare insurance policy that offers excellent protection mile after mile.

Insurance Coverage Offered by Uber and Lyft

Both Uber and Lyft offer different coverage types and limits depending on where you’re at in the service process. Here’s how it works.

  • Off Duty: No additional insurance coverage offered when the app is off and you’re off duty
  • Waiting for Requests: While waiting for work on the app, you get limited liability coverage up to the set limits
  • Enroute to Passenger: $1 million in liability plus comprehensive and collision if on your personal policy
  • Passenger Onboard: Same as the insurance coverage offered when enroute to your passenger

The liability only coverage gives you $50,000 for bodily injury per person, $100,000 bodily injury per accident, and $25,000 in property damage per accident. If the damage exceeds those limits, then you’re on the hook for the rest.

Furthermore, the coverage provided while picking up and transporting your passengers may not come with uninsured/underinsured coverage if not required by your state. So, if you get hit by someone without enough insurance coverage, you’ll have to cover the damages yourself.

Both Uber and Lyft have quite a hefty deductible attached their comprehensive and collision coverage. If you have to make a claim, expect to pay $1,000 or $2,500, respectively.

How to Protect Yourself with a Great Rideshare Insurance Policy

If you get in an accident while using your personal car for work, you need your insurance company to swoop in and pay for its repairs or replacement fast. Otherwise, you could end up without an income while you wait. So, it just makes sense to set up rideshare insurance that you know will cover your driving activities.

Depending on your selected auto insurance provider, you can either add the rideshare insurance to your regular policy or carry dual coverage. Either way, read through the policy documents to confirm the coverage will work for you since they’re all a little bit different.

Geico, for example, offers complete coverage while on and off the job, while State Farm only covers the gaps in Uber and Lyft’s insurance plans. Some rideshare insurance plans also offer protection when you’re working on your UberEats gig or for other food delivery services.

In addition to digging through the policy details, set the coverage limits that offer your ideal level of protection. You can adjust the liability, comprehensive, and collision coverage to match your situation and budget, for starters. Then, add on personal injury protection, uninsured/underinsured motorist, and other types of coverage as needed to stay safe on the road.

Don’t Leave It Up to Fate — Get Rideshare Insurance Today

You can also consider options like Hyrecar which can help you rent a car for rideshare work. Hyrecar rentals include insurance coverage, which could make it a great bundled option for you.

If you want true peace of mind while on the job, rideshare insurance is the way to go. With your specialized policy in place, you can rest assured that your insurance coverage will kick in without an issue if an accident occurs. You can then focus on doing the best job possible without worry about having to pay for vehicle repairs, medical bills, and the like if anything goes wrong on your travels.

Would you like to save hundreds of $$ a year?  Let's make sure you have the best auto insurance.

About the Author: Marie Abendroth is a skilled content strategist and SEO copywriter who has been a proud part of the gig economy for over 10 years. In her articles, she aims to provide up-to-date info that can help everyone achieve their goals as an independent worker. You can find her on WriterAccess.

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