The truth is, not enough gig workers actually take advantage of rideshare insurance. Just as their are specialized loans for Uber and Lyft drivers, it is important to know that there is specialized car insurance for rideshare workers!
Don’t worry, we have you covered – literally. To help rideshare drivers better navigate the gig economy, we’ll break down what you need to know about rideshare coverage to help you decide what’s right for you.
What is Rideshare Insurance?
Rideshare car insurance lies somewhere between normal car insurance and commercial insurance offered by traditional insurance companies. Rideshare platforms offer some form of insurance coverage for their drivers but it usually only covers up to a limited amount.
Regular car insurance only covers you when you’re off the job, operating in a personal capacity.
How Does Rideshare Insurance Work?
Standard car insurance simply doesn’t cover you while you’re working. Yet, Lyft and Uber driver insurance doesn’t provide coverage for the entirety of the time you spend in your car. It’s for that reason that adding rideshare insurance is critical for independent rideshare workers, covering the gaps necessary during the different phases of your time working.
These phases can be broken down as follows:
Offline: When you’re offline, your rideshare company doesn’t know you’re on the job (and technically you’re not) so you don’t have access to any rideshare car insurance. Here is when you’ll need to rely on your personal car insurance policy.
Waiting on a Request: This period (also known as period 1) is responsible for the dangerous grey area when it comes to auto insurance. The company-specific car insurance for rideshare workers (from Uber and Lyft) does not cover the time you spend waiting for a customer. On the other hand, personal car insurance is likely inactive since you are “on the clock” during this time. Yikes.
During the Pickup, the Ride, and the Dropoff: The moment you accept a customer request is the moment your company insurance kicks in. That coverage stays active for the remainder of your ride with the customer until the moment they are dropped off. Once the ride is confirmed as being completed in the corresponding app, you’re back at the previous phase we mentioned with no insurance coverage.
Also, the coverage of major rideshare companies only functions as limited liability insurance. Both Lyft and Uber offer only $50,000 in coverage for personal injury per person, $100,000 in total bodily injury coverage per incident, and $25,000 for the coverage of damaged property. There’s also a $1 million liability coverage, and uninsured motorist coverage during the pickup and ride duration.
What Does Rideshare Insurance Cover?
Coverage for rideshare insurance varies. All offer at least the “waiting on request” period coverage for their insurees. Some offer a minor deductible during specific windows when on the job. There’s usually an increase in your insurance premium as well. Check the state and company costs of popular insurers here.
Thinking about driving without rideshare insurance? Think again
Unfortunately, most personal car insurance policies do not include rideshare insurance within their coverage. In other words, if you’re a Lyft or Uber driver, you’ll require additional coverage in the case of an unlikely tragedy.
Here are some unique benefits of purchasing rideshare insurance:
- Your personal, rideshare, and delivery driving are covered all in one policy
- You can add others who live in your household to your policy
- You can get coverage even while borrowing a vehicle for personal use if your car is out of service and you receive permission from the owner
- Depending on the insurer, your insurance rates will be determined by classifying risks through driver experience instead of credit score when assessing risk
- With rideshare insurance, your coverage policy will apply for all periods of driving on most gig apps
A gig worker driving without rideshare car insurance is like anyone driving without regular car insurance. It’s just not a smart move.
Which Companies Offer Rideshare Car Insurance?
Gig worker benefits are hard to come by. And Moves’ members often struggle to find what options exist for rideshare car insurances that are tailored to their needs. Here’s where we recommend:
Buckle Rideshare Insurance
Buckle is a car insurance company with a twist. Buckle offers Lyft and Uber driver insurance at crazy affordable rates.
The signup process is fast and free! The insurance kicks in the moment you sign up! On top of that, no credit checks are necessary and star ratings are reviewed for approval instead (revolutionary). They even offer coverage for couriers and shoppers!
Buckle offers complete coverage for all periods of your driving, including your personal driving with the rideshare app offline. Easy peasy. Their plethora includes the likes of Uber, Uber Eats, Lyft, Grubhub, DoorDash, Amazon Flex, and more. You can even earn a free $20 on your (also free) referred Buckle Quote!
We believe auto insurance for Uber and Lyft drivers should be simple and straightforward. Buckle has made that a reality by helping push the gig economy and the future of work forward.
As a special offer, you can sign up here and receive a $5 virtual Visa card or Paypal credit!
What else?
From what we’ve found, Esurance, Geico, and Mercury all offer standalone rideshare insurance for their patrons. A handful of other companies offer rideshare insurance endorsement policies for their users. Moreover, each policy varies by state. If you’re leaning toward getting insured by a standard car insurance company, make sure they cover your state and read carefully what exactly their rideshare insurance protection includes!
Frequently Asked Questions concerning Rideshare Coverage
What if I can’t get rideshare insurance in my state?
In case rideshare insurance isn’t offered in your state, try opting out for commercial auto insurance instead. The rideshare coverage in most commercial insurance policies isn’t as thorough or cheap as the competition, but it’s the best plan B for gig workers.
Do Lyft and Uber drivers need rideshare insurance?
Secondary rideshare insurance isn’t necessary for rideshare workers to work, since each gig driving company offers some form of accident liability coverage. But, we’d highly recommend any serious rideshare worker consider getting good rideshare car insurance, as your insurance from Uber and Lyft does not cover the time you spend waiting for a customer and your personal car insurance will likely be inactive since you are “on the clock” during this time. So, if you want to be covered at all times (which you should be,) rideshare insurance is a must!
Should I inform my current car insurance company that I am a rideshare worker?
The short answer is no. For the most part, you have the right to go into a contract as you please without being overshadowed by previous contracts or companies in tandem. On the other hand, perhaps your current car insurance offers a policy to help ensure customers while they’re on the job. If you’re looking for an extra endorsement or upgrade to your policy, it’s in your best interest to inform your insurance company.
How much does rideshare insurance cost?
The costs of rideshare insurance policies vary by company. We’ve found that it usually comes at a rather affordable rate, the higher price bracket coming in around $15 extra per month. Most policies charge less. Some policies charge a percentage of your premium for the added insurance. So expect not-so-crazy margins and some variability as to what’s offered.
How to report an accident?
If you’re unfortunate enough to experience an accident, stay right where you are and call the police. This rule applies whether you’re on the job or not. While you wait, exchange information with the third-party involved like usual. If on the job, you may have to provide the rideshare company’s certificate or personal insurance proof, depending on your company. Finally, remember to personally notify both your commercial insurance company and rideshare company
Emilie has been with Moves since January 2022 as a Growth Marketing Intern. She is in her fourth year of university and is passionate about exploring the world of personal finance. As a self-identified hustler, when Emilie is not at Moves, she can be found teaching beginner marketing boot camps at her university or working at one of many local concert venues.
