May 28, 2022

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Rideshare Insurance For Uber And Lyft Drivers | Personal Finance

Does My Personal Auto Insurance Cover Rideshare Driving?

Personal auto coverage typically excludes rideshare trips. That’s because your auto insurance company has priced the policy assuming you’re driving yourself, relatives and/or friends, and that you aren’t earning money from private trips and putting a lot of extra miles on your car.

As a result, a rideshare driver’s personal auto policy typically won’t supply coverage while you’re making rideshare trips.

Many insurers now offer rideshare insurance, including Allstate, Geico, Farmers, Liberty Mutual, Progressive, State Farm and USAA.

Minding the Gap

A rideshare driver might be happy with the insurance provided by the rideshare company, especially if the driver carries only the minimum personal auto insurance required by the state. In those cases, a million dollars in liability coverage from Uber can look like a major bonus.

But there can still be gaps, which is where rideshare insurance comes in. For example, rideshare companies don’t provide collision or comprehensive insurance when the app is on and the driver is waiting for a ride request. And a personal auto policy that includes collision and comprehensive likely won’t cover that period. So if you accidentally back into a pole, you’d have no insurance for the damage.