Avoid These 2 Insurance Disasters When Driving for Uber or Lyft

(These all meet or exceed any state' minimum requirements for those coverages )

Diagram of rideshare insurance

En route to pick up riders and during trips

Uber maintains the following auto insurance on your behalf in case of a covered accident
  • $1,000,000 third-party liability
  • Uninsured/underinsured motorist bodily injury
  • Contingent comprehensive and collision
    • Up to the actual cash value of the car ($1,000 deductible)
    • Only if you also maintain comprehensive and collision coverage on your policy

"Driving passengers for a fee" is a restrictive business insurance class that is excluded by every standard personal auto policy and even most business auto policies. The reason is because of the increased chances of an accident or liability claim.

This poses two significant problems for drivers.

  • You may have noticed above in "looking for passengers," Uber only offers coverage for liability and not damage to your own car. So if you have a wreck during this time, you are stranded, and any claim to fix your vehicle will get declined. 
  • If your insurance company finds out you are using your car for excluded activities, they will go ahead and cancel your policy (with proper notice, of course.)

Rideshare Enhancements

Insurance companies soon began to offer a unique rideshare enhancement for a small cost to close any gaps in coverage while you wait for your next rider.

Most companies offer this is some form. If you drive for Uber, Lyft, or a different rideshare platform, please adequately cover yourself!  A few bucks now could save you thousands later.

If you have any questions or want to know how much rideshare coverage would cost to add, drop a comment, or go to my agency web page to send me a direct message. Safe driving!