What is Rideshare Insurance? (2024)

FAQs

What is the rideshare insurance? ›

Rideshare insurance is coverage that can help protect you and your vehicle while driving for companies like Uber and Lyft. Depending on state law, some rideshare companies must provide insurance coverage in case something happens while a passenger is in your vehicle.

What if I don't tell my insurer about my rideshare driving? Engaging in ridesharing activities opens you up to potential liabilities that your personal auto policy may not cover, so an insurer could cancel or non-renew your policy if they find out you're driving for a rideshare service and didn't notify them.

The process of ridesharing is typically managed through mobile applications, where users can request rides from nearby drivers who use the app. Once a user requests a ride, the app matches them with a driver, provides an estimated time of arrival, and processes payment electronically at the end of the trip.

How much does California rideshare insurance cost? California rideshare insurance costs an average of $281 per month for full coverage. If you're looking at liability-only coverage, the average price drops to $138. While a liability policy will meet the state's minimum requirements, it doesn't offer as much protection.

Yes. California considers DoorDash a transportation network company, so rideshare insurance can cover you while you're “Dashing.” Talk with your insurance agent about a rideshare endorsem*nt on your personal policy or a separate rideshare policy to protect your finances before you turn on the DoorDash app.

Transportation Network Companies (TNCs), like Uber, Lyft, and Via, are often hailed as “the future of public transport” — providing a customized, convenient solution that claims to take cars off the road. Many describe these as ride-sharing or ride-hailing services — using the two terms interchangeably.

The rest of the time your personal auto insurance comes into play. And, if you're driving for Uber, Lyft, or any other rideshare company, you ABSOLUTELY MUST tell your insurer or they too can decline to pay out anything.

If you plan on driving for Uber, the company will require that you provide proof of your insurance coverage before they will allow you to drive. That said, they will not contact your insurance company directly. Providing your proof of insurance is enough to satisfy Uber's requirements.

With this endorsem*nt, some of the coverages you carry may be applied while you drive for a TNC. Does Instacart, or similar services, count as rideshare? No, Instacart is a delivery network platform.

While Uber is the largest ridesharing company in the world, the most popular ridesharing company can vary by region. For example, Uber may capture 70 percent of the U.S. ride-sharing market, but Grab dominates Southeast Asia with a 73 percent market share.

What is the advantage of rideshare? ›

Saving money– By ridesharing you can save money on parking and gas. Reduced traffic congestion– Ridesharing takes vehicles off the road, which means less congested roads. As more people take part in ridesharing, overall traffic congestion could decrease.

Rideshare services can be significantly cheaper to use if you own a more expensive vehicle that doesn't have great gas mileage. If you own a large SUV, the price you pay for gas could get expensive – especially if you have a far daily commute.

It extends certain coverages on your personal policy so that they apply during the "app on" period when you're waiting for a ride request. So, if an accident occurs while you're waiting to be hired, the ridesharing endorsem*nt may help prevent you from paying out of pocket for related expenses.

Progressive is our pick for the best rideshare insurance company for coverage options. Any endorsem*nts you've added to your personal policy, such as roadside assistance or rental car reimbursem*nt, apply when you drive for a TNC like Uber or Lyft. Plus, you get full coverage during trips.

The State of California requires rideshare drivers to maintain either a commercial policy, which is pricey or a rideshare endorsem*nt in their personal auto insurance policies.

By Uber car insurance coverage, we're specifically talking about your rideshare endorsem*nt. Because of the collision and comprehensive coverage gap left when you're on your way to pick up a fare, you would be on the hook for any physical damage that occurs to your vehicle (unless you are not at fault).

While not all policies offer the same amount of protection, many rideshare insurance options may fill in the gaps in your coverage. Uber rides in New York City are regulated by the NYC Taxi and Limousine Commission. For this reason, commercial insurance is legally required for NYC Uber drivers.

USAA offers what it calls “Ridesharing Gap Coverage.” This is a policy add-on that provides protection for the coverage gaps between your personal auto policy and the coverage provided by an app-based transportation network company (TNC) such as Uber or Lyft.