While Lyft does offer company car insurance to drivers, there are gaps in coverage during certain periods of the rideshare process. For this reason, Lyft drivers may benefit from a robust personal auto insurance policy and rideshare insurance.
Lyft driver insurance: How it works
At certain points in the rideshare process, Lyft offers its drivers contingent comprehensive and collision coverage, meaning you’ll get this additional protection if you carry full coverage on your personal policy. Lyft offers similar contingent coverage for UM/UIM insurance and PIP, which are required coverage in some states.
But between rides, Lyft offers drivers minimal coverage. To stay protected while you’re driving, consider adding full coverage insurance on top of at least your state’s minimum liability insurance to keep your vehicle protected.
It’s also a good idea to add rideshare insurance to remain protected at all stages of the rideshare process. Rideshare insurance will extend essentially your personal car insurance coverage to protect you while you’re driving for Lyft.
Learn more: What you need to know about Uber car insurance
Lyft provides auto insurance on top of your personal policy
All Lyft drivers receive a Lyft car insurance policy for free when driving for the app. This policy will give you additional coverage on top of your personal car insurance policy, including liability insurance, collision insurance, and comprehensive insurance coverage at certain phases of the ride.
Here’s the breakdown of how Lyft car insurance works throughout the different phases of the rideshare process1:
| Driving phase | Description | Lyft coverage |
|---|---|---|
| 0 | App is closed | – Driver is only covered by personal insurance policy |
| 1 | App is open, driver is waiting for a ride request | – Minimal contingent liability coverage |
| 2 | App is open, driver is on the way to pick up a rider | – Liability coverage of at least $1 million per accident – Contingent collision and comprehensive coverages up to vehicle’s actual cash value or repair costs – $2,500 deductible – Some first-party coverages |
| 3 | App is open, driver is taking the passenger to their destination | – Liability coverage of at least $1 million per accident – Contingent collision and comprehensive coverages up to vehicle’s actual cash value or repair costs (whichever is less) – $2,500 deductible – Some first-party coverages |
Phase One
During phase one when while you’re waiting for a ride request, your personal auto insurance coverage will take precedence over Lyft’s company car insurance coverage. If your personal auto insurance policy doesn’t cover a claim made during this period, Lyft insurance will cover the following:
- $50,000 per person for bodily injury liability
- $100,000 per accident for bodily injury liability
- $25,000 per accident for property damage liability
Lyft insurance in phase one does not include any other types of coverage, like comprehensive coverage, collision coverage, or personal injury protection (PIP), that might be helpful after an accident at this phase.
Learn more: Can you have two car insurance policies?
Phase Two and Three
Phases two and three of the Lyft driving process—which includes when you’re en route to pick up a new rider and the entirety of the ride itself—give you significantly more protection from Lyft’s company car insurance. This includes up to $1,000,000 of liability coverage per incident.
During these two stages, you’ll have contingent comprehensive and/or collision insurance, plus UM/UIM and PIP. That means that, if you have these types of coverage on your personal car insurance policy, Lyft’s company insurance will kick in after you’ve made a claim to your own auto insurance company.
This contingent comprehensive and collision coverage will only apply if the driver has full coverage on their personal policy, so not everyone will have this kind of coverage from Uber and Lyft. Additionally, coverage for this policy will be up to the actual cash value (ACV) of the driver’s vehicle, and the driver will be responsible for a deductible of $2,500 in the event of an accident.
Depending on state minimum car insurance laws, Uber and Lyft may also provide their drivers with other protections, such as personal injury protection (PIP), uninsured motorist/underinsured motorist (UM/UIM) coverage, or even medical payments (MedPay) insurance.
You may need more than Lyft’s provided coverage
Not only is it a good idea to have additional car insurance coverage via a personal policy when you’re driving for Lyft, but you’ll be legally required to carry your own policy during periods when the app is closed. You can choose to carry state minimum car insurance, but experts recommend full coverage insurance (including collision and comprehensive insurance) if you want to use Lyft’s contingent full coverage insurance after an accident.
Rideshare insurance: Why it’s a good investment
Other than your standard car insurance policy, it’s a good idea to add rideshare insurance to your policy. Rideshare insurance coverage protects rideshare drivers where the gaps in rideshare company policies leave them vulnerable, such as phases one and two of the rideshare process. These policies will also usually include personal use of your vehicle, too.
The liability issues faced by rideshare drivers make it risky to depend on standard car insurance for coverage while driving for Lyft—especially considering that a standard insurance provider might drop your existing private policy if you file a claim and they discover you are using your vehicle for commercial purposes.
How much does rideshare insurance cost?
On average, rideshare coverage costs around $25–$30 per month. But the actual price you’ll pay will depend on a number of factors, including your location, insurance provider, driving record, and coverage options.
You can typically purchase rideshare insurance from your current car insurance provider as an extension of your personal car insurance. To add rideshare insurance to your current policy, you’ll need to contact your local insurance agent.
The best rideshare insurance companies
Several car insurance companies offer rideshare insurance, including GEICO, State Farm, and Progressive. Here’s a little more information about rideshare insurance from some of the nation’s biggest insurance companies:
| Insurance company | Type of program | Location restrictions |
|---|---|---|
| GEICO | Hybrid rideshare insurance policy that works in tandem with your personal car insurance policy. | Not available in AK, GA, HI, KY, MI, NC, NJ, NY, TX, or UT |
| State Farm | Add-on policy option for existing policyholders. | Not available in AK, HI, IL, MA, NY, RI, or SD |
| Allstate | Ride-for-Hire package that covers the $2,500 Lyft deductible. | Not available in FL, MI, or NY |
| Progressive | Customizable rideshare insurance package. Current Progressive policyholders must purchase it if they work for Lyft or Uber. | Not available in AL, AR, AZ, CO, CT, DC, FL, GA, IA, ID, IL, IN, KY, LA, MA, ME, MI, MN, MO, MS, ND, NE, NM, OH, OK, PA, RI, SD, TN, TX, UT,VA, WA, WI, WV, or WY |
| Travelers | Does not offer deductibles for gap coverage—policyholders will need to pay the Lyft or Uber deductible if involved in a crash. | Only available in CO and IL |
| USAA | Can cost as low as $6/month. Does not offer gap coverage deductible. | Not available in NC, MI, MT, NM, NY, SC, or VA. |
Learn more: The best car insurance companies of 2023
All about Lyft Express Drive
The Lyft Express Drive program allows certain drivers to use a rental vehicle from Hertz or Flexdrive for rideshare purposes in certain regions.
For this program, Lyft’s car insurance works differently depending on the state you’re in, what driving phase you’re in, and which rental company you use. Here’s what your coverage might look like based on the driving phase and car rental company:
Hertz:
- $50,000 limit of collision coverage per vehicle ($1,000 deductible)
- Bodily injury and property damage liability (limits vary by state)
- Uninsured/underinsured motorist coverage (up to local regulations)
Flexshare:
- May cover up to car’s cash value in damage costs ($1,000 deductible)
- May cover limited bodily injury and property damage liability costs
- May provide up to local UM/UIM coverages
Hertz:
- Covers up to car’s cash value in damage costs ($1,000 deductible)
- Covers limited bodily injury and property damage liability costs
- Provides at least local UM/UIM coverage requirements
Hertz:
- Covers up to vehicle’s cash value in physical damages ($1,000 deductible only if you’re at fault)
- Covers up to $1,000,000 of bodily injury and property damage liability for third parties and passengers per accident
- Provides up to local coverage requirements for UM/UIM coverages
Flexshare:
- Covers up to car’s cash value in damage costs ($1,000 deductible)
- Covers up to $1,000,000 of bodily injury and property damage to third parties and passengers per accident
- Covers up to local requirements for UM/UIM insurance
Before you opt to drive for Lyft in a rented vehicle, remember that there may be additional rental fees that eat into your earnings. If you have your own vehicle, it’s usually better (and cheaper) to go that route.
FAQ
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How do you get car insurance as a Lyft driver?
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What does rideshare insurance cover?
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How much is Lyft’s car insurance deductible?
Source
- https://help.lyft.com/hc/en-us/all/articles/115013080548-Insurance-coverage-while-driving-with-lyft ↩︎
Liz Jenson is an insurance writer who specializes in general automotive and insurance topics. Liz’s mission is to produce informative and useful content to help car owners make smart choices when buying cars and car insurance. Since joining Jerry in 2021, Liz has written nearly 4,000 long- and short-form articles on topics including state-specific insurance recommendations, common car insurance questions, and deep dives into vehicle model details. Before they came to Jerry, Liz was a full-time student at Indiana University, Bloomington working on a double major in English and French.
Kianna Walpole is an insurance writer and editor with a comprehensive background in consumer behavior and online publishing. With experience in car insurance, maintenance, and repair, she is dedicated to building informative content that helps customers reduce costs while achieving the best service. Prior to joining the Jerry editorial team, Kianna worked as a junior editor in the content marketing industry, using consumer data and key insights to create and edit content for an array of large-scale clients in the real estate, cybersecurity, and healthcare industries.
