Does My Car Insurance Cover Me if I Drive for Uber or Lyft?
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Plenty of car insurance carriers offer rideshare packages, but they probably won’t cover you if you drive for Lyft or Uber unless you specifically sign up for rideshare coverage.
One of the biggest developments in the automotive world has been the technological advancements in driver services. Gone are the days of hailing a taxi in the street; now, with your smart phone and a minute or two of wait time, you can be picked up by an Uber or a Lyft driver and whisked off to your destination.
However, the excitement of modern rideshare services isn’t reserved for riders; it’s also good for drivers. Uber and Lyft have provided both part and full-time job opportunities for people all over the country, whether they need supplemental income, a filler while they’re between jobs, or constant work.
Of course, driving for a rideshare service changes your profile as a driver, and that matters a lot when it comes to auto insurance. Car insurance coverage changes depending on what you’re doing with your car, so it’s important to know how you’re covered as a rideshare driver.
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Does my insurance policy cover me if I sign up to be a rideshare driver?
The short answer is no, your insurance policy probably doesn’t cover you yet, but it’s not quite that simple. Your insurance company can most likely cover you if you decide to work for Uber or Lyft, but your current insurance package likely does not.
Assuming you have not been driving for monetary purposes previously, you likely have a personal insurance package. Driving for Uber or Lyft counts as a profession (even if you do it part-time), so you’ll need an insurance package that covers it.
As Uber and Lyft have become popular, so too has rideshare insurance. Many insurance companies offer rideshare insurance, which keeps your car insured despite the fact that you use it for professional purposes.
Rideshare insurance is usually only a small bit more costly than standard insurance, but there is a catch: it’s only allowed in certain states (AL, AZ, CA, CO, GA, IA, IL, IN, KS, KY, MA, MD, ND, NE, NV, OH, OK, OR, TN, TX, WA, and WY) and not all insurance companies cater to all those states. To find out if your insurance company and your state offer rideshare insurance, give your provider a call.
If rideshare insurance is not available to you, you’ll have to buy commercial automotive insurance to fully cover you while driving.
Key Takeaway: Unless you already drive for cash, you’ll need to get rideshare insurance, as a personal insurance package won’t cover you. If your state—or provider—doesn’t offer it, you can get commercial automotive insurance instead.
Do Uber and Lyft offer insurance packages?
When you drive for Uber and Lyft, your car is automatically covered to a certain extent. Both companies offer $1 million liability coverage packages, but the caveat is that this only covers you while you are on your way to pick up a passenger or actively transporting a passenger.
If you are in your car, logged in to the app, but not currently on a job or en route to one, the coverage is very slim. Uber and Lyft’s insurance doesn’t cover you at all if you’re not logged into the app ready to take on rides, so you can’t simply dump your insurance plan and rely on your ridesharing company.
How do I get rideshare car insurance?
The key with insurance plans is always finding what best fits your needs and fills in the gaps, and that’s doubly true if you work for Lyft or Uber.
Because these companies offer such little coverage when you’re on the job but not currently accepting a ride, you should definitely upgrade your insurance plan to include ridesharing or commercial use. Even if you don’t, it’s imperative that you alert your insurance company about your ridesharing; if you don’t disclose this information, your insurance can be voided.
Uber and Lyft offer some insurance packages, so those are worth looking into. You’ll probably find a better deal with your existing insurance provider, so give your insurance agent a call and see if they can help you find rideshare insurance.
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Does your insurance go up if you drive for Lyft or Uber?
Yes–if you drive for Lyft or Uber, your insurance will go up. As a rideshare driver, you will be driving much more often than a normal driver. This makes you more likely to file a claim at some point, so insurance companies will want to raise your premium. You’ll also have to pay a bit more for rideshare coverage.
Will my insurance company know if I drive for Uber or Lyft?
Your insurance company doesn’t have a way to tell if you drive for Uber or Lyft, but that won’t help you if you end up needing to file a claim. You won’t be fully protected without rideshare insurance, so don’t give your insurance carrier a reason to deny your claim.
Getting proper insurance while driving for Uber or Lyft doesn’t need to be a hassle. Look at your current plan and the plans available to you from your provider (and feel free to contact them). Find one that covers you for all situations, and you’ll be good to go.
Maintaining your car insurance is critical, but it’s also important to make sure that you get the best available rates for your situation.
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