Rideshare Car Insurance Regulations in California
The average cost of rideshare insurance in California is between $6 and $25 per month, or as little as $15-$20 annually.
Written by Kianna Walpole
Edited by R.E. Fulton
In comparison to regular
car insurance in California
, rideshare insurance
is a separate plan that rideshare companies—like Uber or Lyft—and rideshare drivers use for additional coverage. Based on your state, the conditions may differ, but in California, it’s mandatory for rideshare drivers to have the basic insurance in place.- The cost for additional rideshare coverage varies per insurance company and what type of insurance you buy. Some companies quote between $6 and $25 per month, and others offer services for $15 and $20 per year.
- Some of the top rideshare companies across California are Uber, Lyft, and Via Transportation for their comprehensive liability insurance.
- To drive for a rideshare company, your vehicle has to match a determined criteria set out by your employer—the same applies to companies that offer liability insurance, like Uber or Lyft.
- The cost for additional rideshare coverage varies per insurance company and what type of insurance you buy. Some companies quote between $6 and $25 per month, and others offer services for $15 and $20 per year.
- Some of the top rideshare companies across California are Uber, Lyft, and Via Transportation for their comprehensive liability insurance.
- To drive for a rideshare company, your vehicle has to match a determined criteria set out by your employer—the same applies to companies that offer liability insurance, like Uber or Lyft.
Best rideshare companies in California
In comparison to standard personal auto insurance policies, which generally exclude covering vehicles used for commercial reasons, rideshare coverage supplies transportation network company (TNC) drivers with additional liability insurance.
According to California law, all rideshare drivers need to be insured at all times of their shift. When the app is off, they are insured by their standard personal policy—when it’s on, drivers need to have an add-on insurance policy to cover them before accepting a ride request, and then insurance for the duration of the ride (which is often offered by the rideshare company).
Some companies, such as Uber, Lyft, and Via Transportation are regarded as not only a few of the best rideshare apps in California, but also the top rideshare companies to work for due to their extensive liability coverage protection plans.
Other top rideshare companies in California include:
Rideshare | Rating |
|---|---|
Wingz | 4.9 |
Kango | 4.8 |
Curb | 4.6 |
Flywheel | 4.4 |
The average cost for rideshare insurance in California depends on your provider, but is generally around $6-$25 monthly or $15-$25 annually.
MORE: How to work for a rideshare company
Best rideshare insurance providers in California
If you sign up to work as a rideshare driver with a company that doesn’t supply rideshare insurance for before a ride begins, you should invest in an insurance add-on.
Across California, there are several companies that offer rideshare auto insurance add-on or full coverage:
Insurance provider | Period coverage | What’s included |
|---|---|---|
Period 0 to Period 1 | Comprehensive* Collision Uninsured/underinsured Personal injury protection Roadside assistance Rental car reimbursement *To get Progressive rideshare insurance, you also have to have the state minimum required insurance. | |
All periods* *The Allstate Ride for Hire program is only for Uber and Lyft drivers, and not for commercial use. | Deductible coverage for gaps of up to $2,500 Comprehensive Collision | |
Period 0 to Period 1 | Comprehensive coverage Collision coverage | |
All periods | Collision Comprehensive Medical expenses Bodily injury liability (only when available for hire) | |
Period 0 to Period 1 |
Does my insurance need to know I work for a rideshare program?
Yes. Under no circumstance should you begin working for a rideshare program without telling your insurance provider.
For a rideshare program, you’re likely using your own vehicle for commercial reasons.
If you’re ever in an accident—whether it’s at-fault or not—while the gap between your personal policy and rideshare policy is active, you could be on the hook for paying charges and damages out-of-pocket.
As a motorist, you have an obligation to keep yourself and others protected, and if you don’t notify your insurer of your new job, they can either reject your claim or drop you as a client entirely.
When do I need California rideshare insurance?
A rideshare driver will need rideshare insurance coverage mostly for the times between Period 0 and Period 1.
When you work for a rideshare company, like Uber or Lyft, your ‘working time’ is broken down into 3 periods:
- Period 0: This is when the app is off on your phone and you aren’t accepting customers. During this time, your vehicle’s personal car insurance is activated and must meet California’s minimum state insurance requirements of $15,000 in bodily injury protection (BIL) per person, $30,000 of BIL per accident, and $5,000 of property damage coverage.
- Period 1: The rideshare app is on, but you haven’t accepted a ride request. This is where rideshare insurance add-ons engage as you are not currently covered by your personal insurance policy or TNC policy. The requirements for BIL and property damage coverage go up in this period to $50,000 in BIL per person injured, $100,000 of BIL per accident, and $30,000 in property damage liability.
- Periods 2 and 3: After accepting a ride request, your TNC policy provided by your rideshare company is in use until the ride is completed. Most rideshare companies are required to provide $1 million in liability insurance in California to cover both you and your passengers.
For rideshare drivers in California, you must be covered at all times—and to make things easier some companies, like State Farm, offer full coverage options that cover you from when you approve a ride to when you complete the service.
There are rideshare apps like Uber and Lyft that offer rideshare insurance for drivers—including comprehensive and collision coverage—as soon as you accept a ride request. But this only applies if you already have it as part of your personal policy.
Keep in mind: Between periods, there will be a gap in your insurance. With an additional rideshare policy, coverage gaps are mended across all periods—which periods, however, are determined by your auto insurance coverage package and provider.
What classifies as a rideshare vehicle in California?
Each rideshare company has different qualifications for what constitutes a vehicle as rideshare approved. For shortened purposes, we will go over Uber and Lyft, two of the largest rideshare companies in the US, and their requirements for a rideshare vehicle.
Uber rideshare vehicle requirements
To drive for Uber in California, your vehicle must fit these specifications:
- Four wheel/door vehicle
- No older than 16 years old
- Proper state license plates
- Well-maintained with no tears, damage, interior stains, or odors
- Able to pass inspections
- Functioning seat belts for all seats
- No commercial advertising
- Registered and insured in California
- Functioning air conditioning and windows
These requirements are meant for standard cars. As Uber has several models (UberX, Uber Black, Uber Black SUV, etc.) the specifications may change depending on which type of driving service you want to offer.
Lyft rideshare vehicle requirements
To drive for Lyft in California, the vehicle requirements are a little different:
- Four wheel/drive vehicle that can seat at least 5 passengers
- 2009 model or newer for most California cities (each city is different, so it’s best to look up your city before applying)
- Must have a California license plate
- Can pass an inspection
Similarly, Lyft Lux and Lyft Lux Black may have different regulations. To determine if your vehicle is eligible for a rideshare program, contact your desired rideshare company for further information.
FAQs
What is a rideshare endorsement?
A rideshare endorsement refers to the rideshare coverage added to your regular car insurance policy. It typically covers the space between when your personal insurance stops after activating the rideshare app, and when your TNC insurance engages after picking up a passenger.
How do I apply for rideshare insurance in California?
To apply for rideshare insurance in California, contact your local insurance provider. Many large companies, like Progressive and Allstate offer commercial policies for rideshare insurance. However, prices and insurance rates will vary depending on your type of coverage.
Does your insurance increase working for Uber?
Driving for Uber can increase your personal insurance policy due to higher mileage and the requisite for commercial insurance. Nonetheless, Uber typically takes responsibility for any claims or accidents that occur en route through their comprehensive and collision policies.
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