Why do so many car insurance companies refuse to insure Lyft and Uber drivers?

"As a part-time Uber driver, it can be difficult to find a car insurance company to cover my vehicle. Why is this?"

“The simple answer is that rideshare drivers are riskier to insure. Compared to the average person, rideshare drivers spend exponentially more time in their vehicles, putting them at higher risk of getting into an accident.
Some car insurance companies don’t know how to evaluate the risk presented by Uber and Lyft drivers, so they opt out of insuring rideshare drivers altogether.
Uber and Lyft do offer insurance coverage to their drivers at different stages of a trip, but it isn’t totally comprehensive. It’s strongly recommended that you seek out additional coverage via rideshare insurance from an insurance company.
Several major carriers do offer rideshare insurance, including GEICO, Allstate, Erie, State Farm, and Farmers.”
Emily Richey
Answered on Jul 23, 2021

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