Do you need rideshare insurance?

You need rideshare insurance from your personal car insurance company if you drive for Uber and Lyft and do not want to pay out of pocket for your own expenses if you are at-fault in an accident while waiting for a ride request. You should also buy rideshare insurance if you would prefer a deductible lower than $1,000.

How Rideshare Insurance Works 

Rideshare insurance is separate coverage from the insurance that Uber and Lyft provide for drivers. Uber and Lyft drivers have liability-only insurance while the app is on and they are waiting for a ride request. Drivers who cause an accident during this period will be financially responsible for their own injuries and damage to their vehicle, unless they have supplemental coverage.

Once Uber and Lyft drivers have received a ride request from a passenger, the company coverage increases. During this stage, Uber and Lyft insurance includes comprehensive and collision coverage. However, Uber’s $1,000 deductible and Lyft’s $2,500 deductible are high compared to the average car insurance deductible on a personal policy.

Why Rideshare Insurance Is Important

Since most Uber and Lyft drivers rely on their car for their livelihood, it’s best to buy rideshare insurance to avoid driving with liability-only insurance. Some rideshare insurance policies also provide lower deductibles when drivers are picking up or driving a passenger, so that drivers can avoid the elevated Lyft and Uber deductibles.