The best rideshare insurance for Uber and Lyft drivers is not a single product. It is whichever cover closes the gap between what your personal policy excludes and what the services provide, at a deductible you could actually pay. This guide shows how the official pages divide the work, where the gaps sit and which questions to put to an insurer.
It names no insurers and quotes no prices, because both change by state and driver. State-by-state vehicle rules and the services’ own approval requirements are covered in separate guides.
How does rideshare insurance work, period by period?
The services and regulators split a driving day into periods. The NAIC names three: Period 1 is the app on while you wait for a request, Period 2 is a request accepted with no passenger yet and Period 3 is a passenger in the car.[1] This guide calls the time with the app off Period 0, a label of its own, because that is when only your personal policy applies.
Uber says your personal auto insurance covers you while you are offline.[2] While you are online and waiting, its third-party liability limits are $50,000 per person and $100,000 per accident for injuries and $25,000 for property damage. From the moment you are en route or on a trip, liability is at least $1,000,000. Lyft’s driver page gives the same figures, and says its liability for the waiting period applies if your personal insurance does not.[3]
| Period | What Uber and Lyft say applies |
|---|---|
| 0: app off | Your personal auto policy |
| 1: app on, waiting | Third-party liability of $50,000 per person, $100,000 per accident and $25,000 property damage |
| 2 and 3: en route or on a trip | Third-party liability of at least $1,000,000 in most markets |
Lyft adds that limits are lower or not procured in certain markets, so check your own.
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Where is the gap in personal insurance?
Lyft’s help center says it has no policy that applies when your app is off, so you must contact your personal insurer.[4] The larger gap sits between the two. NAIC says it is not uncommon for personal auto policies to exclude coverage for livery or for receiving compensation for driving, and that a driver may lack physical damage coverage for their own vehicle during some periods. Tennessee’s insurance regulator warned in 2017 that a coverage gap, involving uninsured motorist cover, may occur in Period 1 for drivers of some services.[5] For the work status behind this, see whether Uber drivers are self-employed.
The services do offer vehicle damage cover, with a condition. Uber says its contingent comprehensive and collision, which applies while you are en route or on a trip, carries a $2,500 deductible and requires comprehensive and collision on your personal policy, and that there is no Uber-maintained collision or comprehensive coverage while you are offline or online but have not yet accepted a trip. Lyft states the same $2,500 deductible. So if your own policy lacks comprehensive and collision, the services’ damage cover does not step in.
What are your options for closing the gap?
Lyft’s driver page says most personal auto policies will not cover you while you drive with Lyft, and suggests buying a rideshare insurance policy or a rideshare endorsement for complete coverage. NAIC describes endorsements as offering enhanced protection during all driving periods and says rideshare coverage is widely available. Uber’s page also says endorsements for additional coverage may be available. So the practical choices are:
- An endorsement added to your existing personal policy.
- A separate rideshare policy from an insurer that offers one.
- No add-on, which leaves you relying on the services’ limits and your personal policy, with the gaps above.
NAIC also suggests considering higher liability limits in Period 1, since the service’s cover may only meet state minimums, and checking whether your personal policy can help pay the service’s deductible.
Which insurance companies cover rideshare drivers?
Uber’s insurance page names no insurers. Lyft’s driver page shows a row of “trusted auto insurance partners” without saying what each one offers, and NAIC says only that rideshare coverage is widely available. No official page here ranks the insurance companies that cover Uber drivers or says which insurance companies cover Lyft in your state. The ones that offer rideshare coverage are the ones that say so on their own pages for your state. Start with your current insurer, then compare with a short list. A fair comparison uses facts you can verify rather than a ranking. Ask each insurer, in writing:
- Which periods does this cover, 1 through 3, or only some?
- Does it cover my own car’s damage, and with what deductible?
- Is it available in my state, and is it an endorsement or a standalone policy?
- Does it work if I drive for both Uber and Lyft, or also deliver?
- Does the service’s contingent cover still apply with this policy in place?
Uber notes that its rideshare terms refer exclusively to rideshare trips and that these coverages are not typically available for delivery, which has separate terms. If you deliver as well, ask about that period too. As for price, a policy that looks cheap may carry a high deductible or leave a period uncovered, so compare cover first.
What if the car is rented?
Neither Uber’s nor Lyft’s insurance page says what applies to a car you rent on your own. Both tie their damage cover to comprehensive and collision on a personal policy, so a rented car raises questions the pages leave open. For cars rented through its Express Drive program, Lyft’s help page says the standard insurance in the rental agreement applies while the app is off. For any other rental, ask the car’s owner in writing which insurance applies, whether rideshare use is permitted and who pays the deductible, and do not assume that a rental agreement or the service’s cover will fill the gap. If you need a car, see how to rent a car for Uber and Lyft.
What should you check in your state?
State laws differ. NAIC notes that several states combine Periods 2 and 3 and require higher limits while a ride is in progress. A search such as rideshare insurance Texas or rideshare insurance California should end at that state’s insurance department for required limits, and at your insurer for what your policy does.
