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Do I Need Additional Insurance if I Drive for Uber or Lyft?

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Need for Additional Insurance Drive for Uber or Lyft Drivers in San Diego, CA

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As a driver for Uber or Lyft, it’s important to understand how insurance coverage works. If you’re involved in an accident, your regular car insurance policy probably won’t cover you if the rideshare app is open. When you do have a rider in the vehicle, Uber or Lyft offers liability coverage, but it has limits. For the protection you need, it’s a good idea to buy an extra insurance policy called rideshare insurance that covers you when Uber/Lyft and your regular insurance won’t.

Your Personal Auto Coverage May Not Be Valid

Most personal car insurance policies don’t cover driving for a rideshare service—these policies usually contain a list of exclusions such as “driving for hire.” Your personal auto insurance will cover you when you’re in your vehicle but not logged into the Uber or Lyft app. The most important gray area in terms of liability as a rideshare driver is when you’re driving with the rideshare app open but you haven’t been matched with a passenger. In some states, you’re covered by your personal auto insurance. San Diego drivers should be aware that in California, your personal policy no longer applies, and you must have a rideshare policy for coverage, or Uber or Lyft must step in to pay for an accident. During this phase, Uber or Lyft won’t pay for your injuries or damages to your car if you’re at fault, and your personal insurance doesn’t need to unless you have rideshare coverage.

Uber and Lyft Provide Limited Coverage While Driving

Once you’ve accepted a ride request and are en route to pick the passenger up, you’ll have liability coverage through Uber or Lyft. This liability coverage will only pay for injuries or property damage to others. It won’t cover your own injuries or damage to your vehicle. Uber and Lyft have the same liability limits: $50,000 per person per accident, $100,000 per accident, and $25,000 in property damage. Once you accept a ride, Uber and Lyft provide $1 million in liability coverage that applies to injuries and property damage sustained by customers in your car or other vehicles if you’re found at fault for the accident. You still won’t be covered for any personal injuries or property damage you sustain.

Rideshare Car Insurance

Because there are still gray areas when it comes to insurance coverage as a rideshare driver—especially when it comes to paying for your own injuries and property damage in case of an accident—a growing number of insurance companies have begun offering rideshare-friendly policies. This type of policy can cover you while driving without a matched rider or during the entire duration of your rideshare experience at a far lower cost than a commercial car insurance policy.

If you aren’t sure whether your personal auto insurance policy covers driving for ridesharing companies, don’t hesitate to ask your insurance agent. If you need affordable, reliable car insurance, look no further than the trustworthy pros at Altra Insurance Services. We can take care of a variety of your insurance needs, including motorcycle, homeowners, and business insurance as well as surety bonds insurance San Diego. Give us a call today at (800) 719-9972 to find out more about our high-quality insurance products and impeccable service.

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