We understand how difficult it can be to find information about Rideshare Insurance. We know how confusing it can be between so many coverages and other terms that may seem complicated but here we explain what Rideshare Insurance is that can be for you if you plan to start a business driving.
Auto Insurance has you covered at any time, Rideshare Insurance protects you while using your vehicle for personal reasons and when you are using applications such as Uber or Lyft .
Why do you need Rideshare Insurance?
Rideshare companies offer you insurance. This only offers you coverage while you are carrying a passenger or using its application and it is minimal coverage. It is a great help that companies have Uber insurance or Lyft insurance but it is not enough if you use the car for personal reasons as well.
On the other hand, you personal auto insurance would not cover while driving for Rideshare companies. In fact, they could even cancel your personal policy if they find out that you are using your vehicle for commercial reasons.
That’s why you need Rideshare Insurance. If you are using your car to work full time taking people to their destinations or just doing it to have a few extra dollars a month, Rideshare Insurance is for you.
Operation of the Rideshare Insurance phases
- Phase 0: The application is unused. In this phase it covers as a personal auto insurance policy.
- Phase 1: The application is in use, waiting to receive a travel request. A personal policy with Rideshare coverage does not cover at this point. Uber and Lyft only cover what is required by law at this stage.
- Phase 2: You accepted a ride request and are going to pick up the passenger. Here your employee policy is active.
- Phase 3: You take the passenger in the car. Here your employee policy is also active.
What alternatives are there for rideshare insurance?
Rideshare Insurance policy is not available in some states. You may not be able to find rideshare coverage in some states. In that case you would need a commercial insurance policy. With a private driver insurance policy, you avoid denial of coverage by your personal insurance company in the event of an incident. These policies include liability limits higher than those of a personal auto insurance policy. These policies typically range from $ 1,200 to $ 2,400 per year depending on the state.
How much does Rideshare insurance cost?
Having this coverage starts at $ 15 per month in some states. It is very important to know that insurance prices vary depending on various factors that we cannot control when taking out insurance. It has a lot to do with the area, age of the driver, driving record, among others.
What you need to know to buy Rideshare Insurance
In this part it is relevant to mention that Rideshare Insurance is a combined policy, not a coverage that can be added to a personal policy. It is not possible to have a personal auto insurance policy with one company and have Rideshare coverage with another company.
By helping our customers who drive Uber or Lyft find the best Rideshare Insurance option we make sure to:
- Explain the differences that exist and when the coverage between your personal auto insurance policy and your Uber insurance or Lyft. Uber insurance and Lyft insurance offer $ 1 million in liability to drivers who carry passengers. Some policies vary.
- Compare the options available to you, we will see what is best for you depending on the area, needs, budget, etc.
How Uber and Lyft accidents are handled
If you were involved in an accident that you caused during phases 2 and 3 that we explained above (while you are picking up a passenger or while you are taking them), your Uber or Lyft insurance would cover medical expenses and other damages up to $ 1 million. This limit is even higher than that for taxis in many cities.
In the event that you get hit by an uninsured driver or who can’t cover your expenses with the one they have, Uber will cover damages up to 1 million. With Lyft, the amount you are covered varies from state to state.
Uber and Lyft insurance gives you the option of having coverage for physical damage to the vehicle only if you have this coverage also in your personal auto insurance policy (Full Coverage) . This in any way can be counterproductive as the deductible is high and only covers once you have accepted a travel request.
Causing an accident during phase 1 requires you to file a claim (Uber Insurance Claim, Lyft Insurance Claim) with your insurance provider unless the laws of the state in which you you find they have different specifications. If coverage is denied for your case or the full amount is not reimbursed, Uber and Lyft cover you but the amounts they offer are really low.
That is why we again recommend having your business and car fully covered with a Rideshare insurance policy.
You can fill out the form on the right side of our page so that we can start your prospecting process and quote . You can be sure that we will find the best insurance option for you. All online, you can get your policy online .
Remember that our lines are available to receive your call if you need our help.