Rideshare Insurance Definition
Anyone who makes money driving for a rideshare company like Uber or Lyft should carry special insurance above and beyond their personal car insurance policy. This add-on is called “rideshare coverage” or Transportation Network Company (TNC) coverage, if you’re feeling official. It covers drivers in instances where their personal car insurance or company-provided policy might not apply.
What Rideshare Insurance Covers
Rideshare insurance usually covers all the same areas protected under your personal auto insurance policy. Bodily injury and property damage liability are covered, likely including uninsured/underinsured motorist coverage, MedPay or PIP, and collision and comprehensive if you have those on your base plan. For more information on these coverage types, check out our Car Insurance Buyer’s Guide.
The tricky bit about rideshare insurance is when your coverage applies. Technically, there are three “periods” of ridesharing: when you’ve turned the app on and are waiting to match with a passenger; when you’ve matched and are en route to pick them up; and then when the passenger is actually in your vehicle. During each period, there are limits or exclusions to what’s covered by your personal insurance and company-provided insurance.
Period one is the important part to note here. Between the time you’ve turned on a rideshare app and matched with a customer, and during breaks between rides, you’re likely not covered by your personal car insurance because you’re using the vehicle for business purposes.
If you drive for Uber or Lyft, the company does insure you during this period, but only for third-party liability. That means you’re protected if you hit someone and have to pay damages, but not if someone else hits you, if you run into an object, if your vehicle is stolen or vandalized, etc. These are the types of outlying situations that would be covered by your rideshare insurance during period one.
Companies That Offer Rideshare Insurance
The following are the 10 most popular car insurance companies (by market share) that offer supplemental rideshare insurance for customers. Note that each company limits rideshare coverage to certain states, and prices will vary depending on your location, driving record, car, and other factors. Speak to an agent or get a quote to find out which company is right for you.
*USAA insurance is only available to current and former members of the U.S. Military and their families