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rental car damage and liability insurance

Rideshare insurance provides coverage for drivers working for companies like Uber and Lyft. It helps fill coverage gaps left by standard personal auto policies when driving for hire. Key benefits include:

  • Liability coverage for damage/injury to others
  • Collision and comprehensive coverage for driver's vehicle
  • Coverage during Period 1 when limited personal policy applies
  • Endorsements to extend personal policy coverage
Policy TypeCovered Periods
PersonalPeriod 0
RidesharePeriods 1, 2, 3

Uber and Lyft will cover you and your passengers while your app is on
Rideshare insurance gives peace of mind to drivers by providing specialized protection tailored for rideshare services. 

Uber and Lyft Insurance Policies

Uber and Lyft provide their own insurance policies to cover drivers and riders during different periods of activity. Understanding the coverage offered is key for rideshare drivers.

Liability Coverage

  • Both Uber and Lyft provide liability coverage of up to $1 million in case an accident injures riders or damages another party's property.
  • This ensures drivers and companies are protected from major liability claims.
  • Policies cover medical payments, legal defense costs, and any settlement amounts awarded.
  • Liability coverage is active during Periods 2 and 3 when drivers have accepted a ride request or have passengers in the vehicle.

Collision and Comprehensive Coverage

  • Collision and comprehensive coverage is also provided by Uber and Lyft contingent upon the driver having this coverage personally.
  • This pays for damage to the driver's vehicle from covered events like accidents, theft, vandalism etc.
  • Typically subject to a deductible of $1000 (Uber) or $2500 (Lyft).
  • Requires personal policy to have active collision and comprehensive coverage first.
Company Collision Deductible Comprehensive Deductible
Uber $1000 $1000
Lyft $2500 $2500

Coverage Periods

As outlined earlier, Uber and Lyft define coverage periods:

  • Period 0: Personal policy only
  • Period 1: Limited rideshare policy
  • Periods 2 and 3: Full rideshare policy

Drivers must understand when each company's policy is active. For example, Period 1 has gaps requiring rideshare endorsements or gap coverage.

Having a handle on the coverage periods and policy details is critical for rideshare drivers to ensure seamless protection while on the job. Discussing options with agents can provide guidance.

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When Rideshare Insurance Applies

Understanding when personal, rideshare, and contingency policies apply is crucial for drivers.

Period 0 - Personal Policy Only

  • Period 0 is when the rideshare apps are off.
  • Drivers are covered by their personal insurance policy only during this period.
  • Driving is considered personal, not commercial, during this time.

Period 1 - Limited Rideshare Policy

  • Period 1 is when the apps are on but no ride request has been accepted.
  • Personal policy coverage may be limited depending on carrier and policy type.
  • Rideshare insurance policies provide additional coverage during this period.
  • May still have gaps requiring gap coverage through endorsements.

Periods 2 and 3 - Full Rideshare Policy

  • Periods 2 and 3 start when a ride request is accepted by the driver.
  • The rideshare company's insurance policy is now fully active.
  • Provides liability, collision, and comprehensive coverage to specified limits.
  • Driver should confirm policy details with rideshare company for exact coverage.
Period App Status Policy Covering Driver
0 Off Personal
1 On, no ride Limited Personal + Rideshare
2 On, with ride request Rideshare
3 On, with passenger Rideshare

Properly documenting driving periods and understanding which policy is active at all times minimizes coverage gaps. Checking with insurance agents or companies can provide clarification as well. Staying informed is key.

Additional Rideshare Coverage Options

Beyond the rideshare companies' own policies, drivers can purchase added coverage through personal insurers by adding endorsements or supplemental policies.

Rideshare Endorsements

  • A rideshare endorsement amends a personal policy to include specified rideshare coverage.
  • Endorsements provide gap coverage during Period 1 when personal policy is limited.
  • Also can extend personal collision/comprehensive coverage into Periods 2 and 3.
  • Typically costs an additional $10-$20 per month added to base premium.
  • Offered by major insurers like State Farm, Allstate, GEICO, etc.

Gap Coverage

  • Gap coverage is a specific policy that provides coverage during Period 1 only.
  • Protects from liability claims and damage to vehicle during Period 1.
  • Costs less than full rideshare endorsement.
  • Still leaves gaps inPeriods 2/3 unless rideshare policy confirmed.

Extended Coverage

  • Extended coverage endorsements apply personal policy to all periods.
  • Removes gaps in Periods 1, 2 and 3 since personal policy always active.
  • More expensive but provides maximum protection and continuity.
  • Retains personal policy benefits like lower deductible.
Coverage Period 1 Periods 2/3 Cost
Gap Yes No Low
Extended Yes Yes High

Speaking to insurance agents about the best supplemental coverage for a rideshare driver's specific situation is recommended. The right added coverage provides peace of mind.

Finding the Right Rideshare Insurance

Searching for and selecting the optimal rideshare insurance requires research and an understanding of options.

Contact Current Insurer

  • First step is to inform your personal auto insurance provider that you drive for a rideshare company.
  • Ask if they offer a rideshare endorsement or supplemental coverage options.
  • If not offered, do they allow rideshare driving under current policy?
  • Document details of conversation for reference.

Switch Insurers If Needed

  • If current insurer doesn't accommodate rideshare, you'll likely need to switch.
  • Research insurers in your state that offer rideshare policies. Get quotes.
  • Consider bundling home/auto for multi-policy discounts.
  • Evaluate costs, coverage levels, customer service etc. to select carrier.

CCompare Policies and Pricing

  • Use quote comparison sites to shop multiple insurers at once.
  • Compare coverage details:
    • Liability limits
    • Deductibles
    • Endorsements offered
  • Look for discounts like safe driver, defensive driver, etc.
  • Calculate total cost for base policy plus added rideshare coverage.
Company Base Premium Rideshare Premium Total Cost
AAA $1200/6mo $15/mo $1320
State Farm $1000/6mo $20/mo $1320

Finding the best match requires diligent research. Discussing needs with insurance agents knowledgeable about rideshare helps identify optimal solutions.

Claims Process with Rideshare Insurance

When accidents happen, rideshare drivers must follow the proper process to file and settle claims smoothly.

Reporting the Claim

  • File a claim immediately with both rideshare insurer and personal carrier.
  • Provide detailed documentation:
    • Accident location, date and time.
    • Police report number, if applicable.
    • Photos of damage, injuries, scene.
  • Follow each company's claim procedures.
  • Keep records of all claim activities including contact info.

Determining Fault

  • Insurance adjuster will investigate to determine fault and liability.
  • May require recorded statement detailing the incident.
  • May inspect vehicles/property damage in-person.
  • Review evidence like dashcam video, telematics data etc.
  • Results in decision on claim validity, amount to be paid.

Settling the Claim

  • At-fault party's insurer pays valid claims to injured parties.
  • May reimburse for repairs, medical bills, lost wages and other covered losses.
  • Injured parties may also receive pain and suffering settlement.
  • Communications continue until all parties satisfied with claim resolution.

Staying on top of timelines, being responsive and providing required documentation facilitates swift, fair claim settlement by insurers. Having the proper coverage in place greatly eases this process as well.

Other Rideshare Insurance Considerations

Besides basic liability, collision, and comprehensive coverage, rideshare drivers should evaluate other important insurance factors.


  • Rideshare policies have high deductibles - often $1000+ for collision/comprehensive claims.
  • With a rideshare endorsement on your personal policy, you may retain lower deductibles.
  • Higher deductibles equal lower premiums but more out-of-pocket before insurance kicks in.
  • Evaluate tradeoffs to determine suitable deductible levels.

Uninsured Motorist Coverage

  • Protects if an uninsured or underinsured driver causes an accident.
  • Covers injuries to driver and passengers.
  • Look for policies with higher uninsured motorist coverage limits.
  • Vital coverage for all drivers, especially in areas with high uninsured driver rates.

Rental Vehicle Coverage

  • Personal policies often exclude rental vehicles.
  • Rideshare rental partners provide coverage when vehicles rented through them.
  • Using a personal or other rental vehicle for rideshare may have coverage gaps.
  • Review rental agreements and rideshare company policies for clarity.

Other key considerations are roadside assistance coverage, exclusions, limits for medical payments, lost wages, rental reimbursement and more. Discussing specifics with insurance agents provides guidance to secure optimal protection.

Maintaining Continuous Coverage

Avoiding coverage gaps is crucial for rideshare drivers to ensure protection.

No Coverage Gaps

  • Review policy documents to confirm no gaps exist in your coverage.
  • Period 1 often needs extra rideshare endorsement for gap coverage.
  • Switching between personal and rideshare policies can also cause gaps.
  • Discuss with agent to verify seamless coverage as you drive.

Properly Document Rideshare Driving

  • Keep detailed records of your driving history and periods.
  • Apps like Everlance help track mileage for tax purposes.
  • Maintain records of ride requests accepted, passenger rides given.
  • Confirm policy coverage was active for all documented period.

Communicate Status Changes

  • Inform insurer if you stop or change rideshare work status.
  • Starting/stopping rideshare, changing companies, moving states.
  • May need to amend coverage, update policy.
  • Failing to notify insurer about status changes can negate coverage.

Ongoing communication with insurance provider and staying vigilant about policy activity ensures continuous protection. Make sure proper coverage is in place as rideshare driving status changes.

Choosing Reputable Insurance Providers

Selecting established, trusted insurers gives rideshare drivers confidence in their coverage.

Well-Rated National Companies

  • Stick with large, national insurance companies with strong financial ratings.
  • Companies like State Farm, GEICO, Allstate, Progressive etc.
  • Offer diverse products and policy options.
  • Have resources to handle specialized rideshare programs.
  • Get high marks for customer service and claims handling.

Local Providers with Rideshare Expertise

  • In some states, smaller regional and local insurers offer compelling rideshare options.
  • Specialized local agents may better understand local laws.
  • Take time to research track record and reputation if considering local insurer.
  • Verify they offer all needed rideshare endorsements and gap coverage.

Factors to consider when evaluating insurers:

  • Financial strength - Ability to pay claims
  • Industry ratings - From A.M. Best, J.D. Power, etc.
  • Customer service - Responsiveness, communication, satisfaction
  • Price - Premium costs and discounts offered
  • Coverage details - Policy terms, limits, exclusions

Discussing choices with an independent insurance agent can provide guidance to find a highly-rated rideshare insurance provider.


Having proper rideshare insurance coverage is essential for drivers working with companies like Uber and Lyft. Gaps in personal policies require added coverage through endorsements and supplemental rideshare policies.

Key takeaways include:

  • Understand coverage periods and when each policy applies
  • Review policy documents to identify potential gaps
  • Consider extended coverage to maximize protection
  • Choose reputable national or local insurers
  • Maintain continuous coverage as rideshare work changes

Following the guidance in this guide helps rideshare drivers make informed choices to secure the right insurance for their needs. Proper coverage provides peace of mind and financial protection in case the unexpected occurs while driving.

Other readers were also interested in the following posts:

The Complete Guide to Insuring Uber Drivers and What You Should Know

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