If you are thinking about driving for Uber or Lyft you might not be aware that your personal auto insurance is not a viable source of protection. Instead, all Uber drivers and Lyft drivers will need to obtain a special form of auto insurance called rideshare insurance. Sure, Uber and Lyft both offer insurance but be aware that it might not be enough coverage.
What about coverage?
Lyft driver insurance and Uber insurance will cover injuries, liability, and even some damage to your automobile. However, this coverage is dependent upon what “phase” you are in at the time of the accident. The different phases are broken up into four “periods”.
This phase is when your Lyft or Uber app is off. This simply means your personal insurance will cover all injuries, liability, and damage to your vehicle.
This phase is when your Lyft or Uber app is turned on. However, you have not picked up a passenger, neither are you in an active state of transporting a passenger. In this period, there is minimum coverage from Uber or Lyft driver insurance.
So, what does Lyft driver insurance cover during period 1? According to Lyft ‘s website, you are only covered by Lyft’s “contingent liability coverage.”
- $100,000 maximum limit per accident (which is the maximum amount Lyft is willing to pay for any liability expenses if you are in an accident during period 1.)
- $50,000 maximum limit per person (in other words, $50,000 in medical expenses for each person that was injured during an accident.)
- $25,000 maximum limit for property damage (this is $25,000 to cover the damage you caused to someone else’s car in the event of an accident.)
This coverage not only applies to Lyft drivers but to all Uber drivers as well. So as you can see, you will have some coverage but the very minimum. Although, it is great to have some liability coverage, it is important for all Lyft drivers and Uber drivers to note that the insurance may not cover all damages. So it is recommended that you purchase separate rideshare auto insurance to be certain of adequate coverage.
This phase is when your Lyft or Uber app is not only turned on but you’ve also accepted the ride and are actively in route to pick up the passenger. During this time, your coverage from Lyft or Uber is much more beneficial.
- Primary liability insurance (covers up to 1 million dollars per accident.)
- Contingent collision coverage (covers any physical damage caused from an accident. Note: You must also have collision coverage on your personal auto insurance policy to be eligible for this coverage.)
- Contingent comprehensive coverage (covers physical damage from a non-collision event such as; fire, vandalism or natural disaster.)
- Uninsured/Underinsured Motorist coverage (covers up to 1 million dollars per accident. This is great if the driver is uninsured or underinsured and has caused you or your passengers any injuries.)
This phase includes full liability coverage for all Uber and Lyft drivers. It is in effect from the time you pick up the passenger to the time you drop the passenger off to their requested destination.
How much does it cost?
The cost of Lyft insurance can be fairly reasonable as with Uber. It can cost as low as six dollars and as high as twenty dollars per month.
Best insurance company
Many insurance companies offer rideshare insurance. However, the best insurance company would have to be Geico. Geico Lyft insurance is a great option for anyone looking for a cheap lyft insurance option that will cover you whether your app is on or off. This is also a great option for Uber drivers.
It is important to note that rideshare policies are not available everywhere. If this is the case for you, you would need to obtain a commercial insurance policy to be certain that you have full coverage and are fully insured. This will ensure that you are not dropped by your personal insurance carrier in the event of an accident.
If you are an Uber driver you will be happy to know that you can write your insurance cost off on your Uber taxes. This also applies to anyone who is a Lyft driver as well. So, when choosing an insurance, select the best option for you. It will be worth every penny.