Do Uber Drivers Need Rideshare Insurance?
All regular drivers & car owners require personal liability insurance — and many drivers buy extra (or full) coverage to protect themselves against extensive liabilities.
But, since Uber and Lyft drivers have special requirements (i.e., they use their vehicles professionally; to earn a living) it’s worth identifying & purchasing an insurance policy tailored specifically to ridesharing.
Below, we offer a State-By-State guide on your rideshare insurance options. We also answer the question: Do I need rideshare insurance?
Why Do I Need A Rideshare Insurance Policy?
Ridesharing services have grown exponentially over the last few years, and many insurance companies are beginning to offer specialized policies which cover professionals who work in the industry.
Before evaluating available options, it’s important to focus on the benefits associated with a rideshare insurance policy.
It’s also worth noting the separate coverage ‘periods’ = (Period 1: when a driver is logged on to the Driver App and awaiting passenger allocation. Period 2: when a driver is on route to pick up the passenger. Period 3: while a driver is transporting a passenger). Many rideshare companies, such as Uber & Lyft, only cover Period 2 & 3.
Most rideshare drivers (*an estimated 90%), do not currently have a rideshare-specific policy. As a rideshare professional, this means:
You could be dropped from your current coverage (if your insurance company finds out that you are driving for Uber, Lyft, or any other rideshare company).
In turn, you may need to pay higher rates based on new premiums. When drivers are dropped from previous plans, they are often viewed as ‘high-risk’ drivers (and new premiums will reflect that).
If an accident occurs, you may not be covered. Both Uber and Lyft DO NOT provide collision insurance within Period One — they only provide liability limits. Unless you have rideshare insurance that covers you within Period One, you will need to pay for 100% of repairs if you are at fault.
Period One = when you’re online but do not currently have a ride request. For many drivers, this accounts for a large percentage of their on-the-road driving time.
What Are My Options?
At this point, it’s fairly obvious that attaining a rideshare-friendly policy is in the best interest of rideshare drivers.
So, if you’re a driver, what are your options?
Luckily, as mentioned, the majority of insurance companies have begun offering rideshare-specific policies.
Depending on your state, you will have access to different policies and premiums. The following are some of the insurance companies that currently offer rideshare-friendly policies, so be sure to give them a call.
Farmers — Farmers Insurance was technically the first large private insurance company to offer rideshare-friendly policies. Farmers provides coverage during Period 1. They provide service across most of the continental United States.
Mercury — This company has been in business for more than five decades, and — since 2013 — has begun offering rideshare-friendly insurance policies. Being awarded a place on ‘America’s 50 Most Trustworthy Financial Companies’ six times, Mercury frequently attains solid rating from its customers.
Liberty Mutual — Offering competitive rates, Liberty Mutual offers access to flexible billing systems — more importantly, Liberty Mutual will not cancel your policy if you’re a rideshare driver, and your rideshare mileage will not count towards your premium rating, resulting in more competitive rates.
State Farm — Recently, State Farm has added rideshare-friendly policies to their current slate of options. State Farm’s coverage is extensive — protecting drivers during periods 1, 2, and 3 (which essentially means drivers will be protected at all times — whenever they get behind the wheel of their ridesharing vehicle).
Aviva Canada — For rideshare drivers in Canada, Aviva is a prominent option, having begun offering policies in early 2016 for part-time drivers who are ridesharing professionals/using their own vehicles to transport paying passengers.
Below is a list of potential options, organized by state.
ARIZONA
USAA (210-531-8722) (USAA Web Contact)
Mercury Insurance (800-956-3728) (Mercury Email Contact)
Farmer’s Insurance (1-800-493-4917) (farmers.com)
COLORADO
USAA (210-531-8722) (USAA Web Contact)
Farmer’s Insurance (1-800-493-4917) (farmers.com)
ARKANSAS
Farmer’s Insurance (1-800-493-4917) (farmers.com)
Mercury Insurance (800-956-3728) (Mercury Email Contact)
CALIFORNIA
USAA (210-531-8722) (USAA Web Contact)
State Farm (800-782-8332) (Find a State Farm Agent Near You)
Farmer’s Insurance (1-800-493-4917) (farmers.com)
Mercury Insurance (800-956-3728) (Mercury Email Contact)
Liberty Mutual (1-999-398-8924) (Liberty Mutual Web Contact)
CONNECTICUT
Geico Insurance (1-800-861-8380) (Geico Web Contact)
NEBRASKA
Farmer’s Insurance (1-800-493-4917) (farmers.com)
MASSACHUSETTS
USAA (210-531-8722) (USAA Web Contact)
MAINE
Geico Insurance (1-800-861-8380) (Geico Web Contact)
KANSAS
Farmer’s Insurance (1-800-493-4917) (farmers.com)
ILLINOIS
USAA (210-531-8722) (USAA Web Contact)
Farmer’s Insurance (1-800-493-4917) (farmers.com)
Erie Insurance (800-458-0811, option 4) (Erie Web Contact)
MetLife (1-800-422-4272) (MetLife Web Contact)
GEORGIA
Farmer’s Insurance (1-800-493-4917) (farmers.com)
Allstate Insurance (1-800-255-7828) (Allstate Web Contact)
Geico Insurance (1-800-861-8380) (Geico Web Contact)
INDIANA
Erie Insurance (800-458-0811, option 4) (Erie Web Contact)
KENTUCKY
Erie Insurance (800-458-0811, option 4) (Erie Web Contact)
MARYLAND
Geico Insurance (1-800-861-8380) (Geico Web Contact)
MINNESOTA
Farmer’s Insurance (1-800-493-4917) (farmers.com)
NEVADA
Mercury Insurance (800-956-3728) (Mercury Email Contact)
NEW JERSEY
Farmer’s Insurance (1-800-493-4917) (farmers.com)
NEW MEXICO
Farmer’s Insurance (1-800-493-4917) (farmers.com)
OHIO
Farmer’s Insurance (1-800-493-4917) (farmers.com)
USAA (210-531-8722) (USAA Web Contact)
OKLAHOMA
Farmer’s Insurance (1-800-493-4917) (farmers.com)
PENNSYLVANIA
Erie Insurance (800-458-0811, option 4) (Erie Web Contact)
SOUTH CAROLINA
Geico Insurance (1-800-861-8380) (Geico Web Contact)
TENNESSEE
Erie Insurance (800-458-0811, option 4) (Erie Web Contact)
TEXAS
Farmer’s Insurance (1-800-493-4917) (farmers.com)
Geico Insurance (1-800-861-8380) (Geico Web Contact)
MetLife (1-800-422-4272) (MetLife Web Contact)
UTAH
Farmer’s Insurance (1-800-493-4917) (farmers.com)
VIRGINIA
Geico Insurance (1-800-861-8380) (Geico Web Contact)
Allstate Insurance (1-800-255-7828) (Allstate Web Contact)
WASHINGTON D.C.
Geico Insurance (1-800-861-8380) (Geico Web Contact)
Erie Insurance (800-458-0811, option 4) (Erie Web Contact)
WASHINGTON
MetLife (1-800-422-4272) (MetLife Web Contact)
USAA (210-531-8722) (USAA Web Contact)
Allstate Insurance (1-800-255-7828) (Allstate Web Contact)
WISCONSIN
Farmer’s Insurance (1-800-493-4917) (farmers.com)
Erie Insurance (800-458-0811, option 4) (Erie Web Contact)
Be Aware of State-Specific Requirements
Overall, the best way to protect yourself is to be properly informed. Make sure you understand what the laws and requirements are in your state. For example, Colorado and California have made primary liability insurance during Period 1 a requirement (meaning: both Uber and Lyft increased their Period 1 liability insurance).
With that being said — it’s still critically important for drivers to equip themselves with rideshare insurance of some kind.
Far more often than not, a claim will not be based on liability, but collision. Meaning, if you get into an accident during Period 1, you will still be responsible for all repairs to your vehicle.
This is why it’s imperative to understand your current coverage — and immediately check with your provider to see whether your covered as a ridesharing professional. If you’re not covered, make sure you supplement your plan (or get a new plan) as soon as possible.
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