Uber & Lyft Insurance Differences in the U.S. States: A Complete List

Driver-partners for ridesharing companies need to comply with the specifics set by their respective Transportation Network Company (TNC).

For example, Uber issued requirements California drivers on June 16, 2015. It included talks about the commercial coverage totaling to $1 million to driver partners.

But any coverage that Uber or Lyft provides their partners with doesn’t change any driver obligation to meet their state rules and requirements on insurance coverage.

It is important to note that the personal auto insurance isn’t covering the ridesharing driver for the time that he is driving for any of the TNCs.

Uber and Lyft Insurance Differences in USA States: Complete Listcarhob

But you also have to understand the different periods involved, each bearing specifics.

  • “0” indicates that your App is off and you aren’t driving for Uber or Lyft. At this period, the personal auto policy is what covers you (e.g. You’re driving to school).
  • “1” means the app is on, and you’re waiting for a rider match or request. At this period, you’re not covered by the personal insurance policy – without the ridesharing endorsement; both Lyft and Uber insurance has limited liability coverage.
  • “2” shows that the ride request has been accepted; you’re 100% covered by ridesharing company’s policy.
  • “3” means the passenger/s have been picked up; you’re 100% covered by the company’s policy.

Take note of each period as well as their indication for your guidance. 

Uber and Lyft Insurance Policies

PERIOD 1

  • Liability only applies, and that is $25,000/property damage; $100,000/incident; $50,000/ person

Either PERIOD 2/3

  • Per incident, $1 million liability coverage
  • Per incident, $1 million for underinsured/uninsured driver/motorist
  • Collision or comprehensive insurance is up to value of the car if you also have personal policy that includes coverage comprehensive/collision 

Collision or comprehensive deductible

  • Uber: $1,000
  • Lyft: $2,500

To explain these things, remember that both ridesharing companies only cover you during periods 2 or 3.

But you will not have any collision coverage from any of the companies if you’re online while waiting for a ride request.

Both Uber and Lyft also cover pretty lower liability limits. So if you’re driving for any of them, you’re at a high risk during Period 1 when you’re not getting collision coverage, not to mention your personal auto policy is unlikely to provide you with coverage during this period as well.

For these reasons, you need rideshare insurance coverage to fill such gap.

For example, rideshare insurance can cover you during Period 1. The insurance provider is also unlikely to drop you just because you’re a Lyft or Uber driver.

Additionally, other policies can also provide you with enough coverage both for periods 2 and 3, so you will no longer be subject to the collision deductible of either Lyft or Uber.

Also, you need rideshare insurance because a personal insurer might not cover any accident you will meet on the road while driving for Lyft or Uber.

Sometimes, they could also cancel your personal auto policy if you did not declare that you’re driving the car for a ridesharing gig.

So in the following,   let’s tackle the ridesharing insurance options per state, and then discuss what to do if your state is not included in the list per insurer.

What Are Your Ridesharing Insurance Options?

Insurance provider How much does it cost above a traditional policy? Which state is it available?
Allstate Annually, $15-$20 AK, AL, AR, AZ, CA, CO, CT, DC, DE, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, OH, OK,TX, UT, VA, VT, WA, WI, WV, WY, OR, PA, RI, SC, SD, TN,
Erie Monthly, between $9 and $15 above personal insurance, which already includes business use coverage DC, IL, IN, KY, WV, MD, OH, PA, TN, VA, WI,
Farmers Varies AL, AR, AZ, CA, CO, GA, FL, IA, ID, IL, IN, KS, MD, MI, MN, MO, MT, ND, NE, NJ, NM, NV, OH, OK, OR, TN, TX, UT, WI
Geico Varies AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, IA, ID, IL, IN, KS, LA, MA, MD, ME, MN, MO, MS, MT, ND, NE, NH, NM, OH, OK, OR, PA, RI, SC, SD, TN, TX, VA, VT, WA, WI, WV, WY
Mapfre Quote available by request MA
Mercury $6 monthly AZ, CA, GA, IL, NV, OK, TX
MetLife Varies based on miles driven CA, CO, IL, TX, WA
Progressive Quote available by request AL, AZ, IA, ID, IL, IN, KY, MI, MN, MO, MS, ND, NM, OK, PA, RI, SD, TN, TX, VA, WV
Safeco Quote available by request; may be fewer than $10 monthly AZ, CO, IL, IN, KS, MN, MS, OK, OR, TN, UT, WA, WI
State Farm Can cost 15 – 20% on top of regular insurance premium AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, IA, ID, IN, KS, KY, LA, MD, ME, MI, MN, MO, MS, MT, ND, NE, NH, NJ, NM, NV, OH, OK, OR, PA, SC, TN, TX, UT, VA, VT, WA, WI, WV, WY
Travelers Quote available by request CO, IL
USAA At least $6 monthly AL, AZ, CA, CO, GA, IA, IL, IN, KS, KY, MA, MD, ND, NE, NV, OH, OK, OR, TN, TX, WA, WY

***Information retrieved from and credited to the source, June 26, 2018

But if your state isn’t listed in the above rideshare insurance policies for either Lyft or Uber, you have to buy commercial auto insurance policy to ensure that you will be 100% insured and that you’re not going to be dropped by the carrier during an accident.

Take note though that the plans have higher liability limits versus a basic policy, so they’re more expensive, too.

What Are Your Ridesharing Insurance Options

Depending on the commercial auto policy provider, a passenger car’s commercial policy can cost between $1,200 and $2,400 annually or higher.

Perhaps, the next question now is “What factors affect rideshare insurance cost?” It may vary based on the following,

  • Driving record
  • Coverage amount to purchase
  • Season when the insurance is purchased
  • City where driving for Uber or Lyft
  • Insurer
  • Number of miles you are driving
  • Other factors

Based on the above factors, average cost could be anywhere between $6 and $20 monthly.

It is quite a small amount for your peace of mind and the benefits to get from the added coverage.

But would buying rideshare insurance affect or increase premiums?

No, it won’t affect your premiums whether you’re purchasing insurance as a hybrid policy or as an add-on to a current auto insurance policy.

But of course, it is understood that you need to shop around to compare your insurance options before buying one.

How do you buy rideshare insurance?

Note that not all insurers are offering rideshare coverage, so it might be time to look elsewhere if you’re a driver partner for Uber or Lyft – and that is for your protection during accidents or road mishaps for that matter.

Things to remember

Shop around for the best rate.

If you have not already told your auto insurer that you’re driving for a ridesharing service,   you have to do it now.

Determine any gaps between your ridesharing company’s coverage and your personal auto policy. Policies can vary among newer ridesharing companies, but both Lyft and Uber provides $1 million worth of liability coverage.

If you have current insurer, ask if they offer rideshare policy so that you can fill in any gaps. You can also ask for a quote for a commercial policy.  But again, commercial insurance is more expensive than rideshare insurance is.

So, should you get rideshare insurance?

rideshare insurance

Before, many insurers didn’t cover rideshare drivers. In fact, they would even drop your auto insurance had they found out you’re driving for Uber or Lyft.

But as the TNCs become popular, many insurers have also realized the growing market they would miss if they won’t offer ridesharing insurance policies.

For driver partners, they have to choose from the list of ridesharing insurance policies provided by any one of the insurers we’ve listed above based on the state where they are driving.

You will need such rideshare insurance for added protection. As you may know, Lyft and Uber only cover their drivers that are on their way to picking up a rider or that already have a passenger.

They are less likely to cover all the expenses otherwise.

An example of a coverage gap that rideshare insurance may provide you with is when you have switched into the driver mode in the app and you’re waiting for the rider/passenger. In this case, the personal auto policy isn’t going to cover you, and the TNC may cover only very limited liability.

That is why you should carefully consider getting this special driver insurance, which can narrow the coverage gap that the personal auto policy and TNC coverage are providing you while driving for Uber or Lyft.

Without even saying, driver-partners have coverage in every period of the rideshare process, giving you precious peace of mind.

Final Thoughts

There you have the definitive guide and list you need to know about Uber and Lyft driver-partner insurance policy options.

Definitely, you have to shop around, compare quotes and choose the right rideshare policy available in your state for added protection and peace of mind while driving for Uber or Lyft.

Check out which insurer is available in your state. If yours isn’t listed above, consider commercial auto insurance.

Regardless which insurance you select, it pays off to be covered while on the road driving for ridesharing gigs. Be because it can ensure coverage for any potential accident to meet on the road. Stay on the right track all the time driving for Lyft or Uber by buying rideshare insurance today!