Do Rideshare drivers need insurance?

Do Rideshare drivers need insurance?

Do Uber Drivers Need Rideshare Insurance?

Do Lyft Drivers Need Insurance?

Rideshare Driver Insurance Options

When you’re a rideshare driver, it’s imperative that you keep an up-to-date insurance policy — and specifically a policy  tailored to cover rideshare-related liabilities. However, do Uber Drivers need Rideshare insurance?

Ridesharing services have grown exponentially over the last few years, so many insurance companies are beginning to offer specialized insurance policies which cover professionals who work in the industry.

Below, we offer a State-By-State guide to your various rideshare/Uber insurance options (and also answer the question: Do I need rideshare insurance?).

 

Why Do I Need A Rideshare Insurance Policy?

Before evaluating available options, it’s important to focus on the benefits associated with a rideshare insurance policy. Most rideshare drivers (*an estimated 90%), do not currently have a rideshare 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 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).
To view the full list of potential options, including Allstate, USAA, and Erie Insurance,select your state here.

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)
MAINEGeico 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 theselves 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.

 

 

 

One thought on “Do Rideshare drivers need insurance?

  • Shad Briles

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