Drive for Uber or Lyft? You Need the Right Coverage
Driving for Uber, Lyft, or other rideshare companies? Your regular car insurance might not cover you while you’re working. There are gaps in coverage that could leave you paying out of pocket after an accident.
At Pay Low Insurance, we help rideshare drivers throughout California get proper coverage that protects them during all phases of driving – whether the app is off, waiting for rides, or actively transporting passengers.
Why Rideshare Drivers Need Special Insurance
Your Personal Auto Insurance Has Gaps
Most personal auto policies exclude coverage when you’re using your car for commercial purposes. That includes rideshare driving. If you get in an accident while logged into the app, your insurance company could deny your claim.
Uber and Lyft Coverage Isn’t Enough
Uber and Lyft do provide some coverage, but it’s limited and only covers certain situations. There are major gaps that leave you exposed.
You Could Lose Everything
Without proper coverage, an accident while driving rideshare could cost you tens of thousands in medical bills, car repairs, and legal fees. Plus your personal insurance could drop you for not disclosing rideshare work.
It’s Not That Expensive
Rideshare coverage is way cheaper than you’d think – usually just an extra $10-30/month added to your existing policy.
Understanding the Coverage Gaps
Period 0: App is Off
You’re not working, just driving around normally. Your personal auto insurance covers you here. No problem.
Period 1: App is On, Waiting for a Ride Request
This is where the biggest gap exists. You’re logged into the app waiting for a ping, but no passenger yet.
- Uber/Lyft provides limited liability coverage ($50k per person, $100k per accident, $25k property damage)
- NO collision or comprehensive coverage from Uber/Lyft
- Your personal insurance probably won’t cover you either
If you get in an accident during Period 1, you could be stuck paying for your own car repairs.
Period 2: Ride Accepted, Driving to Pick Up Passenger
You accepted a ride and are heading to pick them up.
- Uber/Lyft provides $1 million liability coverage
- Collision and comprehensive with $2,500 deductible (if you have it on your personal policy)
Better coverage, but that $2,500 deductible is steep.
Period 3: Passenger in Your Car
You picked up the passenger and are taking them to their destination.
- Uber/Lyft provides $1 million liability coverage
- Collision and comprehensive with $2,500 deductible (if you have it on your personal policy)
- Uninsured/underinsured motorist coverage
Best coverage, but still that high deductible.
What is Rideshare Insurance?
Rideshare insurance (also called TNC insurance) fills the gaps in coverage. It’s an endorsement or add-on to your personal auto policy that covers you during all periods of rideshare driving.
What It Covers:
- Period 1 coverage (the big gap)
- Lower deductibles during Periods 2 and 3
- Full coverage no matter what phase you’re in
- Protects you if Uber/Lyft denies a claim
How Much It Costs:
Usually $10-30/month extra on top of your regular auto insurance. Way cheaper than paying for an accident out of pocket.
What We Offer
Rideshare Endorsement
We add rideshare coverage to your existing auto policy. Simple, affordable, complete protection.
Commercial Coverage
If you drive a lot or want even more protection, we can set you up with a full commercial policy. Costs more but gives you maximum coverage.
We’ll Find the Best Option
Some carriers offer better rideshare coverage than others. We’ll shop around and find you the best deal.
Common Questions
How much does rideshare insurance cost?
Most drivers pay an extra $10-30/month. Depends on your driving record, vehicle, location, and how much coverage you want. Way cheaper than paying for accident damage yourself.
Do I really need it?
If you’re driving for Uber or Lyft, yes. The gaps in coverage are real and could cost you big money. Plus if you don’t tell your insurance company you’re doing rideshare and you have an accident, they could deny your entire claim AND cancel your policy.
What if I only drive rideshare part-time?
Doesn’t matter. Even if you only drive a few hours a week, you need coverage for those hours. Accidents don’t care if you’re full-time or part-time.
Will my rates go up?
Your premium will go up a bit because of the added rideshare coverage, but not as much as you’d think. And it’s way less than what an uncovered accident would cost you.
Can I just not tell my insurance company?
Bad idea. If you get in an accident while doing rideshare and didn’t disclose it, your insurance will deny the claim. You’ll be on the hook for everything, plus they’ll probably drop you. Not worth the risk.
What if I deliver food too (DoorDash, Uber Eats)?
That’s different from rideshare. Food delivery needs different coverage. Tell us what you’re doing and we’ll make sure you have the right protection.
Do I need commercial plates?
In California, you don’t need commercial plates for rideshare if you’re using your personal vehicle and working for a company like Uber or Lyft. But check with the rideshare company’s requirements.
Can I use my car for personal use too?
Yes! That’s the point of rideshare coverage. It covers you whether you’re working or just driving around normally.
What Happens Without Rideshare Coverage
Real Scenarios:
Scenario 1: Period 1 Accident You’re logged into Uber waiting for a ride. Someone runs a red light and totals your car. Uber’s coverage won’t pay for your car (no collision coverage in Period 1). Your personal insurance denies the claim because you were working. You’re stuck with a totaled car and no money to replace it.
Scenario 2: Your Insurance Finds Out You get in an accident while not working. Your insurance covers it, but then they find out you drive for Lyft. They drop you for not disclosing commercial use. Now you need to find new insurance and your rates will be sky-high because you got dropped.
Scenario 3: High Deductible You’re driving a passenger and get in an accident. Uber’s coverage applies, but you have to pay the $2,500 deductible. With rideshare coverage, your deductible could be $500 or $1,000 instead.
Don’t let this happen to you. Get proper coverage.
How to Get Rideshare Coverage
Step 1: Tell Your Insurance Company
You need to disclose that you’re driving rideshare. Don’t hide it.
Step 2: Add Rideshare Endorsement
We’ll add the endorsement to your policy. Takes just a few minutes.
Step 3: Drive with Confidence
Now you’re covered during all phases of rideshare driving. No more worrying about gaps.
What We Need From You
To add rideshare coverage, we’ll need:
- Your current auto insurance policy info
- Which rideshare companies you drive for (Uber, Lyft, both)
- Your driver’s license
- Your vehicle info
- How often you drive rideshare (full-time, part-time)
That’s it. We’ll take care of the rest.
Other Coverage You Might Want
Higher Liability Limits
California minimum is 15/30/5. Consider getting 100/300/50 or even 250/500/100. You’re dealing with passengers and other people’s cars – higher limits protect you better.
Uninsured Motorist Coverage
Protects you if you get hit by someone without insurance. Super important since you’re on the road way more than regular drivers.
Medical Payments Coverage
Covers your medical bills after an accident regardless of fault. Good to have since you’re at higher risk of accidents.
Gap Insurance
If you’re financing or leasing your car, gap insurance covers the difference between what you owe and what the car is worth if it’s totaled. Really important for rideshare drivers.
Tips for Rideshare Drivers
Document Everything
Take photos of your car regularly. If you get in an accident, you’ll have proof of the condition before the accident.
Track Your Mileage
Keep records of business miles vs personal miles. Helps with taxes and insurance.
Maintain Your Car
More miles means more maintenance. Keep up with oil changes, tire rotations, brakes. Prevents breakdowns and keeps you safe.
Know When You’re Covered
Understand which period you’re in at all times. It affects your coverage.
Keep Proof of Insurance in Your Car
Have both your personal insurance card and proof of rideshare coverage. Some passengers or police might ask to see it.
Switching Insurance Companies?
Already Have Rideshare Coverage Elsewhere?
We can probably save you money. Let us shop around and compare rates.
Make Sure There’s No Gap
When switching insurance, make sure the new policy starts before the old one ends. We’ll help coordinate this so you’re never without coverage.
Food Delivery Coverage
DoorDash, Uber Eats, Postmates, Grubhub
Food delivery is different from rideshare. You need commercial coverage or a delivery endorsement. Standard rideshare coverage won’t work.
Tell us what you’re doing and we’ll get you the right coverage.
Multi-App Drivers
Drive for Multiple Companies?
No problem. Whether you do Uber and Lyft, or add food delivery on top, we’ll make sure you have coverage for everything.
Get Your Rideshare Insurance Quote Today
Stop gambling with gaps in coverage. Protect yourself and your livelihood.
Call: 619-736-1313
Email: info@paylowinsurance.com
Visit: 415 Fletcher Pkwy, El Cajon, CA 92020
Hours:
Monday – Friday: 9AM – 6PM
Saturday: 10AM – 2PM
Sunday: Closed
Serving Rideshare Drivers Throughout California
We help Uber and Lyft drivers across California get proper coverage – from San Diego to San Francisco, LA to Sacramento. Whether you’re driving in the city or the suburbs, full-time or part-time, we’ll make sure you’re protected.
Stop by our office or give us a call. We’ll add rideshare coverage to your policy in minutes and you can get back to earning money without worrying about insurance gaps.
Drive smart. Get covered.