Uber / Lyft
Rideshare Insurance: Enhanced Protection for California Uber® and Lyft® Drivers
Rideshare services like Uber, Lyft and others have revolutionized the public transportation industry. However, driving with a paying customer is different from driving on personal business. Your risks and responsibilities change. You might even find that your standard car insurance won’t help you.
Come to Cal-Society Insurance Services Inc. and we’ll offer you a quote on top-rated ridesharing insurance today. Don’t hesitate to contact us at 800.773.1663 or request a quote online right now!
Does driving for Uber or Lyft affect your insurance?
When you drive for a rideshare company, you are working officially. Therefore, it is almost the same as being on the clock at your day job.
The thing is, standard car insurance alone generally will not cover cars driven for rideshare services. The types and amounts of insurance you need will therefore vary considerably. Let one of our insurance agents help you implement the right policy to cover both your commercial and personal policy needs.
What do Uber and Lyft drivers need to know about car insurance?
Once you start driving for Uber or Lyft, you’ll face a different set of driving risks and personal security threats. You’ll have to protect not only yourself and your vehicle, but also the other parties in your care. Therefore, the type of car insurance you need might vary. Keep these tips in mind:
- If you have a standard car insurance policy, your personal coverage will need to help you protect yourself before, during and after you operate a rideshare.
- However, standard car insurance will often not cover drivers who drive on business. Working for Uber is a prime example of when coverage might not work. You might need an official commercial auto insurance policy.
- Some insurance companies will cover you with a rideshare insurance policy. Coverage will protect you both during your commercial driving, and when you drive personally.
The team at Cal-Society Insurance Services Inc. is glad to help you determine your insurance obligations so that you maintain the right policy whenever you need it. Call us, and we’ll help you get covered.
How does insurance work for Uber and Lyft drivers?
Rideshare companies usually provide a degree of insurance for their employee drivers. However, these policies generally are not all-encompassing. The primary reason you’ll expose yourself to damage risks is because your company’s insurance will likely only cover you part of the time Before you start, or once you end a ride, you won’t be able to use your company-provided coverage. You’ll still need a personal car insurance policy.
It is for scenarios like these that we proudly offer various rideshare insurance policies for the self-reliant driver. We can help you get specifically-tailored coverage that will apply to your driving risks both while driving personally and for your rideshare app.
Uber and Lyft insurance Requirements for California
California stipulates car insurance requirements for rideshare drivers. At Cal-Society Insurance Services Inc., we will help you get the required benefits. The law defines coverage in periods.
Period 0 Coverage: Think of this as the personal car insurance you carry all the time. You are driving personally and have the rideshare app off. The policy limits you select will cover you during this period.
California law requires all drivers to carry car insurance. For personal drivers, this requirement is:
- $15,000 bodily injury liability insurance per person.
- $30,000 bodily injury liability insurance per accident.
- $5,000 property damage liability insurance.
However, we advise rideshare drivers to carry more insurance than the standard driver. You should carry the highest limits available for liability, collision, comprehensive and other protection.
Period 1 Coverage: Coverage will kick in when you turn the rideshare app on. It will remain active through the time you receive a call for a pickup and will cover you until you pick up a passenger. During this time, you must carry at least:
- $50,000 bodily injury liability coverage per person
- $100,000 bodily injury liability coverage per accident
- $30,000 property damage liability insurance
- $200,000 umbrella insurance protection
Your personal coverage will provide this protection. However, some rideshare companies also often offer you this protection. Review the coverage provided by your rideshare company to ensure it provides you with enough protection regardless of whether you have personal coverage.
Period 2 & 3 Coverage: After you pick up a rider, you’ll enter coverage periods 2 & 3. Coverage will insure you from the point you pick up a customer until you drop them off. During this time, the law requires you to maintain at least up to $1 million liability insurance. Your rideshare company might offer you coverage at this time.
- $1 million uninsured/underinsured motorist bodily injury coverage
- Comprehensive/collision coverage, as long as the driver has coverage on their personal policy
- Up to $1 million underinsured/uninsured coverage per occurrence
- Collision insurance for actual cash value or repair cost, whichever is less
- Comprehensive insurance for actual cash value or repair costs, whichever is less
Once you drop off a passenger, you will revert to Period 1 coverage if you plan to pick up another rider. You will revert to Period 0 coverage if you turn off the app to stop work.
Keep in mind, there are restrictions to a company-provided policy. They will only supplement you during the times you are at work. Keep in mind, you’ll still have to maintain a personal policy. Why not let rideshare insurance help you get a full layer of coverage on top of your company policy.
What insurance options are available for Uber and Lyft drivers?
Regardless of whether you need personal, rideshare or commercial auto insurance for your vehicle, your policy will need to contain a few standard elements of coverage. These include:
- Liability coverage: You might be at-fault for an accident and the harm you cause another party. You might have to use liability insurance to pay for their losses. For example, if you hit another driver, this coverage can help you repay them for their vehicle damage or personal injuries.
- Passenger liability insurance: Your policy’s liability insurance will usually apply to the injuries or property damage one of your riders sustains.
- Collision insurance: If you have a wreck, coverage can help you pay for the damage to your car.
- Comprehensive coverage: If an unexpected event, like fire, theft, vandalism or severe weather, damages your car, then this coverage can help you pay for your damage.
- Uninsured/underinsured coverage: Other drivers might be at-fault for an accident that harms you or your car. However, they might not have liability insurance that can effectively help you with your losses. This coverage might help you do so using your own policy.
- Medical payments coverage: Should you get hurt in a wreck, this coverage can help cover your personal medical costs. Coverage might also help supplement your income lost during recovery.
- Car rentals: Do you need a rental vehicle after a wreck damages your car? Coverage can help you pay for a rental car, either in-full or in-part.
- Umbrella coverage: Also called excess liability protection, this coverage will protect you in case liability losses exceed the limits of your standard coverage.
Which companies offer the best Uber car insurance policies?
Getting the right rideshare auto insurance might seem very difficult. However, it only has to be as hard as picking up the phone and calling one of the agents at Cal-Society Insurance Services Inc.
We have the knowledge and the experience to insure all rideshare drivers, both with personal and commercial coverage. We will comb through the multiple policy options out there to help you find the one that offers enough coverage while also keeping your costs affordable. At then end of the day, you will always know when you are driving securely.
Call us at 800.773.1663 or fill out our online form for a fast, free rideshare insurance quote today!