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So, why is rideshare insurance important?

Having car insurance coverage is a must for any driver. To drive without some type of insurance is simply negligent and will likely cause a huge hassle for you in the event you’re involved in an accident. For this reason, your rideshare vehicle must have adequate and legal rideshare insurance. Understand that all states do not yet offer rideshare insurance so you’ll want to do your homework and be sure your state offers the coverage you need. You will need to be clear that you need rideshare insurance as this differs from your regular insurance coverage.

How does rideshare insurance work?

Take time to understand how Uber and Lyft work with regard to insurance coverage. They work according to what are called “periods”:

  • Period 1: This is the time in which you are waiting for a ride request.
  • Period 2: This time begins once you accept a ride.
  • Period 3: This time begins once your passenger enters your vehicle.

Both rideshare companies (Uber and Lyft) will only cover your vehicle during Periods 2 and 3.

During Period 1, you’re on your own – this is where officially recognized rideshare insurance comes into play. If you see yourself in some type of accident during Period 1, you’ll need rideshare insurance to cover damages.

(That being said,  if you find yourself in a period 1 incident, immediately go offline and there you go. Your existing car insurance should take over at this point regardless.)

Note that companies in many cities/states offer rideshare insurance that will cover you during all periods mentioned above. If you can acquire this type of insurance, do so as it will mean you avoid the rather pricey deductibles from both Uber and Lyft insurance.

So, what type of insurance do you have? Does your city/state offer rideshare insurance? Have you had a good or bad experience acquiring insurance?

Let us know! We’d love to hear from you!

Ready to drive?

Go to Uber Application Page

Go to Lyft Application Page

(No car? No problem. Lyft or Uber will rent them to you. Click here.)


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