What is California Rideshare Insurance for Uber and Lyft Drivers?

Jun 13, 2023

Rough estimates indicate that over 1.7 million people are employed as rideshare drivers for companies such as Uber and Lyft. While California law requires that all licensed motor vehicle operators carry insurance at all times, for Uber and Lyft drivers, adding what’s known as rideshare insurance can provided added protection and benefits.

What is California Rideshare Insurance for Uber and Lyft Drivers?

• What is Rideshare Insurance?
• Should You Purchase Additional Rideshare Insurance?
• How are Uber and Lyft Coverage Periods Determined?
• How Much Does Rideshare Insurance Coverage Cost?
• Can I Use a Commercial Vehicle as a Rideshare Driver?
• What are the Minimum Insurance Requirements for California Rideshare Drivers?
• How to File an Uber or Lyft Rideshare Accident Claim
• How Much is My California Uber/Lyft Injury Accident Worth?

Below we will take a closer look at rideshare insurance and discuss the advantages available for Uber and Lyft drivers. We’ll also review how to file a personal injury claim for financial compensation in the event of a California Uber or Lyft rideshare accident.

What is Rideshare Insurance?

It’s a common misperception that personal car insurance provides full coverage if you also drive for rideshare companies like Uber or Lyft. While ridesharing companies do provide insurance to drivers who use their platform, that coverage is often limited in certain scenarios – such as when you are waiting for or are transporting passengers in your vehicle. By adding additional rideshare coverage to your auto insurance policy, any potential gaps between the commercial car insurance policy provided by your rideshare employer and your personal car insurance are filled.

Should You Purchase Additional Rideshare Insurance?

Uber and Lyft typically provide only limited policies for their drivers. Accordingly, certain situations may not be covered by your rideshare company policy. But in addition, your own personal car insurance policy may require you to actually add rideshare insurance in order to be covered when operating as an Uber or Lyft driver.

Driving as an Uber or Lyft employee and not disclosing that information to your personal car insurance company could open you up to potential liabilities. For example, your insurer could actually cancel or fail to renew your policy if you don’t proactively add rideshare insurance when driving for Uber or Lyft.

How are Uber and Lyft Coverage Periods Determined?

Uber and Lyft typically determine which auto insurance policy coverage applies based on specific periods:

• Offline: If you aren’t logged into your rideshare app or if you use your vehicle solely for personal purposes, then you won’t be covered by the commercial insurance offered by Uber or Lyft. Offline driving is usually covered by the personal auto insurance policy.
• Period 1: Typically involves waiting on a passenger request. If your employer provides coverage, but you are logged into the rideshare site and you do not have a customer assigned yet, then you may not be eligible. Since you are technically working during this period, your personal coverage is likely to also be inactive. Accordingly, not having rideshare insurance in this instance leaves you and your car vulnerable to financial loss in the event of an accident.
• Period 2: Typically involves driving to pick up a customer. Once you have accepted a client and are on your way to pick them up, your commercial insurance kicks into action. However, despite the fact that you’re covered, most rideshare companies only provide liability insurance. Uber and Lyft drivers are covered by bodily liability insurance of $50,000 per person and $100,000 per incident. Property damage insurance is also provided at $25,000 per vehicle.
• Period 3: Typically involves a ride in progress. As with period 2, you are covered by your commercial vehicle policy once you have picked up the customer and throughout the entire ride. After dropping off the customer, your status returns to period 1, where you are likely not covered by either your personal or employer’s insurance.

How Much Does Rideshare Insurance Coverage Cost?

The cost of rideshare insurance varies from state to state and company to company. Risk factors or rate variables such as driving record, geographical location, claim history, age of car, and more can also affect the cost of car and rideshare insurance. Additionally, the policy that you choose will impact the monthly or annual cost. In most cases, it is more expensive to purchase a standalone rideshare policy than an add-on rideshare policy. Contacting auto insurance companies near you that provide rideshare insurance is recommended to receive a quote and determine your actual rates.

Can I Use a Commercial Vehicle as a Rideshare Driver?

To drive for Uber or Lyft with a commercial vehicle, you will need livery insurance – whether you are a driver of a taxi, limousine, or other vehicles used to transport passengers for a fee. Most auto insurance companies offer livery insurance for applicable drivers.

What are the Minimum Insurance Requirements for California Rideshare Drivers?

California requires Uber and Lyft drivers to carry rideshare insurance as soon as they use the respective company’s rideshare app. Again, the specific period you are in as an Uber or Lyft driver will determine the minimum auto insurance requirements.

When the rideshare app is off, your personal insurance is technically in use. To drive legally, the policy must meet California’s minimum auto insurance requirements:

• $15,000 of bodily injury coverage per person injured in an accident
• $30,000 of bodily injury coverage total per accident
• $5,000 of property damage coverage per accident

If the rideshare app is on but you haven’t been paired with a passenger, you must have rideshare insurance with:

• $50,000 of bodily injury liability coverage per person injured in an accident
• $100,000 of bodily injury liability coverage total per accident
• $30,000 of property damage liability coverage per accident

After you’ve been paired with an Uber or Lyft passenger (or while they’re in your vehicle), the rideshare company is required to provide a $1 million liability insurance policy in California.

Uber and Lyft’s company policies cover you and your passengers from the time you match until the passenger exits the car.

How to File an Uber or Lyft Rideshare Accident Claim

Contact Dordulian Law Group (DLG) today for a free and confidential Uber or Lyft rideshare accident consultation by calling 866-GO-SEE-SAM.

When you file an Uber or Lyft accident claim with the experienced and proven Los Angeles rideshare accident attorneys from DLG, we will aggressively pursue financial damages for things like medical bills, pain and suffering, diminished quality of life, emotional trauma, lost wages, vehicle damage or replacement, and more.

How Much is My California Uber/Lyft Injury Accident Worth?

The value of your California Uber/Lyft injury lawsuit will depend on specific circumstances surrounding the accident. When you hire DLG’s experienced and proven rideshare accident lawyers, you can be confident that we will fight aggressively to secure the maximum financial compensation available for all damages.

Schedule an appointment online for a free consultation today, or call us directly to speak to our top-rated, expert car accident attorneys.

DLG can help ensure that your right to a maximum damages award after an Uber or Lyft accident is protected. Don’t let the insurance company or an at-fault party take advantage of you after suffering an Uber or Lyft accident injury. You have everything to gain by contacting DLG today at 866-GO-SEE-SAM.

DLG’s Uber and Lyft rideshare accident lawyers will never charge a fee upfront or impose any out-of-pocket expenses. With DLG, you’ll never pay anything until after you secure the maximum financial damages award you deserve for your Uber/Lyft case.

Spanish version: ¿Qué es el seguro de viajes compartidos en California para conductores de Uber y Lyft?