Rideshare insurance for Uber, Lyft and delivery drivers: the coverage gap explained
If you drive for Uber, Lyft or a delivery app, your personal car insurance may not cover you while you're working. Personal policies typically exclude business use or times when you're available for hire (NAIC). Many insurers now sell rideshare coverage to close that gap.
The coverage gap, in plain words
Rideshare driving is often described in periods (The Rideshare Guy):
| Period | What's happening | Who usually covers it |
|---|---|---|
| App off | Personal driving | Your personal policy |
| Period 1 | App on, waiting for a request | Limited liability from the app; no collision coverage from Uber or Lyft |
| Period 2 | Ride accepted, driving to the passenger | The app's commercial policy |
| Period 3 | Passenger in the car | The app's commercial policy |
Period 1 is the gap: your personal insurer may not cover you, and the app's coverage is limited (The Rideshare Guy; NAIC).
What the apps cover
The app companies' coverage is limited and mainly protects other people. You may still have to pay for damage to your own car or your own injuries (NAIC). When the apps do cover damage to your car, it comes with a large deductible: $1,000 with Uber and $2,500 with Lyft, according to The Rideshare Guy.
How to close the gap
- Tell your insurer you drive for an app. Several states require you to disclose whether you were logged in when an accident happened (NAIC).
- Ask about rideshare coverage. Many insurers sell it, usually as an add-on to your personal policy, but availability and limits vary by state (NAIC).
- Compare prices. One source reports add-ons from some insurers at roughly $10–$20 a month, while others add a percentage to your premium (The Rideshare Guy).
- Ask the app about its policy: liability amounts, deductibles, and how to report a claim (NAIC).
- Carry proof of the app's coverage in your car while logged in, as many states require (NAIC).
Common questions
Will my insurer drop me for driving for Uber?
Some insurers may, if you don't tell them. A rideshare add-on is designed to prevent that (The Rideshare Guy).
Does this apply to food delivery too?
Personal policies typically exclude business use in general (NAIC), so ask your insurer about delivery driving as well.
Am I covered if I accept a street hail?
Possibly not. Coverage may not apply if you turn the app off or take a ride outside the app (NAIC).
Sources
Official:
Insurance publications:
General information only, not insurance, legal, or financial advice. Rules and prices vary by state and insurer; check your official notice.