Understanding my Car Insurance Coverage as an Uber Driver

Image d’un chauffeur offrant un service de transport à un passager

Ride sharing services, like Lyft and Uber, have been growing rapidly. For example, Uber says it has over 100,000 active rideshare drivers and delivery people on the road across the country. With some people turning to ride sharing services to earn extra money, it’s important to understand your coverage options as an Uber or Lyft driver.

Do I Need Any Additional Coverage If I’m Driving For Uber or Lyft?

The answer – Additional coverage may be required and will depend on your insurance provider and where you live or intend to operate.

Some insurance companies may require you to take additional coverage when driving for Uber of Lyft as your car insurance may only insure your vehicle for personal usage – like driving to work, picking up your kids from school, running errands, etc. They may see you using your personal car for “business purposes” to require additional coverage.

However, some companies may not offer supplemental or additional coverage to your insurance – instead opting for the driver to fulfill certain requirements to continue to receive coverage while contractually working for Uber.  

You may also find that some insurance companies offer additional coverage only during certain periods – such as when the Uber driver app is on and you’re searching for clients – while the coverage option from the ride sharing companies may only kick in once you begin your journey.

Understanding Car Insurance Coverage from Ridesharing Companies

Car insurance coverage from ridesharing companies exist during periods 1 to 3:

  • Period 0 – when app is offline, drive for personal use
  • Period 1 – when you log on to the app and make yourself available for a ride.
  • Period 2 – when you accept a request from a rider.
  • Period 3 – when you are driving the rider to their destination.

During period 1, depending on the province you live in, your commercial car insurance available through the ridesharing company may have complete or partial auto insurance coverage. If your province doesn’t allow for comprehensive commercial coverage to apply for ridesharing during that period, you may need to get an endorsement (or “add-on”) from your personal insurer to cover that period.

However, during the second and third period, your personal auto policy is unlikely to provide coverage during these periods.

The types of commercial insurance offered during periods 2 and 3 can consist of liability coverage – accident benefit protection in case you are found at fault for any personal injuries or damage to another vehicle; uninsured/underinsured motorist coverage – protection in case one of your passengers are injured in an accident; or comprehensive coverage – coverage for any non-collision related damages to your car.

While you may receive coverage from ridesharing companies, it’s important to speak with your insurance provider to understand if you need additional coverage from them.

With Allstate’s ridesharing accommodation, you can bridge the gap between private and commercial insurance policies for coverage that meet your needs. Contact an Allstate agent today to ensure your car insurance covers the cost of ride sharing.

Disclaimer: This information and the websites referenced are provided for your convenience only and should not be construed as providing legal or insurance advice. Allstate does not control or guarantee the accuracy of any content on any third-party site.  Allstate is not responsible for the privacy practices of any third-party site.