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Ridesharing insurance policies


If you just started working for Uber or Lyft, you may be wondering how ridesharing insurance policies work. Here we explain everything you need to know about Uber insurance and Lyft insurance.

The ridesharing insurance dilemma

Insurance coverage has been a problem since the earliest days of ridesharing and while solutions are starting to appear, there are serious limitations.

It's true that all the major transportation network companies (TNCs), such as Uber and Lyft, protect their drivers with huge liability policies. Unfortunately, there are coverage gaps that can leave drivers on the hook for some major expenses. At issue:

  • During Period 1 (app is open but no passenger has been assigned) liability limits are low and the coverage is contingent in most states, meaning the driver has to make a claim with their own insurer before a TNC's insurance steps up.
  • The cost to repair their vehicle falls to drivers during Period 1 as TNC's offer zero collision or comprehensive. Once a passenger is assigned, collision/comprehensive coverage is contingent so a driver must notify their personal insurer about an accident.
  • Medical bills can also be a problem. A passenger's medical bills sould be covered in any type of accident, but the driver's injuries may only be covered if someone else caused the crash.

Ridesharing insurance policies

Insurers and state regulators are finally addressing the problem.

Recently, regulators in California and Maine removed the contingency for liability coverage so private insurance does not apply during Period 1. Drivers must either purchase a commercial policy, a rideshare policy or the TNC must provide coverage.

Drivers in certain states (where regulators have passed rideshare laws) are protected by the TNC's liability policy during Period 1 but the limits are low, typically 50/100/25, which translates into $50,000 per person bodily injury, up to $100,000 per incident, and $25,000 for property damage.

"These limits are low when compared to the 100/300/50 that most experts recommend," says Penny Gusner, consumer analyst for CarInsurance.com. "In a serious accident, these limits would be exceeded pretty quickly, leaving you on the hook for the balance."

In addition, repairs to your vehicle are remain uncovered, as do injuries, and without a rideshare-specific policy your personal insurance may be essentially worthless.

Chancing it with only the TNC's coverage during Period 1 is a bad idea, according to most experts. "Personally, I don't think it's worth the risk to become a rideshare driver unless you can get a rideshare-friendly policy in your state," warns Harry Campbell, "The Rideshare Guy" blogger.

It's early days, but insurers are starting to close insurance gaps with policies that cover rideshare activities. Coverage varies; some insurers only cover Period 1 while others cover the entire ride.

Ridesharing insurance by state

StateCompanyPeriod of coverageUber, Lyft or both
StateCompanyPeriod of coverageUber, Lyft or both
AlabamaFarmers InsurancePeriod 1Both
GeicoAllBoth
State FarmAll**Both
USAAPeriod 1Both
ArizonaAllstateAll*Both
Farmers InsurancePeriod 1Both
GeicoAllBoth
Mercury InsuranceAll**Both
SafecoPeriod 1Both
USAAPeriod 1Both
ArkansasFarmers InsurancePeriod 1Both
CaliforniaAllstateAll*Both
Farmers InsurancePeriod 1Both
Mercury InsuranceAll**Both
MetlifeAllLyft
MetromilePeriod 1Uber
State FarmAll**Both
USAAPeriod 1Both
ColoradoAllstateAll*Both
Farmers InsurancePeriod 1Both
GeicoAllBoth
MetlifeAllLyft
SafecoPeriod 1Both
State FarmAll**Both
TravelersPeriod 1Both
USAAPeriod 1Both
ConnecticutGeicoAllBoth
State FarmAll**Both
USAAPeriod 1Both
DelawareGeicoAllBoth
State FarmAll**Both
District of ColumbiaAllstateAll*Both
ErieAllBoth
GeicoAllBoth
FloridaFarmers (Foremost)Period 1Both
GeorgiaAllstateAll*Both
FarmersPeriod 1Both
GeicoAllBoth
State FarmAll**Both
USAAPeriod 1Both
IdahoFarmersPeriod 1Both
GeicoAllBoth
State FarmAll**Both
IllinoisAllstateAll*Both
ErieAllBoth
FarmersPeriod 1Both
GeicoAllBoth
Mercury InsuranceAll**Both
MetlifeAllLyft
MetromilePeriod 1Uber
SafecoPeriod 1Both
TravelersPeriod 1Both
USAAPeriod 1Both
IndianaAllstateAll*Both
ErieAllBoth
FarmersPeriod 1Both
GeicoAllBoth
SafecoPeriod 1Both
State FarmAll**Both
USAAPeriod 1Both
IowaFarmersPeriod 1Both
GeicoAllBoth
State FarmAll**Both
USAAPeriod 1Both
KansasFarmers InsurancePeriod 1Both
GeicoAllBoth
SafecoPeriod 1Both
USAAPeriod 1Both
KentuckyAllstateAll*Both
ErieAllBoth
State FarmAll**Both
USAAPeriod 1Both
LouisianaGeicoAllBoth
State FarmAll**Both
MaineGeicoAllBoth
State FarmAll**Both
MarylandErieAllBoth
FarmersPeriod 1Both
GeicoAllBoth
USAAPeriod 1Both
MassachusettsUSAAPeriod 1Both
MichiganFarmers InsurancePeriod 1Both
MinnesotaAllstateAll*Both
Farmers InsurancePeriod 1Both
GeicoAllBoth
SafecoPeriod 1Both
State FarmAll**Both
MissouriGeicoAllBoth
SafecoPeriod 1Both
State FarmAll**Both
USAAPeriod 1Both
MontanaFarmers InsurancePeriod 1Both
NebraskaFarmers InsurancePeriod 1Both
GeicoAllBoth
State FarmAll**Both
USAAPeriod 1Both
NevadaFarmers InsurancePeriod 1Both
Mercury InsuranceAll**Both
USAAPeriod 1Both
New JerseyFarmers InsurancePeriod 1Both
New HampshireUSAAPeriod 1Both
New MexicoFarmers InsurancePeriod 1Both
GeicoAllBoth
North DakotaFarmers InsurancePeriod 1Both
GeicoAllBoth
State FarmAll**Both
USAAPeriod 1Both
OhioErieAllBoth
Farmers InsurancePeriod 1Both
GeicoAllBoth
State FarmAll**Both
USAAPeriod 1Both
OklahomaAllstateAll*Both
Farmers InsurancePeriod 1Both
GeicoAllBoth
Mercury InsuranceAll**Both
SafecoPeriod 1Both
State FarmAll**Both
OregonGeicoAllBoth
SafecoPeriod 1Both
State FarmAll**Both
USAAPeriod 1Both
PennsylvaniaErieAllBoth
GeicoAllBoth
ProgressiveAllBoth
Rhode IslandGeicoAllBoth
South CarolinaAllstateAll*Both
GeicoAllBoth
South DakotaGeicoAllBoth
TennesseeAllstateAll*Both
ErieAllBoth
Farmers InsurancePeriod 1Both
GeicoAllBoth
SafecoPeriod 1Both
State FarmAll**Both
USAAPeriod 1Both
TexasAllstateAll*Both
Farmers InsurancePeriod 1Both
GeicoAllBoth
MetlifeAllLyft
ProgressiveAllBoth
USAAPeriod 1Both
UtahAllstateAll*Both
Farmers InsurancePeriod 1Both
SafecoPeriod 1Both
VermontGeicoAllBoth
WashingtonAllstateAll*Both
GeicoAllBoth
MetlifeAllLyft
MetromilePeriod 1Uber
SafecoPeriod 1Both
State FarmAll**Both
USAAPeriod 1Both
West VirginaErieAllBoth
GeicoAllBoth
State FarmAll**Both
WisconsinErieAllBoth
Farmers InsurancePeriod 1Both
SafecoPeriod 1Both
State FarmAll**Both
WyomingGeicoAllBoth
USAAPeriod 1Both

* Period 1 - all coverages, Period 2 & 3 -  Allstate provides deductible help in certain situations

** Period 1 - full coverage available, Periods 2 & 3 - Mercury and State Farm provide coverage in excess of ridesharing company coverage


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2 Responses to "Ridesharing insurance policies"
  1. Charles O. Slavens

    Who is most likely to need ride-sharing services? The biggest group would be people who can no longer drive due to age or physical disability. Where do most of these people live? Florida. There are hundreds of people with cars in this state driving people around for a fee. None of them has commercial insurance. It is in retirement states like Florida where this insurance is needed the most.

      Reply»  
  2. Al

    I read that Mercury is also offering TNC insurance in California.Is this correct?

      Reply»  
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