Car Insurance for Uber and Lyft Drivers

Are you an Uber or Lyft driver?

Roadway now proudly offers Progressive® Auto Insurance for Uber and Lyft drivers in Maryland

If you are working for a rideshare company, it is vital to find an auto insurance policy that keeps you and your passengers protected. In the rideshare market, traditional auto insurance policies won’t suffice. Our team at Roadway Insurance can work with you to explore your options and find the right protection for your vehicle.

Ridesharing is quickly becoming one of the most popular ways to get around town. Many people use ridesharing services to get from point A to point B instead of driving their own car. While this is a great opportunity for drivers and riders alike, there are some risks that come with it. For example, one risk is that you don’t have personal car insurance on your vehicle if it’s not your primary vehicle. Find out what type of rideshare insurance can cover your car so you can rest assured and drive safely.

progressive auto insurance for uber and lyft drivers in maryland

The Importance of Rideshare Coverage

Maryland requires auto insurance by law. While companies like Uber and Lyft provide a basic form of coverage, it is not comprehensive. If you have a personal auto policy through your insurer or through a different provider, it may cover rideshare drivers who use their own cars for transportation. However, your policy may be too basic or not comprehensive enough for your taste.

Typically, we divide a rideshare trip into three phases. In many cases, the basic rideshare coverage will only apply to phase 2 and phase 3.

  • First Phase: The rideshare driver is logged in and waiting for a ride request
  • Second Phase: Rideshare driver receives ride request and is en route to picking up their passenger
  • Third Phase: Rideshare driver is now driving their passenger to their chosen destination

Rideshare insurance can help cover the cost of damages during an accident. For instance, if you are in phase 1, your basic rideshare insurance will more than likely not cover your expenses. It may count as an exclusion under your ridesharing company’s policy.

At Roadway Auto Insurance, we can help Uber and Lyft drivers get the coverage they need through Progressive Auto Insurance.  Through Progressive Auto Insurance, drivers can obtain the insurance they need to cover what their ridesharing company does not.

What is the Coverage Gap for Uber and Lyft?

Ridesharing insurance typically does not provide coverage for phase 1. Although they may provide liability coverage if a driver is in an accident, that does not include protections for the driver. In many cases, comprehensive insurance only applies to phase 2 and phase 3.

During phase 1, your personal auto insurance and your rideshare coverage from your employer are not in effect, which means there is a gap in coverage. Ridesharing insurance can keep you protected and covered during the gap.

Our team at Roadway Auto Insurance can provide Uber and Lyft drivers with the coverage they need for all phases of their ridesharing process through a Progressive Auto Insurance coverage policy.

How Does Rideshare Insurance Work?

When you’re driving for a rideshare company like Uber or Lyft, you need to have car insurance that covers you when you’re driving for work. However, there are some limits to what your policy will cover.

If you are an Uber or Lyft driver, your current insurance is limited until you accept a ride request. While many drivers have personal policy coverage, it may have exclusions depending on the type of coverage. In many cases, personal insurance does not cover ridesharing. Most standard policies will not cover you when you have a passenger in the car.

This means that if you get into an accident while driving for a rideshare company, and you have a passenger in the car, your insurance company will not cover the damages. You will be responsible for paying for all of the damages out of your own pocket. Rideshare insurance will fill the gap in coverage.

What is the average cost of a rideshare insurance policy?

One type of rideshare insurance policy is commercial auto insurance. It provides coverage for the vehicle you use to drive for Uber or Lyft. If you are an Uber or Lyft driver, this type of policy is mandatory in many states.

Commercial auto insurance usually has a deductible for collision and comprehensive coverage. This means that if your car is damaged, they will subtract the deductible from the settlement you receive from the other driver’s insurance company. The higher your deductible, the lower your monthly premium.

The average cost of a commercial auto rideshare policy is about $500/year, with a low deductible of $500 or less per incident. This would cover expenses like towing and rental cars when an accident occurs.

Rideshare Insurance FAQs

Ensure that you’re completely covered when you’re driving for services like Uber and Lyft. Read more to get the answers to some of the most frequently asked questions about rideshare insurance.

Do Uber and Lyft verify that I have rideshare insurance?

Usually, Uber and Lyft won’t contact your insurance company to inquire about individual drivers. However, you do have to provide proof that you meet their minimum threshold for insurance coverage. Commercial auto insurance is required for any of the main ridesharing apps and services. You won’t be eligible to drive for these companies without it.

Do insurance companies oppose rideshare services?

Not at all. Insurance companies just want to ensure that you know exactly how your coverage works and what it protects. Personal auto insurance policies don’t cover any of the business uses of a vehicle, no matter what they are. If you use your car to deliver newspapers and get into an accident, personal policies won’t cover that either. No matter what business task you’re doing with your vehicle, you need commercial coverage to ensure protection.

If a passenger has a personal auto insurance policy, does that protect them in a crash when they’re in an Uber or Lyft?

It’s not likely. Personal policies were never intended to cover individuals when the use is technically commercial. Always err on the side of caution and assume that it won’t be covered unless you explicitly know that it will be based on the terms of your policy. It’s the best way for you to avoid the consequences that come with inadequate insurance coverage.

Should I get rideshare insurance if I drive for a food delivery service?

You can have a different kind of coverage if you drive for a food delivery service as opposed to something where you’ll have passengers. You need coverage for you and your vehicle for commercial use. But you don’t have to worry about any type of coverage for a passenger in your vehicle.

Will my insurance costs skyrocket with rideshare insurance?

The coverage that you typically need to add for rideshare insurance is a small amount in the grand scheme of things. Insurance costs will go up a bit by adding new coverage and when you’re increasing the number of miles you’re driving. However, it’s important to compare this cost to the possibility of the costs you’d incur with an incident happening without the proper insurance coverage.

Do I need rideshare insurance?

It can be tricky to know what your base auto insurance policy covers regarding rideshare. If you think you need rideshare coverage, there’s a solid chance that you’re probably correct. We’ll help answer all of the questions you have about your insurance coverage. Call us with your current insurance details, and we’ll help you find the best insurance plan for your needs.

Roadway Auto Insurance is a Progressive Authorized Provider

As a Progressive authorized provider, Roadway Auto Insurance proudly offers Progressive insurance to drivers in Maryland and DC. Save money and get discounts for prior coverage, paperless delivery options, and electronic fund transfers.

Would you like to learn more about your insurance options and determine how to obtain Progressive insurance through Roadway?

Feel free to contact one of our experienced Roadway auto insurance team members to explore your options. To learn more about your ridesharing coverage, call 301.476.1183 or contact us online.

Roadway Auto Insurance