Are you an Uber or Lyft driver?
Roadway now proudly offers Progressive® Auto Insurance for Uber and Lyft drivers in Maryland
Rideshare drivers need car insurance that covers both you and your passengers. Regular car insurance isn’t enough for rideshare drivers. At Roadway Insurance, we can help you explore your options and find the right coverage for your vehicle.
Ridesharing has quickly become a popular way to get around. Many people now use rideshare services instead of driving themselves. While this is a great opportunity for drivers and riders, it comes with some risks.
For example, you might not have personal car insurance on a vehicle other than your main one. Knowing what kind of rideshare insurance will cover your car is important so you can drive safely.
The Importance of Rideshare Coverage
Maryland law requires that all drivers have car insurance. While companies like Uber and Lyft offer basic coverage, it’s not enough to cover everything. Your regular car insurance might work for rideshare driving, but it could leave you underinsured.
Typically, we divide a rideshare trip into three phases. The basic rideshare coverage will often only apply to phases 2 and 3.
- First Phase: The rideshare driver logs in and waits for a ride request.
- Second Phase: The rideshare driver receives the ride request and is en route to pick up their passenger.
- Third Phase: The rideshare driver is now driving their passenger to their chosen destination.
Rideshare insurance can cover the cost of damages during an accident. For instance, if you are in phase 1, your basic rideshare insurance will likely not cover your expenses. It may count as an exclusion under your ridesharing company’s policy.
At Roadway, 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.
At Roadway Auto Insurance, we can help Uber and Lyft drivers get the right coverage through Progressive Auto Insurance. With Progressive, drivers can get the extra protection that their rideshare company doesn’t provide.
What is the Coverage Gap for Uber and Lyft?
Ridesharing insurance typically doesn’t provide coverage for phase 1. While it covers damage you might cause to others, it doesn’t protect you as the driver. In many cases, comprehensive insurance only applies to phases 2 and 3.
Phase 1 leaves you unprotected: Your personal insurance and the rideshare company’s coverage don’t apply yet. Ridesharing insurance can keep you protected and covered during the gap.
Roadway provides Progressive Auto Insurance that covers Uber/Lyft drivers for every driving phase.
How Does Rideshare Insurance Work?
When driving for a rideshare company like Uber or Lyft, you need car insurance that covers you when driving for work. However, there are some limits to what your policy will cover.
If you’re an Uber or Lyft driver, your 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 doesn’t cover ridesharing. Most standard policies won’t cover you when you have a passenger in the car.
If you crash while driving passengers for Uber/Lyft, your personal car insurance won’t pay for the damages. You’ll be responsible for paying for all the damages out of your pocket. But rideshare insurance will fill the coverage gap!
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 for Uber or Lyft. If you’re 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. Your deductible comes out of the payment you get from the other driver’s insurance. The higher your deductible, the lower your monthly premium.
Rideshare insurance typically costs around $500 per year, with a deductible of $500 per claim. This would cover expenses like towing and rental cars when an accident occurs.
Rideshare Insurance FAQs
Ensure you’re completely covered when driving for services like Uber and Lyft. Keep reading for 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 ask your insurance company about your coverage. But you must show proof that you meet their minimum insurance requirements. Commercial auto insurance is a must for any ridesharing apps and services. Without it, you can’t drive for these companies.
Do insurance companies oppose rideshare services?
Not at all. Insurance companies just want you to understand how your coverage works and what it covers. Personal car insurance doesn’t cover any business use of your car, no matter what work you do.
For example, if you use your car to deliver newspapers and have an accident, your insurance won’t cover it. No matter what kind of business you use your car for, you need commercial coverage to protect you.
If a passenger has personal car insurance, does it protect them in a crash while in an Uber or Lyft?
If the ride is technically commercial, personal car insurance doesn’t cover you. It’s safest to assume it won’t have coverage unless your policy specifically says so. This way, you can avoid problems with not having the right insurance.
Should I get rideshare insurance if I drive for a food delivery service?
If you drive for a food delivery service, you need a different kind of insurance than if you drive passengers. You’ll need coverage for yourself and your car for business use, but you don’t need to worry about passenger coverage.
Will my insurance costs go up with rideshare insurance?
Adding rideshare insurance usually increases your costs a little. Your insurance costs will increase slightly when you add this coverage and drive more miles. However, compare this small increase with the potential costs you could face if something happens and you don’t have the right insurance.
Do I need rideshare insurance?
Knowing what your base auto insurance policy covers regarding ridesharing can be tricky. 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.
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?
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.