Rideshare insurance
Rideshare insurance is auto coverage for driving through a transportation network company such as Uber or Lyft. It extends or supplements a personal auto policy while the app is on, a ride is accepted or a passenger is aboard, when a personal policy may exclude business use. It can address liability, vehicle damage, uninsured motorists and medical payments.
Also called: rideshare
Rideshare insurance answers one question for a driver: which policy pays if something happens while you are working for a transportation network company (TNC). Personal auto policies commonly exclude business use, livery or carrying passengers for compensation, according to the NAIC (opens in a new tab). The label can mean an endorsement on your personal policy, a commercial auto policy or the TNC's own coverage, and each can treat the ride cycle differently.
How coverage shifts across the three ride periods
Rideshare driving splits into three periods: Period 1, app on and waiting for a request; Period 2, ride accepted with no passenger yet; and Period 3, a passenger in the car, according to the NAIC (opens in a new tab). In Connecticut, Conn. Gen. Stat. § 13b-120 (opens in a new tab) requires at least $50,000 per person, $100,000 for two or more people and $25,000 for property damage during the app-on waiting period, and at least $1 million during a prearranged ride.
Say you are logged in and waiting in Connecticut when an accident causes $80,000 of bodily injury to one person and $30,000 of property damage. Using only the statutory minimums:
Hover or tap a row to highlight it.
| Item | Amount |
|---|---|
| Bodily injury to one person | $80,000 |
| Paid at the $50,000 per-person minimum | $50,000 |
| Bodily injury above the limit | $30,000 |
| Property damage | $30,000 |
| Paid at the $25,000 property minimum | $25,000 |
| Property damage above the limit | $5,000 |
| Total above the minimum limits | $35,000 |
The loss amounts are illustrations. A rideshare endorsement or a higher-limit policy could change which insurer responds, the limits available, the deductibles, and whether damage to your own car is covered.
Endorsement, commercial policy or TNC coverage
A personal auto policy with a rideshare endorsement can extend liability, comprehensive, collision, uninsured or underinsured motorist, medical payments or personal injury protection coverage while you are logged in and waiting. The endorsement can raise the premium. A commercial auto policy can apply across personal and TNC driving, with eligibility, limits and premium set by the policy.
The TNC's group policy can provide primary liability coverage during accepted trips and passenger rides and more limited coverage while you wait. It does not automatically cover your own car, your medical costs or uninsured motorist losses. In California, TNC policies are not required to provide medical payments, comprehensive, collision or uninsured and underinsured motorist coverage, according to the California Department of Insurance (opens in a new tab).
A higher TNC deductible raises what you pay after a loss, and some personal endorsements pay part or all of the gap between your personal deductible and the TNC deductible if the endorsement says so. Delivery work for apps such as Uber Eats or DoorDash may be treated differently from passenger rides, and a driver on several apps may need coverage that applies to each one. Our comprehensive vs collision guide covers the physical-damage side.
Where you see rideshare coverage
The term shows up on an auto quote as a rideshare, TNC, business-use or delivery-use option, and on the declarations page with the endorsement, limits, deductibles and premium. The insuring agreement describes covered auto use, and exclusions address business use, livery, public conveyance or carrying passengers for compensation. Conditions may require you to report TNC use and cooperate in a claim investigation. You can also meet it on a TNC insurance certificate or app insurance page, a renewal notice that changes the endorsement or price, or a claim letter asking whether you were logged in, had accepted a trip or had a passenger.
How Connecticut and New York set the rules
Connecticut requires primary liability insurance that recognizes the driver carries passengers for compensation. Under Conn. Gen. Stat. § 13b-120 (opens in a new tab), both periods also require uninsured and underinsured motorist coverage under Conn. Gen. Stat. § 38a-336 (opens in a new tab). Your policy, the TNC's policy or a combination can meet the requirement, and if your coverage has lapsed or does not apply, the TNC policy must pay from the first dollar without waiting for another insurer to deny the claim. Connecticut lets a personal auto insurer exclude coverage during TNC use if the exclusion is clearly and conspicuously disclosed.
New York sets higher figures. N.Y. Vehicle and Traffic Law § 1693 (opens in a new tab) requires at least $75,000 per person, $150,000 for two or more people and $25,000 for property while you are logged in but not on a trip, and $1.25 million during a prearranged trip, plus $1.25 million of supplemental uninsured and underinsured motorist coverage and required no-fault coverage. You must carry proof of TNC coverage. Insurers must send an annual written notice stating whether and how far the policy covers TNC use under New York Insurance Regulation 60-3 (opens in a new tab). These limits do not govern trips that start in New York City, according to the New York Department of Financial Services (opens in a new tab), so confirm the city and TLC requirements for those trips.
Questions to ask an agent or insurer
- Does my policy cover me when the app is on and I am waiting for a request? Period 1 is where personal and TNC coverage gaps commonly appear.
- Does coverage apply after I accept a ride but before I pick up the passenger? Period 2 can carry different primary coverage, limits and exclusions from the passenger period.
- Does the policy cover damage to my car, and what deductible applies? TNC liability coverage protects other people and may not pay for your vehicle.
- Does the coverage include uninsured or underinsured motorist, medical payments or PIP benefits during TNC use? These are separate coverages and do not automatically follow liability coverage.
- Does the endorsement cover every platform I use, including delivery apps, and must I report TNC use? Platform, delivery and disclosure rules vary by policy and state.
Frequently asked questions
A few more answers on rideshare coverage.
Does my personal auto policy cover Uber or Lyft?
Often it does not during business use, because personal policies commonly exclude livery and driving passengers for compensation. You may need a rideshare endorsement or a commercial policy. Undisclosed TNC use can lead an insurer to change, nonrenew or cancel coverage where the law permits.
Does Uber or Lyft insurance cover the driver's car?
Not automatically. Physical-damage coverage depends on your personal policy, any endorsement, the deductibles and the TNC policy. If your car is leased or financed, New York requires the TNC to tell you about possible physical-damage coverage.
Is rideshare insurance the same as car-sharing coverage?
No. Car sharing means renting your car to someone else or letting them use it, while ridesharing means driving passengers for pay through a TNC. A car-sharing exclusion does not answer a passenger-transport question, so read each exclusion separately.