Do you need special insurance to drive with Uber or Lyft?

Do you need special insurance to drive with Uber or Lyft?

Uber or Lyft are popular rideshare services. Uber or Lyft drivers are not covered under the personal car insurance policy. Personal car insurance policy is not sufficient to cover Uber or Lyft drivers and their vehicles. Vehicles used for commercial purposes are not protected under the personal car insurance policy. 

What Uber or Lyft insurance cover?

Uber or Lyft insurance covers  you during  the following  three different phases as an Uber or Lyft driver: 

  • Phase 1

Phase 1 is a period when the driver logs in the Uber or Lyft app and the driver is waiting for the passenger. In this phase, limited liability coverage is provided by the rideshare companies under the Uber or Lyft insurance. Uber or Lyft insurance protects against the damages to others’ vehicles and bodily injuries to others through limited liability coverage.

Uber or Lyft insurance coverage limits in phase 1

Coverage Coverage limits
Bodily injury coverage per person to others’ $50000
Bodily injury coverage per accident to others’ $100000
Property damage coverage to others’ $25000

  • Phase 2

Phase  2 is a period when the app is on and the driver accepts the ride request from the passenger. In this phase, the driver is on the way to pick the passenger. Contingent comprehensive and collision coverage is provided by the Uber or Lyft companies under the Uber or Lyft insurance. 

  • Phase 3

Phase 3 is the period when the app is on and the passenger is in the car. The driver is transporting the passenger to his or her destination in this phase. After dropping the passenger driver taps the app to give a signal to Uber that ride is complete. Uber or Lyft provides comprehensive and collision coverage until the driver drops the passenger in coverage phase 3. In this phase, the driver has $1 million in liability coverage and $2500000 for injuries caused by uninsured drivers and underinsured drivers in an accident. There is a deductible of $1000 for comprehensive insurance coverage.

Why do you need rideshare insurance if you are an Uber or Lyft driver?

If you are an Uber or Lyft driver then you are not covered under the standard car insurance policy. A car insurance company can cancel your claim filed by you to recover losses incurred by accident when you are driving a rideshare vehicle. To cover the damages caused by an accident when you are driving rideshare vehicles you need to purchase Uber or Lyft insurance or rideshare insurance. 

Requirements for a uber driver to sign up for Uber insurance

  1. Uber drivers must be licensed drivers.
  2. Uber drivers must have an eligible four-door vehicle to get uber insurance.
  3. To get the uber insurance, drivers must meet the minimum age to drive in the city which minimum age to drive legally is 16 years in most of the states of the USA.
  4. To get uber insurance, drivers under the age of 23 years must have driving experience of a minimum of 1 year or in some states, it can be 3 years.
  5. The driver is required to provide proof of residency in the state to get the uber insurance.
  6. To get the uber insurance, the driver must provide a driver profile photo in line with Uber’s designated specifications.
  7. Before providing a rideshare insurance driving record or criminal record of the driver is reviewed by the rideshare companies.

Learn about rideshare insurance https://blog.mymoneymyquotes.com/rideshare-insurance-explained/

Requirements for Lyft’s driver to sign up for Lyft insurance

  1. To get the rideshare insurance the driver must have a valid driver’s license.
  2. The driver must get a four-door vehicle through Lyft’s Express Drive rental car service to sign up for the Lyft insurance.
  3. To get the rideshare insurance the driver must provide proof of registration and car insurance.
  4. To get the rideshare insurance the driver must meet the minimum age in the state.
  5. The criminal record and driving history of the driver must be inspected by the rideshare company before providing rideshare insurance.

How to become a rideshare driver?

  1. You should fill the application form for Lyft or uber to become a rideshare driver.
  2. You should submit all the necessary information to the rideshare company which is needed for the background check.
  3. Your vehicle should be inspected at an authorized inspection center.
  4. Make sure you have a car insurance policy.
  5. You should obtain an emblem from the rideshare company and display it on your dashboard or windshield.
  6. Download the rideshare app and software license for drivers on your mobile phone when you get approved by the rideshare company.
  7. You need to enter the number of hours you are available to work on the rideshare app.

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