Lyft & Uber Rideshare Insurance Quotes Available In Illinois & Indiana
Rates as low as $49 per month
Do you drive for a rideshare company such as Uber or Lyft,? According to the Wall Street Journal, there are over 160,000 drivers for Uber in the U.S. alone, and this number keeps growing. The great news is that you’ll have extra money in your pocket! The bad news is that you’re probably not insured properly, and any auto insurance claim you file could be denied.
Rideshare Insurance: What You Need to Know
Do I need to have a car insurance policy if I want to work for Uber or Lyft?
In most states, law requires car owners to carry adequate liability coverage. In Illinois, those limits are $25,000 bodily injury per person limit, $50,000 bodily injury per accident limit, and $20,000 property damage limits. So you’d need these coverages to stay within the law.
What happens if I don't have rideshare insurance and I get in an accident?
If you don’t have rideshare insurance coverage and get into an accident, you may be held liable to pay any and all damages incurred.
If Uber or Lyft app is turned on and there is no passenger or ride request and you cause an accident, Uber and Lyft’s insurance policies won’t pay for any of your expenses. If you have a passenger in the car or are in route to pick one up, you will have some insurance coverage.
I already have my own car insurance. Is that enough?
Because Uber, Lyft and other rideshare companies are pay-for-a-fee, your policy may exclude use of vehicle for-hire. You’re basically using your personal car to do commercial business.
What is Uber Insurance?
Uber insurance covers you with a $1,000,000 liability policy once you’ve received a ride request and until you’ve dropped your passenger off. Read more about Uber Insurance here.
What is Lyft Insurance?
Lyft insurance covers you with a 50/100/25 split limit liability policy once a ride request is received until the passenger is dropped off. Read more about Lyft Insurance here.
What will happen if I tell my car insurance company that I'm a rideshare driver?
Most insurance carriers now ask whether you or any driver uses a vehicle for rideshare like Uber or Lyft. It’s possible the company will cancel or void your policy.
Do I have to tell my car insurance provider that I drive for Uber or Lyft?
Although a lot of people keep this info to themselves, it’s not a good idea if you want your claims to be paid. Be aware that your rates may go up, and in some cases drivers have had their coverage cancelled.
Which companies sell auto insurance policies that will cover me when I drive for Lyft or Uber?
Insured ASAP, a leading Chicago insurance agency, is partners with dozens of Illinois and Indiana insurance companies to provide and help insure Uber and Lyft drivers.
How much can I expect to pay for a rideshare insurance policy?
As it becomes more common, more and more carriers now provide insurance to Uber and Lyft drivers – and it’s not as expensive as you may think.
If you’re not currently an Uber or Lyft driver, you’re probably reading this because you’re considering signing up to drive and earn some extra money. As ride-sharing is becoming more and more popular, drivers must be aware of their car insurance policies to be sure they don’t run into any insurance surprises in the case of an accident and are uber insured.
Uber and Lyft are two ride-hailing tech services that feature a quick & easy way to get from here to there without the hassles and other costs that come with using a taxi or cab. Uber and Lyft also provide car owners with a convenient way to earn a quick buck.
If you are a Uber or Lyft driver in Chicago, Illinois — or you’re thinking about signing up — you may have questions about car insurance.
- Will your current auto insurance cancel you?
- Will your insurance policy cover you while you’re driving for a fee?
- Do Uber and Lyft provide drivers with their own insurance policy?
- What happens if you get in an accident?
How Rideshare Companies, Uber and Lyft, Different Than a Taxi Cab Service?
The fact that Uber & Lyft and most taxi cab services don’t own or operate their cars and do not Uber and Lyft are similar to most taxi services in that they don’t own or operate their cars and they hire drivers indirectly, treating them as independent contractors – 1099 employees. The notable difference is that most Uber & Lyft drivers use their cars for personal and business use alike. This element makes car insurance a common confusion.
Will My Personal Car Insurance Cover Me?
A valid and in-force auto insurance policy is a requirement for driving for a rideshare service like Uber or Lyft. But that insurance policy may not provide coverage to you in the case of an accident while you are in-route to, or driving, a passenger.
Many personal auto insurance policies explicitly exclude driving for hire in the policy contract. This means that Uber or Lyft drivers with a “for-hire exclusion” in their policy will not be covered while they’re driving for a fee.
In actuality, driving for a ride-hailing service like Uber or Lyft can In fact, driving with Uber or Lyft will more than likely put you at risk for having your car insurance dropped, non-renewed, and even your claim denied if your insurance carrier discovers you are driving for-hire. This varies by policy and state, so be sure to check your car insurance policy contract.
Does Uber or Lyft Provide Any Insurance?
Uber and Lyft do provide some supplemental car insurance which only covers you when you are actively driving professionally and have your smartphone app switched on — not when you’re driving for any other reason.
This supplemental insurance also depends on what stage of the ride hailing process you’re at:
IF YOU’RE LOGGED IN AND WAITING FOR A RIDE REQUEST…
Both Uber and Lyft provide contingent liability coverage that pays only for losses not covered by your personal policy.
Our contingent liability coverage is designed to provide coverage when the app is in driver mode before you’ve received a ride request in the event your personal insurance does not respond. The policy has a $50,000 maximum limit per person, $100,000 maximum limit per accident, and a $25,000 maximum limit for property damage. There is no deductible under this policy.
IF YOU’RE DRIVING PASSENGERS OR ON THE WAY TO PICK THEM UP...
Both ride-share services provide:
- Commercial liability insurance with a $1,000,000 coverage limit
- Uninsured and/or underinsured bodily injury insurance with $1,000,000 coverage limit.
- Contingent comprehensive and collision coverage
This contingent comprehensive and collision coverage differs slightly between the two ride-share tech services. Uber has a $1,000 deductible, and Lyft has a $2,500 deductible and a limit of $50,000. You should know that both deductibles are dependent on you having your own personal comprehensive and collision coverage too.
Uber may also extend some personal injury protection (PIP) in certain states that require it by law.
What Car Insurance Do I Need For Rideshare?
There’s no doubt that driving with a ride-share company like Uber or Lyft can make car insurance complicated.
The good news is, many insurance companies have recognized the need for new and different insurance policy options. Insured ASAP partners with dozens of A-rated carriers that have created auto insurance programs specifically for Uber & Lyft drivers.
Advice from Insured ASAP - The Leading Provider of Rideshare Insurance in Chicago...
- Get the most comprehensive personal car insurance policy you can afford.
- Check local laws and regulations.
- Understand your liabilities while driving.
Need more information? Ready for an insurance company that’s there for you when you need them? We’re waiting for your call!
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