Rideshare Insurance Frequently Asked Questions
Q: Do I need to have a car insurance policy if I want to work for Uber or Lyft?
A: 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.
Q: What happens if I don’t have rideshare insurance and I get in an accident?
A: 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.
Q: I already have my own car insurance. Is that enough?
A: 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.
Q: What is Uber Insurance?
A: 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.
Q: What is Lyft Insurance?
A: 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.
Q: What will happen if I tell my car insurance company that I’m a rideshare driver?
A: 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.
Q: Do I have to tell my car insurance provider that I drive for Uber or Lyft?
A: 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.
Q: Which companies sell auto insurance policies that will cover me when I drive for Lyft or Uber?
A: 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.
Q: How much can I expect to pay for a rideshare insurance policy?
A: 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.