One of the most common questions I get as an Insurance Agent is: 
I am considering driving for Uber or Lyft. Does my auto insurance policy cover me?

The answer to that question is maybe.

Personal vs. Commercial

Most standard auto insurance policies are only for personal use. The insurance company determines the likelihood of paying on a claim based on this type of use. It’s easier to determine risk because the number of people/items that can be fit into a personal vehicle are typically limited. Driving a vehicle for business or commercial use is a different situation. Commercially used vehicles typically have more driving time and carry more items/people in the vehicle. As a result, a Commercial Policy requires more coverage than a Personal Policy. It goes without saying that Uber/Lyft is a business, and using a vehicle for ride-sharing purposes would be considered commercial use. Therefore, most insurance policies cease to exist the moment an Uber/Lyft driver turns on the app to use the vehicle for commercial use.

What Uber & Lyft offer

The good news is Uber and Lyft do offer some insurance options for their drivers. Some of it is standard, but some does cost extra. Here is a link explaining what Uber offers: https://www.uber.com/newsroom/insurance-ridesharing-uber/
Here is a link explaining what Lyft offers: https://help.lyft.com/hc/en-us/articles/115013080548-Insurance-Policy

In most cases, Uber/Lyft will provide coverage the moment a person enters your car.

Bad news – there is a gap

Your Personal Insurance policy covers you until you turn on the app, and Uber/Lyft typically has something in place to cover you and your vehicle when a passenger enters your car. But what about the time between the app being turned on to the passenger entering your vehicle? In most cases, there is no coverage for that gap.

Good news – there is a solution

Several insurance carriers now offer a “Ride Sharing Endorsement” that can be added to your Personal Insurance. This endorsement will cover you and your vehicle during this gap. That said, because of the extra coverage being provided, there is an additional cost associated. However, ensuring that you are properly covered is well worth it.

Are you interested in getting your side hustle on with Uber or Lyft? Schedule time with us below! We would be honored walk you through the insurance process to ensure you and your vehicle are properly covered.


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