Lyft’s rideshare drivers are protected by Lyft’s contingent liability, collision, and comprehensive coverage, and sometimes UM/UIM coverage while en route to or transporting a passenger. However, only minimal liability coverage is provided while waiting for ride requests.

Driving for a rideshare company like Lyft and Uber can put you in a confusing predicament when it comes to

car insurance

. While your vehicle is being used for business during trips, it’s also a personal vehicle any other time. Because of this, it may be unclear whether you can get away with a personal policy or whether you have to pay more for commercial car insurance instead.

So what car insurance do you need to keep yourself, your vehicle, and passengers fully protected while driving for a rideshare service? Let’s take a look.

What car insurance coverage do you need for Lyft?

When working as an Uber or Lyft driver, you’re going to need to enhance your personal auto insurance policy with a rideshare endorsement or

rideshare insurance

. Essentially, this will extend certain coverages from your personal plan to protect you while you’re signed in as a Lyft driver and using your vehicle for business.

Rideshare coverage is important for a few reasons. Namely, because your personal car insurance policy won’t cover you during Lyft rides otherwise. In fact, your insurer is within their rights to cancel your policy if you try to make a claim for a ridesharing accident and your vehicle is only insured for personal use.

While Lyft does offer coverages to its drivers, most of them are “contingent”—meaning they rely on the driver’s personal policy as the primary policy. In these cases, a Lyft driver must first make a claim with their own insurer. If their claim isn’t fully covered, Lyft’s coverages will help handle the excess costs.

Additionally, Lyft offers very minimal coverages to drivers while they’re in between rides. It’s therefore a good idea to protect yourself with

comprehensive

and

collision coverage

on top of at least your

state’s minimum liability insurance

(ideally more). Not only will this offer you better insurance during your rides, but it will be the only coverage you have if your vehicle is vandalized or you get into an at-fault car accident while waiting for a ride request.

MORE: How to work for a rideshare company: Driving for Uber or Lyft

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Does Lyft offer auto insurance for drivers?

Yes. All Lyft drivers are protected by a free Lyft insurance policy that grants limited coverages on top of the driver’s personal auto insurance coverage. More specifically, Lyft offers contingent liability, collision, and comprehensive insurance coverages depending on what phase of the ride you’re in.

Here’s how these driving periods and coverages break down:

Driving phase	Description	Lyft coverage
0	App is closed	Driver is only covered by personal insurance policy
1	App is open, driver is waiting for a ride request	Minimal contingent liability coverage (driver’s policy is primary) NO collision, comprehensive, UM/UIM, PIP, or MedPay
2	App is open, driver is on the way to pick up a rider	Liability coverage of at least $1 million per accident Contingent collision and comprehensive coverages up to vehicle’s actual cash value or repair costs (whichever is less) with $2,500 deductible Some first-party coverages (may include UM/UIM, PIP, MedPay, and/or Occupational Accident coverage)
3	App is open, driver is taking the passenger to their destination

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When in driving phase one, Lyft’s liability insurance coverages (if your own policy does not fully cover the claim) are as follows:

$50,000 per person for

bodily injury liability

$100,000 per accident for bodily injury liability

$25,000 per accident for

property damage liability

In driving phases two and three, Lyft’s liability insurance is still contingent on your personal policy not covering all of the damages. However, your Lyft liability coverage limits increase significantly to at least $1,000,000 per incident.

Though you will not be covered by anything but Lyft’s contingent liability insurance during phase one, you will have contingent

full coverage insurance

during phases two and three. That said, Lyft’s insurance only covers up to your car’s fair market value and comes with a $2,500 deductible.

Lyft’s first-party coverages don’t have a deductible, but their availability and coverage limits vary by state.

Uninsured motorist coverage and underinsured motorist coverage

, for example, are currently not offered for Lyft drivers in Florida, despite Lyft neighbors in Georgia receiving $1 million in UM/UIM coverage.

MedPay

isn’t available in every state either—some no-fault states, like New York, only offer PIP insurance to cover medical expenses. On the other hand, Occupational Accident coverage is only applicable in California, and handles certain medical costs and disability benefits if you’re injured in a covered accident.

Pro Tip If you’re ever confused about your specific Lyft coverages,
Lyft’s proof of insurance documents
are listed on its website by state.

What is Lyft Express Drive?

Lyft’s Express Drive program allows drivers to use a rental vehicle through Hertz or Flexdrive for rideshare purposes in certain regions. So how does Lyft insurance coverage work with a rental?

It depends on what driving phase you’re in and which rental company you go with—your coverage limits will also vary by state. Here’s a general idea of what you can expect your insurance coverages to look like with each company:

Driving Phase	Hertz	Flexshare
Personal use (depending on state)	$50,000 limit of collision coverage per vehicle ($1,000 deductible) Bodily injury and property damage liability (limits vary by state) Uninsured/underinsured motorist coverage (up to local regulations)	May cover up to car’s cash value in damage costs ($1,000 deductible) May cover limited bodily injury and property damage liability costs May provide up to local UM/UIM coverages
Waiting for a request	Covers up to car’s cash value in damage costs ($1,000 deductible) Covers limited bodily injury and property damage liability costs Provides at least local UM/UIM coverage requirements
En route, or ride in progress	Covers up to vehicle’s cash value in physical damages ($1,000 deductible only if you’re at fault) Covers up to $1,000,000 of bodily injury and property damage liability for third parties and passengers per accident Provides up to local coverage requirements for UM/UIM coverages	Covers up to car’s cash value in damage costs ($1,000 deductible) Covers up to $1,000,000 of bodily injury and property damage to third parties and passengers per accident Covers up to local requirements for UM/UIM insurance

Does a personal car insurance policy cover Lyft drivers?

Not quite. Because ridesharing is considered business use of a vehicle, you will need to add a rideshare endorsement to enable your personal auto insurance policy to extend to your rideshare driving. If you don’t, your insurance provider could drop your coverage once they discover your vehicle is not just being driven for personal use.

Importantly, rideshare coverage bridges gaps in Lyft’s insurance coverage. If you get into an at-fault collision or endure non-collision damage (like hail) while waiting for a ride, it’s completely up to your personal coverages to pay for your repairs—rideshare insurance is designed to allow this.

Though it can seem like a pain to add an extra insurance payment to your monthly bill, rideshare insurance is actually a much cheaper alternative to a standard commercial policy.

MORE: How to get cheap commercial truck insurance

Where to get rideshare insurance

As a type of commercial insurance, rideshare insurance is designed specifically to meet the coverage needs of rideshare service drivers. Fortunately, most major insurance companies offer rideshare insurance add-ons or packages. However, availability can vary significantly depending on your location, as can pricing.

Here are some of the bigger names you can purchase rideshare insurance from, and the states they currently offer it to:

State Farm

—all states except AK, HI, IL, MA, NY, RI, and SD

Progressive

—all states except AK, CA, CN, DE, HI, KS, NV, NJ, NY, OR, and VT

GEICO

—all states except AK, GA, HI, KY, MI, NC, NJ, NY, TX, and UT

Allstate

—all states except FL, MI, and NY

Once you find an insurer who offers rideshare insurance, it’s always a good idea to compare quotes across companies, too, to ensure you’re getting the

cheapest car insurance

available.

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Can you purchase car insurance through Lyft?

No. When you sign on as a Lyft driver, you will automatically be covered by Lyft’s limited insurance policy. However, to strengthen your coverage, you will need to purchase a personal car insurance plan with a rideshare endorsement on your own.

Licensed insurance comparison apps

, like

Jerry

, are useful resources to secure affordable coverage.

How much does Lyft insurance cost?

Lyft’s insurance won’t cost you anything. But a rideshare insurance policy, which adds protection to your personal policy to cover Lyft’s insurance gaps, can cost as little as $10 extra a month to double your monthly premiums. A great way to lower premiums for your rideshare insurance coverage is to

shop around for multiple car insurance quotes

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