People who drive for rideshare companies are required to have personal auto insurance before they are approved to become a contractor for companies like Uber and Lyft. These companies also provide supplemental liability insurance for their contractors when they are considered “on-app”. However, this insurance has gaps and personal auto insurance may not cover a driver who is working commercially. Because of this, many major insurers have begun to offer rideshare insurance policies.
Understanding Rideshare Insurance
Both Lyft and Uber have similar liability policies that are in effect when a driver is considered to be working. The amount of coverage varies depending on certain periods and includes:
- Period 0: The driver is “off-app” or not working; driver’s personal policy is in effect.
- Period 1: The driver is “on-app” and waiting for a fare; Uber/Lyft insurance liability is limited during this period to $50,000 per person/$100,000 per accident/$25,000 property damage.
- Period 2 and Period 3: The driver has accepted a fare; Uber/Lyft insurance is in full effect at $1million per incident.
Personal auto insurance often does not cover commercial driving. If you drive for Uber of Lyft, you are considered working commercially and your insurance may not cover you or may even drop you if you do not disclose that you’re working commercially.
Rideshare insurance through an insurer is becoming popular, but availability is still spotty. If rideshare insurance isn’t available from your regular auto insurance, you may need to shop around or opt for commercial driver insurance.
Illinois Rideshare Insurance Providers
Illinois has a large selection of rideshare insurance providers, including:
- Farmers
- Erie
- GEICO
- Travelers
- Progressive
- Allstate
- State Farm
- optOn
- USAA
- Metromile
In 2018, a leading insurance technology platform called SURE began offering rideshare insurance on a case-by-case basis for passengers of Uber and Lyft. While SURE offers insurance for a variety of needs, RideSafe will help to cover a passenger’s out-of-pocket medical expenses, provide up to $100,000 in the event of a loss-of-life, and also help if any injuries sustained are catastrophic. This insurance is linked to your Lyft of Uber apps, is purchased on-demand, and is intended for passengers who use ridesharing more frequently.
If you or a loved one has been injured in ridesharing accident due to another driver’s negligence, contact America’s Consumer Lawyer for a free consultation. Helping our clients is about counseling, advocating, and ultimately solving problems. With years of experience successfully representing the people and not the powerful, we will take care of the insurance adjusters, your medical bills, your property damage, and your lost wages, and monitor your treatment so you can focus on healing and getting your life back to normal. We will handle your case quickly and advise you every step of the way, and we will not hesitate to go to trial for you.
Lastly, America’s Consumer Lawyer is not paid attorneys’ fees unless we win your case. Our no-fee promise is that simple. You have nothing to risk when you hire us – only the opportunity to seek justice.
