Are you an Uber or Lyft driver?
Roadway now proudly offers Progressive® Auto Insurance for Uber and Lyft drivers in Maryland
If you work for a rideshare company, it’s important to have car insurance that protects both you and your passengers. Regular car insurance isn’t enough for rideshare drivers. At Roadway Insurance, we can help you explore your options and find the right coverage for your vehicle.
Ridesharing has quickly become a popular way to get around. Many people now use rideshare services instead of driving themselves. While this is a great opportunity for both drivers and riders, it comes with some risks.
For example, you might not have personal car insurance on a vehicle that isn’t your main one. It’s important to know what kind of rideshare insurance will cover your car so you can drive with peace of mind.
The Importance of Rideshare Coverage
Maryland law requires that all drivers have car insurance. While companies like Uber and Lyft offer basic coverage, it’s not enough to cover everything. If you have your own car insurance, it might cover you when you’re driving for rideshare, but it could be too basic for what you need.
Typically, we divide a rideshare trip into three phases. In many cases, the basic rideshare coverage will only apply to phase 2 and phase 3.
- First Phase: The rideshare driver is logged in and waiting for a ride request.
- Second Phase: Rideshare driver receives ride request and is en route to picking up their passenger.
- Third Phase: Rideshare driver is now driving their passenger to their chosen destination.
Rideshare insurance can cover the cost of damages during an accident. For instance, if you are in phase 1, your basic rideshare insurance will more than likely not cover your expenses. It may count as an exclusion under your ridesharing company’s policy.
At Roadway Auto Insurance, we can help Uber and Lyft drivers get the coverage they need through Progressive Auto Insurance. Through Progressive Auto Insurance, drivers can obtain the insurance they need to cover what their ridesharing company does not.
At Roadway Auto Insurance, we can help Uber and Lyft drivers get the right coverage through Progressive Auto Insurance. With Progressive, drivers can get the extra protection that their rideshare company doesn’t provide.
What is the Coverage Gap for Uber and Lyft?
Ridesharing insurance typically doesn’t provide coverage for phase 1. Although they may provide liability coverage if a driver is in an accident, that does not include protections for the driver. In many cases, comprehensive insurance only applies to phase 2 and phase 3.
During phase 1, your personal auto insurance and your rideshare coverage from your employer are not in effect, which means there is a gap in coverage. Ridesharing insurance can keep you protected and covered during the gap.
Our team at Roadway Auto Insurance can provide Uber and Lyft drivers with the coverage they need for all phases of their ridesharing process through a Progressive Auto Insurance coverage policy.
How Does Rideshare Insurance Work?
When you’re driving for a rideshare company like Uber or Lyft, you need to have car insurance that covers you when you’re driving for work. However, there are some limits to what your policy will cover.
If you’re an Uber or Lyft driver, your current insurance is limited until you accept a ride request. While many drivers have personal policy coverage, it may have exclusions depending on the type of coverage. In many cases, personal insurance doesn’t cover ridesharing. Most standard policies won’t cover you when you have a passenger in the car.
This means if you get into an accident while driving for a rideshare company, and you have a passenger in the car, your insurance company won’t cover the damages. You’ll be responsible for paying for all the damages out of your own pocket. But rideshare insurance will fill the gap in coverage!
What is the average cost of a rideshare insurance policy?
One type of rideshare insurance policy is commercial auto insurance. It provides coverage for the vehicle you use to drive for Uber or Lyft. If you’re an Uber or Lyft driver, this type of policy is mandatory in many states.
Commercial auto insurance usually has a deductible for collision and comprehensive coverage. This means that if your car is damaged, they will subtract the deductible from the settlement you receive from the other driver’s insurance company. The higher your deductible, the lower your monthly premium.
The average cost of a commercial auto rideshare policy is about $500/year, with a low deductible of $500 or less per incident. This would cover expenses like towing and rental cars when an accident occurs.
Rideshare Insurance FAQs
Make sure you’re completely covered when you’re driving for services like Uber and Lyft. Keep reading for the answers to some of the most frequently asked questions about rideshare insurance.
Do Uber and Lyft verify that I have rideshare insurance?
Usually, Uber and Lyft won’t ask your insurance company directly about your coverage. But you do need to show proof that you meet their minimum insurance requirements. Commercial auto insurance is a must for any ridesharing apps and services. Without it, you can’t drive for these companies.
Do insurance companies oppose rideshare services?
Not at all. Insurance companies just want you to understand how your coverage works and what it covers. Personal car insurance doesn’t cover any business use of your car, no matter what kind of work you’re doing.
For example, if you use your car to deliver newspapers and have an accident, your personal insurance won’t cover it. No matter what kind of business you’re using your car for, you need commercial coverage to stay protected.
If a passenger has personal car insurance, does it protect them in a crash while in an Uber or Lyft?
Personal car insurance isn’t meant to cover you if the ride is technically commercial. It’s safest to assume it won’t be covered unless your policy specifically says so. This way, you can avoid problems that come with not having the right insurance.
Should I get rideshare insurance if I drive for a food delivery service?
If you drive for a food delivery service, you need a different kind of insurance than if you drive passengers. You’ll need coverage for yourself and your car for business use, but you don’t need to worry about coverage for passengers.
Will my insurance costs go up with rideshare insurance?
Adding rideshare insurance usually increases your costs a little. Your insurance costs will go up slightly when you add this coverage and drive more miles. However, compare this small increase with the potential costs you could face if something happens and you don’t have the right insurance.
Do I need rideshare insurance?
It can be tricky to know what your base auto insurance policy covers regarding rideshare. If you think you need rideshare coverage, there’s a solid chance that you’re probably correct. We’ll help answer all of the questions you have about your insurance coverage. Call us with your current insurance details, and we’ll help you find the best insurance plan for your needs.
Roadway Auto Insurance is a Progressive Authorized Provider
As a Progressive authorized provider, Roadway Auto Insurance proudly offers Progressive insurance to drivers in Maryland and DC. Save money and get discounts for prior coverage, paperless delivery options, and electronic fund transfers.
Would you like to learn more about your insurance options and determine how to obtain Progressive insurance through Roadway?
Feel free to contact one of our experienced Roadway auto insurance team members to explore your options. To learn more about your ridesharing coverage, call 301-476-1183 or contact us online.