Why Delivery Drivers NEED Rideshare Insurance

Delivery insurance might be necessary for two reasons:

1. Uber and Lyft do not provide coverage when you are not “on the clock.”
2. Your personal or commercial auto policy does not provide coverage beyond what Uber/Lyft does when a personal vehicle is being used for business. Your personal insurance will NOT cover the cost of an accident if you’re using your personal vehicle for business purposes and haven’t disclosed that to them.

Why does this matter? If you get in an accident, you may be stuck with out-of-pocket expenses you weren’t anticipating—and it can be costly. So who needs rideshare insurance? If you work for any of the following companies, look into your options for additional coverage:

• Uber
• Lyft
• Uber Eats
• Amazon Flex
• Grubhub
• DoorDash
• Instacart
• Postmates

How to Buy Rideshare Insurance

Because Uber/Lyft don’t cover personal liability, collision, and comprehensive coverage you NEED to make sure they’re added to your personal auto insurance coverage. OR, you can obtain rideshare insurance. Rideshare insurance is typically offered in two forms:

1. As Gap Coverage or a Rideshare Endorsement
2. A standalone rideshare insurance policy

You can talk to your insurance company or agent to get quotes for both types of policies (if they offer both). 

Gap Coverage/Rideshare Endorsement

Your insurance company might offer an endorsement to cover the gaps between your personal auto policy and the coverage offered by the rideshare service you work for. It’s often referred to as additional protection, a personal insurance coverage extension, a ride-hailing insurance endorsement, or a hybrid insurance package. Your endorsement can cover the gap between Uber or Lyft’s policy limits as well as differences in deductible. For example, Lyft charges a $2,500 deductible. If you obtain an endorsement through your personal auto insurance and the deductible is only $500, they may cover the $2,000 difference in deductible charges.

Standalone Rideshare Insurance Policy

A standalone policy is going to be a type of for-hire livery insurance with coverage similar to that of commercial auto insurance. If the cost to add an endorsement to your personal auto insurance coverage is expensive, obtaining a standalone policy may be a better option.

What Happens if You get in an Accident While Driving for Uber or Lyft?

You should immediately report an accident to the police. Secondly, the incident should also be reported immediately to the rideshare company AND the driver’s private insurance company. 

To report an accident if you work for Uber, you complete the forms on this page. If you are a Lyft driver, you can report an accident here.

If you were in phase one, the accident and claim will only be covered by your personal or commercial auto policy. In phases two and three, whatever is not covered by Uber/Lyft must then be submitted to your personal/commercial policy. 

What does Rideshare Insurance Cost?

Rideshare insurance—when added as an endorsement to a personal auto policy—can be as low as an additional $10 a month OR up to double your costs. Many different factors are taken into consideration, so it’s best to speak with an experienced insurance agent to determine the best course of action.

Get a Free Rideshare Insurance Quote

At Tivly we want to help you find the right insurance to cover your rideshare or delivery service. We will find policies tailored to your needs based on the type of services you offer. Your vehicle and its safety features are always taken into consideration along with your driving record. We will find you the best insurance company and insurance policy for your business. To get a free quote, give us a call at 1-877-907-5267 or complete the form at the top of the page.

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