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Rideshare car insurance
Get the right car insurance for Uber, Lyft and other rideshare apps
Rideshare insurance has become more commonplace, making it easier to get coverage while driving for a rideshare company like Uber or Lyft. Learn what your employer will take care of and what you’ll need from your own insurance policy to avoid gaps in coverage.
Rideshare insurance, explained.
Simply put, rideshare coverage extends or trumps your personal car insurance policy while you’re working for a rideshare company. It usually covers you during the time you’re driving and haven’t accepted a ride yet as well as from the moment you accept a ride to its cancellation.
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What kind of car insurance do I need for ridesharing?
If you drive for a ridesharing company, you’ll at least need to take out mandatory third-party liability coverage which is required in every province. You’ll typically also need to upgrade to comprehensive coverage since rideshare extension coverage is only available in conjunction with comprehensive policies.
Transportation network services (TNCs) like Uber and Lyft do take out some insurance on your behalf. However, these policies only kick in while you are working and not during your personal use of your car. Fortunately, insurers are now expanding their coverage to offer policies for rideshare drivers, which can cover you while carrying passengers or driving for yourself.
Rideshare coverage varies by province so make sure you check the coverage available in your province according to the TNC you’re driving for.
What kind of insurance do rideshare companies provide?
Once your rideshare app is on, Uber and Lyft’s supplemental insurance kicks in. You’re typically covered for third-party liability when you’re on duty, plus collision and comprehensive in a claim where your own policy doesn’t cover you.
However, coverage may be limited for these rideshare companies. For example, while your app is on and you’re waiting for a passenger, Uber’s insurance covers liability to a third party and uninsured motorists — not yourself or your car. However, if you have comprehensive insurance with your personal policy then Uber’s contingent collision and comprehensive policy kicks in. Lyft’s contingent coverage means your own insurance kicks in before Lyft covers anything in certain situations. If you want more coverage during this period, you’ll need to purchase an extension on your policy. Again, these rules vary by the province you are driving in.
How much does rideshare coverage cost?
Typically, a rideshare coverage add-on to your personal policy could cost an additional $5 to $20 per month — or an additional 10% to 20% to your premium. Rideshare coverage fills in the gaps of Uber or Lyft’s commercial insurance.
Getting covered while waiting for a rider accounts for the increase in cost to your personal auto policy.
Can I get rideshare insurance for a fleet of cars?
Yes, you can get rideshare insurance if you manage a fleet of cars for your rideshare business. You can insure each individual car with a rideshare extension and insurance for each driver. For a larger rideshare fleet, consider commercial car insurance policies that cover you for higher liability limits and are designed for multiple drivers and cars.
How to file a claim with rideshare insurance
Unfortunately, accidents happen. Reporting one and filing a claim with rideshare insurance is similar to filing a claim with personal insurance. Here’s what to do if you get into an accident while driving for Uber or Lyft:
- Secure the area. Is anyone injured? Do you need to call 911? Is it safe to move the vehicle?
- Call the police. Always call the authorities to report the accident.
- Exchange information. Exchange details with other drivers involved in the accident — including names, addresses, phone numbers, driver’s license numbers, registration, license plate numbers and insurance info.
- Document the accident. Take pictures of any damage with your smartphone. This could be helpful when filing the claim.
- Contact your rideshare company. It can help you start your claim and guide you through the process.
- Call your personal insurance provider. In case you need to file a claim through your own company instead of your rideshare’s.
Uber and Lyft both provide insurance, but, depending on the province you’re in, you may not be covered in every situation without getting further coverage on your personal policy. Understanding the different levels of car insurance coverage will help you make the best choices when getting extensions to your existing policy.
Frequently asked questions about rideshare insurance
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