Compare rideshare insurance in California

California requires every rideshare driver to have minimum insurance coverage and liability limits, keeping the roads and ridesharing community safe. Since many of these companies kickstart in the state, you should find a variety of insurance companies and coverage options.

What are the rideshare insurance requirements in California?

California requires rideshare drivers to keep a minimum amount of coverage, and that amount differs from requirements for other drivers.

While waiting for a passenger, ridesharers must have these coverage limits:

• $50,000 per person for bodily injury
• $100,000 total per accident for bodily injury
• $30,000 for property damage
• $200,000 excess coverage per incident

Also, while transporting a passenger, drivers must carry at least $1 million in liability and uninsured/underinsured motorist coverage while transporting a passenger.

Do I need rideshare insurance in California?

If you’re driving with an established rideshare company, you won’t have to worry about meeting these limits on your own. Your company is required to offer at least this coverage while you’re working.

However, rideshare coverage can get confusing if you commute, drive off-the-clock or need extra coverage not provided by your company, like comprehensive or collision.

Many drivers benefit from an extra rideshare policy, even if their company provides some coverage. That’s because companies may not provide the coverage you need for full protection, such as collision or comprehensive.

What coverage do I get with Uber in California?

Uber provides California’s minimum requirements for liability and uninsured/underinsured motorist. However, Uber doesn’t provide collision, comprehensive and underinsured motorist coverage during the waiting period.

Uber provides contingent comprehensive and collision up to your car’s market value when carrying a passenger. Each coverage has a $1,000 deductible.

Contingent coverage means that you must have the coverage on your personal policy before Uber will provide it with your rideshare policy.

How do I compare rideshare insurance in California?

When looking into additional rideshare coverage, you might take several factors into account:

• Coverage provided. The main consideration is how much coverage your rideshare service provides for free. Review the company’s policy and identify any coverage gaps before deciding on additional insurance.
• Deductibles. Companies differ on the amount you pay when making a comprehensive or collision claim. One service might have a $1,000 deductible while another requires $2,500. If the deductible is too high for your budget, consider getting a lower deductible with an insurer.
• Your personal policy. Consider adding coverage that you like to keep on your personal car insurance, such as comprehensive or roadside assistance.
• Luxury cars. If you’re offering luxury rides, your car might be worth more than the coverage maximums offered by your rideshare company. You might need an insurer who allows higher limits or consider getting commercial umbrella insurance.

How much is rideshare insurance in California?

On average, you can expect rideshare insurance to cost an extra 10% to 20% of your car insurance premium. Since the average annual California premium is $1,698, rideshare coverage may add $14 to $28 extra per month.

But that amount may vary based on your insurance provider, type of car, location, driving record and coverage provided by your rideshare company.

Which companies offer rideshare insurance in California?

Because rideshare companies are popular in California, many big-name insurers offer coverage. However, local or regional rideshare insurers might offer lower rates or wider benefits.

A few companies stand out in their rideshare insurance offerings in California.

• Allstate. This insurer works best when you need higher liability limits than your rideshare company provides. You can also find lower deductibles compared to some companies.
• Farmers. The first to offer this flexible coverage in California, Farmers helps you get extra coverage while waiting for a passenger (also called period 1).
• Liberty Mutual. This policy doesn’t factor in your rideshare mileage when determining your driving risk, which could lead to a lower premium.
• Mercury. Get full coverage during the waiting period from a company with top financial strength.

Reasons to consider rideshare insurance in California

You might want a separate policy if you:

• Want lower deductibles. Some rideshare companies offer insurance with deductibles as high as $2,500, which could set you back after an accident.
• Want to match your personal policy. Insurance companies might provide more options to give you wide coverage, while rideshare companies may just be fulfilling state requirements.
• Need higher limits. A good rule of thumb is to have the same or more liability coverage than the value of your assets. That could mean you need higher limits if your business assets total more than $50,000, which is California’s bodily injury requirement while waiting for a passenger.
• Want physical damage coverage. This state focuses on liability coverage for other drivers and passengers if you get in an accident, but you may need comprehensive or collision for your car.
• Need underinsured driver coverage. California has an average uninsured driver rate of 15% versus the national average, which is 12.5%. Even though California requires uninsured/underinsured protection while carrying a passenger, you might need this protection while waiting for one.

How is rideshare driving different in California?

Many rideshare companies start testing the market in California, so it may have more options. While companies must provide the required minimum insurance, extra coverage can differ between companies.

For example, Uber offers comprehensive and collision if you have that coverage on your personal policy. Other California rideshares might include this coverage without this stipulation, as an additional cost or forgo it entirely, depending on the company’s size.

Bottom line

California has a wide variety of startup and established rideshare services, but it does require all rideshare drivers to meet a minimum level of insurance. Each company may meet these requirements or go above and beyond with additional coverage like comprehensive or collision.

California requires its wide variety of startups to meet its minimum level of insurance. If you’re looking for additional coverage, like comprehensive or collision, shop around to find car insurance that’s right for you.