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Compare rideshare insurance in California
Know what’s required and whether you need additional coverage for rideshare drivers in California.
California requires every rideshare driver to have certain insurance coverage and liability limits, keeping the roads and ridesharing community safe. Since many of these companies kickstart in this state, you should find a variety of options and insurance coverage options.
How does rideshare insurance work 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
In addition, drivers must carry at least $1 million in liability and uninsured/underinsured motorist coverage while transporting a passenger.
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, this can get confusing if you commute, drive off-the-clock or need extra coverage not provided by your company, like comprehensive or collision.
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.
Do I need rideshare insurance in California?
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.
Reasons you might consider a separate rideshare policy:
- Your company has high deductibles. Some rideshare companies have deductibles as high as $2,500, which could set you back after an accident.
- You want your rideshare policy 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.
- You need the limits to cover valuable assets. 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.
- You want physical damage coverage for your car. This state focuses on requirements for the other driver and passengers involved, but you may need comprehensive or collision for your car.
- You need protection against underinsured drivers. 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.
Compare rideshare insurance in California
Who has the best rideshare insurance in California?
While rideshare coverage is a fairly new option for companies, some insurers stand out in their offerings.
- 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.
- Esurance. Get a rideshare endorsement added to the specific car you use for ridesharing in California. This company focuses on online policies, lowering the cost of your insurance because of lower company overhead.
- 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.
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.
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.
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.
Frequently asked questions about rideshare insurance in California
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