If you drive for companies like Uber or Lyft, Rideshare Insurance is a coverage you should add to your personal auto policy, especially if you drive part-time.
Using your vehicle to earn income means it’s being used for commercial purposes, which is not covered under a standard personal auto policy.
Rideshare insurance extends your personal auto coverage while you work, preventing your insurer from canceling your policy due to undisclosed commercial use.
Rideshare Insurance Coverage Stages
Transportation network companies provide coverage based on your status in the app. Understanding these stages explains why Rideshare insurance is essential.
🚗 Stage 0 – Offline
Driver mode is off.
- Your personal auto insurance covers you in case of an accident.
📱 Stage 1 – Online, waiting for a ride request
Driver mode is on, but you haven’t accepted a ride yet.
- The rideshare company provides limited liability coverage for third parties only (limits vary by state and company).
- No coverage for you or your vehicle.
⚠️ This is where Rideshare Insurance fills the coverage gap.
🚕 Stage 2 – Ride accepted, en route to passenger
You’ve accepted a ride and are heading to pick up the passenger.
Coverage typically includes:
- Higher liability limits.
- Comprehensive and collision coverage.
- Uninsured / Underinsured Motorist coverage.
📌 These protections apply only if your personal policy also includes them.
🧍 Stage 3 – Passenger in the vehicle
You are transporting the passenger to their destination.
- The same coverage as Stage 2 applies.
Why Is Rideshare Insurance Necessary?
Rideshare insurance:
- Prevents policy cancellation due to commercial use.
- Extends your personal coverage during Stage 1, where platforms do not protect you.
- Eliminates coverage gaps, allowing you to drive with confidence.
Talk to Your Insurance Agent
Coverage limits and requirements vary by:
- State regulations.
- The rideshare platform you work for.
- Your current auto insurance provider.
👉 Speaking with your agent helps determine if Rideshare Insurance is right for you.
At Calidad Insurance, we help drivers stay protected at every stage of the ride.
Do you need more information about any of our insurance policies? 👉 Follow this link