🚨 The Coverage Gap Problem
Most personal auto policies exclude commercial activity. If you're in an accident while ridesharing without proper coverage, you could have NO insurance at all.
What happens: You cause an accident with the app on but no passenger. Your personal insurer denies the claim (commercial activity). Uber/Lyft has minimal coverage in this period. You're personally liable for everything.
The 3 Rideshare Insurance Periods
Period 1: App ON, Waiting for Request
Your Personal Insurance: Usually DENIED (commercial activity)
Uber/Lyft Provides: Very limited—liability only, high deductibles
⚠️ DANGER ZONE
This is where most coverage gaps occur
Period 2: Ride Accepted, En Route to Pickup
Your Personal Insurance: Usually DENIED
Uber/Lyft Provides: $1M liability, limited collision/comprehensive
⚠️ Better but gaps remain
$1K-2.5K deductibles for your car damage
Period 3: Passenger in Vehicle
Your Personal Insurance: Usually DENIED
Uber/Lyft Provides: $1M liability, collision/comprehensive available
✓ Best coverage
Still has $1K-2.5K deductible for your car
Your Coverage Options
1. Rideshare Endorsement (Best Option)
Add to your personal policy. Covers Period 1 gap and may reduce deductibles.
Cost: $15-30/month extra
Available from: GEICO, Progressive, State Farm, Allstate, Farmers, USAA
2. Commercial Auto Policy
Full commercial coverage. Overkill for most part-time drivers.
Cost: $200-500/month
Best for: Full-time drivers, those with commercial vehicles
3. Hybrid Policy
Some insurers offer policies specifically designed for gig workers.
Cost: $50-150/month more than personal
Available from: Progressive, Farmers, some regional carriers
What Uber & Lyft Actually Cover
| Period | Liability | Collision | Comprehensive |
|---|---|---|---|
| Period 1 (App on, waiting) | $50K/$100K/$25K (limited) | None | None |
| Period 2 (En route to pickup) | $1M | Yes ($1K-2.5K deductible) | Yes ($1K-2.5K deductible) |
| Period 3 (Passenger in car) | $1M | Yes ($1K-2.5K deductible) | Yes ($1K-2.5K deductible) |
Key issue: Period 1 has NO collision/comprehensive coverage from Uber/Lyft. If you're hit while waiting for a ride request, damage to YOUR car isn't covered by anyone unless you have a rideshare endorsement.
Common Rideshare Insurance Mistakes
❌ Not telling your insurer you rideshare
They may deny ALL claims—even personal ones—if they find out. Policy could be canceled for fraud.
❌ Assuming Uber/Lyft covers everything
Period 1 has massive gaps. High deductibles in Periods 2 & 3 could cost you thousands.
❌ Turning off the app after an accident
Then neither Uber/Lyft NOR your personal insurer will cover it. Don't manipulate evidence.
Best Insurers for Rideshare Drivers
Progressive
TNC endorsement available. Good rates for gig workers.
GEICO
Rideshare coverage endorsement in most states.
State Farm
Rideshare endorsement. Local agent can explain coverage.
Farmers
Rideshare endorsement plus hybrid policy options.
The Bottom Line
If you drive for Uber or Lyft, you need a rideshare endorsement on your personal auto policy—Period 1 (app on, waiting) has almost no coverage otherwise. Tell your insurer you rideshare; hiding it could void your entire policy. A rideshare endorsement costs only $15-30/month and closes the gap that could otherwise leave you personally liable for tens of thousands in an accident.