Commercial Auto Insurance for Uber and Lyft Drivers 

If you drive for Uber or Lyft in Hayward, CA, you already know the flexibility of rideshare work is a real draw. What many drivers don’t realize until it’s too late is that their personal auto insurance policy likely won’t financially protect them while they’re working.

Understanding Rideshare Insurance Gaps

Personal auto policies are written for personal use. Most insurers specifically exclude coverage for vehicles used to carry paying passengers. Uber and Lyft do offer some coverage for drivers, but it is limited and varies depending on which phase of a trip you’re in. When the app is off, you’re on your own personal policy. When the app is on but you haven’t accepted a ride, coverage from the platform is limited to liability only, with no coverage for your own vehicle damage, leaving many drivers with coverage gaps in this gray zone.

What Uber and Lyft Drivers Need To Know About Rideshare and Commercial Auto Insurance

A rideshare endorsement or commercial auto policy can help fill the gaps that personal and platform coverage leave behind. In California, rideshare drivers must carry insurance that meets state-required minimums any time the app is active, but meeting the minimum does not mean you’re fully covered.

A rideshare endorsement or commercial auto policy may also include uninsured/underinsured motorist (UM/UIM) coverage, which may help cover your losses if you’re hit by an at-fault driver who carries no insurance or insufficient insurance.

Scenarios Where Commercial Auto Insurance Is Essential

Proper coverage becomes critical in situations such as the following:

• You’re waiting for a ride request and get into an accident.
• A passenger is injured during a trip and files a claim.
• Your vehicle is damaged while the app is active.
• A third party sues you following a rideshare-related collision.

Contact SaveGuard Insurance Today

Coverage needs vary by driver. Contact SaveGuard Insurance to review your current commercial auto insurance and find a policy that fits how you use your vehicle on the road.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.