What Does Rideshare Insurance Cover and Do You Need It in California?
One of the most confusing elements of the job for rideshare drivers is insurance and what is covered or not. Fortunately, rideshare car insurance in California has evolved with the gig economy, adapting to the changing needs of transportation network companies (TNCs) like Uber or Lift.
To ensure that your work stays profitable and safe for your passengers, you’ll need to understand what rideshare insurance is for, what it covers, and why you need it. And with rising auto insurance rates in California, it’s more critical than ever that rideshare drivers are empowered to easily find cheap car insurance in this pricey state. Read on to get the details!
Understanding California’s Rideshare Landscape
With so many busy cities with limited parking, it’s not surprising that California would embrace ridesharing as a convenient and cost-efficient form of transportation. It is also easy to see why, in a state where the cost of living is higher than in other states, residents would adopt driving for a rideshare company such as Uber as a primary or secondary job. Drivers can choose their schedules, jobs, and areas of service. In this atmosphere, finding cheap car insurance in California is more important than ever.
State Regulations Impacting Rideshare Insurance
To protect rideshare drivers, riders, insurance companies, and the public, California has implemented stringent regulations for rideshare companies and their drivers. These rules, overseen by the California Public Utilities Commission, control specific insurance coverage levels to ensure all parties are protected in the event of an accident.
Insurance Coverage Types for Rideshare Drivers
As a rideshare driver, you are probably confused by all the options for car insurance. Now you not only have to understand your personal policy, you also need to understand the rules around another policy.
Rideshare insurance in California includes several types of coverage:
- Liability coverage: Protects against bodily injury and property damage to others.
- Collision coverage: Covers damage to the driver’s vehicle in the event of an accident.
- Comprehensive coverage: Protects against non-collision-related incidents such as theft or vandalism.
- Uninsured/underinsured motorist coverage: Safeguards drivers involved in accidents with uninsured or underinsured drivers.
- Medical payments coverage: Helps cover medical expenses for the driver and passengers.
These coverage types work together to create a safety net for rideshare drivers, filling the gaps that may exist in personal auto insurance policies.
Selecting the Best Rideshare Insurance in CA
Without the right information, finding the right rideshare insurance coverage can be confusing and difficult. It is important to consider driving habits, vehicle value, and risk tolerance. Some insurers offer rideshare endorsements that can be added to existing personal auto insurance policies while others provide standalone rideshare insurance products.
Required Coverage for California Uber & Lyft Drivers
Uber and Lyft drivers in California must meet specific insurance requirements set forth by the state and the TNCs. These requirements are necessary for proper protection during all phases of the rideshare process, providing coverage gaps that may be missed otherwise.
Minimum Insurance Requirements by Law
Who covers what, when, and for how much can be confusing for rideshare drivers. Here’s what the California law mandates concerning minimum comprehensive and collision coverage.
- When the app is on but no ride has been accepted: $50,000 per person for bodily injury, $100,000 per accident for bodily injury, and $30,000 for property damage.
- When a ride has been accepted or a passenger is in the vehicle: $1 Million uninsured/underinsured motorist coverage when a passenger is in liability coverage.
Additionally, TNCs must provide commercial insurance for $1 million in uninsured/underinsured motorist coverage when a passenger is in the vehicle.
Claim Process Simplified: How it Works with Rideshare Insurance
If you’ve ever wondered if it is hard to file a claim with rideshare coverage in California, you’ll be happy to know that the process is easy! Here are the 7 simple steps.
- Report the incident to the rideshare company immediately.
- Document the accident scene, gathering information from all parties involved.
- Contact your personal insurance company to inform them of the incident.
- File a claim with the appropriate insurance company based on the ride phase during which the accident occurred.
- Provide all the necessary documentation, including all police reports and medical records.
- Cooperate with the insurance adjuster throughout the process.
- Review the settlement offer and negotiate if necessary.
Understanding these steps can help you navigate the claims process stress-free.
Get A Free Quote for Rideshare Insurance in California and Drive with Confidence!
Now you know the intricacies of rideshare insurance in California and why rideshare entrepreneurs need it to protect themselves and their passengers. For Uber and Lyft drivers in California, rideshare insurance isn’t just a legal requirement, it is a fundamental aspect of protecting yourself, your business, and your riders.
Take control of your rideshare career today. Here at Cost-U-Less, we specialize in offering great insurance at awesome prices. Start now and get a quote online, visit an office near you, or call us at 800-390-4071 for a quote today!
