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Rideshare Insurance: What You Need to Know Before You Hit the Road as a Driver in California 

Ready to finally enjoy the freedom of your rideshare gig? 

Working for companies like Uber or Lyft is a great way to make some extra money. However, if you don’t have good rideshare insurance, you might end up having to pay all of that money (and then some) in legal fees. 

However, good coverage means that California rideshare drivers just like yourself can make the most of their gig employment. Keep reading to discover what this coverage is all about and how it helps to protect you! 

Understanding Rideshare Insurance for Gig Workers 

Even though the term “rideshare insurance” gets thrown around quite a bit, there are many drivers who are unsure what it means. Basically, it’s a specialized form of insurance that supplements the protections offered by the rideshare company’s existing policy. 

While it’s good that these companies automatically provide car insurance for rideshare drivers, there are some major gaps in what is covered and even when it’s covered (more on this soon). By getting your own separate policy on top of the company one, you can give yourself additional protection against unexpected situations on the road. 

Does My California Car Insurance Cover My Uber or Lyft Trips? 

It’s complicated. Every driver has asked, “Does my car insurance cover my trips?” Unfortunately, for popular rideshare companies such as Uber or Lyft, the answer to that question is a bit complex. 

Rideshare drivers may need to take out a commercial insurance policy if their carrier doesn’t allow standard car insurance to cover accidents that happen on the job. In some cases, your carrier might allow you to get a separate rideshare add-on to your personal auto policy. It’s important for rideshare drivers to check with both their carrier and their employer to fully understand what is (and what is not) covered. 

Businessman sits in back seat of rideshare holding up his phone - cheap rideshare insurance in California

Why Car Insurance for Rideshare Drivers Is Important 

There are many different reasons to get additional rideshare coverage on top of your existing Uber driver insurance or Lyft driver insurance. However, here are the two biggest reasons: the company policy may not actually cover your vehicle when an accident happens, and even if the policy does cover that accident, you could still be left with out-of-pocket expenses. 

For example, let’s say that you are an Uber driver who ends up careening on a wet road, causing extensive damage to several cars as well as a nearby building. First, Uber has strict requirements about when drivers are covered; if your app is off, or even if it’s on and you’re waiting for a rideshare request, you may not be covered (or fully covered) in the event of an accident. 

Even if it did pay, the maximum property damage limit is $25,000. Without separate rideshare insurance on top of the company policy, a major accident could leave you with extra expenses. At the bare minimum, you’d likely be facing a major hit to your personal automobile insurance (which will cause your rates to increase). 

What Rideshare Insurance in California Covers and What It Doesn’t 

As we noted above, companies like Uber and Lyft have very specific requirements for how, when, and if the company policy will pay for damages. Rideshare insurance is a bit more straightforward; basically, it’s designed to pay out whenever there is a coverage gap in your company-provided insurance. 

For example, Uber won’t pay out at all if your app is off, and the company only offers a low level of liability coverage until a trip is accepted. This leaves coverage gaps that you might have to plug with your own automobile coverage. If you have rideshare insurance, that gap is covered, and you may not need to use your personal coverage at all. 

Choosing the Right Rideshare Insurance for Your Needs 

Now you know the most important things about rideshare insurance for drivers. But do you know where you can get the best coverage for your needs? 

Here at Cost-U-Less, we help California Uber and Lyft drivers get the coverage they need to stay safe during every part of every shift. Ready to protect your car when it needs it the most? Call us at (800) 390-4071 or get a fast and free rideshare insurance quote online. You can also find a nearby office and visit us in person. 

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