Do you drive for Uber, Lyft, Postmates, or another ridesharing or transportation network company?
Have you been considering a ridesharing job but don’t know the insurance requirements?
Are you new to ridesharing and want to find out what kind of rideshare auto insurance coverage you’ll need?
Florida has some of the most comprehensive auto insurance laws in the country for rideshare drivers.
But those laws can be confusing and even intimidating for new rideshare drivers.
This blog will guide you through the requirements for auto insurance if you drive for Uber, Lyft, or another ridesharing company.
Do You Need More Auto Insurance if You Drive for Uber?
The first thing you need to know is that your personal auto insurance policy may not cover an accident if you’re driving for Uber, Lyft, or another company.
Your insurance company may offer a rideshare insurance policy – this is a critical policy to have if you want maximum financial protection in the event of an accident. There are four coverage periods with rideshare insurance:
- Period 0: This is while the app is off, and you’re driving. During period 0, your personal auto insurance policy covers you.
- Period 1: This is while the app is on, and you’re waiting to get a passenger. During period 1, your rideshare insurance covers you, plus whatever liability coverage provided by your rideshare company covers you.
- Period 2: The is while the app is on, and you’re on the way to get a passenger. During period 2, your rideshare company’s insurance policy covers you. Some personal rideshare policies may extend coverage during this period, as well.
- Period 3: This is while the app is on, and you have a passenger in your car. During period 3, your rideshare company’s insurance policy covers you. Once you drop the passenger off, you go back to period 1 coverage.
Different rideshare companies have different coverage limits during different periods, so it’s important to verify with them what coverage you have so you’ll know what coverage you need to get for maximum protection.
Auto Insurance Basic: Auto Insurance Requirements for Uber Drivers
The state of Florida requires all drivers to have “no-fault” car insurance, which is designed to allow for fast payouts and reduce lawsuits in the event of accidents. These no-fault auto insurance laws require Florida drivers to carry, at a minimum:
- Personal injury protection: $10,000
- Property damage liability: $10,000
Keep in mind that your personal auto insurance policy can deny you coverage while your rideshare app is on, so these minimum limits you’re required to carry will only protect you during period 0, while your app is off.
In addition to the minimum coverage you’re required to have just to drive in Florida, the state requires more comprehensive coverage for people who operate rideshare vehicles. Some of this coverage may be provided by the rideshare company, but you may be responsible for coverage as well.
Bodily Injury Coverage (Per Person)
Bodily injury liability coverage is used for injuries that you or a designated policy member cause to someone else, even when driving another person’s car with their permission.
The transportation network company (TNC) – Uber, Lyft, Postmates, etc. – must provide a minimum of $50,000 in bodily injury liability coverage per person.
Bodily Injury Coverage (Per Incident)
Because most rideshare drivers will carry more than one passenger at some point, it’s important to have bodily injury liability coverage that extends to more than one person in an accident.
To this end, Florida requires that the TNC provide at least $100,000 of bodily injury liability coverage per accident. The additional coverage helps prevent lawsuits.
Property Damage Liability Coverage (Per Incident)
Property damage liability (PDL) coverage is already required as part of your personal policy, but your TNC will need to provide additional coverage while the app is on. PDL covers damages you or a policy member cause to another person’s property.
While property damage is typically a car that is involved in an accident, there are other pieces of property PDL coverage will extend to:
- Lamp posts
- Telephone poles
- Other structures
The minimum coverage your TNC should provide while your rideshare app is on is $25,000 per incident.
Auto Insurance Basic: Additional Auto Insurance Coverage for Uber Drivers
The minimum coverage that Florida requires transportation network companies won’t necessarily protect you in a serious accident. A more robust policy may be required if you drive often, or if you drive in areas where property damage and medical care costs more than the nationwide average.
To better protect your financial interests, there are other types of rideshare auto insurance coverage you can get that will offer protection from expensive lawsuits and out-of-pocket costs.
Additional types of coverage available to rideshare drivers include:
- Collision: This coverage will take care of damages resulting from a collision with another vehicle, an object like a tree or telephone pole, or flipping the vehicle.
- Comprehensive: This coverage will reimburse you for theft or damages that are not considered a result of a collision, such as natural disasters or hitting an animal.
Your rideshare company may offer additional collision and comprehensive coverage that kicks in during periods two and three, but you’ll have to have your own collision and comprehensive coverage to qualify for that. You’ll also likely have a deductible of $1,000.
Auto Insurance Basic: How to Choose Auto Insurance for Uber Drivers
Staying protected doesn’t have to be daunting – you just need to cover a few bases before choosing an auto insurance policy as an Uber or Lyft driver.
- Check with your rideshare company first and find out what coverages they offer, what requirements you need to meet, and what they recommend beyond their coverage.
- Talk with an auto insurance broker to get the best quotes on your bodily injury liability, property damage liability, and any other additional coverages you want.
Make sure to assess your own financial situation to see how much you can afford to pay per month and if you need to meet a deductible for an accident.
Need help buying rideshare auto insurance? Contact Fiorella Insurance Agency today for more information on the best policy for your situation.