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Rideshare Car Insurance

Thinking about becoming a driver for companies like Uber or Lyft? We’ve got your back! Driving for ridesharing companies has its perks: flexibility, independence, and the ability to earn extra income on your schedule. However, it also means you’ll need extra insurance protection, too. Here’s why you need rideshare insurance.

Why Do I Need Rideshare Coverage?

Your personal auto insurance typically doesn’t offer coverage while you’re signed into rideshare driving apps. Likewise, companies like Uber and Lyft cover rideshare drivers once they accept a ride request and are en route towards picking up their passenger, and then once the passenger is in their car. It does not, however, fully cover you when you’re logged into the app, waiting for ride requests.

This creates a gap in your coverage — which our rideshare coverage is designed to cover.

What Does Rideshare Insurance Cover?

American Family’s rideshare insurance covers you from the moment your ridesharing app is turned on until you’ve been matched with a passenger. You’ll get the same coverages that you have with your personal auto policy, including bodily injury liability, property damage liability, collision and comprehensive, medical expense, and personal injury protection.

Keep in mind, if you don’t have the right coverage in place, yet still use your car to make money through a rideshare company like Lyft or Uber, your insurer won’t cover you if you get into an accident. Also, if they find out you’ve been driving without the proper insurance, they may decide to drop your coverage altogether. It seems harsh, but it’s all in your best interest. You’re a higher risk since you’re using your vehicle more often and increasing the possibility of getting into an accident — not good for you or your insurer!

What Does Uber or Lyft Insurance Cover?

Whether it’s an Uber insurance policy, Lyft insurance, or another ridesharing service, their insurance policy typically only covers your liability as a driver while you’re logged into the app and matched with a rider. That means if your car damages someone else’s property, their coverage would kick in to help cover the expenses. However, the insurance from your rideshare company does not cover any events while you are logged in and waiting for a rider. For instance, if you’re driving around waiting for a match and you get into an accident, you won’t be covered by your rideshare company’s insurance (or your personal policy). You’ll learn more about this below.

Gaps Between Uber, Lyft, and Personal Auto Policies

If you’ve done your research, you’ve probably heard of the “gap” in coverage when it comes to both your own personal auto insurance and the insurance provided by the rideshare company. Basically, from the moment you turn on the app and are waiting for a passenger, you aren’t covered by either your personal policy or your rideshare company’s insurance. This is considered the “gap” in coverage since you technically don’t have any during this time. Consider these stages:

Stage 0: App is off.
You’re covered by your personal car insurance policy.

Stage 1: App is on and you’re waiting for a ride request.
You're not covered by your personal auto policy, and you have limited coverage under your rideshare company's insurance.*

Stage 2: Ride request is accepted and you’re driving to the rider.
You’re covered by your rideshare company’s insurance.

Stage 3: Rideshare passenger is in the car.
You’re covered by your rideshare company’s insurance.

So how do you cover that gap? Fortunately for you, we’ve got a smart solution: American Family’s rideshare coverage. It’s a simple, affordable add-on to your existing personal auto policy, and gives you peace of mind while driving wherever your entrepreneurial spirit takes you.

As a rideshare driver, it can be tricky navigating through Uber or Lyft driver insurance, so here’s a more detailed look at how you’re covered without rideshare endorsement, and with it, during the three main stages of a ridesharing trip.

American Family Rideshare Endorsement

So are you ready to fully enjoy all the advantages of being a rideshare driver? Consider adding the protection and peace of mind you deserve, mile after mile with American Family Insurance's rideshare coverage.

Contact your agent to learn more about rideshare insurance eligibility in your state.

This rideshare insurance coverage is not available in all states, please connect with your agent for more information.

*Rideshare companies typically provide limited liability coverage only, and no comprehensive/collision coverage for damage to your car during Stage 1.