Get Reliable Rideshare Insurance in Chicago

More and more people these days are driving for ridesharing companies as a way to earn a living or to make some extra cash easily and conveniently. Unfortunately, when road accidents happen, you can’t assume that the damages will be on Uber or Lyft’s dime. There are typically gaps in your personal car insurance and the ridesharing company’s insurance that only rideshare insurance can cover.

What is Rideshare Insurance?

Rideshare insurance is a type of insurance that provides liability and damage coverage when driving for Uber and Lyft. It covers the gaps in your personal auto policy and the rideshare company’s insurance policies. Most rideshare insurance policies are sold as add-ons to existing car insurance policies.

This type of insurance is not mandated by ridesharing companies. Ridesharing drivers can elect to get rideshare insurance so that they can be protected at all times, even in the event of accidents that result in property damage or medical expenses related to injuries.

Why Uber and Lyft Drivers Need Insurance

When you drive for Uber or Lyft, three different insurance policies work together to protect you – your personal auto policy, your rideshare insurance, and Lyft and Uber’s driver insurance. Each policy begins working at different time periods:

Period One: This is when the app is on, but you haven’t accepted a passenger yet. While waiting for a ride request, Uber and Lyft’s insurance will provide limited liability coverage. You will need rideshare insurance for damage coverage.

Period Two: Period two is when you’ve accepted a ride request and are on your way to pick up your passenger. During this time, your Uber and Lyft car insurance will provide coverage. Excess coverage will come from rideshare insurance.

Period Three: When you’ve picked up your passengers and are en route to their destination, the two companies’ insurance will provide coverage, while rideshare insurance will provide excess insurance.

There is another period – Period 0 – where your application is off and you may be taking a personal drive. During this period, you are covered by your own personal insurance policy.

What Does Rideshare Insurance Cover?

Rideshare insurance covers you during Periods 1 through 3.

For Period 1, rideshare insurance will protect you with a little help from your rideshare company’s insurance. While the details of your rideshare insurance policy depends on the insurer and state, Uber and Lyft will provide substantial coverage, starting with $50,000 bodily injury per person coverage.

For Periods 2 and 3, you get full coverage from your rideshare company, along with some extra coverage from your rideshare insurance policy. While the coverage from your rideshare insurance differs by state and insurance company, Lyft and Uber provide $1 million liability coverage per accident and uninsured/underinsured motorist coverage per accident.

Isn’t Uber’s or Lyft’s Insurance Enough?

The simple answer is no, car insurance with rideshare companies is not enough. Many drivers think it is all that they need to be fully covered while ridesharing. While the two companies do offer some commercial insurance for their drivers, the coverage isn’t end-to-end, meaning: it doesn’t extend from the time that you start the car to the time that the ride has ended.

Uber and Lyft driver insurance are in full force only during Periods 2 and 3, when you are en route to your passengers or in transit to their destination.

How Much Does It Cost?

Lyft and Uber car insurance is generally cheaper than commercial auto insurance and a little bit more expensive than a personal auto policy. The actual price depends on many factors, such as the age of the driver, driving experience, past infractions, and other such details. It can also vary by state and insurer.

With Oxford Auto Insurance, you’re sure to get the rideshare insurance policy that best suits you. Our team will hunt down the policy with the most competitive rate for you. If you need rideshare insurance in Illinois, you can’t go wrong with Oxford Auto Insurance. Visit one of our local offices or give us a call today!