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Coverage changes by period
| Period | What you’re doing | Uber / Lyft cover |
|---|---|---|
| App off | Personal driving | None. Your personal policy applies. |
| Period 1 | App on, waiting for a request | Third-party liability of $50,000 per person / $100,000 per accident for injuries and $25,000 property damage. No cover for your own car. |
| Period 2 | Ride accepted, driving to pick-up | At least $1,000,000 third-party liability. Contingent collision and comprehensive. |
| Period 3 | Passenger in the car | Same as period 2. |
Sources: Uber driver insurance page (seen October 2026); Insurance.com on Lyft (August 2026). Some states require different limits.
Contingent physical damage means the platform pays to repair or replace your car up to its actual cash value, minus a $2,500 deductible, but only if your personal policy includes collision and comprehensive. Uninsured and underinsured motorist cover is included only where state law requires it for Uber; Lyft includes it during trips. Some states add extras, such as occupational accident cover in California and Massachusetts or workers’ compensation in Washington.
The coverage gap
Standard personal auto policies exclude using your car to carry people or goods for a fee. If you crash while the app is on and haven’t told your insurer, your claim may be denied and your policy cancelled. That leaves two gaps:
- Period 1 damage to your own car: the platform’s cover doesn’t pay for your car while you’re waiting for a ride.
- The $2,500 deductible in periods 2 and 3, which is much higher than most personal deductibles.
How to close the gap
Rideshare endorsement
Many large insurers sell an add-on to your personal policy that extends your own coverage, including collision and comprehensive, into period 1, and in some cases helps with the platform deductible in later periods. It is usually much cheaper than a commercial policy. Ask your insurer exactly which periods it covers.
Hybrid or rideshare-specific policy
Some insurers offer a single policy that covers both personal and rideshare driving. These can suit full-time drivers.
Commercial auto policy
If you drive for limousine services, deliver for several platforms or run a business, you may need commercial auto insurance; see commercial auto insurance.
Delivery drivers
Food and grocery delivery apps follow a similar pattern: limited or no cover while you wait, more cover during an active delivery. The same personal-policy exclusion applies, so a delivery or rideshare endorsement is just as important. Ask your insurer whether its endorsement covers delivery as well as passengers.
Checklist before you start driving
- Tell your insurer you plan to drive for a rideshare or delivery platform.
- Keep collision and comprehensive on your personal policy, or the platform’s contingent cover won’t apply.
- Add a rideshare endorsement or switch to a policy that includes rideshare use.
- Check your state’s rules in the driver app.
- Keep records of when you were online in case you need them for a claim.
If you do have an accident, follow the steps in our after-an-accident guide and report it in the app as well as to your own insurer.
Two examples
Waiting for a ride (period 1): You’re online but haven’t accepted a trip, and you rear-end another car. The platform’s liability cover pays for the other driver’s injuries and car, up to $50,000 per person, $100,000 per accident and $25,000 for property. Nothing pays to fix your car unless you have a rideshare endorsement, because your personal policy excludes the period and the platform provides no physical damage cover at this stage.
Carrying a passenger (period 3): The same crash happens with a passenger aboard. The platform’s $1 million liability cover applies, and your car is covered up to its actual cash value minus a $2,500 deductible, provided your personal policy includes collision and comprehensive. Some rideshare endorsements help pay that deductible.
These examples show why the endorsement matters most for period 1, when many drivers spend the most time online.
Frequently asked questions
Does my personal car insurance cover Uber or Lyft driving?
Usually not. Most personal policies exclude driving for pay, so you need a rideshare endorsement or a policy that includes rideshare use.
What does Uber insurance cover while I’m waiting for a ride?
Third-party liability of $50,000 per person and $100,000 per accident for injuries and $25,000 for property damage. It doesn’t cover damage to your car.
What is the Uber and Lyft deductible?
$2,500 for contingent collision and comprehensive cover during periods 2 and 3, and only if your personal policy includes both coverages.
How much does a rideshare endorsement cost?
It varies by insurer and state, but it is typically a modest addition to a personal premium and far cheaper than a commercial policy. Get quotes from your current insurer and at least one other.
Do I need to tell my insurer I drive for Uber?
Yes. Failing to disclose rideshare driving can lead to a denied claim or cancelled policy.
Sources
- Uber – Insurance for rideshare drivers
- Insurance.com – Lyft insurance explained (Aug 2026)
- CarInsurance.com – Uber insurance
- CarInsurance.com – How much is car insurance? (Aug 2026)
- Insurance Information Institute – Auto financial responsibility limits by state (July 2024)
Insurance prices, discounts and rules change often and vary by state. Figures were checked in October 2026; confirm details with the insurer or your state insurance department.