Lyft Car Insurance Coverage: What to Know

Lyft drivers are provided with a certain amount of coverage by the company. However, the Lyft insurance provided might not be enough to cover your repairs and medical expenses. Rideshare insurance exists to protect those that transport others in their vehicle. Knowing the amount of Lyft insurance coverage required and additional insurance you should acquire will ensure that you’re fully protected. Compare rates today.

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Tonya Sisler has a Bachelor’s Degree from the University of South Carolina in Journalism and has worked for 15+ years in management. She has also completed a proofreading certification and is currently a professional writer.

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Brad Larson has been in the insurance industry for more than a dozen years. He started out as a claims adjuster for a national carrier. He has since switched to the agency side of the business. Brad is licensed in all P&C lines.

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Reviewed by Brad Larsen
Licensed Auto Insurance Agent

UPDATED: Feb 15, 2021

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Things to Know

  • Lyft requires a certain amount of insurance.
  • Lyft insurance doesn’t cover a driver at all times.
  • Rideshare insurance offers additional protection.

Becoming a Lyft driver can help you generate additional income or be a full-time job. The company requires drivers to carry personal car insurance to avoid the risks of driving without car insurance. However, this and Lyft insurance might not be enough to cover all repairs or medical expenses.

Since Lyft drivers frequently transport other people in their personal vehicles, they need more than their typical personal car insurance. Rideshare insurance was created to ensure that drivers have the necessary amount of coverage to avoid hefty bills.

Enter your ZIP code to compare rideshare car insurance rates in your area.

What is Lyft?

Lyft is a ridesharing platform that allows those needing a ride to receive one from those looking to make money by providing the service.

The company’s app connects those looking for rides with those looking to give them. Following the ride, drivers are rated and tipped by the customer.

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What insurance does Lyft require?

While Lyft does require its drivers to buy car insurance, they only need the personal auto insurance policy that meets their state’s minimum coverage requirements.

However, this type of insurance policy might not cover a driver while they drive for Lyft. That’s why rideshare insurance is recommended by the company.

What does Lyft insurance cover?

There are three different periods that will help to determine the amount of Lyft insurance coverage while driving. This depends on whether the app is on and if a ride has been accepted by the driver.

If the app is off, the driver is only protected by their personal auto insurance. Lyft only provides coverage for drivers while they are using the service to accept rides.

If the app is on and the driver is waiting for a ride request, they are provided with third-party liability insurance. This coverage is included if the driver’s personal insurance policy doesn’t offer the coverage. This type of insurance includes:

  • $50,000 of personal bodily injury per person.
  • $100,000 of total bodily injury per accident.
  • $25,000 of property damage per accident.

If the app is on and the driver is picking up a passenger or has picked up a passenger, Lyft will provide a certain amount of coverage. This includes:

  • $1 million for third-party auto liability.
  • Uninsured or underinsured motorist bodily injury.
  • Contingent comprehensive and collision up to the actual cash value of the car ($2,500 deductible).

The latter coverage only applies if the driver has obtained comprehensive and collision coverage on their personal policy. These coverages can differ depending on local insurance requirements and laws.

What are the types of affordable Lyft insurance?

Lyft insurance provides certain coverages for their drivers. These coverages only apply when the app is on and the driver is picking up passengers or is in the process of providing a ride.

Automobile liability coverage

This is the primary coverage which begins when the ride is accepted until the ride has ended in the app. Lyft’s policy under this coverage is in addition to your personal insurance policy.

Contingent collision coverage

This type of insurance covers any physical damage that might be caused to your vehicle. The coverage applies to the actual value of the car or the cost of the repairs, whichever is less, and applies regardless of who is at fault.

You must have comprehensive and collision coverage on your personal policy to receive it from Lyft.

UM/UIM and first-party coverage

This type of insurance applies when an accident was caused by another driver that is uninsured or underinsured, causing bodily harm to you or your passenger. There is no deductible for this coverage but it varies by state. First-party coverage is designed to assist with medical expenses.

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What is rideshare insurance?

Rideshare insurance is provided by several of the top 60 car insurance companies you need to know. While Lyft insurance does provide some protection, it only exists while the app is on and can compromise your personal auto insurance policy.

Rideshare insurance policies also offer more coverage than insurance provided by the rideshare company. This type of insurance will provide coverage when the app is off and offers full coverage when the rideshare company offers limited coverage.

What are the levels of rideshare insurance?

Similar to Lyft insurance, affordable car insurance providers offer three levels of coverage. This includes when the app is off, when the app is on and the driver is waiting for a ride, and when the app is on and the driver is providing a ride.

The difference is in the coverage as the insurance company offers coverage regardless of if the app is on.

How does rideshare insurance differ from Lyft insurance?

Using Lyft insurance can affect your personal policy, depending on your personal insurance company and the policy. Rideshare insurance will replace your personal policy so that you receive full coverage by the provider.

Rideshare insurance also covers you at all times. Lyft driver insurance only covers drivers when they’ve accepted a ride. If you suffer damage due to an accident while the app is off, even if it’s a short break from driving, they offer no coverage. Rideshare insurance covers drivers at all times.

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Frequently Asked Questions

Read on for more FAQs.

#1 –  Where can I find Lyft’s proof of insurance?

Lyft has certificates of insurance for each state. Each certificate can be accessed by clicking on the state through their certificates of insurance page.

#2 – How often do I need to update my insurance?

Lyft requires that drivers keep their insurance information up-to-date. This typically means renewing your personal auto insurance every six to 12 months.

#3 – Where can I find a rideshare policy?

Rideshare policies are offered by multiple car insurance providers.

#4 – Who will work with me if I need Lyft insurance?

To help you through the claims process, Lyft has partnered with Allstate Insurance Company (North Light Specialty Insurance Company), Liberty Mutual Insurance, Mobilitas Insurance Company, Progressive (United Financial Casualty Company), and AXA-XL and Travelers (Constitution State Services).

Lyft Insurance: The Bottom Line

Lyft provides a certain amount of insurance for its drivers but this won’t cover all accidents. The company recommends that drivers also acquire rideshare insurance from a private insurance provider. This will ensure that you’re covered for any incident that might occur.

Enter your ZIP code to compare rideshare and Lyft insurance quotes and find the right coverage for you.

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