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Do Uber® & Lyft® Drivers Need Special Car Insurance? January 2, 2019

Woods Park, Lincoln
Do Uber® & Lyft® Drivers Need Special Car Insurance?, Lincoln, Nebraska

Becoming a driver for Uber, Lyft, or another ride-hailing company is a convenient way to make cash. However, without the proper auto insurance, you risk losing everything you've earned and then some any time you head out on the road. The guide below explains the risks of going without.

What to Know About Ride-Hailing & Car Insurance

Why Isn’t My Regular Insurance Enough?

If you’re found at-fault in a car accident, your regular auto insurance policy will help cover the cost of resulting damage or injuries. However, if the car is technically being used for business purposes, standard personal use policies will not suffice.

Apart from minimum liability insurance, invest in collision and comprehensive coverage.  If the car is made inoperable due to an accident or another incident, it will pay to repair or replace it—a necessity if you rely on it for income. This type of coverage is also typically required for leasing the vehicle.

Doesn’t the Ride-Hailing Company Already Cover Me?

auto insuranceWhile these organizations typically have some form of auto insurance that they extend to their drivers, the scope is usually limited. In general, these policies are designed to cover damages experienced by passengers you may be driving—not any that occur to you or your vehicle.

To make matters more complicated, company-provided coverage is usually only applicable to incidents that occur when driving passengers. If an accident transpires while you are driving alone, for personal use, or parked while waiting for a ride request, the claim will not likely be covered.

What Kind of Insurance Should I Get?

Today, drivers can apply for ride-hailing insurance coverage that is specifically designed to address risks attached to this kind of work. However, as a relatively new market, they may not always be available or applicable. In these situations, talk to an agent about creating a commercial policy customized to your specific business needs.


To protect yourself on the road, turn to Allstar Insurance in Lincoln, NE. They offer comprehensive auto insurance policies optimized for your needs and budget. In addition, they provide mobile home, RV, and motorcycle insurance to cover all your other methods of transportation. Visit this caring agency online to learn more about their services or call (402) 477-0900 to request a custom quote from a friendly agent.

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