Uber and Lyft Drivers Are Not Covered by Their Personal Auto Policy

By Allan Degner on August 10, 2016

If you are driving a personal vehicle for Uber, Lyft or any other ride-share company and have an accident, even though you might have excellent coverage on your personal policy, you likely will not be covered if you have paying riders in your vehicle. This is because personal car insurance policies have a list of exclusions, and they often include driving-for-hire.

If your insurance company denies the claim, the other party, whether your passenger or the vehicle you hit can come after any and all assets you have leaving you a big risk exposure. Commercial auto policies can be purchased, but are often cost prohibitive for ride-share drivers looking to make extra money and require a commercial driver’s license. According to the National Association of Insurance Commissioners, these policies tend to cost between $5,000 and $7,000 per year. New insurance products are currently being developed, so stay tuned for upcoming coverage options.

For any auto coverage questions reach out to your service team or agent.

Update: Read our February 2017 Blog Post