Lyft Driver? Here's How To Pick The Right Insurance

If you're a Lyft driver, it's important to understand the insurance requirements and options available to you. Lyft provides insurance coverage for its drivers, but it may not be sufficient for all situations, and there are specific periods where your personal auto insurance or a separate rideshare endorsement may be necessary. Understanding these insurance gaps and how to fill them is crucial for ensuring you're adequately protected while driving for Lyft. Additionally, maintaining a professional driver profile photo can positively impact your ratings and tips from passengers.

Lyft driver insurance requirements

Lyft provides insurance for its drivers, but it is limited and only applies during certain periods. Lyft's insurance coverage is divided into three periods:

• The app is on, and the driver is waiting for a ride request.
• The driver has been matched with a passenger and is on their way to the pick-up location.
• The passenger is in the car, and this period ends when the passenger is dropped off.

During the first period, Lyft offers limited liability coverage with lower limits. For example, in some states, the liability limits are $50,000 per person for bodily injury, up to $100,000 per incident, and $25,000 for property damage coverage. Comprehensive and collision coverage are not offered during this period.

In the second and third periods, Lyft provides contingent comprehensive and collision coverage up to the actual cash value of the car, with a high deductible of $2,500. This means that if a driver has comprehensive and collision coverage on their personal auto policy, Lyft will provide additional coverage in case of an accident.

Lyft also offers at least $1,000,000 in third-party auto liability coverage and first-party coverages, which may include uninsured or underinsured motorist coverage, personal injury protection (PIP), medical payments (MedPay), and occupational accident coverage. However, the availability and requirements of these coverages may vary by state.

To ensure adequate protection, Lyft drivers should consider purchasing a "`rideshare endorsement'" or a "rideshare-friendly" insurance policy. This type of coverage fills the gaps left by personal auto insurance policies, which typically exclude coverage for business use, such as ridesharing. Without a rideshare endorsement, using a personal vehicle for Lyft may violate the driver's personal auto insurance policy, and the insurance company may deny coverage.

Additionally, drivers should understand the limitations of Lyft's insurance coverage and be aware that their personal auto insurance may provide coverage when they are "offline" or not actively using the Lyft app. It is important for drivers to review their insurance policies and understand the coverage provided by both their personal insurance and Lyft to ensure they have adequate protection while driving for the company.

Lyft's insurance coverage

Lyft provides its drivers with insurance coverage, but it is likely to be limited and will only apply after a claim has been made against the driver's own auto insurance. Lyft drivers are required to carry liability insurance and have auto insurance that meets the minimum state coverage requirements. Lyft maintains third-party liability insurance for covered accidents if your personal insurance does not apply, with at least $1,000,000 in third-party auto liability coverage.

In Arizona and Nebraska, third-party liability insurance is $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $20,000 per accident for property damage, in line with state requirements. In Maryland, third-party liability insurance is $125,000 (combined single limits for bodily injury and property damage) during the time the driver is en route to pick up a passenger, again consistent with state requirements.

Lyft does not provide insurance for rides with TLC drivers in the five boroughs of New York City and specific NY counties (Westchester, Nassau, Suffolk, Dutchess, Ulster, and Rockland). In these cases, TLC drivers must procure their own policies consistent with state and local requirements.

There are three distinct periods that determine a driver's insurance coverage while driving for Lyft. If a driver is not in "driver mode" (i.e., not on the app), the only available insurance is their personal auto policy. If a driver is on the app, the types and amounts of available insurance coverage depend on when the accident happens. If a driver causes an accident while waiting for a match with a rider, Lyft will provide limited amounts of liability coverage, but the driver must first present the claim to their own auto insurance company. If a driver has a rideshare endorsement, it will also provide coverage.

Personal auto insurance and Lyft

If you are a Lyft driver, your personal auto insurance policy will not cover you or your passengers if you are in a traffic accident while working. This is because personal auto insurance policies are designed for personal use only, and driving for Lyft is considered a business or commercial use. Therefore, if you are in an accident while working for Lyft, you will first need to make a claim with your own auto insurance company before Lyft's insurance coverage kicks in.

Lyft does provide its drivers with insurance coverage, but this coverage is likely to be limited in amount and will only apply after you have made a claim with your own insurance company. Lyft's coverage includes $1 million of third-party liability coverage, uninsured/underinsured motorist bodily injury, and contingent comprehensive and collision coverage that covers up to the cash value of your car. However, the latter coverage comes with a $2,500 deductible, which means you will have significant out-of-pocket expenses before Lyft's insurance covers any accident or injury-related expenses.

To ensure that you have adequate insurance protection for yourself and your passengers, you will need to purchase a separate "rideshare endorsement" or "rideshare insurance policy" from an insurance company. This will provide you with additional coverage while you are working for Lyft.

It is important to note that there are three distinct periods that determine your insurance coverage while driving for Lyft:

• You are driving around, waiting for a match with a rider. If you cause an accident during this period, Lyft will provide you with limited amounts of liability coverage, but you will first need to present the claim to your own auto insurance company. If you have a rideshare endorsement, it will also provide coverage.
• You have been matched with a rider and are on the way to pick them up.
• The passenger is in the car. This period ends when you drop off the passenger.

During Periods 2 and 3, Lyft's insurance coverage will provide more protection, but it is still important to have your own personal auto insurance and a rideshare endorsement to ensure you are fully covered.

Rideshare endorsement

If you are a rideshare driver, you are required to carry liability insurance. While ridesharing companies like Uber and Lyft do provide insurance coverage for their drivers, it is often limited and may not apply in certain situations, such as when you are waiting for a passenger.

To ensure that you have adequate insurance protection for yourself and your passengers, you may need to purchase a separate "rideshare endorsement" or "rideshare insurance" from an insurance company. This type of insurance is designed specifically for rideshare drivers and can fill in the coverage gaps left by the ridesharing company's policy. It is important to note that some insurance companies do not offer rideshare coverage, so you may need to switch to a company that does or consider a commercial auto policy, which can be more expensive.

Rideshare insurance protects you and your vehicle while you are driving for a ridesharing service. It provides coverage for liability, bodily injury, and property damage. Some policies may also include additional coverages such as roadside assistance, rental car reimbursement, and uninsured/underinsured motorist protection. It is worth noting that rideshare insurance is not available in all states, so be sure to check with your insurance company to see if it is offered in your state.

Additionally, it is crucial to understand the different periods or phases of a ride when it comes to insurance coverage. Period 1 refers to the time when you are driving around, waiting for a match with a rider. During this period, your rideshare company may provide limited liability coverage, but you will likely need to present the claim to your own auto insurance company first. If you have a rideshare endorsement, it will also provide coverage during this period. Period 2 refers to the time when you have been matched with a rider and are on your way to pick them up. The insurance coverage during this period may vary depending on your rideshare company and your personal auto policy.

Lyft driver profile photo

A driver profile photo is the first and last impression on every passenger. It is important to have a good profile photo as it can lead to higher ratings and tips.

• Hold your phone horizontally when taking the photo. Photos not taken horizontally will be rejected.
• Stand in front of a plain background with even lighting.
• If you have someone to help, ask them to stand 3 feet away, then focus the image.
• The photo must include both your shoulders and the top of your head in the frame.
• Remove accessories that cover your face like hats, sunglasses, or masks. This ensures you are easily recognizable to passengers.
• Do not appear shirtless or unclothed in your picture.
• Smile! A nice smile can help riders feel welcome.

To upload your profile photo, open the Lyft Driver app and follow these steps:

• Open the main menu.
• Tap 'Account'.
• Tap 'Personal Info'.
• Select 'Profile photo'.
• Drag the image you want to become your profile photo to the space or select 'browse' to upload the new photo from your gallery.

Lyft will review the photo and approve it, usually within 24 hours. However, some users have reported that it can take up to 2-3 days for the photo to be approved.

Frequently asked questions