Haris Ashley
Lyft provides insurance for its drivers, but it is not a comprehensive policy. Lyft maintains third-party liability insurance for covered accidents if your personal insurance does not apply, with a minimum of $1,000,000 for third-party auto liability coverage. However, this insurance is not in effect when a driver is offline, waiting for a ride request, or has an active ride in progress. In these cases, a driver's personal auto insurance policy is in effect, but it may not cover all liabilities that arise from ridesharing activities. Therefore, it is recommended that Lyft drivers obtain rideshare insurance to fill in the gaps in coverage. This can be purchased as an add-on to a personal auto policy or as a separate commercial policy.
| Characteristics | Values |
|---|---|
| Lyft's insurance coverage | Depends on the driver's status: personal driving, waiting for a request, en route to a passenger, or ride in progress |
| Lyft's insurance coverage for personal driving | Personal auto insurance applies |
| Lyft's insurance coverage for waiting for a request | Lyft provides third-party liability insurance for covered accidents if personal insurance does not apply |
| Lyft's insurance coverage for en route to a passenger | Lyft provides third-party liability insurance for covered accidents if personal insurance does not apply |
| Lyft's insurance coverage for ride in progress | Lyft provides third-party liability insurance for covered accidents if personal insurance does not apply |
| Lyft's third-party liability insurance coverage | At least $1,000,000 in most markets; lower or not procured in certain markets |
| Lyft's third-party liability insurance coverage in Maryland | $125,000 for bodily injury and property damage while en route to pick up a passenger |
| Lyft's third-party liability insurance coverage in Arizona and Nebraska | $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $20,000 per accident for property damage |
| Lyft's insurance exceptions | Taxi and Limousine Commission (TLC) drivers in certain New York counties, and livery and/or Transportation Charter Permit (TCP) drivers countrywide |
| Gaps in Lyft's insurance coverage | Lyft does not provide full coverage for drivers; rideshare insurance endorsement is needed to cover gaps |
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What You'll Learn
Lyft's third-party liability insurance
Lyft maintains third-party liability insurance for covered accidents if your personal insurance does not apply. In most markets, there is a minimum of $1,000,000 for third-party auto liability coverage, although this amount is lower and/or not procured in certain markets. First-party coverages may include uninsured motorist coverage, underinsured motorist coverage, PIP, MedPay, and/or Occupational Accident coverage.
Exceptions to Lyft's third-party liability insurance include covered accidents in Arizona and Nebraska, where 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, consistent with state requirements. In Maryland, third-party liability insurance is $125,000 for combined single limits for bodily injury and property damage while the driver is en route to pick up a passenger, consistent with state requirements.
In addition, Lyft does not procure insurance for rides with Taxi and Limousine Commission (TLC) drivers in the five boroughs of New York City and specific New York counties (Westchester, Nassau, Suffolk, Dutchess, Ulster, and Rockland). These TLC drivers, as well as livery and/or Transportation Charter Permit (TCP) drivers countrywide, must procure their own policies consistent with state and local requirements.
It is important to note that your personal auto insurance policy may not provide coverage while you are logged into the Lyft app or while using your vehicle in connection with the Lyft platform. Lyft will provide all required insurance if you do not have the necessary coverage. However, Lyft's insurance coverage is subject to certain exceptions and limitations, and it may not provide full protection. Therefore, it is recommended to review your personal insurance policy and consider obtaining a rideshare insurance endorsement to ensure comprehensive coverage while driving for Lyft.
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Lyft's insurance for personal driving
Lyft provides its drivers with commercial insurance, which covers them while they are using the Lyft app. This insurance is subject to state and local laws and does not replace the driver's personal insurance. Lyft's commercial insurance coverage depends on the driver's status at the time of an incident. When a driver is offline and not in driver mode, their personal driving insurance applies, and Lyft's insurance does not cover them.
Lyft maintains third-party liability insurance for covered accidents if a driver's personal insurance does not apply. This liability insurance provides at least $1,000,000 in coverage in most markets, although this amount may vary or not be procured in certain markets. Lyft's insurance also includes first-party coverages, such as uninsured motorist coverage, underinsured motorist coverage, personal injury protection (PIP), medical payments (MedPay), and occupational accident coverage.
In some states, such as Arizona and Nebraska, and Maryland, Lyft's third-party liability insurance limits are consistent with state requirements. For example, in Arizona and Nebraska, the coverage is $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $20,000 per accident for property damage. In Maryland, the coverage is $125,000 for bodily injury and property damage combined when a driver is en route to pick up a passenger.
It is important to note that Lyft's insurance does not apply to certain types of drivers, such as Taxi and Limousine Commission (TLC) drivers in specific locations, including New York City and certain New York counties. These drivers are subject to state and local requirements and must carry their own commercial auto insurance.
To ensure comprehensive coverage, Lyft drivers may consider obtaining a rideshare insurance endorsement on their personal policy. This type of insurance bridges the gap between personal and rideshare insurance, providing protection during periods when a driver is logged on but waiting for a ride request. It can also offer additional benefits, such as roadside assistance, and reimburse the difference between the higher deductible of rideshare companies and a driver's personal policy deductible.
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Lyft's insurance while waiting for a request
Lyft provides its drivers with commercial insurance, which offers certain coverages while the Lyft app is in use. However, this insurance does not replace the driver's personal insurance. Lyft's insurance coverage depends on three distinct periods: personal driving, waiting for a request, and en route to a passenger.
When a Lyft driver is waiting for a request, the app is in driver mode, but they have not received a ride request. During this period, the driver's personal auto insurance policy is typically not in effect. Regular car insurance does not cover periods when the driver is logged into the app and working, even if they are waiting for a ride request.
Lyft provides third-party liability insurance for covered accidents if the driver's personal insurance does not apply. In most markets, this coverage is at least $1,000,000 per accident. However, this limit may be lower or not procured in certain markets. Lyft's insurance coverage while waiting for a request does not replace the need for personal insurance, which is required by Lyft and must meet the minimum state coverage requirements.
To fill any gaps in coverage, drivers may need to purchase additional rideshare insurance or an endorsement to their personal policy. This additional coverage can provide protection while the driver is logged into the app and waiting for a request. It can also offer benefits such as roadside assistance and reimbursement for the difference between deductibles.
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Lyft's insurance while en route to a passenger
Lyft maintains third-party liability insurance for covered accidents if your personal insurance does not apply. Lyft's insurance coverage depends on which of the following three periods you're in when an incident occurs: personal driving, waiting for a request, or en route to a passenger. "En route to a passenger" includes the time from accepting a ride request to arriving at the requested pickup location. In most markets, Lyft provides at least $1,000,000 in third-party auto liability coverage, which may include uninsured motorist coverage, underinsured motorist coverage, and more.
However, it's important to note that Lyft's insurance coverage has some exceptions. For example, in Maryland, third-party liability insurance is $125,000 for bodily injury and property damage when the driver is en route to pick up a passenger. In Arizona and Nebraska, third-party liability insurance is lower, at $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $20,000 per accident for property damage. Additionally, Lyft does not procure insurance for rides with Taxi and Limousine Commission (TLC) drivers in certain areas, such as the five boroughs of New York City, and specific New York counties. In these cases, TLC, livery, and Transportation Charter Permit (TCP) drivers must procure their own insurance policies consistent with state and local requirements.
It's worth mentioning that regular car insurance typically does not cover you while driving for Lyft, so it is recommended to consider purchasing a rideshare insurance policy or endorsement to ensure full coverage. A rideshare endorsement can bridge the gap between your personal policy and the rideshare company's deductible, and it can also provide benefits like roadside assistance. While Lyft provides basic insurance coverage for its drivers, it is important for drivers to understand the limitations and consider additional coverage options to ensure they are fully protected.
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Lyft's insurance with a ride in progress
Lyft maintains third-party liability insurance for covered accidents if your personal insurance does not apply. Lyft's insurance coverage is in effect from the moment you accept a ride request to the moment you drop off your passenger. This includes the time from picking up a passenger until the time the ride has ended.
In most markets, Lyft provides at least $1,000,000 in third-party auto liability coverage. This includes uninsured motorist coverage, underinsured motorist coverage, PIP, MedPay, and/or Occupational Accident coverage. If a driver obtains comprehensive and collision coverage on their personal auto policy, Lyft then maintains contingent comprehensive and collision coverage up to the actual cash value of the car ($2,500 deductible).
However, it is important to note that Lyft's insurance coverage has some exceptions. For example, in Arizona and Nebraska, third-party liability insurance is lower, at $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $20,000 per accident for property damage, consistent with state requirements. Similarly, for rides with Taxi and Limousine Commission (TLC) drivers in certain areas of New York, as well as specific NY counties, Lyft does not provide insurance, and drivers must procure their own policies consistent with state and local requirements.
While Lyft provides insurance coverage for its drivers, there may still be gaps in protection. Therefore, it is recommended that Lyft drivers consider purchasing a rideshare insurance endorsement or policy to ensure full coverage whenever they are driving. This additional insurance can provide benefits such as roadside assistance and reimbursement for deductibles.
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Frequently asked questions
Lyft maintains third-party liability insurance for covered accidents if your personal insurance does not apply. Lyft also provides at least $1,000,000 for third-party auto liability coverage in most markets.
Lyft's insurance coverage is in effect from the moment a driver accepts a ride request to the moment the ride ends.
Lyft's insurance coverage does not apply when a driver is waiting for a ride request. Additionally, Lyft does not procure insurance for rides with Taxi and Limousine Commission (TLC) drivers in certain areas, and livery and/or Transportation Charter Permit (TCP) drivers countrywide. In these cases, drivers must procure their own insurance policies consistent with state and local requirements.
