Auto Insurance For Lyft Or Grubhub: Where To Get Covered?

If you're looking to get into ridesharing or food delivery with companies like Lyft or Grubhub, you'll need to consider auto insurance. While Lyft does offer insurance to its drivers, it is contingent and can leave gaps in your coverage, so you may need to purchase additional insurance. Grubhub, on the other hand, does not provide auto insurance coverage for its drivers, so you will need to find coverage independently. In both cases, you'll need to ensure you have the appropriate coverage to avoid being responsible for repairs and medical expenses resulting from a traffic accident.

Lyft's insurance coverage for drivers

Lyft provides insurance coverage for its drivers, but it is important to note that this coverage is not comprehensive and only applies in certain situations. Here is a detailed overview of Lyft's insurance coverage for drivers:

Coverage when the app is off:

When the Lyft app is turned off, a driver's personal auto insurance coverage is applicable. If a driver has rented a car through Express Drive, the standard insurance included with the rental car will apply. It is worth noting that most personal auto policies will not cover ridesharing activities, so drivers should ensure they have the appropriate coverage or endorsement.

Coverage when the app is on and drivers are able to receive ride requests:

In this situation, Lyft provides third-party liability insurance for covered accidents if the driver's personal insurance does not apply. The minimum coverage provided by Lyft includes:

• $50,000 per person for bodily injury.
• $100,000 per accident for bodily injury.
• $25,000 per accident for property damage.

However, it is important to note that these amounts may vary depending on the state. For example, in Arizona and Nebraska, the third-party liability insurance coverage is lower, as per state requirements.

Coverage when the app is on and drivers are en route to pick up passengers or during rides:

When the app is on, and a driver is on their way to pick up a passenger or already has a passenger in the car, Lyft provides higher coverage limits. The coverage provided by Lyft in most markets includes:

• At least $1,000,000 for third-party auto liability coverage.
• First-party coverages, which may include uninsured motorist coverage, underinsured motorist coverage, personal injury protection (PIP), medical payments (MedPay), and/or Occupational Accident coverage.
• Contingent comprehensive and collision coverage up to the actual cash value of the car, with a deductible of $2,500. This applies if a driver has comprehensive and collision coverage on their personal auto policy.

Again, it is important to note that these coverage limits may vary in certain markets, such as Maryland, and that Lyft does not provide a primary liability policy in certain areas, such as the five boroughs of New York City.

Overall Recommendations:

To ensure complete coverage while driving for Lyft, it is recommended that drivers consider purchasing a rideshare insurance policy or adding a rideshare endorsement to their existing personal auto insurance policy. This will provide coverage during all periods of driving, including when the app is off and when the driver is waiting for ride requests. Additionally, drivers should carefully review their insurance policies to understand any exclusions or limitations that may apply.

The cost of rideshare insurance for Grubhub drivers

Rideshare insurance is typically more expensive than personal car insurance but cheaper than commercial auto insurance. The exact price depends on factors such as your driving history, location, coverage limits, credit score, and deductible.

Grubhub drivers are required to carry their state's minimum auto insurance requirements and liability coverage. While Grubhub does not provide auto insurance coverage for its drivers, it is recommended that drivers purchase additional coverage.

Rideshare insurance for Grubhub drivers can be purchased from top companies such as Allstate for as little as $2 per month. Other insurance companies that offer rideshare insurance include:

• The Hartford
• Farmers
• State Farm
• Liberty Mutual
• Nationwide
• USAA
• Erie
• American Family
• Progressive

The best companies for rideshare insurance for Grubhub drivers

When it comes to rideshare insurance for Grubhub drivers, there are several companies that stand out for their comprehensive coverage options, competitive rates, and high customer satisfaction ratings. Here are the best companies for rideshare insurance for Grubhub drivers:

• The Hartford: The Hartford is a top choice for Grubhub drivers due to its excellent customer service, comprehensive coverage options, and specialization in drivers' insurance. They offer a wide range of coverage choices and are renowned for their exceptional customer support. However, their rates can be higher compared to some competitors, and their availability is limited to certain states.
• Farmers: Farmers Insurance is an excellent option for Grubhub drivers, especially for those seeking a rideshare endorsement. They offer customizable coverage options, high customer service ratings, and extensive coverage and discount options. Farmers also provide Signal, a usage-based insurance discount. However, their rates tend to be higher than average, and they are not available in every state.
• State Farm: State Farm is one of the largest insurance companies in the US and is known for its high levels of customer satisfaction. They offer affordable rates, even for drivers with a speeding ticket or an accident on their record. State Farm provides a wide variety of discounts and is a good choice for Grubhub drivers seeking full coverage. However, their rates can be higher for drivers with poor credit scores, and certain options like new vehicle replacement and accident forgiveness may not be available.
• Allstate: Allstate is a well-known insurance provider that offers innovative tools like Drivewise to monitor driving behavior and a wide range of coverage options. They have strong financial stability ratings and are a good choice for Grubhub drivers seeking comprehensive coverage. However, their rates can be expensive for young drivers, and they have received mixed reviews for customer service.
• Liberty Mutual: Liberty Mutual is a good option for Grubhub drivers who want flexible policies. They offer multiple policy discounts for bundling, a good selection of coverage options, and 24/7 claims service. However, their rates can be higher for certain demographics, and their availability in rural areas is limited.
• Nationwide: Nationwide is known for its highly-rated customer service and variety of discounts. They offer a vanishing deductible program, which reduces your deductible over time. However, their rates tend to be higher for young drivers, and their availability is not nationwide.
• USAA: USAA is a top choice for military personnel and their families, offering top-rated customer service and competitive rates. They provide specialized coverage for military members and are consistently rated highly by their customers. However, their services are limited to military-affiliated individuals and are not available to the general public.

When choosing a rideshare insurance company, Grubhub drivers should consider factors such as coverage options, cost, customer service, and the company's reputation for handling claims. Comparing quotes and coverage options from multiple providers will help ensure that drivers find the best insurance plan for their specific needs and budget.

Lyft's insurance coverage periods

Lyft's insurance coverage varies depending on whether the app is on or off and whether the driver is waiting for a ride request, en route to pick up a passenger, or has a passenger in the car.

When the app is off, a driver's personal auto insurance coverage applies. If a driver has rented a car through Express Drive, the standard insurance included in the rental agreement applies.

When the app is on and the driver is able to receive ride requests, Lyft maintains third-party liability insurance for covered accidents if the driver's personal insurance does not apply. This includes:

• $50,000 per person for bodily injury
• $100,000 per accident for bodily injury
• $25,000 per accident for property damage

When the app is on and the driver is en route to pick up passengers or during a ride, Lyft maintains the following insurance for covered accidents:

• In most markets, at least $1,000,000 for third-party auto liability coverage (these limits may be lower or not procured in some markets)
• First-party coverages, which may include uninsured motorist coverage, underinsured motorist coverage, personal injury protection (PIP), medical payments (MedPay), and/or Occupational Accident coverage
• If a driver obtains comprehensive and collision coverage on their personal auto policy, Lyft maintains contingent comprehensive and collision coverage up to the actual cash value of the car ($2,500 deductible)

It is important to note that Lyft's insurance coverage varies by state and local regulations, and there may be exceptions or modifications to the described coverage in certain regions.

The insurance requirements for Lyft and Grubhub drivers

Lyft

Lyft drivers must meet certain requirements to drive on the platform. These vary depending on the state and local requirements. Lyft drivers must have a current and valid driver's license, valid plates with current registration, and current and valid insurance with the driver's name on the policy. Lyft drivers are required to maintain personal auto insurance that meets the minimum state requirements. However, most personal auto policies do not cover drivers while they are using the Lyft app. Therefore, Lyft maintains commercial insurance on behalf of drivers, which provides certain coverages while the app is in use.

Lyft divides the insurance coverage periods into three distinct phases:

• Phase 1: The app is on, and the driver is waiting for a ride request. During this period, Lyft provides $50,000 of bodily injury per person, $100,000 of bodily injury coverage per accident, and $25,000 of property damage coverage per accident.
• Phase 2: The driver is en route to pick up passengers or during rides. Lyft maintains at least $1,000,000 for third-party auto liability coverage, first-party coverages (which may include uninsured motorist coverage, underinsured motorist coverage, personal injury protection, medical payments, and/or occupational accident coverage), and contingent comprehensive and collision coverage with a $2,500 deductible.
• Phase 3: The ride is in progress. Lyft maintains at least $1,000,000 for third-party auto liability coverage, first-party coverages, and contingent comprehensive and collision coverage with a $2,500 deductible.

Grubhub

Grubhub drivers are required to carry their state's minimum auto insurance requirements for liability insurance. However, Grubhub does not provide auto insurance coverage for its drivers, so drivers must find coverage independently. It is recommended that Grubhub drivers purchase rideshare insurance or add a rideshare plan to their existing policy, as personal policies may exclude coverage for business use.

Some of the top insurance providers for Grubhub drivers include The Hartford, Farmers, and State Farm, which offer competitive rates and comprehensive coverage options.

Frequently asked questions