Rideshare Gap Auto Insurance: Which Va Companies Sell It?

If you're a rideshare driver, you'll need to purchase rideshare insurance to fill the gap in coverage left by your personal auto insurance policy. This is because personal auto insurance policies typically exclude coverage for commercial use, including ridesharing. In the event of an accident, you could be left to cover the cost of damages, and your insurance provider may even drop your coverage.

Rideshare insurance is a specific type of commercial auto insurance that fills the gap between your personal auto insurance and the commercial auto insurance provided by your rideshare employer. It covers you during the app on period spent working in the rideshare industry, when minimum liability coverage does not apply.

Several companies offer rideshare insurance, including USAA, Mercury, Allstate, Progressive, State Farm, and Farmers.

Rideshare insurance requirements in Virginia

If you are a rideshare driver in Virginia, it is important to ensure that you have the correct insurance coverage. Driving for a rideshare company like Uber or Lyft is considered a commercial activity, and your personal auto insurance policy will not provide sufficient coverage. Therefore, you need to purchase a separate rideshare insurance policy or add a rideshare endorsement to your existing policy.

Virginia Law Requirements

Per Virginia law, rideshare companies (also known as Transportation Network Companies or TNCs) must require their drivers to have insurance that covers them from the moment they accept a ride request to the end of the transaction. This includes both the time spent driving to pick up the passenger and the time spent driving with the passenger in the vehicle. Additionally, TNCs must require their drivers to have insurance that covers them while they are logged into the app and actively looking for ride requests.

The insurance requirements for rideshare drivers in Virginia are different from those for personal vehicle use. When using your vehicle for personal use with the rideshare app turned off, you must meet the state's minimum coverage requirements for personal vehicles, which include:

• $30,000 per person and $60,000 per accident in bodily injury liability
• $20,000 per accident for property damage liability
• Equal amounts of uninsured/underinsured motorist coverage

However, when you are logged into the TNC app and waiting for ride requests, the insurance requirements increase. During this time, Virginia requires a minimum of $50,000 per person and $100,000 per accident in bodily injury liability, and $25,000 per accident in property damage liability.

Once you accept a ride request and begin driving to pick up the passenger, the insurance requirements increase further. During this phase, you must have a minimum of $1 million in liability insurance for death, bodily injury, and property damage.

Insurance Companies Offering Rideshare Insurance in Virginia

Several insurance companies offer rideshare insurance or rideshare endorsements in Virginia, including:

• Allstate
• State Farm
• USAA
• Mercury
• Progressive
• Farmers

It is important to compare rates and coverage options from multiple companies to find the best policy for your needs. Additionally, keep in mind that insurance premiums in Virginia can vary based on your driving record, vehicle, city, ZIP code, and other factors.

Types of rideshare insurance coverage

If you are driving for a ridesharing company, your personal auto insurance policy will not provide sufficient coverage. You will need to purchase rideshare insurance to fill the gaps and protect yourself and others in your vehicle. Here are some of the types of rideshare insurance coverage you can purchase:

• Liability insurance: If you injure or kill someone or damage someone’s property while driving for a rideshare company, liability insurance covers the resulting medical bills, repair costs, and potential legal bills.
• Uninsured/underinsured motorist coverage: In the event of an accident caused by a driver without insurance or with insufficient insurance, uninsured/underinsured motorist coverage can help pay for the costs of your injury or vehicle damage.
• Collision insurance: If your vehicle needs repair or replacement after an accident, collision insurance can cover it, regardless of fault. This applies to collisions with another vehicle or an animal, or even a single-car crash.
• Comprehensive coverage: Comprehensive coverage pays out if a non-collision incident causes damage to your vehicle. Covered incidents may include severe weather, vandalism, and falling trees.

Cheapest rideshare insurance companies

Rideshare insurance is a type of auto insurance that fills the gap between a driver's personal car insurance and the coverage offered by rideshare companies like Uber and Lyft. It is important to note that personal car insurance policies typically do not cover accidents that occur while working for a rideshare company. Therefore, purchasing rideshare insurance is essential to ensure adequate financial protection in the event of an accident.

When it comes to finding the cheapest rideshare insurance, several companies offer affordable options:

• USAA: USAA is widely recognised as one of the top insurance providers, offering low rates and flexible coverage. Their rideshare insurance is highly rated for customer satisfaction and claims satisfaction. However, USAA insurance is only available for military personnel and their immediate family members and is not sold in every state.
• Mercury: Mercury offers rideshare insurance in 11 states, including Virginia, with policies starting at $0.90 per day. Their coverage includes Uber and most other Transportation Network Companies (TNCs).
• Allstate: Allstate's rideshare insurance, known as "Ride-for-Hire," includes deductible gap coverage, which helps minimise out-of-pocket expenses. Their policies are available in most states and are affordable for many drivers.
• Progressive: Progressive offers a rideshare endorsement that can be added to a personal car insurance policy in 40 states. They also reimburse drivers for the difference between their personal policy deductible and the rideshare company's deductible.
• State Farm: State Farm's rideshare insurance is available as an endorsement to an existing policy, typically increasing premiums by about 15-20%. Their coverage applies to a wide range of delivery drivers, including those working for Uber, Lyft, Amazon Flex, and more.
• Farmers: Farmers rideshare insurance covers drivers while they are waiting for a ride request. Their coverage is available in 23 states and has above-average ratings for claim satisfaction.

When choosing a rideshare insurance company, it is important to consider factors such as coverage area, premium, coverage limits, and customer reviews. Additionally, it is worth noting that rideshare insurance requirements may vary by state, so be sure to review the specific regulations in your area.

How to buy rideshare insurance

If you're a driver for a rideshare company, your personal insurance won't provide sufficient coverage. Rideshare insurance is a specific type of auto insurance for drivers who work full-time or part-time for app-oriented livery companies, like Uber or Lyft. This type of insurance can be offered as an add-on to an existing personal car insurance policy or as a standalone policy.

When considering how to buy rideshare insurance, it's important to note that not all rideshare insurance companies sell coverage in all states. You'll also need to decide how much coverage you need and what types of coverage are most important to you. For example, liability insurance covers medical bills and repair costs if you injure someone or damage someone's property while driving for a rideshare company. Uninsured/underinsured motorist coverage can help pay for the costs of your injury or vehicle damage in the case of an accident caused by a driver without insurance or with insufficient insurance. Collision insurance can cover repairs or replacement of your vehicle after an accident, regardless of fault. Comprehensive coverage pays out if a non-collision incident, like severe weather or vandalism, damages your vehicle.

Once you've decided on the type and amount of coverage you need, you can compare rates from different insurance companies to find the best option for you. It's important to note that some companies will only offer rideshare coverage if you already have a personal auto insurance policy with them. You may also want to consider bundling your personal and rideshare insurance policies together for a discount.

• USAA: Best provider overall, with low rates and flexible coverage. Only available for military personnel and their immediate family members and not sold in every state.
• Mercury: Best for Uber, with coverage for any number of passengers and affordable rates. However, coverage is only available in a small number of states.
• Allstate: Best for Lyft, with deductible gap coverage to minimize out-of-pocket expenses. Policies are available in most states.
• Progressive: Best coverage options, with add-ons like rental car reimbursement available for rideshare drivers. Policies can be expensive.
• State Farm: Best for delivery app drivers, with coverage for a wide variety of delivery drivers. Policies tend to be more expensive.
• Farmers: Best claims processing, with above-average ratings for overall claim satisfaction. Coverage is available in a limited number of states.

In addition to comparing rates and coverage options, be sure to read customer reviews to gauge the quality of the insurance company's customer service and claim handling processes.

Rideshare insurance FAQs

Rideshare insurance is a specific type of auto insurance for drivers who work for ridesharing companies like Uber or Lyft. While not always mandated by state law, it is a good idea to get rideshare insurance as your personal auto insurance policy will not cover you while driving for a rideshare company.

If you don't inform your insurance company about your rideshare driving, they may cancel or not renew your policy if they find out.

Uber and Lyft must provide rideshare insurance coverage if their driver doesn't have the required minimum coverage. Liability insurance from the rideshare company will pay for damages to others.

Yes, if you drive for a rideshare company, you must purchase a separate policy to cover you in case of an accident. Your auto insurance only covers you when you are not driving for business reasons.

Rideshare insurance is typically offered as an add-on to an existing personal car insurance policy. It covers the gap when you are logged into the rideshare app but haven't accepted a ride request yet. During this time, your personal auto policy does not cover you, and the rideshare company's coverage may be limited.

Rideshare insurance typically includes comprehensive and collision coverage, uninsured/underinsured motorist coverage, and additional coverages like roadside assistance and rental car reimbursement.

Adding rideshare coverage will increase the price of your personal auto policy, with the amount depending on factors like your vehicle, location, driving history, and existing coverages and limits.

Frequently asked questions