How Much is Rideshare Insurance

Buckle Team

learn@buckleup.com

10.02.2019

As a rideshare driver, you need the right insurance coverage to protect you and your biggest business asset, your vehicle. Unfortunately, the insurance coverage provided by the rideshare companies have limits, gaps, and high deductibles. Plus, you still need an insurance plan outside of the rideshare company’s coverage. The cost of auto insurance plans varies greatly depending on the insurance company and the type of coverage you acquire.

To make money as a rideshare driver, you must keep your operational costs low. Affordable insurance matters for successful rideshare businesses. You need to know your options and requirements for auto insurance coverage as a rideshare driver. 

 

At Buckle, we offer an innovative auto insurance solution designed specifically for rideshare drivers. We’ve studied the rideshare industry to understand why traditional coverage just doesn’t work for this new part of the gig economy. Buckle rideshare auto insurance provides the coverage you need at a price you can afford to cover personal and business drive times. 

Types and Cost of Rideshare Auto Insurance

 

Personal Coverage – The Biggest Risk

Your personal auto insurance policy does not cover your rideshare business. If you only have a personal auto insurance policy, you are at a big risk as a rideshare driver! 

 

Uber and Lyft offer minimal insurance coverage; however, they require you to also carry a primary insurance policy. This means you must notify your insurance company before the Uber or Lyft policies kick in. 

 

Most personal policies won’t cover an accident for rideshare driving under the standard policy without added rideshare coverage. This means when you notify your personal auto insurance company about the accident, they will likely cancel your policy. In other words, choosing to only carry personal auto insurance for a rideshare business doesn’t work. In the long run, it will cost you much more than the rideshare policy rates.

 

Commercial Coverage – The Most Expensive Option

Commercial insurance coverage offers the highest level of coverage for rideshare drivers; however, you’ll pay a steep price. In fact, the price may range up to $2,400 per year or more for a one passenger car.

 

If your geographic area doesn’t offer rideshare endorsement as an add-on to your personal auto insurance policy, you must purchase commercial coverage. Remember, the Uber and Lyft insurance options only work in addition to other insurance coverage, like commercial coverage.

 

Endorsement Coverage – An add-on to a Personal Policy

Rideshare endorsement coverage adds on to a personal auto insurance policy. This means both your personal policy and rideshare endorsement policy must come from the same company. Not all companies or states allow for rideshare policy add-on. 

 

Even with a rideshare endorsement policy, you’ll have gaps in the coverage. First, the coverage only applies when you log in to the rideshare app. Second, many policies provide different levels of coverage depending on driver activity. For example, when parked and waiting on a rider, most insurance companies provide less liability coverage than when you actively drive a passenger.

 

The cost estimates for rideshare add-on coverage differ between companies. Some companies quote a starting rate for as little as $20 per year while others quote around 20% of your standard premium. Remember, the rideshare endorsement rate is in addition to your personal auto insurance premium. Also, most companies determine your premium based on the risks associated with your credit score. 

 

Uber and Lyft Coverage – Minimal Coverage

The gaps in coverage from Uber and Lyft are one of the biggest misunderstandings with rideshare insurance. You must maintain personal or commercial auto insurance on the vehicle as a rideshare driver. Uber and Lyft insurance policies only apply for drivers with auto insurance coverage at or above the level required by your state.

 

Plus, the amount of liability coverage ties to the current rideshare activity. For example, when parked and waiting for a rider, Uber and Lyft offer much less coverage than when a rider is present. The Uber and Lyft insurance plans also carry high deductibles ranging from $1,000 to $2,500. You cannot count on the rideshare company to cover your financial risks in the event of an accident. You must carry an independent insurance policy. 

 

Buckle – The Right Policy for Rideshare Drivers

To protect your rideshare business, partner with Buckle for all your auto insurance needs. Buckle provides auto insurance specifically for rideshare drivers. With Buckle, you no longer need to juggle multiple insurance accounts or policies, we offer the coverage you need for personal and business use under one policy. 

 

Our rates are affordable because we’ve tailored our coverage specific to rideshare driver needs. Plus, we are fully licensed and regulated by the same state laws as other insurance companies. You’ll have the protection you need based on state requirements and the requirements of the top rideshare companies. 

Understand Your Financial Risks

Auto insurance costs matter, but so does the big financial picture. When you don’t carry the correct auto insurance as a rideshare driver, you’re at risk. Passengers or other individuals involved in an accident can sue you to cover their expenses related to an accident. 

 

Like other rideshare expenses, auto insurance cuts into your profits. However, the financial risk is too great to skip the right coverage. Explore your options. Understand the required coverage, both by your state and the rideshare company.

 

In almost every case, you need an individual auto insurance plan for a rideshare business. While Uber and Lyft do offer insurance to give passengers peace of mind, they do not provide all the coverage you need as a driver. 

 

Buckle Provides Affordable Auto Insurance for Rideshare Drivers

Buckle is the smart auto insurance solution for rideshare drivers. We offer affordable rates without the complexity of other insurance companies. Our business model is simple. We offer our clients one auto insurance policy to cover personal use and rideshare service driving for your vehicle.

 

Contact us today for a free quote. We make it easy to start saving money with the right coverage today! 

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