Everything You Need to Know About Arizona Rideshare Insurance

Have you considered using your free time to drive for rideshare companies such as Uber or Lyft? While the need for rideshare drivers took a dip in 2020 due to COVID-19, the demand is rapidly increasing.  Whether it be a main source of income or supplemental, this type of job has become increasingly popular. Not only is it an effective way to earn money, but it also allows people to be their own boss and maintain a flexible schedule. However, before launching your rideshare career, you should consider the type of insurance that is required in Arizona.  

Do You Need Special Insurance to Drive for Uber or Lyft?

If you want to drive for a ridesharing company like Uber or Lyft in Arizona, then you will need to get rideshare insurance. Your personal auto insurance policy will not be sufficient to cover you when you are “on the job”. In fact, your insurance company might cancel your personal policy if you make a claim against it for commercial purposes (such as ridesharing). 

What is Rideshare Insurance?

Rideshare coverage can be included as a specific “rideshare endorsement” to your personal auto insurance policy or a separate commercial insurance policy. 

Rideshare companies like Uber and Lyft provide insurance coverage to drivers with some exclusions. Your personal auto insurance policy will not cover you in these circumstances. A rideshare insurance policy is meant to fill these gaps.

Your insurance company can help you make the necessary updates to your policy and ensure that you are covered as a rideshare driver.

What Type of Coverage Does Uber & Lyft Provide? 

Here is an outline that will help you understand the type of coverage that Uber and Lyft provide. 

• Not logged into the Uber or Lyft app – During this time, the driver’s personal auto insurance will provide coverage if there is an accident. 

• Logged into the Uber or Lyft app but no accepted ride request – During this time, Uber and Lyft provides 3rd party insurance or liability coverage in the case that the driver’s personal insurance is not applicable. This is not comprehensive insurance. It will cover the injuries of the other parties in the vehicle, but it will not cover the driver’s losses. 
• Accepted ride request until the rider leaves the vehicle – During this time, Uber and Lyft provide more comprehensive coverage, which insures the driver and the rider(s). However, the coverage is limited and only kicks in after the drivers make a claim with their own insurance company. 

Read more about the specific coverage limits for Uber and Lyft. 

Why Purchase Rideshare Insurance? 

To be clear, if you want to drive for a rideshare company, then rideshare insurance is absolutely necessary. If you are in an accident while logged into the rideshare app or during an accepted ride, then the first step is to make a claim with your own insurance company. However, you can’t make a commercial accident claim against a personal auto insurance policy. If you don’t have a special rideshare policy, then you are violating your insurance company’s terms. This could result in the termination of your personal auto insurance policy. 

Get a Rideshare Insurance Quote Today!

If you want to become a rideshare driver, don’t let the issue of insurance get in your way. AZCAL Insurance Services is here to help. As an independent insurance agency, we will evaluate all of your options to find you the best possible deal. You are our first priority. Contact us today to get a free quote!