Everything You Need to Know About Rideshare Insurance

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Last updated on: August 19, 2020
rideshare insurance

As we launch into our discussion of rideshare insurance, it’s important to understand rideshare, to begin with. Ridesharing is what it sounds like it is. It allows you to cut down the amount of money you would spend getting around by sharing rides with others in their private cars. Essentially, ridesharing is the best way to travel for those on a budget.

Ridesharing has become a more common phenomenon in today’s world, with companies like Lyft and Uber taking up space on the market. To meet the needs of the market, ridesharing insurance as a product has also started to grow.

Since any rideshare company is required to have insurance, a rideshare policy was developed to meet the requirement. This is because personal insurance doesn’t cover any accidents that may have taken place while the car was being used for business purposes. However, a business insurance policy wouldn’t work in this instance either as the car is a personal vehicle owned by an individual and not a company. Rideshare insurance has become the policy that helps to fill that grey area between personal and business insurance for vehicles.

Alchemy Insurance can be your one-stop-shop on the way to the best rideshare coverage as we will find the best policy to complement other insurance packages out there, giving you the peace of mind you deserve.

How Does It work

Though, as a person offering rideshare, you may be covered under a company liability insurance policy, for example, if you work with Uber or Lyft, it doesn’t extend to any collision or comprehensive insurance. In the event that you hit something, your car is stolen or vandalized, collision and comprehensive insurance through a rideshare policy would ensure that any damage to your vehicle is covered.

A Typical Day

During what you would assume as a typic day, different coverage may kick in at different times. Below is more information on which coverage you would potentially use in the event of bodily injury or damage of the car at different times of your ridesharing day.

While the App is Off

When any application you use to find individuals in need of rideshare is turned off, any insurance that the rideshare company has, such as liability, does not apply in this instance. If something were to happen to your car, you would need to use your auto policy to cover the damage, such as through comprehensive coverage. Rideshare insurance would also not apply since you are not currently working.

When App is On and Waiting

In this scenario, the company that you are working through may provide you with some type of liability coverage for bodily injury and property damage. There are situations where it may also provide some coverage for damage, but there is usually a deductible involved, and it may not cover every scenario. This is a situation where it is best to have your own insurance as well for full-rounded coverage.

Your rideshare policy, however, will cover the following:

  • Comprehensive and Collision
  • Uninsured / Underinsured
  • Additional coverage which could include a rental car, and roadside assistance

Accepted or Picked up Rider

Once you are on the road and working, you and your vehicle will be covered by the company’s liability policy for any bodily injury or property damage. It may also provide some type of coverage for physical damage and uninsured/underinsured motorist bodily injury.

If you’ve purchased your rideshare insurance, it will come in handy to cover the extra expenses that the ridesharing company will not cover with their insurance.

  • Additional coverage which could include:
    • Roadside assistance
    • Towing
    • Medical payments
    • Rental car
  • You may also have a deductible reimbursement since the company most likely had you pay some sort of deductible, and they paid the rest.

Other Coverage Information

As you think about purchasing rideshare insurance, you might be wondering in what other situations you are covered.

While Delivering

Though you primarily work for a rideshare company, you may do delivery on the side and wonder whether you are covered while on the road. This is a question that has to be asked as you work with your insurance company since all coverages are different. In most instances, however, you would also be covered under this insurance.

Use Commercial Vehicle

If you already drive a commercial vehicle such as a taxi or limousine, you might be wondering if you’ll be covered if you use the same vehicle for ridesharing. Typically, this requires a different type of policy, such as livery insurance, to ensure that you are covered. This is mostly due to the fact that you do not own the car as an individual, but rather by the company you either own or work through.


Though the company that runs the ridesharing platform you are using may have their own insurance, it is not something that will always cover you as the driver. Alchemy Insurance of Pennsylvania can help you find out the best coverage for you. After reviewing your needs, Alchemy Insurance will write you a policy that will work with your budget while also ensuring that you are covered in the event of an accident.

Ridesharing has become not only the hit new way to get around, but it is also budget-friendly and available to anyone. In the business, your vehicle becomes your means of potentially supporting your family, which is why it is crucial to have the correct insurance policy to back you up should something happen.

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