In the age of on-demand transportation services like Uber and Lyft, the landscape of commuting is rapidly evolving.
TNCs offer convenience, with drivers making money and riders accessing transport easily.
Ride-share drivers must ensure their auto insurance fully covers accidents
Fortunately, Progressive now offers a TNC Endorsement, providing enhanced coverage for vehicles utilized in ride-sharing endeavors.
The Stages of Rideshare Driving
Understanding the gaps in this coverage is crucial for ensuring you’re adequately protected. Here’s a breakdown of the three driving periods and what Uber and Lyft cover, according to Forbes Advisor.
| Driving Period | Uber | Lyft |
|---|---|---|
| App is on; waiting for ride request | Third-party liability coverage | Third-party liability coverage |
| $50,000 in bodily injury coverage per person | $50,000 in bodily injury coverage per person | |
| $100,000 in bodily injury coverage per accident | $100,000 in bodily injury coverage per accident | |
| $25,000 in property damage coverage per accident | $25,000 in property damage coverage per accident | |
| App is on; heading to pick up passenger | $1 million third-party liability coverage | $1 million liability coverage |
| Uninsured/underinsured motorist bodily injury coverage | Uninsured/underinsured motorist bodily injury and/or first-party coverage | |
| Contingent comprehensive and collision coverage up to actual cash value of car with $1,000 deductible | Contingent comprehensive and collision coverage up to actual cash value of car with $2,500 deductible | |
| App is on; passenger picked up; driver traveling to passenger’s destination | $1 million liability coverage | $1 million liability coverage |
| Uninsured/underinsured motorist bodily injury coverage | Uninsured/underinsured motorist bodily injury and/or first-party coverage | |
| Contingent comprehensive and collision coverage up to actual cash value of car with $1,000 deductible | Contingent comprehensive and collision coverage up to actual cash value of car with $2,500 deductible |
Purchase an auto policy as an endorsement
Progressive customers can now add a rideshare endorsement to their personal auto policy in the following states:
| Alabama | Arizona | Arkansas | Colorado | Florida |
| Georgia | Idaho | Illinois | Indiana | Iowa |
| Kentucky | Louisiana | Maine | Maryland | Massachusetts |
| Michigan | Minnesota | Mississippi | Missouri | Montana |
| Nebraska | New Hampshire | New Mexico | North Carolina | North Dakota |
| Ohio | Oklahoma | Pennsylvania | Rhode Island | South Carolina |
| South Dakota | Tennessee | Texas | Utah | Virginia |
| Washington | Washington, D.C. | West Virginia | Wisconsin | Wyoming |
Progressive For-Hire Livery Insurance
Rideshare drivers can opt for coverage through a for-hire livery policy, typically reserved for businesses transporting vehicles like luxury cars or taxi services.
Since rideshare drivers often earn their income from passenger transportation, they usually qualify for this insurance.
However, rideshare insurance under a for-hire livery policy isn’t exclusively for rideshare drivers.
The benefit is that you won’t require a separate personal auto policy, as a for-hire livery policy can cover both business and personal use.
Progressive provides for-hire livery insurance Direct in 40 states.