Lyft insurance provides liability, collision, and comprehensive coverage, but it varies by ride stage. Drivers still need personal auto insurance and rideshare coverage.

Ridesharing and insurance with Lyft

Lyft divides driving time into three periods based on your status in the app. Your personal auto policy applies to personal driving when the app is off. Lyft coverage starts after you turn on driver mode, but the limits and types of protection increase after you accept a ride request.

Period 1: The app is on. You're waiting for a ride request.
Period 2: You've been matched with a passenger. You’re on your way to the pick-up location.
Period 3: The passenger is in the car. This period ends when you drop off the passenger.

Lyft insurance coverage varies during different periods of your trip. Your personal policy is only in effect when the Lyft app is turned off. It's important to understand what insurance coverage will be in place if you were to get into an accident while driving for Lyft, what your insurer or Lyft will cover, and what you may be financially responsible for in these situations.

What does Lyft insurance cover?

Lyft provides liability, uninsured motorist, medical, and vehicle damage coverage, depending on your app status and state. Liability pays for injuries or damage you cause to others. Contingent comprehensive and collision protect your car after you accept a ride, but only when your personal policy carries both coverages.

Here's an overview of the Lyft insurance policy:

During Period 1: Liability limits are low; comprehensive and collision coverageCollision coverage helps pay for repairs or replacement of your car if it's damaged in an accident, regardless of who is at fault and is subject to a deductible. aren’t offered.

Lyft's liability coverage has limits of $50,000 per person for bodily injury, up to $100,000 per incident, and $25,000 for property damage. This protection is considerably less than the $100,000 in bodily injury coverage per person, $300,000 in bodily injury coverage per accident, and $100,000 in property damage coverage that most insurance experts recommend.

Keep in mind that liability insuranceLiability insurance covers sums that an insured becomes legally obligated to pay because of bodily injuries or property damage, or financial losses caused to other people. covers injuries or damages to other drivers or passengers. However, you'll be financially responsible for damage to your own car and your own medical bills.

During Periods 2 & 3: Liability limits are higher, and Lyft's contingent comprehensive and collision coverage is in effect — as long as you already have this coverage on your personal policy.

Similar to Uber, Lyft's coverage includes $1 million of third-party liability coverage, uninsured/underinsured motorist bodily injury ,and contingent comprehensive and collision coverage that covers up to the cash value of your car. However, the latter coverage comes with a $2,500 deductibleThe deductible is the amount you pay out of pocket for a covered loss when you file a claim., so you'll incur significant out-of-pocket expenses before Lyft's insurance covers any accident- or injury-related expenses.

Though Lyft's insurance policies can create coverage gaps that cost you money, relying on your personal insurance isn't the best approach either.

What your personal auto insurance covers

Your personal auto insurance covers you when you’re driving for personal use with the Lyft app turned off. However, once you switch on driver mode, standard policies will not cover you because the vehicle is being used for commercial (rideshare) purposes. Be sure to notify your insurer before you start driving for Lyft, so you understand exactly what is and isn’t covered.

"Your personal auto policy is not written to handle the exposure of commercial operations regarding driving an individual for pay. Not to mention the liability limits are limited," says Ben Galbreath, a producer with Wallace & Turner, an independent insurance agency in Springfield, OH.

If you're working for a rideshare service, your personal policy will cover you only when the app is turned off. Once the app is open, Lyft's insurance policy kicks in, providing liability coverage with lower limits during Period 1 and more coverage once you pick up and begin transporting passengers. This is why you need rideshare insurance.

Rideshare insurance is additional coverage—available via a separate, standalone policy or by adding an endorsement to your personal policy. This coverage can fill coverage gaps in Lyft's insurance.

Though different insurers offer varying coverage levels during different periods of a trip, rideshare insurance can ensure you're well protected while driving for Lyft. For example, GEICO offers rideshare protection in some states as an endorsement on a personal auto policy, but coverage details and deductibles vary. State Farm also offers coverage during all three periods through an endorsement that's added to your personal policy. However, adding this endorsement increases your premium 15% to 20%.

Farmers offers coverage during Period 1, which is considered the riskiest period for drivers because Lyft's lower-limit liability coverage is in effect. You can review our "Ridesharing Insurance Coverage by State" chart to get a better idea of what different insurers offer in your area.

Coverage recommendations for rideshare drivers

Lyft drivers should carry enough personal liability coverage to protect their income and assets, plus comprehensive and collision coverage if they need vehicle protection. Add rideshare coverage before turning on the app. Also, review uninsured motorist and medical coverage, as Lyft’s first-party benefits vary by state.

There are a couple of other coverages you also should consider.

Liability: Every state in the country requires drivers to carry liability insurance. Required coverage levels vary. Liability insurance covers injuries to another person or damage to their property due to an accident you caused. Liability insurance doesn’t protect your own car or cover any of your medical costs.
Collision/comprehensive: Comprehensive and collision coverage is not required in any state. However, if you’re still paying off a car loan, your lender will require this coverage. Collision covers vehicle repair and replacement costs, even if you're at fault. Comprehensive covers theft and damage from hail, fire, vandalism or collision with an animal. If you can't easily afford another car, you should have collision and comprehensive coverage.
Uninsured/underinsured motorist: Though it isn't required in every state, this coverage will help to cover the cost of medical bills for you and your passengers if you were involved in an accident and the other driver is at fault but doesn't have insurance or is underinsured.

You also should consider:

Gap coverage: Rideshare driving will put wear and tear on your car, leading to faster depreciation. If your vehicle is totaled, your insurer will only pay your car's actual cash value, not what you still owe on it. Gap insurance covers the difference if your car loan is more than the car’s worth.
Medical payments: This insurance covers medical expenses resulting from a car accident. It will even cover the health insurance deductible. If you don’t have a health insurance policy, you should consider medical payments coverage. If you live in a no-fault state, this or personal injury protection (PIP) may be required by law.

Galbreath says if you're driving for a rideshare company, you should have enough coverage to protect your assets. This includes not only your car, but your home, investments and anything else of value that could be at risk if you were involved in an accident and were found liable.

He recommends "at least $1 million of liability coverage, higher medical payment options and third- party liability coverage," which will take the pressure off your personal auto policy.

We also recommend checking with your personal auto insurer first to see what rideshare coverage the company offers. If you like your car insurance provider and have bundled coverage, see if that company has an endorsement or new policy that would cover your rideshare needs.

If your insurer offers rideshare coverage, compare it to others and see what provides the coverage you need.

FAQ: Insurance for Lyft drivers

Does Lyft provide insurance for its drivers?

Yes. Lyft provides insurance while the driver app is on. Coverage includes limited liability while you wait for a request and higher liability after you accept one. Contingent comprehensive and collision apply only after acceptance, if your personal policy carries those coverages.

Does Lyft cover damage to a driver’s car?

Yes, but only in certain periods. Lyft provides comprehensive and collision coverage after you accept a ride, if your personal policy includes both coverages. The claim is subject to a $2,500 deductible and the car’s actual cash value. Lyft does not provide this standard protection while you wait.

Does personal car insurance cover Lyft driving?

No, a standard personal policy excludes losses after you turn on the Lyft app because rideshare driving involves paid transportation. Your insurer may offer a rideshare endorsement that extends coverage. Tell the company that you drive for Lyft and get written confirmation of each covered period.

What is Lyft’s insurance deductible?

Lyft’s contingent comprehensive and collision coverage has a $2,500 deductible for drivers who use their own vehicles. You pay that amount before Lyft’s vehicle coverage applies. Some rideshare endorsements cover part of the difference between your personal policy deductible and Lyft’s deductible.