Skip to main content

«  View All Posts

What Insurance Gaps Exist When Driving for Uber or Lyft in CNY?

June 19th, 2024 | 3 min read

By Daniel J. Middleton

Insurance gaps when driving for Uber and Lyft in CNY

Are you thinking about driving for Uber or Lyft in Central New York? You're not alone. Ridesharing has become a popular way to earn extra income, but it also raises important questions about insurance coverage.

At the Horan insurance agency, we understand that navigating the complexities of rideshare insurance can be daunting. You want to make informed decisions and avoid buying a policy that doesn't fully protect you. That's where we come in.

As an independent insurance agency working with multiple carriers in Central New York, we have a unique perspective on the rideshare insurance landscape. We're here to help you identify potential coverage gaps and find the right policy for your specific needs.

In this article, we'll explore the insurance requirements for Uber and Lyft drivers in our region, discuss the limitations of personal auto policies, and provide insights to help you make confident insurance choices.

Let's dive in and ensure you're properly protected while earning money behind the wheel.

The Rise of Ridesharing in New York State

Ridesharing has revolutionized the transportation industry, making it easy for people to book a ride with just a few taps on their smartphone. It's also become a popular way for car owners to earn extra money.

If you're over 18, own a car, and can meet basic background requirements, you can apply to become a driver. Once approved, simply wait for someone to book a ride with you on the app, and you're off in your own car.

However, when it comes to car insurance, New York stands apart from other states. That's why it was one of the last places in the country to approve ridesharing. Insurance companies have had limited time to craft policy language specific to New York auto policies for ridesharing.

Many companies exclude ridesharing altogether, while others have certain restrictions or are still working out their stance.

Where Are Your Coverage Gaps as a Ridesharing Driver?

If you decide to become a ridesharing driver in Central New York, it's crucial to understand where you might face gaps in insurance coverage. When you log into the app on your phone and go live, ready to accept fares, your personal car insurance policy is no longer in force.

Instead, you're covered by liability and basic personal injury protection (or no-fault coverage) provided by the rideshare company you work for.

Logged-In and Awaiting a Fare: Limited Coverage

During the time you're active on the app but still awaiting a fare, New York requires the rideshare company to provide you with $75,000 per person, $150,000 per accident, and $25,000 property damage liability.

They also require $50,000 in no-fault (personal injury protection) coverage. Regardless of the limits you chose for your personal policy, this is all that's available while you're logged in and waiting for a ride request.

In this state, you've given up collision and comprehensive, rental reimbursement, roadside assistance, and any amounts above the minimum liability requirements. Beyond what the rideshare company provides, you're essentially self-insuring.

For example, if you're logged in to the app, awaiting a fare in North Syracuse, and suddenly it starts hailing, leaving dents in your car, you're paying for that damage out-of-pocket.

While actively ridesharing, your personal car insurance policy is no longer in force.Enroute to Pick Up and During the Ride: Increased Coverage

Once someone has booked a ride with you, your liability protection improves significantly. While you're on your way to pick them up, your coverage increases to the New York minimum of $1,250,000 for both liability and uninsured and underinsured motorist coverage. When you pick up the rider, they're also included in that limit.

Here's where it gets tricky: if you carry collision and/or comprehensive coverage on your personal auto policy, the rideshare company can elect to provide you with this coverage on their policy.

However, the deductibles will likely differ from what you have on your personal policy. Currently, Uber provides the coverage with $1,000 deductibles, including glass. Lyft does the same but with a substantial $2,500 deductible.

After the Ride: Reverting to Basic Coverage

As soon as the rider exits your vehicle, the insurance reverts to the basic coverage provided for just being logged in. To restore your personal insurance, you'd need to log off the app completely.

Be Proactive and Check with Your Insurance Carrier

All in all, your best bet is to be proactive and check with your insurance carrier to see how they cover ridesharing. Ask them to direct you to the specific language within the policy that illustrates their position.

By doing so, you can avoid surprises down the road and ensure you're adequately covered while driving for Uber or Lyft in Central New York.

Stay Protected with the Right Rideshare Insurance

As you navigate the world of rideshare insurance, remember that you don't have to go it alone. At the Horan insurance agency, we're committed to being your trusted advocate and resource.

We'll work diligently to help you understand your coverage options, identify potential gaps, and find the right policy to give you composure and security while you're on the road.

Our experience as an independent agency working with multiple carriers in Central New York gives us a unique perspective on the rideshare insurance landscape. We'll use this knowledge to guide you through the process and ensure you're making informed decisions.

By following the advice outlined in this article and partnering with us, you'll be well on your way to having the protection you need to drive with confidence.

Don't let uncertainty about insurance hold you back from pursuing your rideshare goals. Click the Get a Quote button below to start a conversation with our team and take the first step toward securing the right coverage for your unique situation.

Get a Quote

Daniel J. Middleton

Daniel is an accomplished content creator. He has been working in publishing for almost two decades. Horan Companies hired Daniel as its content manager in November 2022. The agency entrusted its messaging to him. Since then, Daniel has written insurance articles, service pages, PDF guides, and more. All in an effort to educate CNY readers. He's helping them understand the world of insurance so they can make informed decisions.