Lyft & Uber Rideshare Insurance In Illinois

Uber, Lyft, and other rideshare services are becoming more popular. In some areas, they have created a lot of competition with taxi companies, and are one of the only ways to get from point A to point B for people who do not have access to good public transportation or vehicles of their own. Even if they do have access to these, services like Uber and Lyft provide a fantastic service and can help people supplement their income or make income on their own time.

If you are considering being a Lyft or Uber driver, or joining another rideshare service to make money, automobile insurance is essential. There are minimum requirements for car insurance in the state of Illinois, but additional insurance may be needed for your insurance claim to be accepted.

Rideshare Car Insurance: What You Need to Know

First off, you need to know that most states require people to carry minimum limits in liability insurance coverage. For the state of Illinois, the limits are $25,000 for bodily injury coverage per person, $50,000 bodily injury per accident, and another $20,000 in property damage coverage. These are the minimum requirements by law, but you may need more insurance than this to be adequately protected financially.

Will My Personal Car Insurance Cover Me?

Your personal insurance will cover you when you are using your automobile for personal reasons, but using it while working with a rideshare company is different. If you do not have insurance coverage for rideshare driving and are in an accident, you can be held liable for paying any damages that occurred. If the rideshare services app is turned on, but there are no passengers in your vehicle or no ride request that is active, if you cause an accident, Uber, Lyft, or your other rideshare company insurance policy will not pay for any of your expenses. If you have a passenger in the car, however, or are en route to pick one up, you will have some insurance through Uber and Lyft’s insurance policies. Your insurance plan might not cover you as a vehicle for hire, meaning if you do not add rideshare insurance to your policy, your claim could be denied. 

Does Uber Or Lyft Provide Any Insurance?

Uber and Lyft do provide insurance, with Uber providing coverage for up to one million dollars in liability. This policy kicks in once you have received a ride request and ends once you drop your passenger off. Lyft provides $50,000 in bodily injury liability coverage per person and $100,000 bodily injury liability per accident, as well as $25,000 in property damage liability coverage. This coverage will only provide protection to you from the time a ride request is received to when the passengers dropped off. It kicks in after your insurance policy does, something to keep in mind. Your personal insurance policy will cover any driving or idle time in between, and some rideshare driving depending on the policy.

Lying to your auto insurance provider about whether you drive for Lyft or Uber or not can be a reason for a claim's denial. It is a good idea to be honest to your automobile insurance providers and let them know you are using your vehicle as a rideshare as well. Rideshare insurance can be a fantastic add-on to have, making sure that you have enough coverage if you are in a more expensive accident. People who are on the road more often are more likely to get into accidents, and many rideshare drivers fit into this category.

Final Notes

It is more common for automobile insurance carriers to provide insurance to rideshare drivers, and they also now generally ask people when they apply for insurance if they are a rideshare driver. Each rideshare service has different coverages they provide, so researching what each offers is essential when you are choosing to become a rideshare driver. Many people make money on these types of services, but driving with a company like Uber or Lyft can make auto insurance a little more complicated. Make sure that you are educated, and take advantage of the free quotes for car insurance found here at Illinois Auto Insurance now.