Rideshare Insurance Options For Lyft Drivers

Rideshare Insurance Options for Lyft Drivers

Rideshare services, such as Lyft, have become increasingly popular in recent years. More and more people use them to get from point A to B because they want to forego a rental car while traveling in an unfamiliar city or they don’t have access to a car at home. Careers are blooming as individuals are now driving for Lyft and other rideshare services, but it has become more important than ever for these drivers to know how to protect themselves, their vehicles and perhaps most importantly, their passengers in the event of an accident.

Those seeking Lyft car insurance in Chicago have plenty of options from which to choose, including the Lyft partnership with a major car insurance company. Accurate Insurance rideshare insurance is one of the options for those in need of a convenient and cost-effective plan that will keep them safer on the road while driving.

Do You Need Lyft Car Insurance?

When it comes to ridesharing insurance, Lyft offers some amount of protection in its TNC mandated policy. However, there are still many pitfalls to their insurance policy, one of them being that the coverage only applies to drivers once there’s a passenger involved. Additionally, there is a complete lack of collision and comprehensive coverage, creating gaps that can become a major problem for employed drivers.

Overall, it’s best to have good Lyft car insurance in Illinois that covers liability, collision/comprehensive and uninsured/underinsured drivers for the optimal amount of protection and, ultimately, peace of mind.

Work “Periods”

What exactly are these period gaps and why are they so prevalent? When working for a rideshare service, such as Lyft, time can be broken down into distinct periods and the coverage differs during these periods, depending on the policy you have.

  • Period 0: This refers to the time during which the app is “off,” and the driver is not accepting rides. Only the driver’s personal insurance policy covers their vehicle and passengers during this time.
  • Period 1: This is the time during which a driver is on the road with the app open, but the driver has not yet been assigned a rider by the service nor has a passenger in the car. Typically, the driver is fully liable for any accidents they are at fault for during this time if they don’t have the appropriate insurance. During period one, there is also no uninsured/underinsured coverage nor is there collision and comprehensive coverage. This lack of coverage can lead to some monetary problems if an accident were to occur on the road, as a personal policy wouldn’t cover this accident and an individual would likely end up having to pay the entire cost of repairing or replacing their vehicle.
  • Period 2: During this period, the driver has been assigned a rider and is on their way to pick them up, activating the company insurance policy. While technically period 2 is combined with period 3, TNC mandated insurance can still carry high deductibles for accidents that occur within this timeframe.
  • Period 3: This is the period during which a driver has picked up the passenger and is driving them to the requested destination. It’s also when the TNC mandated insurance offers the most protection, though deductibles can still be high.

In addition to these four periods, it’s important to remember many drivers who use rideshare services, such as Lyft, use their own vehicles to work with other services, such as Postmates, and getting good Lyft car insurance in Chicago can extend to the time period in which they are working for these other services.

Lyft Deductibles and Policies

With Lyft’s TNC mandated insurance, the contingent collision coverage has a $2,500 deductible prior to any insurance benefits if an accident were to occur during periods 2 and 3. As already noted, period 1 is not covered, regardless of what happens on the road. For uninsured and underinsured drivers, it provides a $1 million policy during periods 2 and 3, as well as $1 million in primary liability coverage. Make sure you choose a policy that covers you for the entire time you’re on the road because there is no way to know when an accident will occur. The major gap takes place between waiting for a ride request and driving a passenger—rideshare companies offer full insurance coverage once you’ve accepted a ride request and while you are driving passengers, but not while you’re waiting.

Is Lyft Car Insurance Expensive?

Lyft car insurance in Illinois is essentially an add-on to your personal insurance policy, giving you additional protection while you are using your vehicle for business purposes. It should be noted that this insurance doesn’t apply to cars that are rented through Express Drive when you work as a Lyft driver. However, there are some big incentives for getting Lyft car insurance and it will ease the minds of anybody who worries about the cost.

Incentives for Having Lyft Car Insurance

One of the advantages to investing a little money in Lyft car insurance in Illinois is that the company actively encourages its drivers to invest in rideshare insurance by giving them $0.25 on every ride if they have qualifying rideshare insurance. This can add up over time and Lyft is willing to pay up to $1,000 extra every year––the equivalent of 4,000 rides.

Contact Accurate Insurance Today

Are you ready to invest in Lyft car insurance? You can get started today by contacting our team at Accurate Insurance. We’re always available to help you pick the right policy, whether you drive for Lyft or another ridesharing service. Get in touch with us if you have any questions or you would like to learn more about the policy we have available to drivers in the Chicago area.


“Had a great experience dealing with this company. After calling a few places and not getting the service that I expected, a woman named Sofia Tapia from Accurate Auto was able to not only give me the answers I was looking for, but she did it with a positive attitude and and no hassle. I will definitely be sending friends her way. Thankful for the help I received.”

– Monica S. Chicago, IL

“I have had insurance with Accurate for over 5 years. What a great company to work with. The employees are great and very friendly.”

– Ken G. Chicago, IL
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