Rideshare insurance is a type of car insurance for rideshare drivers who use their own vehicles to take paying passengers, such as drivers for Uber or Lyft. While your regular car insurance might cover you for personal driving, it usually doesn’t protect you when you’re working as a rideshare driver.*
Rideshare insurance can provide extra protection while you’re driving for hire – for example, if you have an accident while taking a customer to their destination.
This type of cover can help keep both you and your passengers safe and ensure you’re protected when you’re on the road.
Please check your policy wording to confirm this.*
Who needs rideshare insurance?
Car insurance for rideshare is for anyone using their personal vehicle to transport pre-booked passengers via apps like Uber, Bolt, or Lyft. Whether you drive full-time or only part-time, this cover can offer additional protection that your regular car insurance may not include when you’re working as a rideshare driver.
For instance, if you’re an Uber driver using your personal car, your standard car insurance might cover you while driving for personal reasons. However, you might not be insured once you activate the app to start working. Rideshare insurance can help keep you covered, ensuring you have suitable insurance while waiting for ride requests, picking up passengers, or driving them to their destinations.
This insurance isn’t limited to rideshare platforms only. It can also be useful for anyone offering pre-booked transport services, such as private tour guides, airport shuttles, or even school or nursing home transportation arranged through private bookings.
For Uber drivers, you can also consider specific Uber insurance, which is designed specifically for the private hire app. Or if you drive a taxi, you may wish to consider taxi insurance cover rather than rideshare insurance.
Is rideshare insurance a legal requirement in the UK?
In the UK, it’s a legal requirement to have car insurance to drive on public roads, whether it’s for personal or business purposes. However, standard car insurance typically only covers you for personal use, such as commuting or social driving. If you’re using your vehicle to transport paying passengers through rideshare apps, your personal policy may not cover you while you’re working.
Rideshare insurance can bridge the gap between personal and business use car insurance, helping to ensure you’re covered when carrying passengers. Without it, you could find yourself uninsured if you experience an accident while working as a rideshare driver. This could leave you liable to pick up compensation costs and legal fees.
What does rideshare insurance cover?
Car insurance for rideshare drivers typically comes with different levels of cover. These can include:
- Third-party only: Covers damage to other people and their property but doesn’t cover your vehicle or personal injuries.
- Third-party, fire and theft: Includes third-party cover plus protection for your car if it’s stolen or damaged by fire.
- Fully comprehensive: Offers the highest level of cover, protecting both third parties and your vehicle, even if the accident is your fault.
A fully comprehensive policy typically covers:
- Personal car insurance: Standard insurance for when you’re off-duty.
- Third-party liability: Covers injury or damage to others.
- Public liability insurance: Protection against claims from passengers or the public.
- Legal expenses: Covers legal fees if you’re involved in a claim.
- Vehicle damage: Covers repairs for your own car, regardless of fault.
- Loss of earnings: Compensates you if an accident stops you from working.
You can usually add optional extras to your policy for an additional fee. These can include:
- Breakdown protection: Assistance if your car breaks down.
- No claims discount protection: Safeguards your discount even after a claim.
- Windscreen cover: Covers repair or replacement of a damaged windscreen.
- Misfuelling: Covers costs if you accidentally fill your car with the wrong fuel.
- Lost key cover: Helps cover the cost of replacing lost or stolen keys.
Policy limits and exclusions may apply, please see the policy wording for full terms and conditions.
Does rideshare insurance cover me for driving without passengers?
Insurance for rideshare drivers can cover the periods when you’re actively driving for a rideshare service, whether you’re waiting for a ride request or transporting passengers.
For driving outside of work, you may still need a standard social, domestic, and pleasure (SD&P) insurance policy. This includes driving for personal errands or commuting.
How much does rideshare insurance cost?
The cost of rideshare insurance can vary depending on several factors, including:
- The level of cover: More comprehensive policies tend to cost more, as they offer a wider range of protection, including cover for your vehicle, personal injuries, and legal expenses.
- Age: Younger drivers often pay higher premiums due to a perceived higher risk of accidents, while older, more experienced drivers may receive lower rates.
- Driving history: A clean driving record typically results in lower premiums, while past accidents or driving violations may increase your insurance costs.
- What vehicle you drive: Certain vehicles cost more to insure, particularly larger, more expensive cars or those with higher repair costs.
- Location: Drivers in areas with higher traffic or accident rates and theft may pay more for their insurance.
- Working schedule: The time of day you drive can influence costs, especially driving late at night or during peak hours.
- Mileage: If you drive more frequently, providers might consider you at a higher risk of accidents and may increase your insurance costs.
- Claims history: Previous claims can raise your premiums, as insurers may view you as a higher-risk driver.
- Vehicle security: Cars kept in secure locations (like a garage) or equipped with anti-theft devices can reduce insurance rates.
How to reduce the cost of rideshare insurance
To reduce the cost of rideshare insurance, you can try the following:
- Pay annually: Opting for a yearly payment can be cheaper than paying monthly, as monthly instalments often include additional fees or interest.
- Reduce your mileage: Driving less can reduce your risk of being in an accident, which could lead to lower premiums.
- Be selective with cover: Stick to essential cover and avoid paying for extras that may not be relevant.
- Improve the security of your vehicle: Installing anti-theft devices or parking in a secure location can lower the likelihood of theft, so insurers may lower premiums.
FAQs
Please note that these Frequently Asked Questions are not a substitute for the policy wording. For full terms and conditions please see the policy documentation.
What’s the difference between rideshare insurance and private hire insurance?
Rideshare insurance and private hire insurance refer to the same type of cover. The main difference is the terminology. Rideshare insurance is more commonly used in the US, while in the UK, it’s typically called private hire insurance. Both can provide cover for drivers using their personal vehicles to carry passengers for hire, such as through apps like Uber or Bolt.
Is the insurance offered by rideshare apps like Uber enough?
Rideshare apps like Uber and Bolt do offer some insurance for their drivers, but it’s often limited. These policies typically provide cover while you’re actively transporting passengers or on the way to pick them up, but they can leave significant gaps. For example, there may be lower cover amounts for accidents, or no cover while you’re logged into the app but waiting for a ride request. Car insurance for rideshare drivers can offer extra cover to keep you protected whether you’re transporting passengers or waiting for a ride request to come through.