Quick take
Uber and Lyft protect the rider and the other driver first. They leave you exposed in Period 1 (app on, no trip yet). A rideshare endorsement from your personal insurer fills that gap so one crash does not wipe out your car or your income. Pair this guide with our policy pillar guide and our liability limits explainer.
Rideshare insurance is an add-on that keeps your personal auto policy active when the app is on but you have not accepted a trip. Without it, the app's coverage is thin and often does not fix your car in Period 1. Get the endorsement, match it to your collision deductible, and keep proof in your glove box.
1) Understand the four periods
Coverage changes by the minute. Know which policy pays so you are never surprised after a crash.
| Period | What you're doing | Liability | Your car (comp/collision) |
|---|---|---|---|
| 0 | App off, personal driving | Your personal policy | Your personal policy |
| 1 | App on, waiting for request | Low limits from app (varies by state) | Usually none unless you buy an endorsement |
| 2 | Accepted trip, en route to pickup | App provides up to $1M liability | App offers collision/comp with high deductibles ($1k-$2.5k) |
| 3 | Passenger in car / delivery in hand | Same $1M liability (or more, depends on state) | Collision/comp from app with high deductibles |
2) The Period 1 danger zone
Period 1 is where drivers get burned. Picture this: you are waiting for a ping, you glance at the phone, and rear-end a car.
- Your personal insurer denies the claim (business use exclusion).
- The app pays limited liability for the other driver, but not for your car.
- You pay 100% of your own repairs unless you have a rideshare endorsement.
3) Fix the gap with a rideshare endorsement
What it is
An add-on to your personal policy that keeps comprehensive and collision active in Period 1 and sometimes matches the app's high deductible in Periods 2 and 3.
- Cost: often $10-$25 per month.
- Deductible: usually matches your personal collision/comprehensive deductible.
- Proof: ask for an updated declarations page and keep a digital copy in the app.
4) Delivery drivers need this too
Food and package delivery have the same exposure. Many delivery apps provide thin or no coverage while you drive to the restaurant. A rideshare/delivery endorsement keeps your car protected the whole time. If you swap between UberX and UberEats, you need one endorsement that covers both.
5) Know the deductibles before you drive
App deductibles are often $1,000-$2,500. Your endorsement can keep your deductible lower. Compare them side by side.
| Scenario | Without endorsement | With endorsement |
|---|---|---|
| Period 1 crash | You pay 100% of your repairs | You pay your normal $500-$1,000 deductible |
| Period 2 deer strike | App collision applies with $2,500 deductible | Endorsement may let you use your lower deductible |
| Period 3 hail damage | App comprehensive deductible ($1,000-$2,500) | Your comprehensive deductible ($250-$500) if endorsed |
6) What to ask your agent (scripts)
Script to verify coverage:
"Confirm my rideshare endorsement covers me when the app is on but no ride is accepted. Send the new declarations page."
Script to compare deductibles:
"Show me my deductible if I crash in Period 1 with the endorsement and the app's deductible in Period 2/3. I want them in writing."
Script to bundle discounts:
"Quote the endorsement and a pay-in-full option. If I add renters/home, how much more do I save?"
7) Step-by-step: set it up
- Check your current declarations to confirm business-use exclusions.
- Call your carrier or broker and request a rideshare/delivery endorsement.
- Match the endorsement deductible to your personal collision/comprehensive deductibles.
- Save the updated declarations to your phone and glove box.
- Log your miles to support any future claim and for tax deductions.
8) Taxes and documentation
Track miles, fuel, car washes, and phone mounts. Good records help with taxes and show you were on-app if a claim happens. Keep screenshots of trip logs with timestamps. Store everything with your policy documents.
9) Common mistakes to avoid
- Assuming your personal policy covers you while the app is on.
- Forgetting to add delivery coverage when you switch apps.
- Accepting the app's $2,500 deductible without checking endorsement options.
- Not telling your insurer you drive; hiding it can lead to cancellation.
- Ignoring state rideshare rules on limits and deductibles.
10) FAQ (fast answers)
Do I need a rideshare policy if I only drive on weekends?
Yes. The gap exists whenever the app is on, even for one hour.
Does the endorsement cover my phone or gear?
It covers the car, not your phone. Check your renters or home policy for device coverage.
What about uninsured drivers who hit me?
Add UM/UIM and ask if it applies while on the app. Some states limit it.
Can I pause collision when I take a break from driving?
Ask your agent before you pause. If you drive personally, you still need collision on your personal policy.
11) Bottom-line action plan
- Call your insurer today and add a rideshare/delivery endorsement.
- Match deductibles to something you can actually pay from cash.
- Store proof of coverage in the app and glove box.
- Review your full coverage vs liability mix at each renewal.
- Re-check state rules using our state requirement map before you cross state lines.
Protect your car, your income, and your rating. The endorsement is cheap, the gap is expensive, and one call today keeps you driving with confidence. Pair this with our guides on how premiums are calculated and how renewals work so you never leave money-or coverage-on the table.