florida rideshare insurance
When you’re driving for a rideshare company like Uber or Lyft in Florida, having the right insurance coverage is essential. Many drivers assume that the coverage provided by the rideshare company fully protects them. Still, there are often significant gaps in protection—especially when you’re logged into the app without a passenger.
As a result, drivers face unique risks that could put their financial security and vehicle investment in jeopardy if they don’t have specialized rideshare insurance.
At Blake Insurance Group, we understand the ins and outs of rideshare insurance and what Florida drivers need to stay protected. In this guide, we’ll walk you through everything you need to know about rideshare insurance in Florida, from coverage requirements and common gaps to choosing the right policy for your needs.
Whether you’re just starting as a rideshare driver or looking to strengthen your coverage, we’re here to help you find a policy that keeps you safe on the road.
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Understanding Florida’s Insurance Requirements for Rideshare Drivers
Florida’s Legal Minimums for Rideshare Drivers
Florida law sets specific insurance requirements for rideshare drivers, which are more stringent than those for personal drivers. Here’s what you need to know:
When the App is On, Waiting for a Ride Request
During this period, often called “Period 1,” Florida law requires:
– $50,000 for bodily injury per person
– $100,000 for bodily injury per accident
– $25,000 for property damage per accident
When Picking Up or Transporting Passengers
Once you’ve accepted a ride or have a passenger in the car, the requirements increase:
– At least $1,000,000 in liability coverage
– Personal Injury Protection (PIP) coverage
– Uninsured/underinsured motorist coverage
What Rideshare Companies Offer
Companies like Uber and Lyft typically provide insurance that meets these legal minimums. However, it’s crucial to understand that their coverage can be limited, especially during Period 1.
The Coverage Gap
Here’s where things get tricky. Many personal auto policies exclude coverage when using your vehicle for commercial purposes. This creates a dangerous gap during Period 1, where you might not be fully covered by either your personal policy or the rideshare company’s insurance.
Why Additional Coverage Is Essential
As your local insurance agent, I always stress the importance of additional rideshare coverage. Here’s why:
**Comprehensive Protection**: Rideshare insurance fills the gaps left by personal policies and company-provided coverage, ensuring you’re always protected.
**Lower Deductibles**: Company policies often have high deductibles. Additional coverage can help reduce your out-of-pocket expenses in case of an accident.
**Personal Asset Protection**: Without adequate coverage, you could be personally liable for damages or injuries, putting your assets at risk.
**Peace of Mind**: Knowing you’re fully covered lets you focus on providing great service to your passengers.
Options for Additional Coverage
Several insurance providers in Florida offer rideshare endorsements or hybrid policies. For example, Geico offers a policy that replaces your existing auto insurance during rideshare activities, with deductibles starting at around $500.
Remember, additional coverage is often more affordable than you might think. Depending on factors like your driving record and coverage choices, I’ve seen rates as low as $6 to $30 per month.
What Does Florida Rideshare Insurance Cover?
Liability Coverage
Rideshare insurance in Florida provides crucial liability protection that extends beyond your personal auto policy. Here’s what it typically includes:
– Bodily Injury Liability: This covers injuries to others if you’re at fault in an accident. Florida law requires a minimum of $50,000 per person and $100,000 per accident for rideshare drivers.
– Property Damage Liability: This covers damage to other people’s property. The minimum requirement for rideshare drivers in Florida is $25,000.
These liability limits are higher than the standard Florida auto insurance requirements, providing extra protection when you’re using your vehicle for rideshare purposes.
Collision Coverage
Many rideshare policies in Florida offer collision coverage, which pays for damage to your vehicle in the event of an accident, regardless of fault. This is especially important because:
Personal auto policies often exclude coverage when you’re using your car for commercial purposes.
Rideshare company insurance may have high deductibles or limited coverage during certain periods.
Comprehensive Coverage
Comprehensive coverage protects your vehicle from non-collision related incidents like theft, vandalism, or natural disasters. This is particularly valuable for rideshare drivers who spend more time on the road and in various locations, increasing their exposure to these risks.
Uninsured/Underinsured Motorist Coverage
This coverage protects you if you’re in an accident with a driver who doesn’t have insurance or doesn’t have enough coverage. It’s especially important in Florida, which has a high rate of uninsured drivers.
Period-Specific Coverage
One of the key ways rideshare insurance goes beyond standard auto policies is by providing coverage during all phases of rideshare driving:
Period 1 (App on, waiting for a ride request): Many personal policies exclude coverage during this time, but rideshare insurance fills this gap.
Period 2 (En route to pick up a passenger) and Period 3 (Passenger in the car): While rideshare companies provide some coverage during these periods, your rideshare insurance can offer additional protection or lower deductibles.
Medical Payments or Personal Injury Protection (PIP)
Florida is a no-fault state, requiring drivers to carry Personal Injury Protection (PIP). Rideshare insurance often includes enhanced PIP coverage, which can help cover medical expenses and lost wages if you’re injured while driving for a rideshare company.
Additional Benefits
Some rideshare policies in Florida offer extra perks like:
– Rental car coverage
– Roadside assistance
– Towing and labor costs
These additional benefits can be precious for rideshare drivers who rely on their vehicles for income.
How do we compare rideshare insurance policies?
When comparing rideshare insurance policies in Florida, here are some key factors to consider:
Coverage periods:
– Look at what phases of rideshare driving are covered (app on waiting for a ride, en route to pick up, a passenger in a car). Some policies like State Farm’s extend coverage through all phases, while others may only cover certain periods.
Coverage types:
– Compare liability limits, collision, comprehensive, uninsured/underinsured motorist, and medical payments coverage offered.
– Check if the policy includes deductible gap coverage for rideshare company deductibles.
Cost:
– Compare the additional cost of adding rideshare coverage to your existing policy.
– According to the data, the average cost in Florida is about $31 per month to add rideshare coverage.
– Get quotes from multiple insurers, as costs can vary significantly.
Insurance company reputation:
– Consider customer service ratings, claims handling reputation, and financial stability.
Policy limits:
– Compare the coverage limits offered, especially for liability coverage.
Deductibles:
– Look at the deductible amounts for different coverage types.
Additional benefits:
– Some policies offer extras like roadside assistance or rental car coverage.
Eligibility requirements:
– Check for any restrictions on vehicle type, driving record, etc.
Ease of use:
– Consider factors like mobile app availability and online policy management tools.
Bundling options:
– See if the company offers discounts for bundling rideshare coverage with other policies.
Claims process:
– Research how smoothly the claims process works for rideshare-related incidents.
Cost Considerations
Average costs:
– Liability-only rideshare insurance costs an average of $257 per month in Florida.
– Full coverage rideshare insurance costs an average of $369 per month on average.
Compared to standard auto insurance:
– Liability-only rideshare insurance is about 22% higher than the Florida average of $212 per month for standard liability insurance.
– Full coverage rideshare insurance is about 21% higher than the state average of $304 monthly for standard full coverage.
Cost to add rideshare coverage:
– The average cost to add rideshare coverage to an existing policy in Florida is $31 per month.
– This is slightly lower than the national average of $34 per month to add rideshare coverage.
Cheapest options:
– State Farm and Progressive tend to have the lowest average rates for rideshare insurance in Florida.
– State Farm’s average monthly cost is $87 total ($75 base premium + $12 for rideshare coverage).
– Progressive’s average monthly cost is $89 total ($77 base premium + $12 for rideshare coverage).
Cost variation:
– Actual costs can vary significantly based on factors like driving history, age, vehicle type, gender, and insurance company.
– Some sources cite costs ranging from an additional $30 to $300 per month to add rideshare coverage, depending on individual circumstances.
Comparison shopping:
– It’s recommended to get quotes from multiple insurers to find the best rates, as prices can vary considerably between companies.
Comparing Rideshare Insurance companies in Florida
| Provider Name | Average Price Per Month (USD) | Coverage Details | Special Features |
|---|---|---|---|
| State Farm | 28 | Covers liability, collision, and comprehensive insurance. Coverage extends during all three phases of rideshare driving: when the app is on but no ride is accepted, when en route to pick up a passenger, and while transporting the passenger. | Offers 'gap coverage' for rideshare drivers that extends to personal policy; ensures higher liability coverage during all rideshare activities, minimizing coverage gaps. |
| Allstate | 42 | Allstate offers liability coverage (including bodily injury and property damage), uninsured/underinsured motorist coverage, collision, and comprehensive coverage through their rideshare insurance. The coverage specifically addresses the gaps during different rideshare activity phases. | Allstate includes unique features such as deductible gap coverage, which helps reimburse drivers for high deductibles during rideshare claims. Their policy also addresses gaps in coverage when a driver's personal insurance limits are lower than those provided by the rideshare company. |
| Progressive | 38 | Covers liability for bodily injury and property damage, contingent liability coverage while waiting for ride requests, as well as comprehensive and collision coverage for vehicle damage. Provides additional protection not available under standard auto insurance policies when driving for rideshare services. | Offers the ability to add rideshare insurance as an endorsement to an existing personal auto insurance policy, which ensures coverage is continuous and fills in gaps during rideshare activities. Also allows drivers to maintain their personal insurance without risk of cancellation for driving for rideshare. |
| Mercury | 27 | Mercury's rideshare insurance provides liability protection during the time when the app is on but no fares have been accepted (Period 1). It covers damage to other vehicles and medical expenses up to policy limits, and fill in coverage gaps left by TNCs. | Coverage starts at as low as $0.90 per day, must have a Mercury personal auto policy to add rideshare coverage, and offers bundling options for additional discounts. |
| Liberty Mutual | 35 | Liability coverage, uninsured/underinsured motorist coverage, collision coverage, and comprehensive coverage are offered during different active driving phases while engaged with rideshare activities. | Offers discounts for bundling policies and does not penalize for being a rideshare driver, maintaining coverage stability. Regular premium range is generally highly competitive. |
| USAA | 16 | Liability, collision, and comprehensive coverage, including gap protection during ride request waiting periods and periods in between rides. | Affordable premiums; additional gap coverage; competitive pricing tailored for military members. |
How Blake Insurance Group Can Help
At Blake Insurance Group, choosing the right rideshare insurance can be overwhelming. That’s why we offer personalized consultations to help you navigate your options. We can:
Assess your specific needs based on your driving habits and risk factors.
Compare quotes from multiple insurers to find the best rates.
Explain complex policy terms in plain language.
Help you understand how different coverage options might apply in real-world scenarios.
Assist with the application process and answer any questions you might have.
A rideshare endorsement helps fill gaps in this coverage.
Don’t hesitate to reach out if you have any questions about rideshare insurance in Florida. It’s my job to ensure you’re properly protected while you’re on the road, whether you’re waiting for a fare, picking up a passenger, or anything in between.
Frequently asked questions (FAQ)
- $50,000 bodily injury per person
- $100,000 bodily injury per accident
- $25,000 property damage liability
- Personal Injury Protection (PIP)
- Uninsured/underinsured motorist coverage
- State Farm
- GEICO
- Allstate
- Progressive
- USAA (for military members)
- Denied claims if you get in an accident while driving for Uber/Lyft
- Policy cancellation if your insurer finds out you're doing rideshare work
- Being underinsured during certain periods of rideshare driving
- Your personal policy applies when the app is off
- Limited rideshare company coverage applies when the app is on but no ride is accepted
- Full rideshare company coverage applies from ride acceptance through drop-off
Blake Insurance Group
Phone: (888) 387-3687
Email: [email protected]
Hours: Mon-Fri 9:00 am to 5:00 pm
Sat-Sun: Closed
Blake Nwosu
Owner & Principal Agent