auto insurance for rideshare arizona
As a rideshare driver in Arizona, it’s essential to understand your insurance options. While your auto insurance policy may cover you while driving for personal use, it may not provide adequate coverage for a rideshare company like Uber or Lyft. Here’s what you need to know about auto insurance for rideshare drivers in Arizona:
Rideshare insurance is an auto insurance policy that provides additional coverage for drivers who use their vehicles to transport passengers for a fee. It’s designed to fill the gaps in coverage between a driver’s auto insurance policy and the insurance provided by the rideshare company.
Why do rideshare drivers need additional insurance?
Most personal auto insurance policies exclude coverage for commercial vehicle use, including driving for a rideshare company. This means that your auto insurance policy may not cover you if you’re involved in an accident while driving for Uber or Lyft. Rideshare insurance provides additional coverage to protect yourself and your passengers.
Rideshare drivers in Arizona need additional insurance because their auto insurance policy may not provide adequate coverage while driving for a rideshare company like Uber or Lyft. Rideshare companies also provide driver insurance coverage, which may only apply under certain circumstances.
Arizona law requires rideshare drivers to carry both personal auto insurance and rideshare insurance. Rideshare insurance policies provide coverage during all periods of employment, including when the driver is waiting for a ride request. Arizona’s rideshare insurance companies include State Farm, Allstate, Progressive, and Mercury Insurance.
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What does personal auto insurance cover for rideshare drivers?
Personal auto insurance policies may not cover accidents during a ridesharing gig, and it could cancel the policy if it finds out the driver hasn’t disclosed they drive the car for money. Even if the driver has coverage from the company they rideshare for, it likely won’t apply the entire time they’re on the job. Rideshare companies like Uber and Lyft provide coverage while the driver is driving with a passenger, but the driver won’t be covered when they are in between rides.
A standard personal insurance policy won’t cover the driver either. To be fully covered, the driver must add rideshare coverage to their policy through their insurer or buy a commercial auto policy. Rideshare insurance policies provide coverage during all periods of employment, including when the driver is waiting for a ride request.
What does commercial auto insurance cover for rideshare drivers?
Commercial auto insurance is different from personal auto insurance and is designed to cover vehicles used for business purposes, including ridesharing. Rideshare drivers need commercial coverage because their personal auto insurance policy may not provide adequate coverage while driving for a rideshare company. Rideshare companies like Uber and Lyft provide driver insurance coverage, but this coverage may only apply under certain circumstances. Rideshare insurance policies provide coverage during all periods of employment, including when the driver is waiting for a ride request.
Rideshare insurance costs vary depending on several factors, including the driver’s age, driving record, and the coverage they need. The average monthly cost of a full-coverage policy with a rideshare endorsement is $297, and $226 for a liability-only policy. However, Allstate offers rideshare coverage for only $15 to $20 annually. Other Arizona insurance companies offering rideshare insurance include State Farm, Progressive, and Mercury Insurance. It is essential to compare quotes from multiple insurance providers to find the best coverage at the most affordable price.
How much does rideshare insurance cost in Arizona?
Rideshare insurance costs in Arizona depend on several factors, including the driver’s age, driving record, and the coverage they need. Here are some key points to keep in mind:
Average cost: In Arizona, the average monthly cost of a full-coverage policy with a rideshare endorsement is $297, and the price is $226 for a liability-only policy. Allstate offers rideshare coverage endorsement for only $65 to $100 annually. Other Arizona insurance companies offering rideshare insurance include State Farm, Progressive, and Mercury Insurance. Using our online comparison tool to compare multiple insurance providers to find the best coverage at the most affordable price is essential.
Rideshare coverage can be a specific “rideshare endorsement” to a personal auto or commercial insurance policy. Blake Insurance Group, an authorized producer for multiple insurance companies, offers a “transportation endorsement” that provides coverage for rideshare drivers for about $10 per month. The cost of rideshare insurance may vary depending on the type of coverage purchased, the insurance company, and the specific policy details.
Rideshare Insurance Requirements in Arizona
In Arizona, rideshare drivers must maintain specific insurance coverage per the state’s regulations. These requirements ensure that drivers and passengers are protected in an accident.
**Insurance Requirements When Logged In But Not On a Ride**: When a rideshare driver is logged into the app but has not yet accepted a ride request, they are required to have a motor vehicle liability policy that provides coverage for $25,000 per person and $50,000 per accident for bodily injury, along with $20,000 per accident for property damage. This policy can be maintained by either the driver or the rideshare company.
**Insurance Requirements When On a Ride**: Once a driver has accepted a ride request and is in the process of providing passenger transportation, the driver or the rideshare company must maintain a motor vehicle liability insurance policy that provides a minimum coverage of $250,000 per incident. Additionally, an endorsement for uninsured motorist coverage in a minimum amount of $250,000 per incident is required.
**Proof of Insurance**: Rideshare drivers must always carry proof of insurance in their vehicle while providing transportation services. In the event of an accident, the driver must provide proof of insurance to the parties involved and notify the rideshare company of the accident.
**Commercial Insurance Requirement**: Arizona requires commercial drivers with fewer than eight passengers to have $250,000 liability coverage per incident and $250,000 uninsured motorist coverage. For vehicles that can transport more than eight and up to 16 passengers, the driver’s commercial insurance must provide $750,000 of liability coverage and $300,000 of uninsured motorist coverage.
**Rideshare Endorsement**: Rideshare coverage can be a specific “rideshare endorsement” to a personal auto or commercial insurance policy.
Rideshare drivers must understand these requirements and ensure they have the appropriate coverage. Failure to maintain the required insurance can result in penalties and leave the driver financially responsible for damages and injuries in an accident.
How do we compare rideshare insurance policies?
When comparing insurance policies for rideshare drivers, it’s essential to consider the cost, coverage options, and customer service. Here’s a brief overview of the comparison based on the available information:
Cost
– The cost of rideshare insurance can vary depending on the type of coverage purchased, the insurance company, and the state of residence.
– Some insurers offer rideshare insurance endorsements that can be added to existing personal car insurance policies, while others may provide separate rideshare insurance policies.
– Rideshare insurance costs depend primarily on the type of coverage purchased. For instance, a rideshare endorsement may cost less than a separate rideshare insurance policy that provides coverage independent of your regular car insurance policy.
Coverage Options
– Rideshare insurance policies are designed to fill the gaps between personal car insurance policies and the coverage provided by ridesharing companies like Uber and Lyft.
– Coverage options may include liability insurance, uninsured/underinsured motorist protection, and comprehensive/collision coverage.
Customer Service
– When comparing insurance policies, it’s important to consider the customer service reputation of the insurance companies. This can include claims processing, ease of communication, and overall customer satisfaction.
Arizona Rideshare Insurance Comparison
| Company | Average Cost (Monthly) | Coverage Options | Customer Satisfaction | Special Features |
|---|---|---|---|---|
| Progressive | $150 - $200 | Liability, Collision, Comprehensive, UM/UIM, Rideshare Endorsement | 4.2/5 | Snapshot® usage-based insurance |
| State Farm | $140 - $190 | Liability, Collision, Comprehensive, Medical, Rideshare Endorsement | 4.4/5 | Drive Safe & Save™ program |
| Geico | $130 - $180 | Liability, Collision, Comprehensive, UM/UIM, Rideshare Endorsement | 4.3/5 | Mobile app for easy policy management |
| USAA | $110 - $160 | Liability, Collision, Comprehensive, UM/UIM, Rideshare Endorsement | 4.8/5 | Exclusive to military members and families |
| Mercury | $120 - $170 | Liability, Collision, Comprehensive, Rental, Rideshare Endorsement | 4.0/5 | RealDrive® pay-per-mile program |
| VOOM | $80 - $150 | Pay-per-mile coverage, Liability, Collision | 3.9/5 | Pay-per-mile insurance, ideal for low-mileage drivers |
| Mile Auto | $70 - $140 | Pay-per-mile coverage, Liability, Collision | 4.1/5 | Pay-per-mile insurance, ideal for low-mileage drivers |
| Auto-Owners | $130 - $180 | Liability, Collision, Comprehensive, Medical, Rideshare Endorsement | 4.5/5 | Discounts for bundling multiple policies |
| Farmers | $140 - $190 | Liability, Collision, Comprehensive, UM/UIM, Rideshare Endorsement | 4.2/5 | Rideshare endorsement for part-time and full-time drivers |
| Allstate | $150 - $200 | Liability, Collision, Comprehensive, UM/UIM, Rideshare Endorsement | 4.3/5 | Drivewise® usage-based insurance |
What happens if you have an accident while driving for Uber or Lyft in Arizona?
In Arizona, if you have an accident while driving for Uber or Lyft, the insurance coverage depends on the phase of driving you’re in at the time of the accident.
**Offline or App Off**: Your personal auto insurance coverage applies.
**Online and Waiting for a Ride Request**: If you’re online and waiting for a ride request, the coverage is limited to your personal insurance. However, Uber and Lyft maintain third-party liability insurance for covered accidents if your insurance does not apply. This includes $50,000/person for bodily injury, $100,000/accident for bodily injury, and $25,000/accident for property damage.
**En Route to Pick Up Passengers and During Trips**: Once you accept a ride request and are on your way to pick up a passenger or during the ride, Uber and Lyft provide more comprehensive coverage. This includes at least $1,000,000 for third-party auto liability, uninsured/underinsured motorist bodily injury and first-party injury insurance, and contingent comprehensive and collision up to the car’s actual cash value with a $2,500 deductible.
It’s important to note that these coverages are designed to act as the primary coverage from when you accept a ride request until the ride has ended. If you already carry commercial insurance (or personal coverage providing specific coverage for ridesharing), Lyft’s policy will be in excess of your insurance coverage.
In an accident, it’s recommended to contact the police and file a police report, obtain the contact information of witnesses and the other driver involved in the accident, and report the incident to the rideshare company.
How to get rideshare insurance in Arizona?
**Contact Your Current Insurance Provider**: Contact your current auto insurance provider to inquire if they offer rideshare insurance. Companies such as State Farm, Allstate, Progressive, and Mercury Insurance provide this coverage in Arizona.
**Contact a Rideshare Insurance Agent**: Contact Arizona’s preferred rideshare insurance agent, such as Blake Insurance Group. They can provide a quote and further information about your options. Blake Insurance Group works with major insurance companies like Progressive, Safeco, and Insurance to find the best coverage for your needs.
**Consider a Rideshare Endorsement**: Some insurance providers offer a “rideshare endorsement” that can be added to your existing auto insurance policy. This endorsement provides coverage when you’re logged into a rideshare app but haven’t accepted a ride yet.
**Apply for Coverage**: Once you’ve chosen a provider and a policy that suits your needs, you can apply for coverage. This process may involve providing information about your vehicle, driving history, and rideshare activities.
Remember, it’s crucial to maintain the required insurance coverage as a rideshare driver in Arizona to protect yourself, your vehicle, and your passengers.
Here are the best insurance companies for rideshare drivers in Arizona:
Progressive Rideshare Insurance Arizona
Progressive offers a unique type of rideshare insurance known as for-hire livery insurance. This policy is a hybrid of personal and rideshare insurance, providing coverage whether the driver operates for personal reasons or a rideshare company.
The for-hire livery insurance is not exclusively for rideshare drivers but is suitable for businesses that generate revenue from transporting people. Progressive’s rideshare insurance can be added as an endorsement to a personal auto policy or obtained as a commercial for-hire livery policy, offering flexibility based on the driver’s needs.
State Farm rideshare insurance Arizona
State Farm offers a rideshare insurance endorsement that extends the coverage of a driver’s personal auto insurance policy when they are online and waiting for a ride request. This means that all the coverage on a driver’s State Farm policy, including comprehensive, collision, medical payments, and uninsured/underinsured motorist coverage, will apply during this period.
However, liability insurance, which covers damages to other people and their property, is typically provided by the rideshare company during this time. This endorsement ensures that drivers have adequate coverage during all phases of their rideshare driving, providing an extra layer of protection.
Allstate rideshare insurance Arizona
Allstate offers ride-hailing insurance endorsements that can be added to existing personal car insurance policies. These endorsements are designed to fill coverage gaps between personal car insurance policies and the coverage provided by rideshare companies like Uber and Lyft.
Allstate’s Ride for Hire can help protect drivers during all phases of their rideshare driving, including the “app on” period when waiting for a ride request. This coverage can prevent drivers from paying out-of-pocket for related expenses if an accident occurs during this period. Additionally, Allstate’s Ride for Hire provides deductible gap coverage, helping to minimize out-of-pocket expenses if a claim needs to be filed.
Farmers rideshare insurance Arizona
Farmers offer rideshare insurance that helps fill the coverage gaps when drivers are waiting to be matched with their next rider and are only covered by a rideshare company’s limited liability coverage. This insurance, known as Farmers Rideshare, can be added to an existing auto policy and provides coverage when the driver is logged into the rideshare company’s app but hasn’t accepted a ride.
This ensures that drivers are protected during all phases of their rideshare driving, including the “app on” period when waiting for a ride request. This coverage can prevent drivers from paying out-of-pocket for related expenses if an accident occurs during this period.
Mercury Rideshare Insurance Arizona
Mercury Insurance provides rideshare insurance coverage for drivers who work for Transportation Network Companies (TNCs) like Uber or Lyft. This coverage, often called ride-hailing insurance, can be added as an optional endorsement to personal car insurance policies. It is designed to fill the coverage gaps between a driver’s personal auto insurance and the insurance provided by the TNC.
Mercury’s rideshare insurance provides coverage when the driver is logged into the rideshare app but hasn’t accepted a ride request, a period often not fully covered by personal or TNC-provided insurance. This ensures that drivers are protected during all phases of their rideshare driving, reducing the risk of out-of-pocket expenses in the event of an accident.
Auto-Owners Rideshare Insurance Arizona
Auto-Owners Insurance is a reliable choice for rideshare drivers in Arizona, known for its comprehensive coverage and competitive rates. The company offers a variety of coverages, including collision, comprehensive, bodily injury liability, property damage liability, uninsured/underinsured motorist, medical payments, personal injury protection, and road trouble service.
Auto-Owners is recognized for its superior financial stability, with an A++ rating from AM Best Company. It also provides competitive pricing with below-average rates. However, it’s important to note that some sources suggest that Auto-Owners does not offer rideshare insurance, indicating a potential need for further clarification.
Mile Auto Rideshare Insurance Arizona
Mile Auto is a popular choice for rideshare insurance in Arizona, particularly for drivers who don’t log many miles. The company offers pay-per-mile insurance, which can result in significant savings for low-mileage drivers. Mile Auto’s policies are straightforward, potentially saving drivers 30-40% off their current rates if they drive less than 10,000 miles annually.
The company is recognized for its affordability and is listed among the best insurance companies for rideshare drivers in Arizona. However, it’s important to note that Mile Auto does not use tracking devices on vehicles. Instead, drivers must send a photo of their odometer once a month.
USAA rideshare insurance Arizona
USAA is a top insurance provider in Arizona that offers rideshare insurance coverage for current and former military members and their families. USAA’s rideshare insurance, known as “rideshare gap coverage,” protects drivers during the “unmatched” time before picking up a passenger or delivery.
This coverage fills the gap between personal auto insurance and the rideshare company’s insurance, ensuring drivers are adequately protected. USAA is known for its excellent customer service and affordable rates, with rideshare insurance available for as low as $6 per month. However, it’s important to note that USAA insurance is only available to military personnel, veterans, and their families.
Voom rideshare insurance Arizona
Voom rideshare insurance in Arizona offers a pay-as-you-go coverage option for rideshare and delivery drivers. Voom is known for its usage-based insurance, allowing drivers to save up to 60% on insurance costs. The company supports various platforms, including Uber, Lyft, Uber Eats, Amazon Flex, and DoorDash.
Voom’s insurance policies are designed to cover common coverage gaps in both commercial and personal activities, providing rideshare drivers with peace of mind and financial protection. However, it’s important to note that Voom’s primary focus has been on pay-per-mile motorcycle insurance.
State Auto Rideshare Insurance Arizona
State Auto Insurance offers a usage-based driving program called State Auto Safety 360, which provides coverage choices for various driving needs, including rideshare drivers in Arizona. By enrolling in this program, drivers can earn an instant 10% enrollment discount and up to 50% off their auto-renewal premium for a safe driving score.
However, it’s important to note that the availability and discounts of this program may vary by state. Their usage-based program could benefit rideshare drivers looking for customizable coverage options.
Safeway Rideshare Insurance Arizona
Safeway Insurance, a company with a strong presence in Arizona, offers a ridesharing GAP coverage policy. This policy is designed to provide insurance coverage for drivers who use their vehicles for ridesharing or goods delivery. However, it’s important to note that the standard Safeway auto insurance does not cover ridesharing activities.
Safeway’s ridesharing GAP coverage fills this gap, ensuring drivers are protected while transporting passengers or goods. The company offers various ways to manage your insurance policy, including through a mobile app. However, some sources suggest that Safeway does not offer ridesharing insurance, indicating a potential need for further clarification.
Infinity Rideshare Insurance Arizona
Infinity Auto Insurance, a subsidiary of Kemper Corporation, offers rideshare insurance in select cities, including Arizona. This coverage is designed for drivers who work for rideshare services like Uber or Lyft. Infinity’s rideshare insurance is an additional service that requires an extra fee and can increase the overall insurance rates.
The company is known for providing insurance to high-risk drivers and offers several discounts that can help lower rates. However, if you want to use your car for ridesharing, your standard Infinity auto insurance won’t apply, and you would need to opt for their rideshare GAP coverage policy.
The benefits of having rideshare insurance in Arizona include:
In Arizona, having rideshare insurance provides several benefits for drivers working with companies like Uber and Lyft. These benefits include:
**Filling Coverage Gaps**: Rideshare insurance fills the gaps between a driver’s personal auto insurance policy and the insurance provided by the rideshare company, ensuring adequate coverage during all driving phases.
**Compliance with State Regulations**: Arizona law requires rideshare drivers to have specific insurance coverage, including at least $250,000 in bodily injury coverage and an endorsement for uninsured motorist coverage during Phase 1 (waiting for a ride request).
**Financial Protection**: Rideshare insurance offers financial protection for drivers in case of accidents, covering potential damages and injuries that may not be covered by personal auto insurance or the rideshare company’s policy.
**Peace of Mind**: Having rideshare insurance gives drivers peace of mind, knowing they have the appropriate coverage while working for a rideshare company, reducing the risk of personal financial liability in the event of an accident.
Frequently asked questions (FAQ)
- $25,000 per person for bodily injury liability
- $50,000 per accident for bodily injury liability
- $15,000 per accident for property damage liability
- $250,000 per incident for liability coverage while providing passenger transportation
- Financial protection in case of an accident
- Coverage during all phases of ridesharing
- Compliance with Arizona state insurance requirements
- Protection for your personal assets
- Peace of mind while driving for a rideshare company
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Blake Nwosu
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