rideshare insurance ny
As an independent insurance agent at Blake Insurance Group, I’ve seen firsthand how the rideshare industry has transformed transportation in New York.
With this change comes new insurance considerations for drivers. Whether you’re thinking about driving for Uber or Lyft or already on the road, understanding rideshare insurance is crucial for protecting yourself and your vehicle.
Rideshare insurance fills the gaps between your personal auto policy and the coverage provided by rideshare companies. It’s designed to offer protection during all phases of your rideshare activities, ensuring you’re not left vulnerable in case of an accident. Let’s dive into the key aspects of rideshare insurance in NY that every driver should know.
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Understanding the Three Periods of Rideshare Coverage
Period 0: Personal Use
This is when you’re using your vehicle for personal reasons and the rideshare app is turned off. During this time, your personal auto insurance policy provides coverage just like it normally would.
Period 1: Waiting for a Ride Request
This period begins when you turn on the rideshare app and are waiting for a ride request. It’s crucial to understand this phase because it’s where many drivers find themselves underinsured:
– Your personal auto policy likely won’t cover you during this time due to the commercial nature of ridesharing.
– Rideshare companies like Uber and Lyft typically offer limited liability coverage:
– $50,000 per person for bodily injury
– $100,000 per accident for bodily injury
– $25,000 for property damage
However, this coverage is often contingent and may not include collision or comprehensive protection for your vehicle.
Period 2 and 3: Accepted Ride Request and Passenger in Vehicle
Once you accept a ride request (Period 2) and while you have a passenger in your vehicle (Period 3), the coverage provided by rideshare companies significantly increases:
– Liability coverage increases to $1,250,000 for bodily injuries and property damage.
– Uninsured/underinsured motorist coverage of $1,250,000 is also provided.
– If you have comprehensive and collision coverage on your personal policy, the rideshare company may provide contingent coverage up to the value of your vehicle, typically with a $2,500 deductible.
The Coverage Gap: Why You Need Rideshare Insurance
Understanding the Coverage Gap
The coverage gap occurs during what’s known as Period 1 of rideshare driving. This is when you’ve turned on your rideshare app and are waiting for a ride request. During this time, your personal auto insurance policy typically won’t cover you, as most policies exclude commercial activities like ridesharing.
Here’s why this gap is problematic:
– Your personal policy isn’t in force
– The rideshare company’s coverage is limited
– You could be personally liable for accidents
Limited Coverage from Rideshare Companies
During Period 1, rideshare companies like Uber and Lyft provide only limited liability coverage:
– $50,000 per person for bodily injury
– $100,000 per accident for bodily injury
– $25,000 for property damage
This coverage is often contingent and may not include collision or comprehensive protection for your vehicle.
The Risks of Being Underinsured
Without proper coverage, you could face significant out-of-pocket expenses if you’re involved in an accident during this period. You might be responsible for:
– Repairs to your own vehicle
– Medical expenses not covered by the limited liability policy
– Legal fees if you’re sued
The Solution: Rideshare Insurance
To protect yourself from this coverage gap, consider purchasing rideshare insurance. This specialized coverage is designed to fill the gaps between your personal policy and the coverage provided by the rideshare company.
Rideshare insurance typically offers:
– Extended coverage during all phases of rideshare driving
– Lower deductibles than those offered by rideshare companies
– Additional liability protection
Remember, while New York state doesn’t require rideshare insurance, it can be invaluable in protecting your financial well-being. As your agent, I strongly recommend exploring this option to ensure you’re fully covered whenever you’re on the road.
New York City vs. Upstate: Different Rules Apply
New York City Regulations
In NYC, rideshare drivers face stricter requirements:
– Commercial Insurance: NYC drivers must carry their own commercial insurance policies, as rides originating in the five boroughs are not covered by Uber or Lyft’s insurance.
– Lower Liability Limits: Surprisingly, NYC requires lower liability coverage than the rest of the state. The Taxi and Limousine Commission (TLC) mandates $100,000/$300,000 for bodily injury, compared to $1.25 million outside the city.
– Higher Personal Injury Protection: NYC requires $200,000 in PIP (No-Fault) coverage, which is higher than the $50,000 required upstate.
Upstate New York Regulations
Outside of NYC, the rules are quite different:
– Higher Liability Coverage: State law requires $1.25 million in liability coverage for rideshare companies when a passenger is in the vehicle.
– Uninsured/Underinsured Motorist Coverage: $1.25 million in coverage is mandated outside NYC, compared to only $100,000 within the city.
– Rideshare Company Insurance: Uber and Lyft provide insurance coverage for drivers outside NYC, with different levels depending on the driving phase.
Impact on Drivers and Passengers
These differences can significantly affect both drivers and passengers:
– Coverage Gaps: NYC drivers may face larger coverage gaps, especially during the “waiting for a ride” phase.
– Passenger Protection: Passengers injured in accidents outside NYC may have access to higher compensation limits than those within the city.
– Driver Costs: NYC drivers may face higher insurance costs due to the requirement for commercial policies.
As an independent insurance agent at Blake Insurance Group, I’ve had many rideshare drivers ask me if the extra cost of rideshare insurance is worth it. Let’s break down the numbers and considerations to help you make an informed decision.
Cost of Rideshare Insurance in New York
Rideshare insurance in New York can be quite expensive, but costs vary significantly between insurers:
– The average monthly cost for liability-only coverage is $387
– Full coverage averages $491 per month
However, some companies offer more competitive rates:
– CSAA is the most affordable, at $161 per month
– Safeco and Liberty Mutual also offer lower rates, at $205 and $238 per month respectively
Factors to Consider
When weighing the cost, consider these points:
– Coverage Gap: Without rideshare insurance, you’re potentially exposed during Period 1 (app on, waiting for a ride request)
– Potential Out-of-Pocket Expenses: If you’re in an accident during the coverage gap, you could face significant costs
– Peace of Mind: Knowing you’re fully covered can reduce stress while driving
Is It Worth It?
In my professional opinion, the extra cost is usually worth it for several reasons:
Financial Protection: The potential out-of-pocket expenses from an accident during a coverage gap could far exceed the cost of rideshare insurance
Compliance: Some insurance companies may require it to maintain your policy
Customized Coverage: Rideshare insurance can be tailored to your specific needs and driving habits
Ways to Manage Costs
To make rideshare insurance more affordable:
– Shop around: As we’ve seen, rates vary significantly between insurers
– Look for discounts: Some companies, like Liberty Mutual, offer various discounts for rideshare drivers
– Consider a rideshare endorsement: This can be cheaper than a standalone policy
Remember, while New York state doesn’t legally require rideshare insurance, the financial protection it offers can be invaluable. As your agent, I strongly recommend exploring your options to ensure you’re fully protected on the road.
Comparing Rideshare Insurance companies in New York
| Company | Average Cost (Monthly) | Coverage Options | Customer Satisfaction | Special Features |
|---|---|---|---|---|
| CSAA | 161 | liability, comprehensive, collision, personal injury protection | 89.64/100 | option to receive Lyft credits while vehicle is being repaired |
| Liberty Mutual | 187 | liability, comprehensive, collision | 3.3/5 | discounts for claims-free and violation-free driving |
| Progressive | 38 | comprehensive, collision, uninsured/underinsured motorist, personal injury protection | 3.7/5 | deductible reimbursement, roadside assistance |
| Allstate | 162 | deductible gap coverage | 814/1000 | deductible gap coverage, roadside assistance |
| Farmers | 162 | liability, collision, comprehensive | 3.3/5 | coverage during the 'available' phase, roadside assistance |
CSAA Insurance
CSAA offers the most affordable rideshare insurance in New York, with monthly liability-only coverage averaging $161. They provide coverage during all phases of rideshare driving, including the crucial “waiting for a ride” period.
Liberty Mutual
Liberty Mutual offers competitive rates for rideshare insurance in New York, with an average monthly cost of $238 for liability-only coverage. They provide numerous discounts to help drivers reduce their premiums, including multi-car, multi-policy, and paperless policy discounts.
Progressive
Progressive stands out for its comprehensive rideshare coverage options. Their policy includes:
– Coverage during all rideshare phases
– Comprehensive and collision protection
– Personal injury protection
– Roadside assistance and rental car reimbursement
– Deductible reimbursement to cover the gap between personal and rideshare company deductibles
Allstate
Allstate offers a “Ride for Hire” endorsement that can be added to your personal auto policy. Key features include:
– Coverage during all phases of rideshare driving
– Deductible gap coverage up to $2,500
– Protection against gaps in TNC-provided coverage
Farmers
Farmers Insurance provides a rideshare endorsement that can be added to your existing auto policy. This coverage helps fill the gap when you’re logged into the rideshare app but haven’t accepted a ride yet.
Frequently asked questions (FAQ)
Rideshare Insurance NY FAQs
Q: What is rideshare insurance?
A: Rideshare insurance is a type of auto insurance that covers both personal and business use of your vehicle when driving for rideshare companies like Uber or Lyft.
Q: Why do I need rideshare insurance in New York?
A: Rideshare insurance bridges the coverage gaps between your personal auto policy and the insurance provided by rideshare companies, ensuring you're protected at all times.
Q: What does rideshare insurance cover in New York?
A: It typically covers liability, collision, comprehensive, and uninsured motorist coverage during the rideshare app's active and in-between ride periods.
Q: How much does rideshare insurance cost in New York?
A: The cost varies based on your provider, driving record, and coverage needs, but it usually adds a small premium to your personal auto insurance.
Q: Can I use my personal auto insurance for ridesharing in New York?
A: Standard personal auto insurance does not cover commercial activities like ridesharing. You need a rideshare-specific policy or endorsement.
Q: Which companies offer rideshare insurance in New York?
A: Many insurance providers, such as Progressive, GEICO, and State Farm, offer rideshare insurance or endorsements in New York.
Q: How can I purchase rideshare insurance in New York?
A: Contact an independent insurance agent like Blake Insurance Group LLC for tailored advice and competitive quotes for your needs.
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