rideshare insurance Phoenix
As a rideshare driver in Phoenix Arizona, you may be wondering what kind of insurance you need to stay protected while on the job. Rideshare insurance is a type of coverage that fills the gap between your personal car insurance policy and the commercial policy provided by your rideshare company. Here are some key things to know about rideshare insurance:
– **What is rideshare insurance?** Rideshare insurance is a type of car insurance coverage that provides additional financial protection for rideshare drivers. It fills in the gaps left by the coverage offered by rideshare companies and personal car insurance policies.
– **Why do rideshare drivers need insurance?** Rideshare drivers need insurance because their personal car insurance policies do not cover the transport of paying customers from place to place. Employer-provided policies often only cover the minimum and set restrictions on when you are covered. Rideshare insurance provides the additional coverage needed to keep you financially protected at all times.
How does rideshare insurance work? Rideshare companies are usually mandated by state law to provide coverage for their drivers. However, because your rideshare company’s policy may not cover you in all situations, it’s important to have additional coverage.
Rideshare insurance extends certain coverages on your personal policy so that they apply during the “app on” period when you’re waiting for a ride request. When you accept a request, the ridesharing company may provide some insurance covering liability for bodily injury and property damage up to the policy’s limits.
If you’re a rideshare driver in Phoenix, it’s important to make sure you have the right insurance coverage to stay protected on the job. While rideshare companies may provide some coverage, it may not be enough to cover all situations. Consider purchasing rideshare insurance to fill in the gaps and keep yourself financially protected at all times.
If you’re a rideshare driver in Phoenix, you have several options for companies offering rideshare insurance. Here’s a closer look at each of them:
– **State Farm:** State Farm provides rideshare insurance to a wide variety of drivers. Their coverage includes liability, collision, and comprehensive coverage, as well as uninsured/underinsured motorist coverage. They also offer optional coverages like rental reimbursement and emergency roadside service.
– **Allstate:** Allstate offers rideshare insurance policies that provide coverage for all stages of rideshare driving, including when the app is on but you haven’t accepted a ride yet. Their coverage includes liability, collision, and comprehensive coverage, as well as uninsured/underinsured motorist coverage. They also offer optional coverages like rental reimbursement and sound system coverage.
– **Progressive:** Progressive offers rideshare insurance policies that provide coverage for all stages of rideshare driving, including when the app is on but you haven’t accepted a ride yet. Their coverage includes liability, collision, and comprehensive coverage, as well as uninsured/underinsured motorist coverage. They also offer optional coverages like roadside assistance and loan/lease payoff coverage.
– **Mercury Insurance:** Mercury Insurance offers rideshare insurance coverage for drivers who work for Transportation Network Companies (TNCs) like Uber or Lyft. Their coverage fills the gaps left by the coverage provided by TNCs and personal car insurance policies. It provides coverage during Period 1 of the drive cycle when the ride-hailing app is turned on and you have not accepted a fare. When combined with the TNC’s commercial insurance coverage, it provides protection through all stages of the ride.
– **Farmers Insurance:** Farmers Insurance offers rideshare insurance coverage in 23 states, including Arizona. Their coverage includes liability, collision, and comprehensive coverage, as well as uninsured/underinsured motorist coverage. They also offer optional coverages like personal injury protection and roadside assistance.
When choosing a rideshare insurance policy in Phoenix, it’s important to compare quotes from different insurance companies to find the most affordable policy that meets your needs. Consider factors like coverage, cost, deductible, reputation, and additional coverage options when making your decision
Coverage options for rideshare insurance in Phoenix:
Rideshare insurance policies in Phoenix typically provide coverage for the following:
– **Liability coverage:** This coverage pays for damages and injuries you cause to others while driving for a rideshare company. In Arizona, rideshare drivers are required to have at least $250,000 in bodily injury coverage and an endorsement for uninsured motorist coverage during phase 1 of the drive cycle.
– **Collision coverage:** This coverage pays for damages to your vehicle if you’re in an accident while driving for a rideshare company. If you carry comprehensive and collision coverage on a personal auto insurance policy, the rideshare company provides collision and comprehensive coverage during the time you’re going to pick up a rider or have a rider.
– **Comprehensive coverage:** This coverage pays for damages to your vehicle that are not caused by a collision, such as theft or weather damage. If you carry comprehensive collision coverage on a personal auto insurance policy, the rideshare company provides comprehensive coverage during the time you’re going to pick up a rider or have a rider.
– **Uninsured/underinsured motorist coverage:** This coverage pays for damages and injuries you sustain if you’re in an accident with a driver who doesn’t have enough insurance to cover your losses. In Arizona, Uber drivers are required to carry uninsured/underinsured motorist coverage with the same minimum limits as liability coverage.
When choosing a rideshare insurance policy in Phoenix, it’s important to consider the coverage options available and choose a policy that meets your needs. It’s also important to compare quotes from different insurance companies to find the most affordable policy that meets your needs. Some insurance companies may offer additional coverages like roadside assistance and rental reimbursement, so be sure to ask about these options when shopping for rideshare insurance.
Cost of rideshare insurance in Phoenix
The cost of rideshare insurance in Phoenix varies depending on the insurer and the level of coverage you choose. the average monthly cost of a full-coverage policy with a rideshare endorsement in Arizona is $297, while the cost for a liability-only policy is $226. However, the cost may be higher or lower depending on factors such as your driving record, the type of vehicle you drive, and the amount of coverage you need.
It’s important to shop around and compare quotes from different insurers to find the best coverage at the most affordable price. Some insurance companies may offer discounts for safe driving, bundling policies, or paying in full upfront, so be sure to ask about these options when shopping for rideshare insurance. Allstate, for example, offers its rideshare coverage for only $15 to $20 per year. Rideshare insurance costs less than many drivers would think, making it an affordable way to stay protected on the job.
Insurance policy requirements for Uber and Lyft drivers in Phoenix:
As of July 2020, drivers for Uber and Lyft in Phoenix must carry $25,000 coverage for personal injuries to one person, $50,000 coverage for injuries to more than one person in a single accident, and $20,000 coverage for property damage. While not required in Arizona, it’s highly recommended for Uber drivers to carry Personal Injury Protection (PIP) or Medical Payments Coverage. It’s important to note that these are minimum requirements, and drivers may choose to carry higher levels of coverage to stay better protected on the job.
In addition to the state requirements, rideshare companies like Uber and Lyft also provide insurance coverage for their drivers during different stages of the ride cycle. For example, when the app is on but drivers are waiting for a ride request, Lyft maintains third-party liability insurance for covered accidents if your personal insurance does not apply of at least $50,000/person for bodily injury, $100,000/accident for bodily injury, and $25,000/accident for property damage. When drivers are en route to pick up passengers or during rides, Lyft maintains at least $1,000,000 for third-party auto liability coverage, as well as first-party coverages like uninsured motorist coverage, underinsured motorist coverage, PIP, MedPay, and/or Occupational Accident coverage.
When choosing an insurance policy for a rideshare driver in Phoenix, it’s important to consider both the state requirements and the coverage provided by your rideshare company. You may also want to consider additional coverages like collision and comprehensive coverage to protect your vehicle. It’s important to shop around and compare quotes from different insurers to find the most affordable policy that meets your needs.
Penalties for not having proper insurance coverage as a rideshare driver in Phoenix:
If you’re a rideshare driver in Phoenix and you don’t have proper insurance coverage, you could face serious consequences. You may be held personally liable for damages and injuries you cause while driving for a rideshare company. Additionally, you may be subject to fines, license suspension, or even criminal charges. It’s important to make sure you have the right insurance coverage to stay protected on the job and avoid these penalties.
State requirements for rideshare insurance in Phoenix:
Arizona law requires transportation network companies (TNCs) like Uber and Lyft to maintain minimum financial liability coverage. Under Arizona Revised Statutes §28-4038, either the TNC driver, the TNC itself, or both are required to provide primary motor vehicle liability insurance.
Choosing the right rideshare insurance policy in Phoenix can be overwhelming, but here are some factors to consider:
Factors to consider when choosing a rideshare insurance policy:
– Coverage: Make sure the policy covers you during all stages of rideshare driving, including when the app is on but you haven’t accepted a ride yet.
– Cost: Compare quotes from different insurance companies to find the most affordable policy that meets your needs.
– Deductible: Consider the amount of the deductible and how much you can afford to pay out of pocket in the event of an accident.
– Reputation: Choose an insurance company with a good reputation for customer service and claims handling.
– Additional coverage: Consider adding optional coverages like comprehensive and collision coverage to protect your vehicle.
Tips for finding affordable rideshare insurance in Phoenix:
– Shop around and compare quotes from different insurance companies.
– Consider raising your deductible to lower your monthly premium.
– Ask about discounts for safe driving, bundling policies, or paying in full upfront.
Importance of comparing quotes from different insurance companies:
Comparing quotes from different insurance companies is important because it allows you to find the most affordable policy that meets your needs. Each insurance company has its own underwriting guidelines and pricing models, so the cost of coverage can vary significantly from one company to another. By comparing quotes, you can find the best coverage at the most affordable price and make an informed decision about your rideshare insurance policy.