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 essential 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.
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If you’re a rideshare driver in Phoenix, you have several options for companies offering the lowest-cost rideshare insurance in Arizona. Here’s a closer look at each of them:
– **State Farm:** State Farm provides rideshare insurance to various drivers. Their coverage includes liability, collision, comprehensive coverage, and 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, comprehensive coverage, and 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, comprehensive coverage, and 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 protects all stages of the ride.
– **Farmers Insurance:** Farmers Insurance offers rideshare insurance coverage in 23 states, including Arizona. Their coverage includes liability, collision, comprehensive coverage, and uninsured/underinsured motorist coverage. They also offer optional coverages like personal injury protection and roadside assistance.
When choosing a rideshare insurance policy in Phoenix, comparing quotes from different insurance companies to find the most affordable policy that meets your needs is important. 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 must 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. Suppose you carry comprehensive and collision coverage on a personal auto insurance policy. In that case, the rideshare company provides collision and comprehensive coverage when you 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. Suppose you carry comprehensive collision coverage on a personal auto insurance policy. In that case, the rideshare company provides comprehensive coverage when you 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 must 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
In Phoenix, the average monthly cost for full-coverage car insurance is estimated at $180, or $2,164 annually. While this isn’t specifically for rideshare insurance, it provides a baseline for understanding insurance costs in the area.
For cities surrounding Phoenix:
Glendale: $167 per month or $2,006 annually
Tempe: $154 per month or $1,845 annually
Scottsdale: $148 per month or $1,773 annually
Mesa: $149 per month or $1,790 annually
Chandler: $147 per month or $1,762 annually
Gilbert: $145 per month or $1,742 annually
Peoria: $148 per month or $1,777 annually
It’s important to note that these figures are for standard full-coverage policies. The costs may be higher for rideshare insurance. According to one source, the average monthly cost in Arizona for a full-coverage policy with a rideshare endorsement is $252. However, it’s possible to find cheaper rates with the right insurer. For example, some insurers in Arizona offer liability-only coverage for rideshare drivers at an average of less than $100 a month.
Remember that adding a rideshare endorsement to your car insurance policy will typically raise your rates. On average, this increase is about $94 for a six-month premium period. The exact cost can vary depending on the insurance company and your individual circumstances.
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 for injuries to more than one person in a single accident, and $20,000 for property damage. While not required in Arizona, it’s highly recommended that Uber drivers 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 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 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.
Rideshare Insurance FAQs in Phoenix, Arizona
Do you need rideshare insurance in Arizona?
Yes, if you drive for a rideshare company in Arizona, you must have the minimum required liability coverage. This coverage can come from either the rideshare company you drive for or your auto insurance company.
Do Uber drivers in Arizona have to carry commercial auto insurance?
No. Arizona only requires drivers to carry rideshare insurance and their personal auto insurance policy.
Do you need rideshare insurance if you already have personal auto insurance?
Most likely, yes. Your personal insurer may not offer coverage while your rideshare app is on, whether you're waiting for passengers, going to pick one up, or carrying one. Getting rideshare insurance can provide coverage where your personal policy and the rideshare company's insurance have gaps.
What are the consequences of not having proper rideshare insurance in Arizona?
If you don't have insurance and are at fault in an accident while ridesharing, you may be financially liable for all injuries and damages you cause. In Arizona, you may also face fines of $500 to $1,000, license suspension or revocation, vehicle impoundment, and lawsuits.
Do food delivery drivers need rideshare insurance in Arizona?
Arizona's rideshare insurance laws specifically mention transportation network companies like Uber and Lyft, not delivery services. However, some insurers require rideshare coverage even for delivery services. UberEats and DoorDash provide drivers with insurance coverage through the platform while the app is on and during active deliveries, but drivers must still maintain their personal auto insurance policies.
Which companies offer rideshare insurance in Arizona?
Companies offering rideshare insurance in Arizona include State Farm, Allstate, and Progressive.
Can rideshare insurance save me money on my personal auto insurance?
Some insurance providers, like VOOM Insurance, claim to offer specialized coverage for rideshare drivers that can potentially save up to 60% on personal auto insurance.
What types of coverage are typically included in rideshare insurance?
Rideshare insurance typically includes liability coverage and may offer additional protections such as collision, comprehensive, and uninsured/underinsured motorist coverage. The specific coverages can vary depending on the insurance provider and policy.