rideshare insurance texas
As an insurance agent, I understand the importance of having the right coverage for your vehicle. If you are a rideshare driver in Texas, you must have rideshare insurance to protect yourself and your passengers. This article will discuss what rideshare insurance is, what it covers, and why it is essential.
What is Rideshare Insurance?
Rideshare insurance is a type of auto insurance that covers drivers who work for companies like Uber or Lyft. Most personal auto policies do not include coverage when using your car for ride-sharing, and some insurance companies now offer policies for ride-sharing drivers. Rideshare insurance closes the coverage gaps between personal auto insurance and coverage provided by companies such as Lyft and Uber.
What Does Rideshare Insurance Cover?
Rideshare insurance policies typically offer liability, collision, and comprehensive coverage. Liability coverage is required by law and covers damages to other people and their property. Collision coverage covers damage to your car if you are in an accident, and comprehensive coverage covers damage from non-collision events such as theft or weather damage.
It is important to note that some policies cover only part of the time you are driving, such as the time before you pick up a passenger, and some policies cover only damage to other people and their property, but not damage to you, your family members, or your car. The exact amount of coverage required varies depending on which “period” of rideshare driving you are in.
Why is Rideshare Insurance Important?
If you are in your automobile with your app on and waiting for a passenger and an incident was to occur, you would not be covered. Your company-issued protection only kicks in once you are en route, and your auto policy may not cover the damages because you were driving commercially at the time and not for personal use. Various top-rated insurance carriers offer rideshare insurance to help protect drivers while working their ridesharing shifts.
How much does rideshare insurance cost?
The cost of rideshare insurance in Texas can vary significantly based on several factors, including the driver’s personal driving history, credit score, and the insurance company they choose. On average, adding rideshare insurance to a personal auto insurance policy can increase monthly premiums by around 3%.
This can translate to an increase of $2 to $25 monthly. Some insurance providers, like Allstate, offer rideshare coverage for as low as $15 to $20 per year. Rideshare coverage can typically be added to a personal auto insurance policy for between $6 and $20 monthly. Progressive offers rideshare endorsement coverage for only $15 to $20 for six months.
It’s important to note that while Uber and Lyft provide up to $1 million in liability insurance coverage for their drivers, personal auto coverage may apply if you drive for a rideshare company. However, most personal auto policies will not cover you while driving with Lyft. Therefore, consider buying a rideshare insurance policy or a rideshare endorsement for complete coverage whenever you drive.
In Texas, rideshare drivers must carry a higher level of insurance than people who only drive for personal trips. Most car insurance companies in Texas need you to buy special coverage to be covered while you go for a transportation network company (TNC). This typically results in 15%-30% higher car insurance rates.
How to get rideshare insurance?
If you are a rideshare driver in Texas, you must have the right insurance coverage to protect yourself and your passengers. Here are the steps you need to take to get rideshare insurance in Texas:
Contact your current insurance company: Ask your insurance agent or company if your auto policy will cover you when you use your car for ride-sharing. If not, ask if they offer a ride-hailing insurance endorsement that drivers can add to their existing personal car insurance policy. Some insurers offer this type of coverage, which can be more affordable than purchasing a separate policy.
Shop around: If your current insurance company does not offer rideshare insurance, you may need to switch to a different insurer to get the necessary coverage. Not all insurance companies offer rideshare insurance, so it is important to shop around and compare quotes from different providers to find the best coverage at the most affordable price.
Choose the right coverage: Rideshare insurance policies typically offer liability, collision, and comprehensive coverage. Choose the coverage that best fits your needs and budget. It is important to note that some policies cover only part of the time you are driving, such as the time before you pick up a passenger, and some policies cover only damage to other people and their property, but not damage to you, your family members, or your car.
Purchase the policy: Once you have chosen the right coverage and found an insurance provider that offers rideshare insurance, you can purchase the policy. Some insurers provide whole ridesharing insurance policies combining personal and business coverage into one auto policy. In contrast, others provide a ride-hailing insurance endorsement that drivers can add to their existing personal car insurance policy.
What are the rideshare insurance requirements in Texas?
If you are a rideshare driver in Texas, knowing the legal requirements for rideshare insurance is important. Here are the minimum coverage limits that drivers must carry:
– Period 0: When the rideshare app is off, and you are using your car for personal purposes, you only need coverage that meets Texas insurance minimums. This includes $30,000 of bodily injury liability coverage per individual hurt in a collision, $60,000 of bodily injury liability coverage per collision, and $25,000 of property damage liability coverage per collision.
– Period 1: While you are using a ridesharing app and waiting for someone to request a ride, Texas requires increased liability coverage. This includes $50,000 of bodily injury liability coverage per person injured in an accident, $100,000 of bodily injury liability coverage per accident, and $25,000 of liability coverage for property damage per accident.
– Periods 2 and 3: Most rideshare companies provide the necessary coverages during periods 2 and 3. In addition, Uber and Lyft offer their drivers $1 million of uninsured/underinsured motorist coverage per collision. Uber takes it even further by providing their driver’s contingent collision and comprehensive coverage that takes effect when you are transporting passengers.
It is important to note that drivers who use their vehicles for commercial use only part-time may be eligible for rideshare insurance, which is significantly less expensive than commercial auto insurance. It is recommended to contact your insurance company or agent to ensure that you have the coverage you need and to shop around for the best coverage at the most affordable price. Not all insurance companies offer rideshare insurance, so it may be necessary to switch to a different insurer to get the coverage you need
the top rideshare insurance companies in Texas
Progressive:
Progressive is a top insurance company offering rideshare insurance in Texas. Here are some key points to know about Progressive’s rideshare insurance:
– Progressive offers rideshare insurance as an add-on to a personal auto policy.
– The rideshare coverage is separate from a standard policy and protects drivers who operate on rideshare service platforms like Uber or Lyft.
– Progressive’s rideshare insurance includes deductible gap coverage, which allows drivers to pay the deductible on their policy rather than Uber’s or Lyft’s expensive deductible.
– The cost of Progressive’s rideshare insurance varies depending on several factors, including the driver’s age, driving record, and the type of car they drive.
– Progressive’s rideshare coverage adds on roadside assistance and rental car reimbursement during periods 2 and 3.
– Progressive’s rideshare insurance is competitively priced and offers more protection than the coverage provided by TNCs.
State Farm:
State Farm is one of Texas’s top insurance companies offering rideshare insurance. Here are some key points to know about State Farm’s rideshare insurance:
– State Farm offers rideshare insurance as an endorsement that can be added to an existing policy.
– The rideshare endorsement extends the coverage you already have on your personal State Farm auto policy and protects the top of the coverage maintained on your behalf by the Transportation Network Company (TNC).
– State Farm’s rideshare driver coverage generally adds about 15 to 20 percent to your current State Farm premium, depending on the coverages you’ve chosen for your auto policy, any discounts that may apply, and other rating factors.
– State Farm’s rideshare coverage is competitively priced and offers more protection than the coverage provided by TNCs.
– State Farm’s rideshare coverage is available for drivers who use their cars for ride-sharing services such as Uber and Lyft.
It is important to note that some drivers have reported issues with State Farm’s rideshare endorsement, such as higher premiums and deductibles. Review your policy carefully and speak with a State Farm agent to ensure you have the coverage you need at a price that fits your budget.
Allstate:
Allstate is one of the top insurance companies that offer rideshare insurance in Texas. Here are some key points to know about Allstate’s rideshare insurance:
– Allstate offers rideshare insurance as an add-on to a personal auto policy.
– The rideshare coverage is designed to fill gaps in coverage between personal and commercial use of your vehicle.
– Allstate’s rideshare insurance includes coverage for your vehicle’s personal and commercial use.
– Allstate’s rideshare insurance is called Ride for Hire, and it can help drivers stay protected for as little as pennies a day.
– Allstate’s Ride for Hire coverage accounts for all expenses that may occur during accidents and can cover any gaps your employer’s insurance policy fails to fill.
– The cost of Allstate’s Ride for Hire coverage varies depending on several factors, including the driver’s age, driving record, and the type of car they drive.
– Allstate’s Ride for Hire coverage is competitively priced and offers more protection than the coverage provided by TNCs.
USAA
USAA is a top insurance company offering rideshare insurance in Texas. Here are some key points to know about USAA’s rideshare insurance:
– USAA offers rideshare insurance as an optional add-on to a personal car insurance policy for customers who use their vehicle for ridesharing services such as Uber and Lyft.
– USAA’s rideshare insurance includes coverage for your vehicle’s personal and commercial use.
– USAA’s rideshare insurance is called Ride Share Gap Coverage, and it can help drivers stay protected for as little as $6 a month.
– USAA’s Ride Share Gap Coverage accounts for all expenses that may occur during accidents and can cover any gaps your employer’s insurance policy fails to fill.
– USAA’s Ride Share Gap Coverage is available in every state except Hawaii, North Carolina, Michigan, Montana, New Mexico, New York, South Carolina, and Virginia.
– The cost of USAA’s Ride Share Gap Coverage varies depending on several factors, including the driver’s age, driving record, and the type of car they drive.
Liberty Mutual
Liberty Mutual is an insurance company that offers rideshare insurance in Texas. Here are some key points to know about Liberty Mutual’s rideshare insurance:
– Liberty Mutual does not sell rideshare insurance directly to drivers as an add-on for personal car insurance policies.
– However, Liberty Mutual offers rideshare coverage through Uber and Lyft in certain states, as it is an official auto insurance provider.
– Liberty Mutual’s rideshare insurance includes coverage for both personal and commercial use of your vehicle.
– The cost of Liberty Mutual’s rideshare insurance varies depending on several factors, including the driver’s age, driving record, and the type of car they drive.
– Liberty Mutual’s rideshare coverage is competitively priced and offers more protection than the coverage provided by TNCs.
Mercury
Mercury is an insurance company that offers rideshare insurance in Texas. Here are some key points to know about Mercury’s rideshare insurance:
– Mercury offers rideshare insurance coverage for drivers who work for Transportation Network Companies (TNC) like Uber or Lyft.
– Mercury’s rideshare insurance is designed to fill gaps in coverage between personal and commercial use of your vehicle.
– Mercury’s rideshare insurance is called Rideshare Insurance, and it can help drivers stay protected when using their vehicles for ride-sharing services.
– Mercury’s Rideshare Insurance covers drivers during Period 1 of the drive cycle when the ride-hailing app is turned on, and the driver has not accepted a fare.
– Mercury’s Rideshare Insurance provides high-quality insurance coverage that will cover drivers in the event of an accident.
– The cost of Mercury’s Rideshare Insurance varies depending on the coverage selected and other underwriting factors.
– A Mercury auto policy at an additional cost is required to purchase Mercury’s Rideshare Insurance.
Not all insurance companies offer rideshare insurance, so it may be necessary to switch to a different insurer to get the coverage you need. Shopping around and comparing quotes from different insurance providers is recommended to find the best coverage at the most affordable price.