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 in Texas provides important coverage for drivers working for transportation network companies (TNCs) like Uber and Lyft. Here are the key aspects of rideshare insurance coverage in Texas:
Coverage Periods
Rideshare insurance coverage in Texas is divided into three distinct periods:
**Period 0:** When the app is off, and you use your car for personal use. Your personal auto insurance applies during this time.
**Period 1:** When the app is on, and you’re waiting for a ride request. This is a key coverage gap that rideshare insurance addresses.
**Periods 2 and 3:** When you’ve accepted a ride and are en route to pick up a passenger or have a passenger in your vehicle. The TNC’s commercial policy provides primary coverage during these periods.
Coverage Requirements
**For Period 1:**
– $50,000 bodily injury liability per person
– $100,000 bodily injury liability per accident
– $25,000 property damage liability per accident
**For Periods 2 and 3:**
– $1 million in total liability coverage for bodily injury and property damage
What Rideshare Insurance Covers
Rideshare insurance in Texas typically covers:
Liability protection during Period 1, when TNC coverage is limited
Collision and comprehensive coverage (if included in your policy)
Medical payments or personal injury protection
Uninsured/underinsured motorist coverage
Benefits of Rideshare Insurance
– Fills coverage gaps between personal auto insurance and TNC-provided coverage
– Protects you financially during Period 1 when TNC coverage is limited
– May offer lower deductibles compared to TNC policies
– Provides peace of mind for drivers engaged in rideshare activities
Cost Considerations
Adding rideshare coverage to your existing auto policy in Texas typically increases premiums by 15-30%. However, the exact cost varies based on your driving record, location, and chosen coverage limits.
It’s important for rideshare drivers in Texas to carefully review their personal auto policies and consider adding rideshare coverage to ensure comprehensive protection while engaged in TNC activities. Consulting with an insurance agent can help you understand your specific coverage needs and options.
How much does rideshare insurance cost?
Average Cost
The average cost to add rideshare coverage to a personal car insurance policy is about $31 per month. When other coverages remain the same, this typically increases standard insurance rates by 15% to 30%.
Cost Range
For full-coverage insurance with rideshare endorsements, drivers can expect to pay between $82 and $415 monthly. Liability-only coverage with rideshare endorsements ranges from $50 to $289 monthly.
Factors Affecting Cost
The exact price varies based on:
– Insurance provider
– Amount of Coverage
– Driving record
– Location
– Type of vehicle
Cheapest Options
State Farm offers some of the most affordable rideshare insurance, with an average monthly rate of $142 for a personal auto policy with rideshare coverage. USAA has even lower rates, at $136 per month, but it’s only available to military members and their families.
Cost by Company
Here are some examples of how adding rideshare coverage affects premiums for different insurers:
– Allstate: Increases premium from $905 to $920 for a 6-month policy
– Progressive: Increases premium from $838 to $958 for a 6-month policy
– State Farm: Increases premium from $655 to $777 for a 6-month policy
It’s important to note that these are average figures, and your actual costs may differ. To find the best rate, comparing quotes from multiple insurance companies is recommended, as each company charges differently for rideshare insurance.
Top rideshare insurance companies in Texas
**Mercury Insurance**
– **Availability:** Mercury offers rideshare insurance in Texas, providing coverage during Period 1 when the app is on but no ride has been accepted.
– **Coverage:** Mercury’s rideshare insurance fills the gaps in coverage during Period 1, offering liability, collision, and comprehensive coverage.
– **Cost:** The cost varies depending on the coverage selected but can be as low as 90 cents daily.
– **Eligibility:** Drivers must have a Mercury personal auto policy to add rideshare coverage.
**Liberty Mutual**
– **Availability:** Liberty Mutual provides rideshare insurance in Texas, covering drivers using platforms like Uber and Lyft.
– **Coverage:** Liberty Mutual covers rideshare vehicles during Period 1, providing liability, collision, and comprehensive coverage.
– **Cost:** The cost is competitive, and bundling auto, home, or renters insurance can offer additional discounts.
– **Eligibility:** Liberty Mutual offers rideshare coverage to drivers in Texas, with no risk of coverage being dropped for participating in TNC activities.
**USAA**
– **Availability:** USAA offers rideshare insurance in Texas, but it’s only available to military members and their families.
– **Coverage:** USAA’s rideshare insurance provides liability, collision, and comprehensive coverage during Period 1.
– **Cost:** The cost is competitive, with USAA offering one of the cheapest rideshare insurance options.
– **Eligibility:** Only military members and their families are eligible for USAA rideshare insurance.
**Allstate**
– **Availability:** Allstate offers rideshare insurance in Texas, providing coverage during Period 1.
– **Coverage:** Allstate’s Ride for Hire insurance fills gaps in coverage, offering liability, collision, and comprehensive coverage.
– **Cost:** The cost is around $15-$20 per year.
– **Eligibility:** Drivers must have an Allstate personal auto policy to add rideshare coverage.
**State Farm**
– **Availability:** State Farm offers rideshare insurance in Texas, providing coverage during Period 1.
– **Coverage:** State Farm’s rideshare insurance extends personal auto policy coverages, including liability, collision, and comprehensive coverage.
– **Cost:** The average additional cost is $28 monthly.
– **Eligibility:** Drivers must have a State Farm personal auto policy to add rideshare coverage.
**Progressive**
– **Availability:** Progressive offers rideshare insurance in Texas, providing coverage during Period 1.
– **Coverage:** Progressive’s rideshare insurance fills gaps in coverage, offering liability, collision, and comprehensive coverage.
– **Cost:** The cost varies but can be added to a personal auto policy for a small premium increase.
– **Eligibility:** Drivers must have a Progressive personal auto policy to add rideshare coverage.
Rideshare Insurance Comparison Table in TX
Company | Availability | Coverage | Cost | Eligibility |
---|---|---|---|---|
Mercury | Offers rideshare insurance in Texas | Liability, collision, and comprehensive coverage during Period 1 | As low as 90 cents a day | Must have a Mercury personal auto policy |
Liberty Mutual | Provides rideshare insurance in Texas | Liability, collision, and comprehensive coverage during Period 1 | Competitive, with bundling discounts | No risk of coverage drop for TNC activities |
USAA | Only available to military members and their families | Liability, collision, and comprehensive coverage during Period 1 | Competitive, one of the cheapest options | Only available to military members and their families |
Allstate | Offers rideshare insurance in Texas | Liability, collision, and comprehensive coverage during Period 1 | Around $15-$20 per year | Must have an Allstate personal auto policy |
State Farm | Offers rideshare insurance in Texas | Liability, collision, and comprehensive coverage during Period 1 | Average additional cost of $28 per month | Must have a State Farm personal auto policy |
Progressive | Offers rideshare insurance in Texas | Liability, collision, and comprehensive coverage during Period 1 | Varies, can be added for a small premium increase | Must have a Progressive personal auto policy |
How to get rideshare insurance
**Inform Your Insurer**: Let your personal auto insurance company know that you are considering driving for a ride-hailing or app-based delivery service.
**Identify Coverage Gaps**: Understand the gaps between your personal auto policy and the coverage provided by the ride-hailing or delivery company. For example, Uber and Lyft offer limited liability coverage when you’re waiting for a ride request, but you may need additional coverage for your vehicle during this period.
**Check Availability**: Not all insurers offer rideshare insurance, and those that do may not offer it in every state. Check if your current insurer provides rideshare insurance and if it’s available in your state.
**Get Quotes**: Ask your insurer for a quote for rideshare insurance to fill in the coverage gaps. If available, also get a quote for a commercial policy to compare costs.
**Consider Multiple Options**: If your current insurer doesn’t offer rideshare insurance, look into other major car insurance companies that provide it. You can also work with an independent agent to find insurers that offer rideshare insurance in your area.
**Add Rideshare Endorsement**: If your insurer offers rideshare insurance, you can add a rideshare endorsement to your personal auto policy. This will extend your coverage to include periods when you’re waiting for a ride request.
Rideshare Insurance in TX FAQs
Q: What are the different periods of rideshare insurance in Texas?
A: There are three periods:
- Period 0: Offline, personal auto insurance applies.
- Period 1: Online and waiting for a ride request, TNCs offer some protection, but additional rideshare coverage is recommended.
- Periods 2 and 3: En route to pick up a passenger or transporting a passenger, TNCs provide primary coverage.
Q: What are the minimum insurance requirements for rideshare drivers in Texas?
A: For Period 1, $50,000 in bodily injury liability per person, $100,000 per accident, and $25,000 in property damage liability. For Periods 2 and 3, $1 million in total liability coverage.
Q: Do I need to inform my insurance company if I'm a rideshare driver?
A: Yes, failing to disclose this information could lead to policy cancellation or refusal to renew.
Q: What insurance companies offer rideshare coverage in Texas?
A: Several companies offer rideshare coverage in Texas, including State Farm, GEICO, Allstate, USAA, and Clearcover.
Q: Is rideshare insurance mandatory in Texas?
A: No, but it is highly recommended to fill gaps in coverage and protect yourself financially.
Q: How much does rideshare insurance cost in Texas?
A: The cost varies widely, from $50-$100 per month for liability-only policies to over $500 per month for full coverage, depending on factors like age, driving history, and location.
Q: What types of coverage should I consider for rideshare insurance?
A: Consider liability coverage, uninsured/underinsured motorist coverage, and collision and comprehensive coverage for added protection.
Q: How does Uber's insurance policy work in Texas?
A: Uber's insurance policy is structured around the different phases of a ride, with varying levels of coverage. During Period 1, Uber provides contingent liability coverage, and during Periods 2 and 3, Uber provides primary coverage with higher deductibles.
Q: Can I cancel my rideshare insurance if I stop driving for a TNC?
A: Yes, you can cancel your rideshare insurance if you stop driving for a TNC. Contact your insurance company to remove the rideshare endorsement from your policy.
Q: Does rideshare insurance cover delivery services like DoorDash?
A: It depends. Rideshare insurance might protect you during delivery services, but it's best to contact your auto insurer to understand your coverage.
Blake Insurance Group
Phone: (888) 387-3687
Email: info@blakeinsurancegroup.com
Hours: Mon-Fri 9:00 am to 5:00 pm
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Blake Nwosu
Owner & Principal Agent
Expertise: All personal and commercial line insurance, including auto, home, business, health, and life insurance.
License: 16117464