If you drive for a ridesharing company like Lyft or Uber, you probably already know that your auto insurance doesn’t cover commercial activities. That means if you’re involved in an accident while working, you may end up paying the damage or loss out of pocket. The law requires ridesharing companies to provide insurance to their drivers, but if you use your vehicle for personal and commercial purposes, you may want to consider additional coverage to protect it.
Your ordinary insurance company may not have rideshare insurance, but some allow you to add this to your coverage. One of the best places to get rideshare insurance is Allstate. This post will discuss everything you need to know about Allstate and its rideshare insurance to help you make informed choices.
What is Allstate Rideshare Insurance?
Allstate rideshare insurance is a type of insurance policy that Allstate provides to drivers working for ridesharing platforms like Uber. If you get into an accident during ridesharing, your regular auto insurance policy will not cover the damage or medical bills as regular auto insurance does not cover commercial activities. That’s where the Allstate rideshare insurance comes in and pays for medical expenses and repair bills. Allstate rideshare insurance service is also known as Ride for Hire.
Related: Rideshare Insurance
How Does Allstate Rideshare Insurance Work?
Ride for Hire offers deductibles and gap coverage for expenses during other stages of a ridesharing trip. This helps protect drivers against high deductibles imposed by Uber and Lyft auto insurance. Ride for Hire is not available in New York. It also doesn’t cover you if you’re signed off on your rideshare app. Instead, it works as deductible gap coverage for up to $2,500 while driving for a ridesharing company.
While your ridesharing employer may provide you with auto insurance, it’s prudent to have additional insurance to cover expenses. Allstate has partnered with Uber to provide commercial insurance protection to riders and drivers in states such as Michigan, Alaska, Wyoming, Illinois, and Utah. The commercial policy offers business and personal insurance needs.
What Does Allstate Rideshare Insurance Cover?
Here is how the two types of Allstate rideshare insurance coverages work.
Ridesharing Gap Coverage
The Ride for Hire insurance covers expense gaps and deductible gap coverage. Major transportation network companies (TNC) provide limited commercial insurance for drivers who use their vehicles for TNC business. Business use includes when the driver is en route with a passenger or picking them up. Since personal car insurance generally excludes all business use, drivers are not covered by either policy when they turn on their apps and have not accepted any ride. Ride for Hire helps fill the gap created.
It extends some coverages on your typical policy that apply when the app is on as you wait for a ride request. That means if you’re involved in an accident while waiting for a ride request, the ridesharing endorsement can help pay for damages or losses. It’s important to understand that the Allstate endorsement is an extension of your personal policy.
Therefore, if you get into an accident that requires specific coverage that you don’t have, you will have to pay it out of pocket. For example, if you crash into another vehicle and you don’t have collision coverage, you will have to pay for your vehicle’s repair out of pocket.
Ridesharing Deductible Gap
A ridesharing endorsement also helps reduce out-of-pocket expenses associated with high deductibles. If you’re involved in an accident when working, you will have to pay your deductible as the TNC pays the remaining amount.
Comprehensive and collision coverages carry deductibles that your TNC will require you to pay before commercial insurance benefits kick in to help repair your car. Since TNC deductibles are higher, ridesharing endorsement can help pay for the gap between the TNC and your personal auto policy’s deductible. For instance, if your comprehensive coverage deductible is $300 and the TNC’s comprehensive deductible is $600, the ridesharing endorsement can help pay the $300 difference.
How to Get Allstate Rideshare Insurance
If you’re looking to join the ridesharing platform, your insurer may offer a ride-hailing insurance endorsement that you can add to your existing personal auto insurance policy. Your ridesharing platform will provide commercial coverage limited to app users only. To get Allstate rideshare insurance, go to their official website and request a quote. You can also ask to speak to an agent or call the company directly. Allstate provides rideshare insurance to all ridesharing drivers across the US except in New York.
Enquire about your state policy limits, premiums, coverages, and policy terms. Your insurance agent can explain which options are available in your area. The process may be much easier if you already have Allstate auto insurance. Be sure to conduct your research and compare quotes.
Related: Is Allstate a Good Insurance Company?
How Much Does Allstate Rideshare Insurance Cost?
The amount you pay for your Allstate rideshare insurance varies significantly depending on your coverage. A rideshare endorsement can cost less compared to a separate insurance policy offering independent coverage. If you’re more concerned about the high TNC deductibles, you can buy a deductible gap coverage that may be an excellent option. Allstate recommends going through your personal insurance and updating it first before purchasing rideshare insurance.
If you have higher limits, your insurance policy will likely be more expensive. If you choose an independent rideshare insurance policy, you can set limits for the policy. If you add the rideshare endorsement to your personal car insurance policy, you will likely have the same coverage limits for both insurance policies. For example, if you have a liability limit of $200,000 on your primary auto policy, the most your policy can pay in an approved insurance claim is $200,000.
Related: Allstate Car Insurance
Final Thoughts
If you’re thinking about becoming a rideshare driver for Lyft or Uber, it’s prudent to discuss it with your TNC to know more about their limits, coverage types, and deductibles. Once you know which coverage is available, you can speak to an agent about filling potential gaps with rideshare insurance.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.
