If you own a car and want to make some extra money, you might sign up for a ridesharing platform, such as Lyft or Uber. There’s a high demand for drivers among these platforms, as many people rely on ridesharing apps to get around their cities. The gig can be a great way to meet new people and earn cash, but it’s important to account for insurance before you start driving.
Companies like Progressive offer rideshare insurance that complements your personal auto insurance policy and supplements the rideshare company’s coverage. It helps you cover damages and medical bills in the event of an accident. Read on to learn more about obtaining Progressive rideshare insurance and how it gives you the peace of mind you deserve as you drive people around your city.
Do Rideshare Companies Offer Insurance?
Most states require ridesharing companies to provide coverage for their drivers. These legal protections are reassuring, but it’s worth noting that these policies alone may not offer total protection. Typically, ridesharing company insurance covers bodily injury and property damage liability whether you’re in transit or waiting to match with a rider. It may also provide the following protections if an incident occurs while you’re in transit:
- Comprehensive coverage
- Collision coverage
- Uninsured/underinsured motorist coverage
The above protections are often contingent on whether they’re also available through your personal auto policy, and they usually don’t apply if an incident occurs while you’re waiting to match with a ride. Consider checking with the ridesharing company to determine the extent of their insurance, but providers typically won’t provide coverage for other expenses like roadside assistance and personal injury protection/medical payments.
Does Your Personal Auto Insurance Offer Rideshare Coverage?
When you consider that a ridesharing company’s insurance won’t cover everything, you may wonder how to supplement the gaps. The good news is that you can add rideshare coverage to your personal auto policy. It’s important to note that simply having a personal auto policy won’t provide you with the coverage you need, so be sure to contact your provider about adding rideshare coverage before you start driving for a third-party platform.
What Does Progressive Rideshare Insurance Cover?
Progressive is one of the many insurance providers that allow drivers to add rideshare coverage to their personal auto policies. Coverage may vary depending on your plan and what state you live in, but we discuss the standard protections below:
- Bodily injury and property damage liability: Like insurance through a ridesharing company, Progressive covers bodily injury and property damage liability while you’re waiting to match with a rider.
- Comprehensive and collision coverage: Progressive provides comprehensive and collision coverage while you’re waiting to match with a driver.
- Uninsured/underinsured motorist coverage: This protection is valid while you’re waiting to match with a rider and applies only to you.
- Personal injury protection/medical payments coverage: Like uninsured/underinsured motorist coverage, this protection only applies while you’re waiting to match with a rider and excludes guest passengers.
- Roadside assistance and rental car reimbursement: These coverages are available whether you’re in transit or waiting to match with a ride.
What Happens If You Don’t Tell Progressive About Your Rideshare Driving?
If you have a personal auto policy through Progressive but don’t inform the insurance provider about your rideshare driving, you won’t receive coverage if something happens during a shift. Driving without the proper protection can create a big liability by rendering you financially responsible for damages. Even if you don’t get into an accident, rideshare driving without the proper insurance can have consequences. Progressive reserves the right to cancel or non-renew policy if you don’t notify a representative of your rideshare driving intentions.
Does Progressive Rideshare Insurance Apply to Delivery Services?
Many ridesharing platforms allow customers to order items in addition to car rides. If you’re a driver who wants to expand into this market, you’ll be glad to hear that Progressive rideshare insurance applies to delivery services. The exact protections that apply between your personal auto policy and the delivery company’s insurance vary by state, so you should contact Progressive to understand your coverage’s full extent.
Can You Use a Commercial Vehicle for Ridesharing?
Some people have access to taxis, limousines or other commercial vehicles that they use for a business. If you want to use one of these vehicles to drive for a ridesharing platform, you’ll likely need a commercial auto policy. Also called livery insurance, these policies are available through Progressive in most states. Livery insurance tends to be more expensive than personal auto policies, but it provides coverage whether you use a vehicle for commercial or personal use.
How Much Is Rideshare Insurance?
Rideshare insurance through Progressive is affordable, but the amount you pay varies depending on the state you live in and your policy’s existing terms. Other factors that affect the cost include your vehicle and driving history. In short, know that rideshare insurance will slightly increase your monthly or yearly premiums for your personal auto policy.
Why Obtain Progressive Rideshare Insurance?
While there are benefits to each provider’s rideshare insurance, drivers often pick Progressive because:
- You can add rideshare insurance to your existing policy. By adding rideshare insurance to your existing personal auto policy, you can keep things simple and only make one payment.
- You get extended coverage. Progressive helps you ensure you have protection whether you’re waiting to match with a rider or transporting passengers to their destination.
- You can take advantage of deductible reimbursements. Progressive reimburses drivers for the difference between the deductible on their personal policy and the ridesharing company’s deductible.
Whether you’re interested in Progressive’s rideshare insurance or already have a personal auto policy through this provider, we hope you’ve found this guide useful. Be sure to review the limitations of your rideshare platform’s insurance so that you can fill in the gaps with a suitable plan. With this information, you can transport passengers around your city in peace knowing that you have the proper liability protection.
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.