California Rideshare Insurance for Uber and Lyft Drivers
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If you're a driver for a transportation network company (TNC) in California, you must have rideshare auto insurance coverage at all times while your app is on. Rideshare insurance, or TNC insurance, is different from the personal liability, comprehensive and/or collision auto insurance policies you already carry.
Some companies, such as Uber and Lyft, provide rideshare insurance coverage. In these cases, you can meet California's requirement without buying your own rideshare insurance policies.
However, with this coverage the company provides, you won't get every benefit a personal policy might include. You’ll need to buy your own rideshare insurance if you want things like comprehensive and collision coverage, higher liability limits and a low deductible.
California insurance requirements for rideshare drivers
California requires TNC drivers to carry rideshare insurance as soon as they flip on the rideshare app. The "period" you are in determines the minimum auto insurance requirements.
Period 0: When the rideshare app is off, your personal insurance is active. To drive legally, the policy must meet California's minimum auto insurance requirements:
- $15,000 of bodily injury coverage per person injured in an accident
- $30,000 of bodily injury coverage total per accident
- $5,000 of property damage coverage per accident
Period 1: If the rideshare app is on but you haven't been paired with a passenger, you must have rideshare insurance with:
- $50,000 of bodily injury liability coverage per person injured in an accident
- $100,000 of bodily injury liability coverage total per accident
- $30,000 of property damage liability coverage per accident
You can buy a personal rideshare insurance policy to cover yourself, or your TNC coverage may be enough. We recommend confirming with your rideshare company whether you need to buy this insurance for yourself; otherwise, you may not be driving legally in California.
Periods 2 and 3: Once you've been paired with a passenger (period 2) and while they're in your vehicle (period 3), the rideshare company is required to provide a $1 million liability insurance policy in California. This covers you and your passengers from the time you match until the passenger exits the car. Depending on your TNC, it may offer extra coverage during these periods as well.
Uber provides comprehensive and collision coverage with a $2,500 deductible, so long as you have collision coverage on your personal auto insurance policy.
Lyft also provides comprehensive and collision coverage in California, so long as you have collision coverage on your personal auto insurance policy. Lyft's deductible is $2,500, which is what you'd have to pay out of pocket before they would cover any damages.
According to state law, you must be covered by an auto insurance policy at all times. But because the TNC can help meet that requirement, not all rideshare drivers in California need to have rideshare insurance in order to drive legally.
However, you may want to buy an individual rideshare policy that provides certain coverages — such as comprehensive, collision and medical payments — during Period 1. Otherwise, you would have to pay the costs out of pocket if you were injured or your vehicle was damaged during that period.
The laws above only apply to rideshare drivers, not limousine or taxi drivers, as they have their own commercial auto insurance requirements.
Uber and Lyft car requirements in California
Car requirements for rideshare drivers vary by TNC and city. And if you drive for Uber, the program you've chosen will also affect requirements. The one commonality is that California law requires all rideshare drivers to display their company's decal in the vehicle's windows at all times when the app is on. In addition, if you intend to pick up or drop off passengers from an airport, you'll also need airport-specific decals.
Lyft car requirements in California
- Cars must have four doors and four to seven passenger seats.
- The car must have California license plates. It also must be insured by an auto insurance policy issued in California.
- Cars cannot be classified as salvage or rebuilt.
- The vehicle model year needs to be 2009 or newer in most cities, but you'll need to check your own city's requirements.
- Cars must pass an annual inspection, and you'll need to visit a licensed mechanic to have the inspection form completed. You should keep the inspection form in your car at all times, along with your proof of insurance. Drivers need to pay for the inspection themselves, which costs around $30–$70.
Uber car requirements in California
Uber's vehicle requirements change primarily based on the programs offered in a given city. No matter which Uber service you drive for in California, there are some common requirements.
- Cars must have four doors and be in good condition. Cosmetic damages or add-ons, such as window tinting or displayed ads, may cause your vehicle to be rejected.
- Generally, your vehicle can't be classified as salvage, rebuilt, a taxicab, a government vehicle, a van or a box truck.
- The car must have working air conditioning and windows.
- Aftermarket seat modifications, including installed seat belts, are not allowed.
- The car must be registered and insured in California.
- The vehicle will need an annual inspection. It can be completed at an Uber Greenlight Hub or an inspection center.
Uber car requirements by program
Program | Year | Body | Seats | Interior |
|---|---|---|---|---|
| UberX | Less than 15 years old | Any | 5+ | Good condition |
| UberXL | Less than 15 years old | Any | 7+ | Good condition |
| Uber Comfort | 2015 or newer | More legroom than a compact car (specific models) | 5+ | Rating and trip requirements (4.85+ stars and 100+ trips) |
| Uber Black | 2016 or newer | Black luxury sedan (specific models) | 5+ | Black leather or vinyl, great condition |
| Uber Black SUV | 2016 or newer | Black SUV (specific models) | 7+ | Black leather or vinyl, great condition |
| UberLUX | 2016 or newer | Black sedan, crossover SUV or SUV (specific models) | 5+ | Black leather or vinyl, great condition |
Uber and Lyft driver requirements in California
The requirements for Uber and Lyft drivers in California are quite similar. As a driver, you'll need a California driver's license. Your photo will be displayed to passengers before you pick them up. Certain cities in the state also require you to have a business license if you have driven at least 30 days with a rideshare company in the past year. Check your local regulations to determine if you need to register.
In addition, California law requires all Uber and Lyft drivers to undergo an annual background check, which the company will run on your behalf. The background check reviews your info for the past several years, such as whether you've been convicted of a violent crime, drug offense, sexual offense or theft. Rideshare companies also typically review your motor vehicle record for recent tickets, including DUIs, driving without insurance and reckless driving.
UberLUX drivers must also have a commercial driver's license, but this requirement doesn't apply to drivers in other programs.
Rideshare insurance companies in California
You should first decide how much coverage you need personally and for rideshare before comparing rates and selecting the best insurance company for yourself. Each insurer offers different levels of protection. So, for example, if you wanted to extend your comprehensive coverage during all periods, you would have that capability with State Farm but not Farmers.
Coverage | Companies |
|---|---|
| None, but you won't be dropped as a personal insurance customer | Liberty Mutual and Geico |
| Period 1 coverage "gaps," meaning the policy makes up the difference between the TNC's policy and your personal auto insurance policy | Farmers Insurance, Kemper, Mercury Insurance, Metromile and USAA (only for military and families) |
| Any coverage "gaps" during Periods 1, 2 or 3, plus your personal policy's deductible applies if it's lower than your TNC's | Allstate, Esurance and State Farm |
Several insurers offer rideshare insurance policies in California, so you shouldn't have any trouble comparing quotes to find the cheapest personal and rideshare rates for yourself once you've decided how much coverage you need. Comparing rates is an important step, as every rideshare insurance company in California will only extend coverage if you have a personal auto insurance policy with them as well.