Rideshare Insurance in Illinois

Driving for Lyft or Uber? Get Protected with Illinois Rideshare Insurance

Over 47,000 people drive for Uber or Lyft in Chicago alone, not to mention the significant number of drivers across the state of Illinois. If you drive for one of these or a similar rideshare company, consider purchasing an Illinois rideshare insurance policy for added peace of mind.

Rideshare insurance is a type of insurance that bridges the gap between your personal auto policy and the coverage provided by your rideshare company. It offers essential protection in case you are involved in a serious accident while out on the job.

Insurance Navy offers affordable rideshare insurance coverage from some of the top car insurance companies in Illinois. Request a free quote today to speak with one of our licensed insurance agents.

What is Rideshare Insurance and Why Do Rideshare Drivers Need It?

Rideshare insurance protects drivers who are involved in accidents while driving for Uber, Lyft, or a similar company.

Your personal auto insurance may not cover you while driving for a rideshare company. Uber and Lyft extend some rideshare coverage to drivers, but it may not be enough to fully pay for physical damage to your vehicle and medical expenses in the event of an accident. It also may not apply when you are not actively transporting passengers.

Our insurance agents can help you bridge this insurance gap with comprehensive rideshare insurance in Illinois. Allow us to review your personal car insurance policy and your rideshare company’s policy to understand where you need extra coverage.

What Does Your Rideshare Company’s Insurance Cover for You?

Major rideshare companies like Uber and Lyft typically extend some car insurance coverage to rideshare drivers. Review your specific company’s rideshare policies to understand their coverage type.

Lyft and Uber Coverage Maximums and Policies

Ridesharing companies only offer coverage while you are actively driving for their companies. They typically recognize three distinct periods, with different coverage options during each:

• When the app is off: Your personal auto insurance policy or rideshare policy applies
• When the app is on and you are able to receive ride requests but do not have passengers: The rideshare company’s liability policy applies.
• When the app is on and you are en route to pick up passengers or currently have passengers: The rideshare company’s higher coverage limits apply.

In the second scenario, Uber and Lyft both offer the following liability coverage:

• $50,000 in bodily injury liability coverage per person
• $100,000 in bodily injury coverage per accident
• $25,000 in property damage liability coverage per accident

In the third scenario, when you are en route to pick up a passenger or currently have one, Uber and Lyft both offer higher coverage:

• At least $1 million in coverage toward property damage and injuries to riders and third parties when you are at fault
• Coverage to repair your vehicle up to the actual cost value, contingent on you having comprehensive and collision coverage on your personal car insurance. The comprehensive and collision coverage deductible is $2,500.

Do You Need Rideshare Insurance To Drive for Uber or Lyft?

Both Uber and Lyft require all rideshare drivers to have personal auto insurance coverage. These companies will not hire rideshare drivers without car insurance. If they find you were not insured at the time of an accident, they likely will not provide their own car insurance coverage, either.

Does Your Personal Car Insurance Policy Cover You While Driving For a Transportation Network Company?

Review your current personal auto policy closely to determine whether it provides coverage while driving for Uber or Lyft. Many policies include exclusions for commercial driving. Insurers expect you to obtain a separate commercial auto insurance policy if you plan to use your personal vehicle for business purposes.

In most cases, neither a personal auto policy nor the rideshare company’s policy will fully cover you while driving with the app open but not actively transporting passengers or traveling to pick them up. Car insurance for rideshare drivers bridges gaps in coverage.

What Is the Average Cost of Rideshare Insurance in Chicago?

You have a few methods of obtaining rideshare insurance rates. First, our agents can look into adding a rideshare endorsement to an existing personal auto policy. This may also be called a “ride-hailing insurance endorsement,” and it extends coverage to rideshare scenarios.

Adding a rideshare insurance endorsement may raise your premiums by 10% to 15%, on average. You can also purchase a separate rideshare insurance policy. Rates may be as low as $50 and as high as a few hundred dollars per month, depending on the car insurance company and the coverage included.

We’re well versed in the different types of rideshare insurance available to Chicago drivers. Let us recommend the best coverage at the best price.

Looking at the Different Types of Rideshare Coverage

Whether you add a rideshare insurance endorsement or a standalone policy, it should include a few types of coverage. If you’re adding an endorsement, it will typically only include the types of coverage you have on an existing auto policy. For example, if you don’t have collision insurance on a personal policy, you won’t have it on the rideshare endorsement either.

Liability Coverage

At a minimum, rideshare insurance in Illinois should include primary liability coverage. This pays for physical damage and injuries to other drivers in an accident that is your fault.

Without a rideshare endorsement or standalone policy, you likely won’t have liability coverage when signed into the Uber or Lyft app. Liability insurance is legally required for all drivers in Illinois.

The minimum liability insurance limits in Illinois are:

• $25,000 bodily injury liability limit per person
• $50,000 bodily injury per accident
• $20,000 property damage per accident

Your policy should include this coverage at a minimum.

Collision Coverage

Collision coverage helps pay to repair or replace your vehicle if you collide with another vehicle or any other structure. If you do not have collision insurance on an existing policy, you’ll want to include it on a rideshare policy. Most rideshare service companies only extend collision insurance coverage to those who also have it on their personal policies.

Comprehensive Coverage

Comprehensive insurance protects your vehicle from damage caused by events other than a collision. Covered events often include:

• Theft
• Vandalism
• Fire
• Animal damage
• Falling objects

The way many insurance companies write rideshare policies is to pair comprehensive/collision rideshare insurance. You likely don’t need separate comprehensive coverage on a rideshare policy, as your personal insurance policy should apply during most times when these covered events might occur.

Personal Injury Protection

Personal injury protection coverage helps pay for your own medical expenses and those of your passengers in an accident, regardless of who is at fault. If you have the Uber or Lyft ridesharing app open and have friends or family members in the car, not rideshare passengers, a rideshare insurance policy could cover injuries from an accident.

How Will Your Policy Work?

Rideshare insurance in Illinois acts as additional insurance during times when your personal automobile insurance and rideshare company’s policy do not apply.

Coverage While Your App Is Off

When driving with the rideshare app off, you are presumably driving for personal reasons. Your personal auto insurance policy will apply.

Keep the rideshare app open any time you are on the job. Uber and Lyft can review your app usage to determine whether it was open at the time of an accident. If it was not, their policies will not extend coverage to you.

Coverage While Awaiting Ride Requests

When you have the app open and are awaiting a ride request, Uber and Lyft’s third-party liability insurance will apply. However, this coverage is relatively low. A separate rideshare insurance policy will provide additional coverage beyond this low liability insurance.

Coverage When You Accept a Ride Request

Once you accept a ride request, Uber or Lyft will consider you actively working. Both companies extend over $1 million in auto liability coverage and other first-party and third-party coverage during this time.

Coverage While Driving in the Vehicle With Passengers

The same coverage from Uber or Lyft is available whether you were driving to pick up a passenger or currently transporting a passenger at the time of the accident.

Enjoy Ultimate Peace of Mind With Affordable Rideshare Insurance in Illinois From Insurance Navy

If you are an Uber or Lyft rideshare driver in Chicago, your risk of being involved in an accident is higher than that of a typical driver. You drive for longer hours each day than the average person. Distractions, such as passenger conversations and app notifications, can take your attention off the road. Protect yourself and your passengers with comprehensive rideshare driver insurance in Illinois.

At Insurance Navy, we offer affordable insurance from the top rideshare insurance companies in Chicago Illinois. Allow us to find a plan that works for you, whether it’s a separate rideshare policy or a rideshare endorsement on your personal auto policy.

Request a free quote online today, or stop by one of our 25 Illinois locations for the cheapest rideshare insurance quotes.

FAQs

Does Illinois Require a Ridesharing Insurance Policy?

Illinois does require a rideshare insurance policy for times when neither your personal auto insurance nor the rideshare company’s coverage applies. You must meet Illinois’ minimum liability insurance requirements any time you operate a vehicle. Rideshare insurance extends coverage when you are driving for Uber or Lyft but do not have the app open or are not currently transporting passengers.

Do I Need To Tell My Personal Auto Insurance Company About My Rideshare App Job?

Yes, you must tell your personal auto insurance company that you have a rideshare job. Failing to tell your insurer may be a form of insurance fraud. Personal auto policies typically do not apply when you are driving for business reasons.

What Are the Average Rates for Rideshare Insurance in Illinois?

The average costs for rideshare insurance in Illinois vary between $50 to a few hundred dollars a month. We can help you find an affordable policy.