120+ morePersonal insurance policies typically exclude coverage when using a vehicle for commercial purposes, such as driving for a rideshare service. That’s where California rideshare insurance steps in. It provides coverage when you’re driving for Uber, Lyft, or another transportation network company (TNC).
Since 2015, California law requires rideshare drivers to have insurance through all three phases of the driving process.1 Here’s a look at the different phases so you understand when your policy kicks in and when the rideshare company’s policy may cover you.
Regular personal auto insurance policies in California don’t cover TNC activities.1 If an incident occurs, your insurance coverage depends on what phase you’re in, so it’s essential to understand how to choose the right protection.
Uber and Lyft similarly define the three phases of the rideshare process:2 3
Phase one: The driver hasn’t logged into the app and is driving for personal use.
Phase two: The driver has logged into the app and is waiting for a ride request.
Phase three: The driver has accepted a ride request and is on the way to pick up the passenger or is taking the passenger to their destination.
When rideshare drivers are logged into the app and waiting for a ride request, California requires the following liability insurance:1
$50,000 per person for bodily injury liability
$100,000 per accident for bodily injury liability
$30,000 per accident for property damage liability
Additionally, TNCs must provide $1 million in liability insurance for their drivers when they accept a ride request and when a passenger is in the vehicle.1
It’s worth noting that these limits are higher than the state requirement for a personal insurance policy. Drivers in California must adhere to the state’s minimum car insurance requirement. And effective Jan. 1, 2025, state lawmakers approved an increase in personal coverage liability limits from 15/30/5 to 30/60/15.
Requirements for insurance drivers and vehicle types can vary by TNC and city. If you drive with Uber or Lyft, the vehicle you drive plays a role. For instance, only certain vehicles qualify for UberXL, Uber Black, Uber Black SUV, and Uber Comfort due to additional eligibility criteria.
Uber and Lyft only allow certain types of vehicles. To start, the car can’t seat more than seven people (including the driver) or have substantial modifications. For instance, TNCs don’t accept extended or “stretch” vehicles.4 Cars with torn seats, interior stains, or paint oxidation won’t qualify, either.
To become an Uber rideshare driver in major California cities, your car must meet several requirements, including:
Four-door vehicle
16 years old or newer model
License plate
Well-maintained with no exterior damage
Able to pass a state vehicle inspection
Working seat belts for all seating positions
No commercial advertising on the vehicle
UberX and UberXL may have additional requirements
Lyft rideshare car requirements are similar to what you’ll find at Uber, but the age of the car can vary. Your vehicle must meet specific criteria, including:
Four-door vehicle that can seat at least five passengers
2007 model or newer in Eureka, Chico, El Centro, Merced, Redding, San Luis Obispo, Victorville, and Yuba City
2008 model or newer in San Francisco and San Jose
2009 model or newer in all other California cities
A California license plate or a temporary plate with the caveat that you must get a California plate within 60 days
Able to pass a state vehicle inspection
Lyft Lux and Lyft Lux Black may have additional requirements
The California Public Utilities Commission (CPUC) also requires you to display the company’s logo in the front and back of the vehicle. It can be a decal on the door, roof, or grill on the front of the car. But it doesn’t have to be permanent. The CPUC allows you to display a magnetic or removable decal.4
Both Uber and Lyft mandate that drivers have a valid driver’s license, but the criteria are a little different between the platforms. Here are the essential qualifications for becoming a driver for Uber and Lyft.
When considering eligibility to become an Uber driver, consider the qualifications the rideshare company requires, including:
At least 21 years old
Valid driver’s license
One year of driving experience (three years if you’re younger than 25)
Proof of local residency
Forward-facing driver profile photo
Pass a driving record and background check
To qualify as a Lyft driver and join its network, you must meet a series of comprehensive eligibility criteria, including:
At least 25 years old
Valid driver’s license
One year of driving experience
Proof of insurance coverage
Driver profile photo
Pass a driving record and background check
California rideshare insurance costs an average of $281 per month for full coverage. If you’re looking at liability-only coverage, the average price drops to $138. While a liability policy will meet the state’s minimum requirements, it doesn’t offer as much financial protection. Here’s a look at the average cost of rideshare coverage from various California insurance companies:
You have a few choices when buying rideshare insurance. Talk with your insurance agent about coverage options to ensure adequate protection.
Each type of insurance coverage serves a specific purpose and offers a unique form of protection. Here are coverages you should consider with rideshare insurance: