Rideshare Insurance in Colorado (2025)

Rideshare companies — also known as transportation network companies (TNCs) — have exploded in popularity over the past decade. But if you drive for a company like Uber or Lyft, you may experience gaps in coverage while on the job. That’s why all rideshare drivers should look into rideshare insurance.

Even though Colorado doesn’t require rideshare insurance, it still might be a good option. Many insurers in the state offer it as an add-on to your personal auto insurance policy. Here’s what you should know about the best rideshare insurance policies in Colorado, how much this coverage costs, and Colorado laws around ridesharing.

Cost of rideshare insurance in Colorado

Rideshare insurance in Colorado costs $200 per month, on average. Drivers pay an average of $280 per month for full-coverage rideshare insurance and $120 per month for liability-only insurance.

The table below shows the cheapest companies for rideshare insurance in Colorado along with their average monthly premiums.

Best rideshare insurance companies in Colorado

Several car insurance companies in Colorado offer rideshare insurance as an add-on to your insurance policy. Below are some of the best options for rideshare drivers in Colorado.

State Farm: Best for drivers on a budget

USAA: Best for military members

American Family: Best for customer service

Rideshare insurance requirements in Colorado 

A rideshare driver’s time is split into different phases — and coverage varies by phase.1 For instance, coverage may apply differently before you’ve picked up a passenger versus after. Here’s a closer look at the three phases:

• In Phase 1, the driver is driving for personal use with the rideshare app turned off. Your personal auto policy covers you over this period.

• In Phase 2, the driver has the rideshare app turned on but hasn’t received a ride request. During these periods, Uber and Lyft both provide third-party liability coverage in the following amounts:

  • $50,000 in bodily injury liability coverage per person

  • $100,000 in bodily injury liability coverage per accident

  • $25,000 in property damage liability coverage

• In Phase 3, the driver has the rideshare app turned on and is either driving to pick up a passenger or driving a passenger to their location. Uber and Lyft both offer $1 million in auto liability coverage for an accident during this phase.

In Colorado, Uber and Lyft also include uninsured/underinsured bodily injury liability coverage and collision/comprehensive coverage up to the actual cash value of your vehicle, assuming your personal auto policy includes these coverages.

Rideshare coverage kicks in to fill any coverage gap. For instance, Uber and Lyft don’t provide collision coverage while the app is turned on and you’re waiting for a request. But rideshare insurance can fill that gap, kicking in to cover damage to your car if you get in a crash during this period of time.

Requirements to drive for Uber and Lyft in Colorado

Drivers must meet certain criteria to drive for a rideshare service. These requirements vary state to state and even city to city, in some cases, but you can see requirements in Colorado below.

Rideshare car requirements

In order to drive for Lyft in Colorado, your vehicle:2 

• Must be a 2009 model or newer

• Must have four doors

• Must have five to eight seats (including the driver’s)

• Must not be a taxi, stretch limo, or non-Express Drive rental vehicle

• Must not be a salvage, non-repairable, or rebuilt title

Uber has similar requirements, though criteria are more stringent for drivers who want to drive for UberBlack or UberBlack SUV.3

Rideshare driver requirements

Drivers in Colorado must meet the following personal criteria to drive for Uber or Lyft:

• Must have a valid driver’s license

• Must pass a driver screening, which includes a driving history check and criminal background check

• Must have a smartphone that can run the Uber or Lyft app

For Lyft, drivers must be at least 25 years old. The minimum age for Uber drivers varies by state. In Colorado, drivers as young as 21 can drive for Uber. Drivers also must provide valid vehicle registration forms, a passing vehicle inspection form, proof of Colorado residency, proof of vehicle insurance, and a valid driver profile photo. These can be uploaded through the app.

Some Colorado cities have specific requirements. For instance, the city of Telluride advises Lyft drivers to obtain a business license. And drivers in Vail must obtain a permit to drive for Uber or Lyft, which costs $50.

Be sure to check the driver requirement pages for Uber and Lyft to ensure your vehicle and documentation meet all criteria.

Types of rideshare insurance coverage

Rideshare drivers should make sure they have the following insurance coverages: