Rideshare Insurance in North Carolina (2025)
Purchasing rideshare coverage in North Carolina can fill the gap between your personal auto policy and a rideshare company’s fixed coverage.
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If you drive your personal vehicle for a service like Uber or Lyft, you should purchase rideshare insurance because personal auto policies won’t cover you while you use your car for a rideshare service. Though North Carolina doesn’t require rideshare insurance, you must notify your insurance company if you intend to drive for a rideshare company.1
Here’s what you need to know about rideshare insurance in North Carolina, including cost and supplementing your personal auto insurance policy.
Quick Facts
North Carolina state law doesn’t require drivers to purchase rideshare insurance.
The average monthly cost of rideshare insurance in North Carolina ranges from $41 to $330.
Midvale Home & Auto offers the cheapest rideshare coverage in North Carolina.
How much does North Carolina rideshare insurance cost?
The average cost of rideshare insurance in North Carolina ranges between $41 and $330 per month.
The cost depends on factors like the type of coverage you purchase, your driving record, and the insurance company you choose. The cheapest rideshare insurance company in North Carolina is Midvale Home & Auto, and the most expensive insurer is Dairyland.
In the table below, you can see the average monthly cost of rideshare insurance in North Carolina from some of the cheapest insurance companies.
Rideshare insurance requirements in North Carolina
When you work as a rideshare driver for a transportation network company (TNC) like Lyft or Uber, each trip is divided into three phases. It’s important to understand each phase of the trip and what insurance policy applies.
The type of insurance covering you depends on which phase you’re in when an incident occurs.
Phase 1
In this phase, you’re driving with the rideshare app turned off. For example, this phase applies if you’re driving to the grocery store. During this time, your personal car insurance policy applies.
Phase 2
You enter phase 2 when you turn your rideshare app on. The phase ends when you accept a request to transport a passenger. Your personal auto policy doesn’t cover you during this phase, but a rideshare endorsement will. Uber and Lyft both offer third-party liability insurance with policy limits of 50/100/25 that can also cover you.2
Phase 3
Phase 3 starts after you accept a prearranged ride and ends when you complete the ride at the passenger’s final destination. The rideshare company’s insurance policy covers you in phase 3. Uber and Lyft both cover drivers with $1 million in liability coverage, uninsured/underinsured motorist coverage, and medical payments coverage.
If you have a full-coverage personal car insurance policy, both companies offer contingent comprehensive and collision coverage up to the actual cash value (ACV) of your vehicle, minus a $2,500 deductible.3
Rideshare car requirements
Uber has state-specific requirements for rideshare vehicles. Vehicles must meet the following requirements:4
Four doors
16 years old or newer
In good condition with no major cosmetic damage
No commercial branding
Pass inspection if an out-of-state vehicle
Lyft has similar requirements for North Carolina cars. Vehicles must meet the following requirements:5
Four doors
From 2009 or newer (in the Outer Banks)
From 2007 or newer (in all other cities)
Five to eight seats, including the driver’s
Permanent license plate
Not a taxi, stretch limousine, or non-express drive rental vehicle
Not titled as salvage, non-repairable, rebuilt, or any other equivalent classification
Rideshare driver requirements
Uber has the same requirements for drivers in all 50 states. Drivers must meet the following requirements:6
Valid North Carolina driver’s license
One year of licensed driving experience in the U.S. (three years for drivers younger than 25)
Proof of car insurance on vehicle you intend to drive
Pass a driving record and criminal history screening
Lyft has similar driver requirements. Drivers must meet the following requirements:
Valid driver’s license (temporary or out-of-state licenses acceptable)
25 years or older
Pass a driving record and criminal history screening
Own a smartphone that can download and run the Lyft app
Types of rideshare insurance coverage
Rideshare insurance policies vary by driver and insurer, but the most robust policy will include multiple types of coverage.
Here are the most common coverages you get with a rideshare insurance policy or endorsement:
Good to Know
Most rideshare insurance policies have a deductible, which is the out-of-pocket cost you owe when you file a claim.
Typically, you only need to pay a deductible for collision and comprehensive insurance. You can select your own deductible when you purchase coverage. Remember that setting a higher deductible will result in a lower premium.
Rideshare insurance FAQs
If you drive for a TNC in North Carolina, you should buy rideshare insurance. Here’s some more information about rideshare insurance in North Carolina to help you decide whether you need this type of coverage.
Do you need rideshare insurance in North Carolina?
Legally, no. Rideshare drivers in North Carolina don’t need to carry rideshare insurance.
However, you do need to disclose to your insurance company that you’re using your personal vehicle to drive for a rideshare service. Some companies may require you to purchase a rideshare endorsement, even though North Carolina state law doesn’t require it.
Do Uber drivers in North Carolina have to carry commercial auto insurance?
Uber drivers in North Carolina don’t have to carry commercial auto insurance if they use their personal vehicle to rideshare. Uber provides insurance coverage during phases 1, 2, and 3 of the trip.
However, if you own a vehicle that you only use to drive for Uber, you’d need to purchase commercial auto insurance.
Do you really need rideshare insurance if you have personal auto insurance?
Yes. When you drive for a rideshare company, your personal auto insurance only applies during phase 1 (before you log into the app).
Once you turn on the app, your personal auto policy no longer covers your vehicle. Having rideshare insurance is important if you want coverage during every phase of your trip.
What happens if you get into an accident while ridesharing without insurance?
If you have an accident while driving for a TNC and don’t have rideshare insurance, your insurance company will likely deny your claim.
Uber and Lyft provide coverage that supplements a rideshare insurance policy and your personal car insurance policy. If you don’t have a rideshare endorsement, you can face out-of-pocket expenses after an accident.
Does DoorDash count as rideshare for insurance?
Rideshare coverage from some insurance companies, like Progressive, cover delivery drivers for companies like DoorDash and Uber Eats.
Like Uber and Lyft, DoorDash provides a fixed amount of insurance coverage for drivers during certain phases of each delivery trip. However, you can purchase your own rideshare insurance to get more coverage when driving.
How does a rideshare insurance claim work?
If you have an accident while driving for a TNC, you should file a claim with your personal insurance policy first, then file a claim with Uber or Lyft.
If your personal car insurance company refuses to cover the claim, your Uber or Lyft insurance policy should kick in. The type and amount of coverage provided depends on the phase of the trip when the incident occurred.
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