Rideshare Insurance for Uber and Lyft Drivers
If you’re driving paying passengers in your personal or family car, standard auto insurance won’t cover you. That’s why you need specialized rideshare insurance. We’ll help you find the right protection at an affordable rate so you can keep earning with confidence.
Great Rates for Rideshare Insurance
We work with more than 70 of Canada’s top insurers, giving you access to some of the most competitive rideshare insurance rates available. You don’t have to spend time shopping and comparing — we’ll do the work for you and find the coverage that fits your needs.
Yes, You Do Need Special Insurance to Drive for Uber or Lyft
There’s often confusion about whether a personal auto insurance policy is enough for ridesharing. While Uber and Lyft provide coverage during active trips, you still need your own policy for the times you’re driving your car personally. Specialized rideshare insurance bridges this gap, keeping you protected both on and off the clock.
What Does Rideshare Insurance Cover?
A standard personal auto policy doesn’t cover driving passengers for pay. Uber and Lyft provide their own insurance while you’re logged into the app and transporting customers, but you’ll still need a personal auto policy that includes rideshare coverage for all the times you’re not on duty.
Your Personal Rideshare Auto Policy Covers (off-duty):
Third-Party Liability
Protects you if someone is injured or their property is damaged, including legal fees and settlements.
Accident Benefits
Pays for medical treatment if you or your passengers are injured in a collision, no matter who was at fault.
Direct Compensation – Property Damage (DCPD)
Covers damage to property caused by your vehicle—such as hitting a guard rail or structure—so you’re not left paying repair costs out of pocket.
Uninsured Automobile Coverage
If you’re hit by an uninsured driver or involved in a hit-and-run, this coverage ensures you can still recover damages as if the other driver was fully insured.
Uber and Lyft Insurance Covers (on-duty):
Coverage for Paid Passengers
When you log in to the app, Uber or Lyft’s insurance takes effect, ensuring passengers are protected.
Mandatory Coverages
While you’re driving for a rideshare service, their policy provides all the same protections as a personal auto policy.
Enhanced Coverage During Rides
Includes $2 million in liability coverage and $2 million in uninsured auto coverage while carrying paying passengers, regardless of the limits on your personal policy.
Collision, Fire, and Theft
Even if you don’t carry optional collision or comprehensive coverage under your personal policy, Uber and Lyft provide it while you’re on a trip.
What Other Coverage Should You Consider?
In addition to the standard protections, here are some valuable options for rideshare drivers:
Collision & Comprehensive Coverage
Protects your vehicle from at-fault accidents, fire, theft, vandalism, and other risks when you’re not driving for Uber or Lyft.
Accident Forgiveness
Helps keep your premiums from increasing after your first at-fault accident, giving you peace of mind while on the road.
Cross-Border Coverage
If you deliver with Uber Eats or carry passengers into the United States, you may need business auto insurance. We can help ensure you’re protected no matter where the road takes you.
Frequently Asked Questions About Rideshare Insurance
What if I don’t tell my insurance company I’m driving for Uber or Lyft?
When applying for auto insurance, you must disclose anything that affects your level of risk. If you say you’re not using your vehicle for business but later drive for Uber or Lyft, that’s considered misrepresentation. This can result in denied claims, a cancelled policy, and much higher premiums for years to come. Even if you think your insurer won’t find out, claims investigations often reveal the truth.
If Uber and Lyft have insurance, why do I still need coverage?
While Uber and Lyft provide their own coverage during rides, disputes can arise over whether a claim should be handled by their policy or your personal policy. Since most personal insurers don’t price in the extra risk of ridesharing, only certain companies accept Uber and Lyft drivers. If your current provider doesn’t, you may need to switch.
Does rideshare insurance cover food delivery (Uber Eats, SkipTheDishes, etc.)?
No. Rideshare insurance applies only when transporting passengers. Food delivery typically requires business auto insurance, which is often more expensive.
Why is food delivery insurance different from passenger rideshare coverage?
The risks are not the same. Rideshare drivers carrying passengers tend to drive more cautiously, while food delivery drivers are often under pressure to deliver quickly, which can lead to riskier driving behaviour. Because of this, many insurers either refuse to cover food delivery or charge higher premiums for it.
As a brokerage working with over 70 of Canada’s leading insurance companies, we provide access to a wide range of coverage options at some of the most competitive rates in the country. Want to explore the solutions available to you? Here are just a few examples.