The Complete Guide to California Rideshare Insurance in 2024

In California, a standard auto insurance policy usually won’t cover you as a rideshare driver once you turn the rideshare app on. Having an additional rideshare endorsement on your policy adds the protection you need if you get into a car accident, whether you have a passenger in your vehicle or not.

Insurers typically use three phases to describe (and cover) the rideshare driving process, and California regulations require you to have insurance for all three. We’ll break down the different phases, how rideshare insurance works in California, and how to find the cheapest rideshare coverage in the state in the sections below.

Key Takeaways:

• Clearcover is the cheapest rideshare insurance company in California, averaging $112 per month for full-coverage auto insurance with rideshare coverage.
• California’s rideshare insurance minimum requirements are higher than the state requirement for personal coverage.
• In California, transportation network companies (TNCs) must provide additional insurance to protect you if you get into an accident after turning the rideshare app on.

How Does Rideshare Insurance Work in California?

Rideshare insurance works differently in California depending on the phase of the process you’re in. Many insurers refer to three phases (or periods) of rideshare driving, and each company may define them differently. Here’s how the California Public Utilities Commission (CPUC) defines each phase.

• Period One begins when you log into the TNC app and wait for a match. It ends once you accept a ride request.
• Period Two starts when you accept a passenger and are on your way to pick them up.
• Period Three begins once you pick up the passengers and continues until they exit your vehicle.

Your personal auto insurance policy covers you only up to the point of turning on the app. Once you turn it on, you’ll only have protection if you have a rideshare endorsement on your personal policy or rideshare coverage through the rideshare service itself.

Does normal car insurance cover you while driving for ridesharing services?

Yes, but only if you have rideshare insurance coverage. Insurance companies offer a rideshare endorsement for your personal car insurance policy or may offer a separate rideshare insurance policy to cover you while you’re driving for a rideshare service.

The TNC insurance that Uber and Lyft provide will cover you when you’re on your way to a passenger or have a passenger in your vehicle, and your rideshare insurance covers you when you otherwise. Once the app is off and you’re no longer driving as a rideshare driver, your personal policy covers you like normal.

Adding an endorsement is a simple way to prevent a coverage gap once you stop using your car for personal use. It’s also usually cheaper, as you’ll see in the following sections.

California Insurance Requirements for Uber and Lyft Drivers

California law requires rideshare drivers to carry liability insurance to cover other people’s injuries and property damage they cause during any rideshare period, according to the CPUC. The minimum requirements are 50/100/30, or:

• $50,000 for bodily injury liability (BI) per person
• $100,000 for BI per accident
• $30,000 for property damage liability (PD) per accident

These limits are higher than the state requirement for a personal insurance policy, which is 15/30/5. But remember that in January 2025, the minimum limits will rise to 30/60/15.

Rideshare companies must also offer TNC insurance for all three phases. California requires at least 50/100/30 coverage for phase one and $1 million in additional liability coverage for phases two and three.

TNCs may also provide uninsured motorist (UM) and contingent comprehensive and collision coverage, but only if you have the same coverages on your personal policy.

How Much Does Rideshare Insurance Cost in California?

The cost of adding rideshare coverage to your personal auto policy can vary depending on where you live. The table below shows the average monthly cost for car insurance coverage with and without a rideshare endorsement, according to Compare.com data.

The average cost to add rideshare coverage in California is $17 per month, according to our research. The national average — $34 per month — is twice that figure.

The Cheapest California Rideshare Insurance Companies in 2024

Car insurance rates can vary significantly from company to company — and it’s no different when adding rideshare coverage. Below, we break down the cheapest companies for rideshare insurance in California, sorted by the lowest total monthly cost.

The cheapest California rideshare insurance company is Clearcover, with an average endorsement cost of $11 per month and a total average monthly cost of $112, according to our analysis.

That said, auto insurance premiums are highly personalized and depend on factors like your age, driving history, and ZIP code. Comparing quotes from multiple companies can ensure you get the best deal for rideshare coverage.

How to Add Rideshare Coverage to Your Car Insurance Policy

If you’re an Uber, Lyft, or delivery driver, you don’t want to miss out on the protection rideshare coverage gives you. Keep the money you’re making driving people or goods around in your pocket by adding a rideshare endorsement to your personal auto insurance policy. Here’s how:

1. Log into your online insurance account or call your insurance agent.
2. If logging into your account, search for your rideshare vehicle and click “add coverage.” If you call your agent, let them know you’re a rideshare driver and need to add rideshare coverage to your policy.
3. Submit your request and wait for a confirmation email that your rideshare endorsement is now a part of your policy.
4. Print out or save a copy of your updated ID card so you have proof of insurance if a cop pulls you over or you get into a car accident while ridesharing.

California Rideshare Insurance FAQs

We answered the most common questions about the California rideshare insurance process and requirements to help you protect yourself financially.

Does California require rideshare insurance?

Yes, rideshare drivers must have additional rideshare insurance in California. Your personal car insurance policy won’t cover you once you turn the TNC app on. Your rideshare coverage must meet the state’s minimum liability requirements of 50/100/30 for rideshare drivers.

What’s the best insurance company for Uber drivers?

It depends. The best insurance company for Uber drivers differs by driving profile, coverage needs, and your ZIP code. Comparing quotes from some of the top car insurance companies in the Golden State can help you find the best rideshare coverage that fits your needs and budget.

Does rideshare insurance cover DoorDash?

Yes. California considers DoorDash a transportation network company, so rideshare insurance can cover you while you’re “Dashing.” Talk with your insurance agent about a rideshare endorsement on your personal policy or a separate rideshare policy to protect your finances before you turn on the DoorDash app.

Do you need to tell your insurance company if you’re a rideshare driver?

Yes. If you don’t, you might find out after the fact that you don’t have coverage for an accident when you’re driving for a rideshare company. California requires rideshare companies to provide extra insurance, but it might not be enough to protect you financially if you cause a car accident.

Do Uber drivers get health insurance in California?

Proposition 22 requires TNCs to provide California rideshare drivers with a health insurance stipend. You can use the funds to help pay for health insurance in California. The amount you receive depends on the average hours per week you spend in phase three.

Data Methodology:

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.

Sources:

1. California Department of Insurance, “New insurance rules for ride-share companies and drivers take effect today,” accessed August 7, 2024.
2. California Department of Motor Vehicles, “Insurance Requirements,” accessed August 7, 2024.
3. California Public Utilities Commission, “Progress Report,” accessed August 8, 2024.
4. Uber, “Insurance to help protect you,” accessed August 7, 2024.
5. Lyft, “All things insurance, all in one place.,” accessed August 7, 2024.
6. Covered California, “App-Based Drivers (Prop 22) Health Insurance Stipend Quick Guide,” accessed August 8, 2024.