Uber and Lyft work with auto insurers in all 50 states to provide liability and underinsured motorist insurance coverage for drivers. Each driver is covered by third-party liability insurance when using app drive modes but prior to picking up passengers. Limits vary by state but the typical liability insurance covers up to $50,000 per person and $100,000 per accident in expenses from bodily injuries caused to motorists and pedestrians by auto accidents. Each driver is also covered up to $25,000 per accident for property damage expenses.
During a ride, the driver and passengers are covered by liability and underinsured motorist policies. The third-party liability insurance covers up to $1,000,000 per accident during rides. Additional coverage up to $250,000 per accident is provided to cover costs incurred by accidents with uninsured or underinsured motorists.
Drivers are not covered by company insurance policies when they are not using the apps. Uber provides collision and comprehensive coverage to cover the gaps left by personal insurance policies with a $1,000 deductible. Lyft offers similar coverage with a $2,5000 deductible.