Table of Contents
A complete guide for Uber, Lyft, and DoorDash drivers in 2025 — what insurance you need, what’s covered by the apps, what’s not, and how to protect yourself in the US, Canada, UK, and Australia.
Introduction — why rideshare & delivery driver insurance matters in 2025
Driving for Uber, Lyft, DoorDash, Instacart, or other gig platforms can be a great source of income. But many drivers don’t realize that standard personal auto insurance is not enough when you’re working for these apps. If you get into an accident while waiting for a ride request or delivering food, your personal insurer can deny the claim.
That’s where Rideshare & Delivery Driver Insurance 2025 comes in. In this guide, we’ll explain what coverage Uber, Lyft, and DoorDash provide, where the gaps are, how much extra insurance costs, and the smartest ways to stay protected in the US, Canada, UK, and Australia.
How app-based insurance works (the 3 stages of coverage)
Insurance provided by Uber, Lyft, DoorDash, and other platforms works in phases:
1) App OFF
- Your personal car insurance is the only coverage.
- Driving without valid personal insurance = uninsured.
2) App ON, waiting for request (Period 1)
- Uber/Lyft/DoorDash usually provide limited liability only.
- Example (US typical): $50,000 per person / $100,000 per accident for injuries, $25,000 for property damage.
- No collision or comprehensive coverage for your car.
- If you crash here, you pay for your own car damage.
3) Accepted trip/delivery (Period 2 & 3)
- Once you accept a ride/delivery until drop-off, the company’s full commercial coverage applies:
- $1M liability coverage for injuries/property damage.
- Uninsured/underinsured motorist coverage (if another driver is at fault but uninsured).
- Collision/comprehensive — only if you carry it on your personal policy (with a deductible).
Key point: The biggest gap is Period 1 (waiting for requests).
What rideshare & delivery insurance adds
Special Rideshare Endorsements (US/Canada) or Hire & Reward Insurance (UK/AU) can:
- Cover you during Period 1 gaps.
- Ensure collision/comprehensive always apply.
- Prevent your personal insurer from canceling your policy for “undisclosed commercial use.”
- Provide medical payments or income protection extras.
Country-by-country breakdown (2025 updates)
United States
- Uber & Lyft provide $1M liability during trips but only limited liability while waiting.
- Many states (e.g., CA, NY, CO) require drivers to carry rideshare endorsements.
- DoorDash provides $1M liability while delivering, but no coverage when waiting.
- Consumer guidance at the National Association of Insurance Commissioners (NAIC) (hyperlinked).
Canada
- Coverage differs by province.
- In Ontario, Alberta, Quebec, BC, insurers like Intact and Aviva offer specific ridesharing policies.
- Without it, your personal insurer can deny claims.
- See Insurance Bureau of Canada for rules (hyperlinked).
United Kingdom
- Standard car insurance does not cover hire & reward (Uber, Bolt, Deliveroo, etc.).
- You need Private Hire Insurance (for passengers) or Hire & Reward Insurance (for deliveries).
- Guidance via MoneyHelper UK (hyperlinked).
Australia
- Rideshare drivers must have CTP (Compulsory Third Party) plus often Comprehensive or Third-Party Property.
- Some states require notifying your insurer if using the car for rideshare.
- Guidance via Moneysmart Australia (hyperlinked).
How much does rideshare & delivery insurance cost in 2025?
- US: $20–$40 extra per month for rideshare endorsement; full commercial auto $200+ monthly.
- Canada: $30–$60 monthly add-on; full commercial more.
- UK: Private hire insurance £150–£300 monthly depending on mileage.
- Australia: AUD $20–$50 monthly extra on top of personal insurance.
Factors affecting cost:
- City vs rural driving.
- Annual mileage.
- Driving history.
- Type of car (EVs and hybrids may have different premiums).
- Whether you carry passengers or deliveries only.
Smart ways to save in 2025
- Get a rideshare endorsement, not full commercial if you only drive part-time.
- Bundle with personal insurance — many insurers offer discounts.
- Shop around — some insurers are more gig-driver friendly.
- Higher deductible = lower monthly cost.
- Use telematics (usage-based insurance) — especially if driving fewer hours.
- Drive safely — accident-free discounts apply.
- Consider EV or hybrid discounts if using an electric rideshare car.
Claims process
- Report accident to both your insurer and Uber/Lyft/DoorDash.
- Document everything — photos, dashcam footage, trip/delivery confirmation.
- Company coverage applies only during active trips.
- Your rideshare endorsement fills gaps (especially Period 1).
- Appeal if denied — ask insurer which clause applies; escalate to ombudsman/regulator if necessary.
FAQs — Rideshare & Delivery Driver Insurance 2025
1) Do I need special insurance for Uber or DoorDash?
Yes — personal auto insurance alone is not enough. You need rideshare or hire & reward cover.
2) What happens if I crash while waiting for a ride?
Only limited liability applies. Your car damage likely won’t be covered unless you have a rideshare endorsement.
3) Is delivery insurance cheaper than rideshare?
Sometimes. Carrying passengers usually costs more than food deliveries.
4) Can my insurer cancel my policy if I drive for Uber without telling them?
Yes. Non-disclosure is grounds for cancellation or denial of claims.
5) Does DoorDash cover my car damage?
No. Only liability for others, not your vehicle.
6) Will my premiums go up if I drive rideshare?
Yes, but usually only modestly with endorsements. Full commercial insurance is pricier.
Trusted resources (hyperlinked text only)
- United States:
- Canada:
- United Kingdom:
- Australia:
Conclusion — protect your gig income in 2025
Driving for Uber, Lyft, or DoorDash can boost your income, but it also adds risks. Rideshare & Delivery Driver Insurance 2025 is essential to avoid costly gaps in coverage. By getting the right endorsement or hire & reward policy, you’ll protect yourself, your passengers, your deliveries, and your financial future.
Compare multiple quotes, disclose your gig driving to insurers, and take advantage of discounts. With the right cover, you can focus on earning — not worrying.
Check out our latest blog on Car Insurance.
