Uber and Lyft Insurance Limits: What the Platforms Actually Cover
The platforms’ coverage is genuinely good in Periods 2 and 3 — the marketing problem is that drivers read ‘covered’ and miss the two carve-outs that cost real money.
What the platforms provide during trips
| Coverage | Uber/Lyft (Periods 2–3) | Period 1 (app on, waiting) |
|---|---|---|
| Bodily injury / property liability | $1M combined single limit | ~50/100/25 |
| Uninsured/underinsured motorist | $1M in many states (varies) | Often none or minimal |
| Collision/comprehensive (your car) | Actual cash value, minus your $1,000–$2,500 deductible — requires you to carry it | None |
| Medical (PIP/med-pay) | State-dependent | State-dependent |
The two carve-outs that hurt
- Period 1 physical damage: there is none. Waiting for a ping is the exposure window — endorsement or self-insure, no third option.
- The collision deductible: $1,000–$2,500 comes out of your pocket even when the platform’s coverage applies. Some drivers keep a dedicated fund for exactly this.
Frequently Asked Questions
How much insurance does Uber provide drivers?
During trips: $1M liability and $1M UM/UIM (in most states) plus physical damage to your car matching your own coverage, subject to a $1,000–$2,500 deductible. While waiting: bare liability only.
Is Uber’s $1 million coverage real?
Yes for liability during Periods 2–3 — it’s contractually provided and pays claims. The limitations are Period 1 and your own car’s damage, not the headline number.
Who pays my deductible if Uber’s insurance fixes my car?
You do — the platform’s physical damage coverage applies after your deductible, which is $1,000–$2,500 depending on state. Budget for this reality.
Does Lyft’s coverage differ from Uber’s?
Materially no — both follow the same state TNC framework with the same structure. Differences at the margins are administrative.