Rideshare Insurance

Rideshare and insurance in Arizona

Uber and Lyft are two well-known rideshare companies that operate in the State of Arizona. There are certainly other companies that provide rideshare service. All rideshare companies require their drivers to carry auto insurance. The issue is a private passenger auto policy excludes livery (carrying people for hire) and this exclusion also applies any time the driver is in the vehicle and the ridesharing app is on. Typically, the rideshare company provides coverage anytime a passenger is in the car and as long as a passenger is being carried in the vehicle. The gap in coverage occurs while a driver is signed into the ridesharing app, but a passenger has not yet been picked up. This coverage is not included on an auto policy and must be added by endorsement.

In 2015 the State of Arizona HB2135 was signed by Governor Ducey. He stated as he signed it, “ridesharing companies like Uber and Lyft are already booming businesses-rather than standing in the way of growth, we should be encouraging it.”

This bill requires that

  • (1) ridesharing drivers have a mandatory limit of $250,0000 to provide livery service to the public;
  • (2) There must be a criminal background check by the rideshare company prior to hiring a driver;
  • (3) The vehicle must be inspected by the rideshare company, and with the driver, there is zero-tolerance of drugs and/or alcohol.

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