In today’s economy, everything feels more expensive—from groceries to gas—and many people are turning to side income through apps like Uber, DoorDash, Lyft, or Uber Eats to help make ends meet. The flexibility is appealing. The quick sign-up process makes it easy. And many apps say you’re “covered by insurance,” so it seems like a low-risk way to bring in more cash.
But here’s the truth: the insurance included through those platforms doesn’t always tell the full story—and relying on it alone could leave you financially exposed if something goes wrong.
At Aspire Insurance Group, we believe knowledge is power. That’s why we’re breaking down what drivers need to know about rideshare and delivery insurance—so you can protect yourself, your income, and your vehicle before hitting the road.
The Hidden Coverage Gaps in App-Based Driving
Most personal auto insurance policies are designed for personal use only. Once you’re using your car to earn income through a rideshare or delivery app, you’ve officially entered commercial territory. And that changes everything.
Let’s look at the three phases where your coverage may fall short:
- App On, Waiting for a Request
You’re online and available, but haven’t accepted a job yet. Most personal auto policies don’t cover you during this stage, even though you’re technically “just waiting.” - En Route to Pickup
Once you’ve accepted a ride or delivery, some platforms offer partial coverage—but it often comes with limitations, high deductibles, or reduced benefits. - Active Ride or Delivery
Insurance from Uber, Lyft, or DoorDash typically kicks in here, offering liability coverage if you’re at fault. But even then, you may be on the hook for thousands in deductibles or lack full protection for damage to your own vehicle.
What the App Platforms Actually Cover
While it’s true that companies like Uber and DoorDash provide some insurance coverage, it’s important to understand what that includes—and what it doesn’t.
- Liability Coverage is usually included while you’re actively transporting someone or something.
- Collision and Comprehensive Coverage may only apply if you already carry it on your personal policy—and still may come with $1,000+ deductibles.
- Coverage may not apply during gaps in the process—like waiting for your next delivery.
Bottom line: platform-provided insurance is not designed to fully protect you—it’s there to limit their own liability.
State Regulations Add Another Layer
Insurance requirements vary by state. Some states mandate that platforms provide coverage at every stage of the job, while others leave it up to the company—or the driver.
Before you hit the road, make sure you:
- Understand your state’s rideshare or delivery insurance laws
- Know what your specific platform provides (and doesn’t)
- Connect with a licensed agent ( that’s us!) to talk through your unique situation
Your Options: Insurance Solutions for App-Based Drivers
So what can you do to fill the gaps and protect your income? Here are two solid options we often recommend:
1. Rideshare Endorsement
Many personal auto policies now offer a rideshare endorsement, which extends your coverage while your app is on—even if you’re not actively driving someone. It’s usually a low-cost add-on to your existing policy and is perfect for part-time drivers.
2. Commercial Auto Insurance
If you’re driving regularly or across multiple platforms, you may need full commercial auto coverage. It’s more comprehensive—and yes, more expensive—but it gives you the peace of mind that comes from being fully covered.
Things to Consider When Choosing Coverage
When deciding which route to take, consider:
- How often you drive: Is this occasional weekend work or a daily gig?
- What platforms you use: Rideshare may carry different requirements than food delivery.
- Your state’s rules: These impact both your legal requirements and what your platform must provide.
Not sure where to start? We’re happy to review your policy and walk you through it.
Safety Tips for App-Based Drivers
Insurance is only one part of the equation. Staying safe on the road matters too. A few simple practices can make a big difference:
- Keep your vehicle in good condition with regular maintenance
- Avoid distracted driving—apps can wait
- Use safety features on platforms, like passenger ratings and trip tracking
- Let someone know where you are and when you’re expected back
In Closing: Know Before You Go
Earning extra income through rideshare or delivery apps can be a smart move—but only if you’re properly protected. At Aspire, we’re here to help you make informed decisions that safeguard your income and your peace of mind.
If you’re considering this type of work—or already doing it—let’s talk insurance. We’ll help you understand your coverage, identify any gaps, and recommend solutions tailored to you.
Contact us at:
📞 (651) 760-8369
📞 (715) 781-8217
📞 (218) 741-0000
📞 (608) 755-1027
📱 Text Line: (651) 273-1143
📧 Email: hi@aspireinsurancegroup.com
📅 Business Hours: Monday–Friday, 8:00 AM – 4:30 PM