Best Rideshare Insurance in Maryland: Quotes, Discounts (2023)

Rideshare Insurance in Maryland

Drive for Uber, Lyft, or another rideshare company in Maryland? Then you should be aware that your personal auto insurance policy doesn’t apply to the damage that occurs while your vehicle is in “business use.” Rideshare insurance is a great way to make sure that you’re always protected on the road and avoid high out-of-pocket expenses in the event of an accident. Check out affordable rideshare insurance options today, with Insurify.

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Rideshare Insurance Companies in Maryland

The secret to finding the cheapest rates on rideshare insurance is comparing car insurance quotes. Average monthly costs for rideshare coverage can go as high as $414 and as low as $202, adding up to a significant $2,544 annual difference. It’s important to note that not all auto insurance companies in Maryland offer rideshare insurance, but the ones in the table below do.

See More: Cheap Car Insurance in Maryland

How Rideshare Insurance Works

Your personal auto policy does not cover the bodily and property damage that you sustain while your vehicle is in commercial use—it only applies when you’re using your car for personal use. To protect yourself from potential accident costs and medical expenses while you’re driving your vehicle for business purposes, you need to have appropriate insurance coverage.

The rideshare company you work with—known as a transportation network company or TNC—has to provide you with the minimum required commercial policy while you’re providing a rideshare service. However, the TNC policy is likely to have coverage gaps and only provide liability coverage that won’t be applicable to the damage you sustain—only that of the other driver.

Your TNC policy uses the following driving “periods” to determine the coverage they provide you with:

• Period 1: Waiting for a ride request. Your personal use car insurance policy stops providing you with coverage as soon as you turn your rideshare app on. While you’re waiting to be connected with a passenger, your TNC insurance will provide some liability insurance, but it likely won’t be enough to cover damages in the event of an accident.

• Period 2: En route to pick up a passenger. Your TNC coverage may provide higher bodily injury and property damage liability coverage during this driving period, but you can also expect high deductibles, likely double or even triple the amount on your personal use policy.

• Period 3: Passenger is in the car. Your TNC policy provides you with high liability coverage, and some companies may extend comprehensive and collision coverage to you as well. However, you can expect a high deductible that you’ll have to pay out of pocket before your TNC insurance kicks in.

Getting a rideshare insurance policy to supplement your TNC policy can help you make sure that you always have appropriate coverage during all driving periods and keep your deductibles down.

In Maryland, you can get rideshare insurance in two ways:

• As an add-on to your personal car insurance policy. If your personal auto insurance company offers rideshare insurance, you can supplement your personal use policy with a rideshare endorsement that will fully mirror your personal policy. For example, if your personal policy has full coverage, your rideshare insurance will have it as well.

• As a “hybrid” personal and rideshare policy. An alternative coverage option is to combine your personal auto insurance coverage and your rideshare coverage into one “hybrid” policy. Please keep in mind that not all car insurance companies in Maryland offer this option. To find out which ones do, use Insurify.

Whichever type of insurance you choose, rideshare insurance is a wise choice for Maryland rideshare drivers.

See More: Best Car Companies for Rideshare Drivers

Maryland Laws on Rideshare Insurance Requirements

As a rideshare driver in Maryland, you are required by law to have rideshare insurance whenever your rideshare app is on—not just when you have a passenger in your car. The TNC policy that you get from your rideshare company satisfies this requirement but leaves you with coverage gaps and high deductibles.

Having a personal car insurance policy is a prerequisite for qualifying for a TNC insurance policy or rideshare insurance. This is because you will inevitably be driving your vehicle for personal use if you’re a rideshare driver. To comply with Maryland insurance laws, you need to carry the minimum required liability, uninsured motorist, and personal injury protection coverage.

Under your TNC policy, you are entitled to liability coverage only. Some rideshare companies may extend comprehensive and collision coverage to you, but you need to check with your TNC to be sure.

It’s important to inform your personal insurance provider that you are a rideshare driver, even if you’re not supplementing your TNC insurance policy with rideshare insurance. Not letting your personal car insurance company know that you’re a rideshare driver may result in them refusing to cover your personal claims or even canceling your auto insurance coverage altogether.

You must also inform your personal insurance provider of any accidents that happened while you were using your vehicle for business purposes, even if you only used your TNC policy to cover the damages.

Maryland Requirements for Rideshare Drivers

To become a rideshare driver in Maryland, you need to satisfy the requirements of the rideshare company you want to work with.

To become an Uber driver or a Lyft driver you need to comply with the following requirements:

• You must meet the minimum age requirements from your rideshare company to drive in your city (e.g., to drive with Lyft in Baltimore, you must be at least 25 years old).

• You must drive an eligible four-door vehicle with valid registration that satisfies the requirements of the category that you’re applying for (e.g., Uber Black).

• You must have a valid U.S. driver’s license and the minimum required driving experience (e.g., for Uber, you must have at least one year of driving experience and three years if you’re under 25 years of age).

• You must consent to sharing your picture with passengers.

• You must have a smartphone to download the rideshare app.

• You must pass your driver screening and criminal background check.

To become a rideshare driver, you also must already have a personal auto insurance policy. Use Insurify to find the best personal auto insurance coverage at the lowest rates today!

Filing a Claim After an Accident As a Rideshare Driver in Maryland

The process that you need to follow to file a claim in the event of an accident as a rideshare driver in Maryland depends on the driving period during which the accident occured.

If the accident took place when your rideshare app was off—also known as period 0—then your personal auto insurance policy will cover the damages. Your personal policy payout limits and deductibles will apply since you were not using your vehicle for commercial use.

If the accident took place during a driving period when your rideshare app was on—whether that was when you were waiting to be connected with your passenger, en route to pick up your passenger, or while your passenger was in your vehicle—your TNC policy will provide at least the minimum required coverage.

You can supplement your TNC coverage with your rideshare insurance coverage to close gaps in your TNC coverage and lower your deductibles. Keep in mind that you need to notify your personal auto insurance company that you were involved in an accident even if you only used your TNC coverage to cover the damages.

Find Cheap Rideshare Insurance in Minutes

To find the best rideshare insurance options in Maryland, it’s important to shop around instead of committing to one car insurance company without seeing what your other options are.

Different auto insurance companies use factors such as your age, credit score, and marital status differently to calculate your unique car insurance rate, so a rate you get from one provider may be drastically different from a deal you get from another car insurance company in Maryland. Insurify recommends getting at least four quotes from different insurance providers.

However, shopping around can prove to be a time-consuming and tiring process. To get multiple quotes, you’d have to spend hours answering repetitive questions over the phone with an agent or on a sketchy website that makes money off selling your information to insurance companies. Plus, you’d have to research all the different discounts and deals you qualify for on your own.

Insurify turns this hours-long and tiring endeavor into a simple five-minute process. Answer a few basic questions about yourself, your vehicle, and your coverage preferences on our trusted website and get instant access to up to 20 car insurance quotes from the best auto insurance providers in Maryland. Compare your quotes and discounts in one place and find the best deal!

Frequently Asked Questions