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

Rideshare Insurance in Massachusetts

If you’re a rideshare driver for Uber or Lyft, you should have an insurance policy that fully protects you on the job. Anytime you use your vehicle to earn income, your personal car insurance policy won’t cover you. You’ll either need to purchase a commercial policy or a rideshare endorsement in addition to your personal coverage to avoid a coverage gap.

While rideshare insurance adds an extra expense, you can find cheap coverage if you know where to look. The best way to find insurance coverage is to use Insurify to compare rates from multiple insurance providers. Just tell us you’re looking for rideshare insurance, and our artificial intelligence technology will find you the best rates.

See More: Compare Car Insurance

Rideshare Insurance Companies in Massachusetts

If you’re an Uber or Lyft driver and want to protect yourself from paying high deductibles on the limited liability coverage that your TNC insurance policy offers and cover everything else out of pocket, many companies in Massachusetts offer rideshare insurance. You can use the following table to compare average insurance rates.

Keep in mind that your insurance rates will vary based on your unique needs and the type of insurance coverage you have on your personal auto insurance policy. Use Insurify to compare free quotes for rideshare insurance to make sure you’re safe and legal on the road.

See More: Cheap Car Insurance in Massachusetts

How Rideshare Insurance Works

Massachusetts drivers who want to begin offering rideshare services are encouraged to enroll in specific commercial auto coverage that acts as an add-on to their personal auto policy. Unlike a traditional car insurance policy, rideshare insurance policies are only active during specific times that are called “periods.” Each period includes its own coverage stipulations as follows:

• Period 0: Your ridesharing app is off, and you are not using your vehicle commercially. During this period, your personal insurance will cover any damage under your regular limits. Rideshare coverage will not pay toward a claim under any circumstances during this period.

• Period 1: Your ridesharing app is on, and you are waiting for a ride request. When your app is turned on and you’re waiting for a ride request, your personal car insurance policy protection is not applicable. Instead, your rideshare insurance kicks in along with Uber or Lyft liability coverage.

• Period 2: Your ridesharing app is on, and you are en route to pick up a passenger. The TNC insurance policy provides higher liability coverage, uninsured motorist coverage, and comprehensive coverage during this period, but your deductibles are likely to be high—double or even triple the amounts on your personal-use policy.

• Period 3: Your ridesharing app is on, and you are driving with a passenger in the car. Anytime a passenger is in your vehicle, Uber or Lyft insurance is in effect. In most cases, you’ll be covered up to the full limit provided by the rideshare company’s insurance policy.

Once your rideshare app is on, your personal auto insurance policy will not cover any damages or claims. Rideshare insurance, also called a rideshare endorsement, is designed as a type of gap coverage that provides protection beyond liability, but only during period 1. During periods 2 and 3, you are fully protected by the rideshare company’s commercial insurance policy.

Keep in mind that your rideshare endorsement policy mirrors your personal-use policy. If you only have liability coverage and no collision coverage on your personal-use policy, your rideshare endorsement policy will not have it, either. It’s important to explore your coverage options so that you can ensure you’re fully protected on the job.

See More: Best Car Companies for Rideshare Drivers

Massachusetts Laws on Rideshare Insurance Requirements

If you are a rideshare driver in Massachusetts, you must inform your auto insurance company that you plan on using your vehicle for rideshare purposes. Failing to report rideshare activities to car insurance companies will likely result in the denial of a car accident claim. To notify your insurance company and request rideshare insurance coverage, you should call one of your provider’s insurance agents.

Rideshare companies in Massachusetts are required to provide liability coverage, and in some situations, they may provide full coverage as well. The level of coverage provided by the ridesharing or transportation network company (TNC) varies depending on if you’re waiting for a request or picking up a passenger.

Under Massachusetts law, during period 1 (the app is on and you are waiting for a ride request), the TNC insurance must cover at least:

• $50,000 of bodily injury coverage per person

• $100,000 of bodily injury coverage per accident

• $30,000 of property damage

During periods 2 and 3 (the app is on while you are driving to or with a passenger), the TNC rideshare policy must cover at least $1 million in liability coverage per driver.

Keep in mind that a TNC insurance policy is only required to provide liability insurance. If you want collision coverage as well, you need to supplement your TNC insurance with another rideshare insurance policy.

Massachusetts Requirements for Rideshare Drivers

It’s an exciting idea to think about becoming a rideshare driver to earn extra income, but the state of Massachusetts, along with Uber and Lyft, won’t let just anyone offer rides to passengers. Massachusetts law sets in place strict eligibility requirements for rideshare drivers, and both Uber and Lyft have their own set of stipulations to consider.

Vehicle Requirements

In Massachusetts, rideshare vehicle requirements vary from city to city, but both Uber and Lyft have created a checklist to consider. Uber states that vehicles must have four doors, be no more than 15 years old, be in good condition with no cosmetic damage, and not have any commercial branding.

Lyft, on the other hand, has more specific vehicle requirements. Personal vehicles must have both four doors and five to eight seats and cannot be titled as salvage, rebuilt, or non-repairable. The vehicle cannot be older than 2001, and your ridesharing vehicle cannot be on Lyft’s list of ineligible subcompact cars.

Driver Requirements

As well as having a vehicle that meets Uber or Lyft criteria, each motorist must fulfill certain requirements before they get behind the wheel. Per Massachusetts law, drivers must be older than 21 years of age and drivers under 23 years old must have had a driver’s license for at least three years prior. All drivers must have at least one year of licensed driving experience.

It’s important to note that while Massachusetts stipulates that all rideshare drivers must be at least 21 years old, Lyft requires individuals to be at least 25 years of age. In accordance with Massachusetts law, all drivers for both Uber and Lyft must have a background check clearance certificate (BCCC) from the TNC Division to drive for a rideshare company in Massachusetts.

Finally, Massachusetts rideshare drivers must complete a vehicle inspection called the TNC Inspection. Rideshare drivers must carry the inspection results with them at all times while driving their rideshare vehicles.

Document Requirements

As with any new job, there’s a fair amount of paperwork that needs to be submitted before you can begin ridesharing. Both Uber and Lyft ask for similar documentation that also falls in line with Massachusetts legislation, making the process pretty straightforward. Here’s what you’ll need to provide:

• Your current Massachusetts vehicle registration

• Proof of residency in Massachusetts

• A copy of your personal auto insurance policy

• A driver profile photo, which must be a forward-facing, centered photo from the shoulders up that shows the driver’s full face

• Your completed Massachusetts TNC vehicle inspection

Some cities in Massachusetts also require additional documentation, including business licenses and permits. It’s recommended that you check with your local county clerk to find out if you’ll need to apply for any permits before you begin driving.

Insurance Requirements

While Massachusetts rideshare drivers are required to have a personal auto insurance policy, neither Lyft, Uber, nor the state itself has designated what your personal auto insurance coverage must look like. Some motorists enroll in rideshare insurance as an add-on to their current coverage, although it’s not legally required.

It’s advised that your personal auto insurance include limits for property damage and bodily injury protection, also referred to as liability insurance. You may want to enroll in additional upgrades to help pay for medical expenses or roadside assistance and could find that a commercial insurance policy is the right option for you.

Only you know which combination of coverage options and deductibles makes the most sense for your driving needs, so it’s best to explore all of your choices before you enroll in a policy. Adding on a rideshare endorsement might be the best choice for you, or you could decide to simply increase your limits on your personal auto insurance.

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

Both Uber and Lyft have a process for reporting an accident, and each app will walk you through the steps. You’ll also want to call your insurance agent for your personal policy or file a claim through your provider’s website or app.

Your insurance company will likely follow up with the ridesharing company and schedule an inspection of your vehicle. Depending on when the accident occurred, you may get payments for covered expenses (minus your deductible) from your insurance company, the rideshare company, or both.

Find Cheap Rideshare Insurance in Minutes

Skip calling insurance agents, and head over to Insurify’s free comparison website to find the most affordable rideshare insurance. If you want to save even more money, bundle your auto insurance policy with your homeowners or renters insurance. Insurify’s AI technology offers you the lowest prices from top national providers like GEICO and Allstate, all in a matter of minutes.

While using Insurify, be sure to select “Rideshare Driver” to receive quotes for rideshare policies tailored to your profile. That way, you’ll find the best insurance to keep you safe and protected on the job.

Frequently Asked Questions