Best Rideshare Insurance in New Jersey: Quotes, Discounts (2023)

Rideshare Insurance in New Jersey

Want to explore your city while setting your own hours? Lyft and Uber drivers often cite these reasons as their motivation for providing rideshare services. The independence that rideshare and delivery service drivers experience on the job can’t be beat. However, there’s a common misconception among rideshare drivers that anyone who signs up can just start driving and be covered by their personal car insurance. That couldn’t be further from the truth.

To drive for a rideshare app with your personal car, you need special rideshare coverage. Online comparison tools like Insurify make it easy to find the rideshare insurance policies that Uber and Lyft drivers need to provide rides safely.

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Rideshare Insurance Companies in New Jersey

Rideshare drivers in New Jersey have plenty of options to buy rideshare insurance. Here are some of the cheapest coverage options we found.

See More: Cheap Car Insurance in New Jersey

How Rideshare Insurance Works

Drivers often assume that if you have a car, you can just start offering rides and your personal auto insurance policy will cover it. In truth, your personal policy only covers you part of the time. The commercial policy from the rideshare company—often referred to as Uber insurance or Lyft insurance—only covers you for part of the ride, leaving dangerous coverage gaps in between, where you may only have minimum liability coverage protecting you.

Rideshare driving is typically divided into “periods” that have different requirements and responsibilities for insurance coverage. Here’s what you need to know about what insurance to carry for each period.

Period 0: Offline

If you’re out driving for yourself in your personal vehicle and you’re not logged into a rideshare app, your personal insurance is responsible for covering any damages you cause if you get into an at-fault accident. Your rideshare insurance doesn’t apply in this situation.

Period 1: Logged In, Waiting for a Passenger

The period when you’re logged in but still waiting for a passenger request is a common coverage gap that can cause a lot of issues for you if you’re involved in an accident. That’s because your personal insurance considers you as being on the clock for a rideshare company, while the rideshare company may not cover you because you’re not transporting (or on your way to transport) a passenger.

Some rideshare companies provide basic liability insurance to cover this gap period, but it often doesn’t cover damage to the driver or the driver’s car. It will only cover medical bills or property damage that you caused to other people involved in the accident.

New Jersey law requires either the driver or rideshare company to maintain primary car insurance that provides this amount of coverage for this period:

• Primary automobile liability insurance with coverage limits of at least $50,000 for death or bodily injury per person, $100,000 for death or bodily injury per incident, and $25,000 for property damage

• Primary personal injury protection benefits

• Uninsured and underinsured motorist coverage

Period 2: On Your Way to Transport a Passenger

When you’ve accepted a passenger’s ride request and you’re en route to pick them up, you should be able to lean on full coverage from your rideshare company if you’re involved in an accident. This usually includes:

• Third-party liability coverage: This part of your policy covers bodily injuries or damages that you cause to your riders, other drivers, pedestrians, or property.

• Uninsured or underinsured motorist coverage: You and anyone in your vehicle are protected in case an uninsured or underinsured driver causes an accident and you are involved in it.

• Contingent collision and comprehensive coverage: Do you have comprehensive and collision coverage on your personal insurance policy? If so, both Uber and Lyft will match that coverage while you’re driving for them. Both companies require you to meet deductibles before this coverage kicks in.

When a driver is providing a ride, New Jersey requires minimum policy limits of coverage that include:

• Primary automobile liability insurance with at least $1.5 million for death, bodily injury, and property damage

• Primary automobile insurance for medical payments that covers at least $10,000 per person per incident

• At least $1.5 million in uninsured and underinsured motorist coverage

Period 3: Providing the Ride

You should have the same coverage you have during period 2. Both Uber and Lyft provide liability, uninsured/underinsured motorist, and comprehensive and collision coverage.

Not carrying any rideshare insurance can be risky because your personal auto policy won’t cover your claims while you’re on the clock for a rideshare company. In fact, if you don’t report your rideshare activities, you’re at risk of losing your personal car insurance altogether.

Fortunately, there are many options out there for either rideshare insurance providers or a rideshare endorsement as an add-on to your personal insurance. For example, popular New Jersey insurer Plymouth Rock offers two rideshare endorsements; the basic version covers you while you’re logged in and waiting for a ride request, while the enhanced version adds on excess coverage for the time you’re driving to pick up a matched passenger, stopping to pick them up, and driving to the destination.

See More: Best Companies for Rideshare Insurance

New Jersey Laws on Rideshare Insurance Requirements

It’s important to stay up to date on the laws governing rideshare activities in New Jersey. The state has several requirements that apply to rideshare drivers and transportation network companies (TNCs) like Uber or Lyft. Here’s what you need to know.

1. You have to display identification. Sami’s Law, which passed in 2019, requires all TNC vehicles starting trips in New Jersey to display placards and QR codes that identify you as a rideshare driver. If you don’t display the correct stickers and information while you’re driving for Uber or Lyft, you could be subject to penalties and even lose your access to the rideshare app.

2. You may be subject to driving hour limits. Some regulations may enforce limits on the number of hours you can spend online on a rideshare platform. If you’re subject to these limits in your area, the driver app will let you know when you’re approaching the limit, and it will also warn you when you’ve reached the limit. After you spend a period of time offline, the driving time resets and you can receive trip requests again.

3. You must carry commercial insurance and submit to a background check. A 2017 law requires every ride to be covered by at least $1.5 million in commercial insurance. It also requires all drivers to submit to a criminal background check, though the law doesn’t specify whether this includes fingerprinting.

New Jersey Requirements for Rideshare Drivers

Uber and Lyft both have some basic requirements you will have to meet to become a rideshare driver.

Of course, you must be legally allowed to drive. You must also carry registration and personal insurance that meets the standards of state and local laws. Your insurance must meet or exceed New Jersey’s minimum requirements. Uber requires the driver’s name to be on the insurance policy, while Lyft requires a declaration page from your insurance company that includes your name if the policy itself isn’t under your name.

Filing a Claim After an Accident As a Rideshare Driver in New Jersey

Accidents are chaotic and confusing, and it can be hard enough to deal with a car accident without the added requirements of figuring out which insurance policy will cover you. If you’re involved in a car accident while driving for a rideshare company, report the incident to the police, then to your rideshare company through the rideshare app. The app will usually have an additional section outlining your next steps.

The biggest issue for you will be making sure you have all the appropriate documentation lined up from everyone who is involved in the accident. Reach out to everyone involved, and collect the following information:

• Names and phone numbers of anyone who witnessed the accident

• License plate numbers and driver’s license numbers from any motorists involved in the accident

• Insurance documentation from the drivers involved

Find Cheap Rideshare Insurance in Minutes

You can find insurance quotes for rideshare coverage quickly and easily with comparison tools like Insurify. Just plug in some basic information about you, your car and your driving history, and compare all the top insurers in New Jersey side by side. You can find the rideshare coverage you need in just a few minutes.

Frequently Asked Questions