Best Rideshare Insurance in Arizona: Quotes, Discounts (2024) (2024)

If you’re considering becoming a rideshare driver in Arizona or already are one, it’s important to understand the logistics of rideshare insurance. While companies like Uber and Lyft offer coverage, you might need more protection.

Arizona law requires drivers who drive for transportation network companies (TNCs) or rideshare companies to maintain the minimum coverage during the different phases of the rideshare process.

Here’s a breakdown of the rideshare-app phases, how much coverage you’ll need, and whether your TNC company or personal auto insurance will cover you.

Rideshare insurance requirements in Arizona

As a rideshare driver, your minimum liability coverage from your personal auto insurance policy may not cut it.

“Many rideshare drivers do not have enough coverage, either because they are unaware of the minimum-coverage requirements or because they choose a policy with lower limits in order to save money,” says John Espenschied, owner of Insurance Brokers Group.

Arizona requires that you have coverage for each phase of the rideshare process, such as driving with the app off, driving with the app on while waiting for a ride request, and driving with a passenger.

It’s worth noting that your insurance company may not provide auto coverage when your app is on but you’re not transporting any passengers. So, you’ll need to ensure your TNC offers enough coverage in that phase to meet Arizona’s minimum insurance requirements.

In this phase, you’re offline and not currently accepting passengers, so your personal auto insurance should suffice. However, if you drive for a rideshare company, it’s vital to notify your insurance company so it can help you purchase adequate rideshare coverage.

Arizona requires all drivers to have the following minimum liability coverage in this phase:^[2]

• $25,000 per person for bodily injury liability

• $50,000 per accident for bodily injury liability

• $15,000 per accident for property damage liability

If you choose to purchase uninsured/underinsured motorist coverage, the policy limits must be $25,000 per person for bodily injury liability and $50,000 per accident for bodily injury liability.

Even if you’re not carrying passengers, you’ll still need coverage as long as your app is on and you’re waiting to receive passengers’ requests.

In this phase, Arizona requires the following coverage limits, either through the TNC’s insurance or your personal policy:^[3]

• $25,000 bodily injury coverage for one person

• $50,000 bodily injury coverage for two or more people

• $20,000 for property damage

Uber provides $50,000 in bodily injury coverage per person, $100,000 in bodily injury coverage per accident, and $25,000 in property damage coverage per accident during phase two.^[4] Meanwhile, Lyft offers $25,000 in bodily injury coverage, $50,000 in bodily injury per accident, and $20,000 in property damage per accident.^[5]

While TNCs provide drivers with the minimum liability coverage needed to rideshare in Arizona, you may want more coverage. Uber and Lyft only offer liability coverage. Rideshare insurance from your personal auto insurance company may provide more coverage — like comprehensive, collision, and underinsured or uninsured motorist coverage — during this phase.

If you want to purchase more coverage from your insurance company, ensure that you’re opting for a rideshare endorsem*nt instead of a commercial policy.

“Many rideshare drivers use a commercial policy, which can be more expensive than a non-commercial policy,” says Espenschied.

Phase 3: Driving to pick up a passenger and transporting them

In phase three, your rideshare app is on, and you’re actively driving a passenger or on your way to them. In this case, your personal auto insurance coverage doesn’t apply, but the rideshare company’s coverage does.

Arizona requires rideshare drivers to have at least $250,000 for bodily injury and an endorsem*nt for uninsured motorist coverage during phase three.^[3] In this phase, Lyft and Uber provide the following coverage for Arizona rideshare drivers:^{[4] [5]}

• $1 million in bodily and property liability coverage

• First-party insurance, which may include underinsured/uninsured motorist, personal injury protection, and medical payments coverage

• Comprehensive and collision coverage up to the actual cash value of your vehicle (with a $2,500 deductible)

Uber and Lyft requirements in Arizona

Uber and Lyft are popular among drivers who want to make money driving others to their destinations. However, it’s crucial that you understand and abide by the rideshare company’s guidelines. Otherwise, your account may be subject to deactivation. You may even face legal repercussions for any injuries or damages during a trip.

Before driving for either Uber or Lyft, you should ensure your vehicle meets the company’s requirements. Although the following are the minimum vehicle requirements, Uber and Lyft may have additional requirements for driving larger cars and transporting more passengers.

Uber and Lyft also have requirements you must meet to drive for them.

How much does Arizona rideshare insurance cost?

In Arizona, the average monthly cost of a full-coverage policy with a rideshare endorsem*nt is $252, and the cost is $183 for a liability-only policy with a rideshare endorsem*nt. However, Insurify data indicates it may be possible to find much cheaper rates with the right insurer. For example, Auto-Owners provides the cheapest liability-only coverage for rideshare drivers, at an average of $60 a month, but many other insurers in the state have average rates of less than $100 a month.

The table below illustrates the average cost of a liability-only rideshare policy for eight of the cheapest rideshare insurance companies.

Types of rideshare insurance coverage

Understanding what coverages your auto policy includes while driving for a rideshare company can help you find the best rideshare insurance. Here are the typical rideshare insurance coverages:

• 

  Liability coverage

  Arizona legally requires you to have coverage that pays for other parties’ injuries and property damage if you’re at fault in an accident. Your personal auto insurance or rideshare company insurance will provide this coverage, depending on the phase you’re in.

• 

  Uninsured/underinsured motorist coverage

  This insurance fills coverage gaps if you’re involved in an accident where the other driver is at fault and uninsured or underinsured. Your rideshare company will offer this coverage in phase three, but you may have to get a rideshare policy from your insurer for this coverage in phases one and two.

• 

  Collision coverage

  This insurance will pay for repairs for your vehicle if you were involved in a collision-related accident. During phase three, your rideshare company will provide this coverage. However, for phases one and two, you may need to obtain a rideshare policy from your insurance company to receive coverage.

• 

  Comprehensive coverage

  This insurance will pay for repairs for your vehicle if you were involved in a non-collision-related incident, like theft, weather damage, or vandalism. While the rideshare company will offer this coverage during phase three, getting a rideshare policy from your insurance company may be necessary to have this coverage during phases one and two.

• 

  Deductible options

  You must pay a deductible before your rideshare or insurance company compensates your claim. Uber and Lyft require a $2,500 deductible for collision and comprehensive coverage-related claims.

Arizona rideshare insurance FAQs

1. NAIC. "Commercial Ride-Sharing."
2. Arizona Department of Insurance and Financial Institutions. "Minimum Coverage Required for Arizona Drivers."
3. Arizona Department of Transportation. "Insurance Requirements for TNC."
4. Uber. "Auto insurance to help protect you.."
5. Lyft. "Insurance coverage while driving with Lyft."
6. Arizona Department of Insurance. "New Driver's Guide to Auto Insurance."
7. III. "What determines the price of an auto insurance policy?."

Alani Asis es redactora independiente de finanzas personales con casi tres años de experiencia en la creación de contenidos. Ha publicado titulares en publicaciones y marcas destacadas como Insider, Fortune y LendingTree, entre otros. El objetivo de Alani es hacer que las finanzas personales sean accesibles a través de contenidos divertidos, comprensibles y digestibles.