Short answer: When you drive for a rideshare or delivery app in California, your coverage depends on what the app shows at the moment of an accident. With the app off, only your personal auto policy applies. While you're logged in and waiting for a request, California law requires lower liability limits, and your personal policy may refuse to pay. Once you accept a ride and until the passenger gets out, the rideshare company must have $1,000,000 in primary liability. The gaps are damage to your own car, your own injuries and the waiting period, and the fix is usually a rideshare endorsement on your personal policy plus a clear understanding of what the app provides.
This guide is general information for people who drive for Uber, Lyft, DoorDash, Instacart, Uber Eats, Grubhub and similar apps in California. Your policy wording, the app's current insurance terms and your contract control.
Step 1: Learn the app "periods"
Insurers and the law talk about rideshare driving in periods:
| Period | What's happening | Who covers liability |
|---|---|---|
| Period 0 | App off, personal driving | Your personal auto policy |
| Period 1 | App on, waiting for a ride request | The rideshare company must provide at least $50,000 per person / $100,000 per accident for injuries and $30,000 for property damage, plus $200,000 in excess coverage (the driver's policy can count toward this) |
| Periods 2 and 3 | Ride accepted, driving to the passenger and during the trip | $1,000,000 primary liability; the rideshare company also provides uninsured/underinsured motorist coverage of $60,000 per person / $300,000 per incident while a passenger is in the car |
Source: Pub. Util. Code §5433, as amended by SB 371 (effective January 1, 2026). SB 371 set the passenger-period UM/UIM requirement at $60,000 per person and $300,000 per incident and made it solely the rideshare company's obligation. For a comparison with other states, see Rideshare insurance requirements by state.
Step 2: Understand the personal policy gap
Most personal auto policies exclude or limit coverage while you're using your car to carry people or goods for a fee. That means:
- In period 1, your personal insurer may deny the claim, and the app's coverage is lower and may not include damage to your own car.
- In periods 2 and 3, the app's liability is high, but collision and comprehensive for your own car usually apply only if you carry them on your personal policy, and the app's physical damage coverage typically comes with a large deductible.
- Not telling your insurer you drive for an app can lead to a denied claim or a nonrenewal.
Our shorter answer is at Do I need special insurance for Uber or DoorDash in California?
Step 3: Add a rideshare endorsement or buy a hybrid policy
A rideshare endorsement extends your personal policy into period 1, and often provides physical damage coverage or deductible help in periods 2 and 3. It's usually an inexpensive add-on. Some insurers offer a hybrid policy designed for rideshare drivers. Not every insurer offers either one, so if yours doesn't, it may be time to switch. See How to switch insurance companies without a gap.
Ask the insurer to confirm in writing that the endorsement covers:
- Liability in period 1.
- Collision and comprehensive in period 1.
- Help with the app's deductible in periods 2 and 3.
- Delivery driving as well as passenger driving.
Step 4: Delivery drivers have a different set of rules
Food and grocery delivery is not the same as carrying passengers. The California TNC rules in §5433 apply to passenger rideshare. Delivery apps set their own insurance terms, and personal policies often exclude delivery for a fee.
What to check if you deliver:
- What the app's policy covers and when. Many delivery apps provide liability only while you're on an active delivery, and only in excess of your personal policy.
- Whether your personal policy excludes delivery. Many do. A rideshare or delivery endorsement can fix this.
- Bikes, e-bikes and scooters. If you deliver on two wheels, your auto policy may not apply at all.
Step 5: Know your Prop 22 occupational accident coverage
Proposition 22, approved by voters in 2020, requires app-based rideshare and delivery companies to provide occupational accident insurance for drivers who are classified as independent contractors. It covers at least $1,000,000 in medical expenses and lost income at 66% of your average weekly earnings for up to 104 weeks for injuries suffered while online with the app. It is not workers' compensation, and it doesn't cover your car. See Prop 22 occupational accident insurance for delivery drivers.
Step 6: Choose your own limits
The California personal auto minimums are $30,000 per person, $60,000 per accident and $15,000 for property damage (what those numbers mean). If you drive for hours every day, the minimums are rarely enough for period 0. Consider:
- Liability: at least 100/300/100.
- Uninsured/underinsured motorist: match your liability limits.
- Medical payments: helpful if you don't have strong health insurance.
- Collision and comprehensive: if your car is financed or leased, your lender will require them, and you need them for your car's protection in every period.
- Rental reimbursement: if your car is in the shop, you can't drive and can't earn.
Step 7: Consider your health and income protection
Prop 22 coverage is limited to injuries while online. Think about:
- Health insurance through Covered California or another source.
- Disability insurance, which pays if you can't work because of illness or injury on or off the app. California SDI generally doesn't cover self-employed people unless they enroll in the state's elective coverage.
- Life insurance, if your family depends on your income. See the life insurance buyer's guide for California families.
Step 8: Using a rental car or someone else's car
Some apps let you rent a car through a partner program. Read the rental agreement: it should say what liability and physical damage coverage applies and what you're responsible for. If you drive a friend's or family member's car for an app, their personal policy may not cover it, and they may be exposed to liability as the owner.
Step 9: If you have an accident
- Get to safety, call 911 if anyone is hurt, and exchange information.
- Take a screenshot of the app showing your status at the time (offline, online waiting, en route, on trip).
- Photograph the scene, damage and the other car's plate.
- Report the accident in the app and to your personal insurer. Tell both the truth about your app status.
- If there's injury, death or more than $1,000 in property damage, file an SR-1 with the DMV within 10 days.
- Keep records of lost earnings and repair costs.
- If a claim is denied, ask for the reason in writing. The California Department of Insurance can help with complaints about an insurer.
Step 10: Taxes and records
Keep a mileage log, your insurance bills and your repair records. Your tax professional can tell you what's deductible. Good records also help if you need to prove your app status or lost income after an accident.
Questions to ask your agent
- Does my policy exclude rideshare or delivery driving?
- Do you offer a rideshare endorsement, and does it cover period 1 collision?
- Does it help with the app's deductible in periods 2 and 3?
- Does it cover delivery, not just passengers?
- What would it cost to raise my liability and UM/UIM limits?
- Is rental reimbursement included?
Key terms
- TNC: Transportation network company, the legal name for rideshare apps.
- Period 1: App on, waiting for a request.
- Periods 2 and 3: Ride accepted through drop-off.
- Rideshare endorsement: An add-on that extends a personal policy to cover app driving.
- Occupational accident insurance: Prop 22 coverage for injuries while online.
Common mistakes
- Not telling the insurer you drive for an app.
- Assuming the app covers damage to your own car.
- Carrying only the state minimums while driving full-time.
- Not having collision on a car you depend on for income.
- Forgetting to screenshot the app after an accident.
Frequently asked questions
Does my personal car insurance cover me while driving for Uber or Lyft?
Often not, especially while the app is on and you're waiting for a request. Most personal policies exclude or limit business use. A rideshare endorsement can extend coverage.
How much insurance does Uber or Lyft provide in California?
Under Public Utilities Code §5433, while you're waiting for a request the company must provide at least $50,000/$100,000/$30,000 plus $200,000 excess. From ride acceptance to drop-off it's $1,000,000 primary liability, plus $60,000/$300,000 UM/UIM while a passenger is in the car.
Does the app cover damage to my own car?
Only in some periods, usually with a high deductible, and often only if you carry collision on your own policy. In period 1, damage to your car is commonly not covered without a rideshare endorsement.
Do delivery drivers need a rideshare endorsement?
Many personal policies exclude delivery for a fee. Ask whether your insurer's rideshare endorsement includes delivery, and check what the delivery app provides.
What is Prop 22 insurance?
Prop 22 requires app companies to provide occupational accident coverage for independent-contractor drivers: at least $1,000,000 in medical expenses and income replacement at 66% of average weekly earnings for up to 104 weeks for injuries while online.
What should I do right after an accident while driving for an app?
Get safe, call 911 if needed, screenshot your app status, photograph the scene, and report the accident in the app and to your insurer. File a DMV SR-1 within 10 days when required.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. Not legal, tax or financial advice, and not a coverage determination. Coverage depends on policy language and underwriting.