Ride Sharing in New York – Uber and Lyft

Ride Sharing in New York – Uber and Lyft

Now that ride sharing has been approved in New York, are you looking to drive for Uber or Lyft? Watch out, because NY auto policies EXCLUDE driving others for a fee. Uber says when you accept a fare and until you drop off the fare, you are covered by their $1,000,000 policy. But how good are they at paying claims(?) and you can still be personally sued too.

auto insurance policy, ride sharing

Insurance is a Contract

I am not trying to discourage these new entrepreneur’s working creating their own job, working their own schedule, just giving a fair warning. In other states, Safeco, Progressive, Erie have all stepped up and offered an endorsement on your auto policy to cover ride sharing. We have not seen this yet in NY State, as it is just been approved.

Most insurance companies are just testing ride sharing as an option to an existing auto insurance policy but in 4 or 5 states – not yet countrywide. So this relatively new industry does not have a blanket answer to how to handle it. Plus, the claims haven’t yet hit insurance companies, so they don’t know the history of losses to expect yet.

Dangerous motorcycle accident

Motorcycle Accident

Ride Sharing in New York – Uber and Lyft

We are just exploring with all our insurance companies on what they have discussed so far with this issue. We have no feedback at this point but will be posting on social media when we do have some answers. I am still unsure how Uber and Lyft will handle this whole auto claims process, lets say when there is a fatality involved. Do they cap out at $1,000,000 per claim? Is the driver personally responsible? How does collision coverage apply?

Lots of questions and no answers at this point for ride sharing but we are digging for the answers

Ride Sharing in New York – Uber and Lyft  is now across all of New York State and a real insurance issue. We (I) need to find the answers for you.

Be a smart Insurance consumer.

Tom Larsen, President

Related Posts


  1. Are you offering ride share insurance?

    • Yes.

      • I am going to get Livery Insurance so I can drive for Uber. I do not understand how NY state is allowing this to go on. If you dont tell your primary insurance provider ,it is considered insurance fraud. And if they find out ,they drop you immediately. I guess someone has to get seriously injured or killed before they figure this problem out.

        • It is ILLEGAL for an insurance company to drop you if they find out you drive for Uber. If they do, report them to the insurance commissioner in NY State!

      • We haven’t found an insurance company partner yet, still trying as New York is tougher than other states!

  2. Have you been able to find an insurance company which offers Ridesharing insurance in NYS? I see the last post was from April. I am not based out of NYC, I am Upstate Suburbs, Orange County NY. What are my options?

    • Not yet. Several had said by the end of the year but nothing yet.

Leave A Reply