Driving for a rideshare or delivery app can be a flexible way to earn extra money. But the moment you turn the app on, your insurance situation can change. Many drivers don't find this out until after an accident, when a claim gets denied or questions come up about which policy applies.
Here is how insurance works for app-based drivers in California, and what to ask before your next shift.
Your personal auto policy may not cover you while you work
Standard personal auto policies are written for personal use. The California Department of Insurance (CDI) warns that most standard personal auto policies contain a "livery" exclusion, which essentially means driving for hire. CDI says insurance companies might deny coverage to drivers who carry passengers for more than a share-the-expense car pool fee.
For rideshare driving specifically, California law is even more direct. Under Public Utilities Code § 5434, from the moment you log on to a rideshare app until you log off or the passenger exits the vehicle (whichever is later), your personal auto policy does not have to provide any coverage, unless the policy expressly includes it or you add an endorsement for that coverage.
In plain terms: if you drive for a rideshare company and have only a standard personal policy, you may have no coverage from your own policy while the app is on.
What the rideshare company must carry: the three periods
California calls rideshare companies such as those that connect passengers with drivers in their personal cars transportation network companies (TNCs). State law (Public Utilities Code § 5433) requires TNC insurance in different amounts depending on what the driver is doing. Insurance people often describe this as three periods:
Period 1: App on, waiting for a ride request
- Primary liability of at least $50,000 per person and $100,000 per incident for death and personal injury, and $30,000 for property damage.
- Plus at least $200,000 per occurrence in excess liability coverage, maintained by the TNC.
- This coverage may come from the driver's own TNC insurance, the TNC's insurance, or a combination.
Periods 2 and 3: Ride accepted, driving to the pickup, and passenger in the car
- Primary liability of $1,000,000 for death, personal injury, and property damage, from the moment you accept a ride until the ride is complete.
- The TNC must also provide uninsured and underinsured motorist coverage of $60,000 per person and $300,000 per incident from the moment a passenger enters the vehicle until they exit. (This amount was updated by SB 371, effective January 1, 2026.)
Period 0: App off. You are a personal driver again, and your personal policy applies as written.
The gaps that still exist
Even with those requirements, important gaps remain:
- Your own car. The TNC's required liability coverage pays for damage and injuries you cause to others, not for repairs to your vehicle. The California Public Utilities Commission (CPUC) requires TNCs to tell drivers that their personal policy will not provide collision or comprehensive coverage for the vehicle from the moment the driver logs on until they log off.
- Your own injuries. CDI notes the TNC's liability policy does not have to cover bodily injury to the TNC driver.
- Period 1 is the thinnest. While you wait for a request, the required liability limits are lower, and your personal policy may exclude you.
- Deductibles and conditions. Any physical-damage coverage a TNC chooses to offer comes with its own terms and deductible. Read your app's current insurance information and ask questions.
How a rideshare endorsement can help
California law allows personal auto insurers, at their discretion, to offer a policy or an endorsement that covers your car while you are using a TNC app, for which a separate premium may be charged (PUC § 5434(c)). Depending on the company, a rideshare endorsement may:
- Extend your personal coverages, such as collision, comprehensive, and medical payments, into the time you're logged on.
- Help fill the Period 1 gap.
What an endorsement covers, which periods it applies to, and whether it is available depends on the insurance company. CDI also suggests some drivers may need to consider a commercial policy with medical payments, comprehensive, collision, and uninsured/underinsured motorist coverage. Tell us exactly how you drive, and we'll help you compare options.
What about food and package delivery?
The TNC rules above apply to apps that transport passengers. Food, grocery, and package delivery apps are generally not covered by those same PUC § 5433 insurance requirements, and each delivery company sets its own insurance terms, which can change.
Personal auto policies may exclude or limit coverage for business use, including delivering for pay. Read the exclusions section of your policy, check your delivery app's current insurance information, and tell your insurance company that you deliver. Not disclosing how you use your car can create serious problems at claim time. Depending on your driving, a delivery endorsement or a commercial auto policy may be the right fit. See our guide to commercial vs. personal auto insurance.
Questions to ask before your next shift
- Does my current policy exclude rideshare or delivery driving?
- Is a rideshare or delivery endorsement available, and which periods does it cover?
- What does the app company's insurance cover for my car, and what is the deductible?
- Would a commercial policy be a better fit for how much I drive?
- If I drive a financed or leased car, what coverage does my lender require?
Frequently asked questions
Does my personal car insurance cover me when I drive for Uber or Lyft? Not automatically. California law says your personal policy does not have to provide coverage from log-on until you log off or the passenger exits, unless the policy expressly includes it or you've added an endorsement.
What are California's rideshare insurance requirements? In Period 1 (app on, waiting), TNC insurance must be at least $50,000/$100,000/$30,000 plus $200,000 in excess coverage. From ride acceptance through the end of the trip, $1,000,000 in primary liability. While a passenger is in the car, the TNC must provide $60,000/$300,000 in uninsured/underinsured motorist coverage.
Does the rideshare company's insurance fix my car after an accident? The required liability coverage is for others. Any coverage for your own car depends on the company's policy terms and deductible, or on your own endorsement or commercial policy. Ask before you drive.
Do I need to tell my insurance company I deliver food? Yes. Tell your insurer how you use your car. Personal policies may exclude or limit business use, and undisclosed use can lead to claim problems.
Talk with Street Smart
Not sure whether you're covered when the app is on? Call or text (714) 736-9048, or get a California auto insurance quote. We can review your options in English or Spanish.
Official sources
- California Public Utilities Code § 5433 (TNC insurance)
- California Public Utilities Code § 5434 (personal auto policies)
- CPUC: Insurance Requirements for TNCs
- California Department of Insurance: Notice to Transportation Network Company Drivers
Educational information: This article is general information, not legal advice. Coverage depends on your policy, any endorsements, the app company's insurance, and your insurance company. Requirements can change; check current rules and your policy documents.
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