Rideshare Insurance in Colorado (2024)
Rideshare insurance isn’t legally required in Colorado, but it offers valuable protection when driving for Uber or Lyft.
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Written byElizabeth Rivelli
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Elizabeth Rivelli
5+ years writing insurance and personal finance topics
Auto, home, health, and life insurance expertise
Elizabeth has extensive insurance industry experience, having written for Insureon, Rate Retriever, and Insurify. She’s also finance and insurance editor for Car and Driver.
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Edited byCourtney Mikulski
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Courtney MikulskiSenior Editor, Auto
3+ years producing insurance and personal finance content
Main architect of the Insurify Quality Score
Courtney’s deep personal finance knowledge extends beyond insurance to credit cards, consumer lending, and banking. She thrives on creating actionable content.
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Updated October 30, 2024
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Table of contents
Table of contents
If you drive for a rideshare company in Colorado, like Uber or Lyft, or make deliveries for a service like DoorDash, it’s a good idea to purchase rideshare insurance. Rideshare insurance fills the gaps between your personal car insurance policy and the rideshare company’s insurance policy during certain phases of a trip.
Colorado doesn’t legally require drivers to purchase rideshare insurance. However, rideshare coverage is beneficial whether you’re a full-time or part-time driver. Here’s how Colorado rideshare insurance applies to Uber and Lyft rides and how much it costs in Colorado.
Quick Facts
Colorado doesn’t legally require rideshare insurance, but your insurance company might require it.
The average cost of rideshare insurance in Colorado is $156 for liability-only coverage and $317 for full coverage.
State Farm has the cheapest average rideshare insurance in Colorado, at $105 a month for full coverage.
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Rideshare insurance requirements in Colorado
When driving for rideshare services, also called transportation network companies (TNCs), the insurance coverage that protects you depends on the phase of the trip. When driving for a TNC, you have three main phases:
Phase 1: You’re driving with the rideshare app turned off. If you get into an accident, your personal auto insurance policy covers you.
Phase 2: You’re driving and logged into the app, but you haven’t yet accepted a trip request from a customer. If you get into an accident during this time, Lyft’s and Uber’s insurance policies provide 50/100/25 liability coverage.[1] [2] Your personal car insurance policy may not provide any coverage during this time. If you get into an accident, you may have to pay out of pocket for any damage to your car.[3]
Phase 3: You’ve accepted a trip request from a customer and are driving to pick them up, or you’ve picked them up and are taking them to their destination. Uber and Lyft both provide up to $1 million in third-party liability insurance and uninsured/underinsured motorist coverage during this phase.[1] [2] If your personal car insurance policy includes collision and comprehensive insurance, Uber and Lyft also provide contingent collision and comprehensive coverage during phase 3, which has a $2,500 deductible.[1] [2]
Although rideshare insurance isn’t legally required in Colorado, your insurance company might require you to add a rideshare endorsement to your personal policy if you drive for Uber or Lyft. Also, because personal car insurance policies don’t typically cover business use of your vehicle, your insurer might not pay for a claim unless you have rideshare coverage.
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Learn More: How Uber and Lyft Affect Your Car Insurance
Uber and Lyft requirements in Colorado
The requirements for Uber and Lyft are slightly different in every state. Additionally, some cities within Colorado have specific requirements. For example, in Vail, Colorado, TNC drivers must carry a special permit that costs $35 per year.[4] If you’re planning to drive for a TNC in Colorado, it’s a good idea to check your town or city’s requirements before you apply.
Rideshare car requirements
If you want to drive for a TNC in Colorado, your vehicle must meet certain requirements. These are the specific vehicle requirements for Lyft vehicles in Colorado:
Must be a 2008 model or newer
Must have four doors
Must have between five and eight seats, including the driver’s seat
Can’t be a taxi, limousine, or rented vehicle
Can’t have a salvage, non-repairable, or rebuilt title
Uber has similar requirements, but vehicles must also be in good physical condition with no cosmetic damage and have no commercial branding on the outside, like a taxi logo. UberXL, Uber Black, and Uber Black XL have more requirements.
In addition, Lyft requires drivers to get a vehicle inspection before driving for the TNC. Once the driver has approval, they must get annual vehicle inspections.
Important Information
The Colorado Public Utilities Commission (PUC) will randomly audit Lyft drivers to ensure they comply with the state’s requirements. Inspectors may request a ride and check the vehicle’s condition, car registration, and proof of insurance.[5]
Rideshare driver requirements
Rideshare companies have requirements for drivers too. Here are the requirements that drivers must meet in order to drive for Lyft and Uber in Colorado:
Must have a valid driver’s license (out-of-state licenses are accepted)
Must be at least 25 years old
Must pass a driver screening test, which checks driving record and criminal background
Must have a reliable smartphone that can run the Lyft or Uber app
The age requirements for Uber are slightly different. All Uber drivers must have at least one year of driving experience in the U.S. or three years of driving experience if they’re younger than 25.
For Uber and Lyft drivers, the Colorado PUC also has additional requirements around the amount of time that a rideshare driver can work:[5]
Drivers can’t work more than 12 consecutive hours in driver mode in a single day.
Drivers can’t spend 16 cumulative hours in driver mode in a single day. If drivers want to continue working, they must take an eight-hour break before resuming work.
Drivers can’t spend more than 70 total hours in driver mode in a single week.
How much does Colorado rideshare insurance cost?
The average cost of Colorado rideshare insurance is $126 per month for liability-only coverage and $229 per month for full coverage. Rideshare insurance is generally more expensive than personal car insurance due to the increased risk of transporting passengers.[6]
However, the cost of rideshare insurance in Colorado depends on various factors.
“The factors that impact the cost of rideshare insurance are similar to the factors that impact the cost of a standard auto insurance policy,” says Amanda Moss, a licensed insurance agent with Colorado-based A Plus Insurance. “These factors include the type of vehicle you own, your personal driving history, your credit score, where you live, and your chosen coverage limits.”
The insurance company that provides your rideshare insurance will also influence the cost. Rideshare insurance premiums range from $116 to $347 per month for full coverage, according to Insurify data.
The table below includes rideshare insurance companies with the cheapest rates in Colorado.
The below rates are estimated rates current as of: Sunday, September 1 at 12:00 PM PDT.
Insurance Company ▲▼ | Average Monthly Quote: Full Coverage ▲▼ | IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. ▲▼ |
|---|---|---|
| State Farm | $139 | 9 |
| USAA | $178 | 9 |
| American Family | $191 | 9 |
| Root | $203 | 8 |
| GEICO | $211 | 9 |
| Allstate | $214 | 9 |
| Nationwide | $229 | 9 |
| Sun Coast | $240 | 0 |
| Progressive | $243 | 8 |
| Auto-Owners | $247 | 9 |
| Safeco | $263 | 8 |
| Bristol West | $330 | 5 |
| The General | $332 | 7 |
| Travelers | $347 | 9 |
| Dairyland | $355 | 7 |
| Farmers | $363 | 8 |
| State Auto | $378 | 9 |
| Direct Auto | $387 | 7 |
| Liberty Mutual | $395 | 8 |
| National General | $402 | 7 |
| Foremost | $479 | 7 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
Cheapest recent rates in Colorado for rideshare drivers
Drivers using Insurify have found quotes as cheap as $57/mo for liability only and $109/mo for full coverage in Colorado.
*Quotes generated for Insurify users within the last 10 days. Last updated on October 30, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from October 30, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on October 30, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from October 30, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
Types of rideshare insurance coverage
A rideshare insurance policy provides various coverages that protect you during certain phases of a trip. Here are the coverages most policies include:
Liability coverage
Liability insurance protects you legally and financially when you cause an accident. It pays for another person’s medical expenses, as well as property damage, like vehicle repairs. It also pays for your legal expenses if a driver sues you.
Uninsured/underinsured motorist coverage
Uninsured/underinsured motorist coverage applies when you get into an accident with a driver who is uninsured or doesn’t have enough coverage to pay for your losses. It includes coverage for bodily injuries and property damage.
Collision and comprehensive coverage
Collision and comprehensive insurance cover physical damage. Collision insurance pays for your vehicle’s repairs after an at-fault accident, and comprehensive insurance covers noncollision losses, like theft, vandalism, and weather-related damage.
Deductible options
If you get into an accident while driving for Uber or Lyft, you may have to pay multiple deductibles — a deductible for the TNC insurance policy and a deductible for your personal car insurance policy. A rideshare insurance policy often pays the difference between these deductibles.
Colorado rideshare insurance FAQs
If you’re a rideshare driver in Colorado, it’s important to have the right insurance coverage. Check out the answers to these frequently asked questions for more information about rideshare insurance.
Do you need rideshare insurance in Colorado?
Colorado doesn’t require rideshare drivers to have rideshare endorsements in their policies. However, Colorado does require rideshare companies to provide liability insurance for drivers during certain phases of trips. “Any time a passenger is in your vehicle, Uber or Lyft insurance is in effect,” says Moss.
Do Uber drivers in Colorado have to carry commercial auto insurance?
No. Colorado Uber drivers that use their personal vehicles for trips don’t have to carry commercial car insurance. However, you might need commercial auto insurance if you drive for Uber in a licensed private-hire vehicle, black car, or limo.
Do you really need rideshare insurance if you have personal auto insurance?
Rideshare drivers don’t legally need to purchase rideshare insurance, but it’s beneficial. Your personal auto policy provides limited coverage during certain phases of the trip. Also, your insurance company might require you to get rideshare insurance if you drive for a TNC. “Not having a rideshare endorsement can result in a cancellation of your insurance policy,” Moss explains.
What happens if you get into an accident while ridesharing without insurance?
If you get into an accident while you’re driving for a rideshare company, the TNC’s insurance policy applies. However, the amount of coverage you have depends on what phase of the trip the accident occurred in. Your personal car insurance policy might also provide some coverage.
Does DoorDash count as rideshare for insurance?
Yes. You can get rideshare insurance if you drive for DoorDash or another food delivery service. Much like Uber and Lyft, DoorDash provides some liability coverage for its drivers during active deliveries. However, your car insurance company might require you to carry rideshare coverage if you deliver for DoorDash.
How does a rideshare insurance claim work?
If you get into a crash while driving for a rideshare company, you should file a claim with the TNC’s insurance department. It’ll investigate the claim and let you know if its commercial insurance policy covers you. If you have rideshare insurance, you should also contact your insurance company. Depending on the situation, your rideshare coverage may supplement the TNC’s insurance coverage.
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Elizabeth Rivelli
Elizabeth Rivelli is a freelance writer covering insurance and personal finance. She has extensive knowledge of various insurance lines, including property and casualty, health, and life insurance. Her byline has been featured in dozens of publications, including Investopedia, Forbes, Bankrate, NextAdvisor, and Insurance.com.
Courtney MikulskiSenior Editor, Auto
3+ years producing insurance and personal finance content
Main architect of the Insurify Quality Score
Courtney’s deep personal finance knowledge extends beyond insurance to credit cards, consumer lending, and banking. She thrives on creating actionable content.
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