Many people start driving for Uber or Lyft assuming their own car insurance has them covered. In New Jersey, that assumption can be expensive. State law lets personal auto insurers exclude all coverage while you're logged on to a rideshare app, which means the coverage gaps, and what fills them, are worth understanding before a crash.

Your insurer can exclude everything while the app is on

Under N.J.S.A. 39:5H-12(a), a New Jersey personal auto insurer may exclude any and all coverage for a loss that happens while you are logged on to a rideshare app or providing a ride. The exclusion can reach:

  • Liability coverage for injuries and property damage you cause
  • PIP (your own medical bills)
  • Uninsured and underinsured motorist coverage
  • Medical payments coverage
  • Comprehensive and collision coverage for your own car

The insurer doesn't need to use any particular wording to exclude this coverage, and it has no duty to defend or pay a claim it validly excludes (N.J.S.A. 39:5H-12(a)-(b)).

What covers you instead

New Jersey requires rideshare coverage for the time you're working (N.J.S.A. 39:5H-10):

  • Logged on, waiting for a request: at least $50,000/$100,000 in liability coverage and $25,000 in property damage coverage, plus primary PIP and UM/UIM coverage.
  • Ride accepted until drop-off: at least $1,500,000 in liability coverage, $1,500,000 in UM/UIM coverage, and $10,000 in medical payments coverage for you as the driver.

You, the company, or a combination can provide that coverage. If your coverage lapses or falls short, the company's insurance must cover the required amounts from the first dollar (N.J.S.A. 39:5H-10(d)). The three coverage periods.

Gaps to watch

  • Damage to your own car. The required rideshare coverage is about injuries and liability. It doesn't require collision coverage for your vehicle, and your personal collision coverage can be excluded while you're logged on. Check what the company offers and its deductible.
  • Your own medical bills during a ride. The required $10,000 in medical payments coverage is much less than New Jersey PIP. Options for injured drivers.
  • Food and package delivery. The rideshare law covers carrying passengers, not deliveries. Personal policies often exclude carrying property for a fee. Delivery driver crashes.
  • Not telling your insurer. Misrepresenting how you use your car can create problems with your policy beyond the rideshare exclusion.

Rideshare endorsements

The law expressly allows insurers to offer primary or excess coverage for rideshare driving by contract or endorsement (N.J.S.A. 39:5H-12(a)). A rideshare endorsement on your personal policy can close some gaps, especially for your own car. Ask your agent exactly which app periods it covers.

The company has to tell you

Before you can accept your first ride request, the company must disclose in writing the coverage it provides, including types and limits, and that your own policy may not cover you while you're logged on (N.J.S.A. 39:5H-11). Keep a copy. You also must carry proof of the rideshare insurance whenever you're logged on (N.J.S.A. 39:5H-10(h)).

If two insurers point at each other

When your personal insurer and the rideshare insurer disagree about which one covers a crash, New Jersey law gives an insurer that pays an excluded claim a right of contribution against the rideshare insurers (N.J.S.A. 39:5H-12(b)). Insurers must also share coverage information with each other on request (N.J.S.A. 39:5H-12(c)). The disagreement shouldn't hold up your claim forever, but it often needs pushing.

See our Uber and Lyft accidents page.