What health insurance options are available for Uber or Lyft drivers?
Uber
Uber does not provide health insurance for its drivers. Uber driver-partners can use the company’s partnership with Stride Health to find insurance. Stride Health works with more than 200 insurers to connect applicants to health, dental, vision, and life insurance plans. Uber driver-partners can also work through state healthcare exchanges where available to find health insurance plans.
Lyft
Lyft does not offer health insurance to its drivers nor does it partner with an organization to support health insurance choices. The company maintains a page on health coverage through state healthcare exchanges.
What are the typical costs for auto insurance for Uber or Lyft?
While Uber and Lyft provide basic auto insurance during rides, drivers also need their own coverage to protect beyond the limits of these policies. The typical driver in the United States paid $1,426 per year for auto insurance in 2018. This average includes all drivers across the country, which takes into account low-cost and high-cost states.
Uber and Lyft drivers can pay from $6 to $20 per month extra for rideshare auto insurance. A rideshare insurance policy is an add-on policy that provides extra coverage for a driver when they don’t have a ride or when they are on the way to pick up a rider. These policies are optional but helpful in protecting against significant expenses accrued following accidents.
Drivers with Uber and Lyft can also opt for commercial auto insurance. A commercial auto insurance plan provides coverage for a driver as long as they are driving for work. The typical premium per vehicle for a commercial plan ranges from $750 to $1,200.
What are the typical costs for auto insurance for Uber or Lyft?
While Uber and Lyft provide basic auto insurance during rides, drivers also need their own coverage to protect beyond the limits of these policies. The typical driver in the United States paid $1,426 per year for auto insurance in 2018. This average includes all drivers across the country, which takes into account low-cost and high-cost states.
Uber and Lyft drivers can pay from $6 to $20 per month extra for rideshare auto insurance. A rideshare insurance policy is an add-on policy that provides extra coverage for a driver when they don’t have a ride or when they are on the way to pick up a rider. These policies are optional but helpful in protecting against significant expenses accrued following accidents.
Drivers with Uber and Lyft can also opt for commercial auto insurance. A commercial auto insurance plan provides coverage for a driver as long as they are driving for work. The typical premium per vehicle for a commercial plan ranges from $750 to $1,200.
What expenses can Uber or Lyft driver deduct?
Uber and Lyft drivers are independent contractors who operate as sole proprietors for tax purposes. This tax status means that a driver incurs self-employment tax and pays Social Security and Medicare taxes typically paid by employers. Drivers should keep track of all expenses incurred while driving for Uber and Lyft to reduce their tax burdens.
All of the costs of maintaining and insuring your vehicle for Uber or Lyft use are deductible on your tax return. These costs include fuel, oil changes, auto insurance, and parts used for repairs. You can claim the IRS mileage deduction to account for wear and tear from your Uber and Lyft trips. The costs of parking, tolls, and basic amenities for passengers are also deductible as long as they can be tied to your work. It is important to maintain receipts and other proof of expenses to support these deductions. The IRS also expects deductions to be related to expenses solely accrued from business uses of personal vehicles.
Who insures Uber or Lyft drivers and what are the requirements?
Uber and Lyft work with auto insurers in all 50 states to provide liability and underinsured motorist insurance coverage for drivers. Each driver is covered by third-party liability insurance when using app drive modes but prior to picking up passengers. Limits vary by state but the typical liability insurance covers up to $50,000 per person and $100,000 per accident in expenses from bodily injuries caused to motorists and pedestrians by auto accidents. Each driver is also covered up to $25,000 per accident for property damage expenses.
During a ride, the driver and passengers are covered by liability and underinsured motorist policies. The third-party liability insurance covers up to $1,000,000 per accident during rides. Additional coverage up to $250,000 per accident is provided to cover costs incurred by accidents with uninsured or underinsured motorists.
Drivers are not covered by company insurance policies when they are not using the apps. Uber provides collision and comprehensive coverage to cover the gaps left by personal insurance policies with a $1,000 deductible. Lyft offers similar coverage with a $2,5000 deductible.