Understanding Rideshare Insurance Coverage in Arizona

The rideshare revolution has transformed transportation across Arizona, with services like Uber, Lyft, and Veyo making it easier than ever to get around Phoenix, Tucson, and other cities. But with this convenience comes a complex web of insurance coverage that many drivers and passengers don’t fully understand.

Whether you are a driver, passenger, or accident victim, understanding rideshare insurance in Arizona is critical. Coverage depends on multiple factors, including the driver’s status in the app, personal insurance policies, and state laws. Without proper knowledge, accident victims can find themselves facing unexpected coverage gaps and financial hardships.

At Lebovitz Law Group, our experienced rideshare accident attorneys help clients navigate these complexities, ensuring their rights are protected and claims are handled correctly from start to finish.

The Foundation of Rideshare Insurance in Arizona

Arizona law classifies rideshare drivers as independent contractors, not employees. This distinction creates unique insurance challenges. Unlike traditional employees who are automatically covered under their employer’s policies, rideshare drivers must carry personal auto insurance while also relying on the coverage provided by Uber, Lyft, or Veyo during certain periods of activity.

This dual-insurance structure often creates coverage gaps. A driver’s personal auto policy may not apply when using the vehicle for commercial purposes, and the rideshare company’s coverage only applies during specific periods. Understanding when each type of coverage applies is crucial for both drivers and passengers.

How Rideshare Insurance Works in Arizona

Coverage in a rideshare accident depends entirely on the driver’s status within the app at the time of the crash. Arizona recognizes three key periods:

1. Personal Use (App Offline)

When the rideshare app is off, the driver is considered a private motorist. Only their personal auto insurance applies. Uber, Lyft, and Veyo provide no coverage during this period.

Key issue: Many personal insurance policies exclude commercial activity, which can leave drivers uninsured even when driving for personal reasons if the insurer learns they also drive for rideshare services.

2. Available Period (App Online, No Ride Request)

When the app is on and the driver is waiting for a request, limited contingent coverage applies.

• Uber and Lyft provide secondary liability coverage, which activates only if the driver’s personal policy does not apply.
• This includes bodily injury and property damage coverage but typically excludes collision and medical payments.

Coverage is modest compared to active ride periods, leaving drivers vulnerable if they spend long stretches waiting for requests.

3. Active Ride (Passenger in Vehicle or En Route)

The highest level of coverage applies when a driver is en route to pick up a passenger or actively transporting one. During this period, rideshare companies provide comprehensive commercial insurance, including:

• $1 million in primary liability coverage for injury and property damage
• Uninsured and underinsured motorist coverage 
• Collision and comprehensive coverage for the driver’s car (with deductibles of $1,000–$2,500)
• In some cases, medical payment coverage 

This is the most protective period for drivers, passengers, and third parties.

Insurance Requirements Under Arizona Law

Arizona requires rideshare companies to maintain substantial insurance coverage when drivers are active. These include:

• Primary liability insurance of at least $1 million during active rides
• Contingent coverage during waiting periods
• Uninsured and underinsured motorist protection 

These protections are designed to safeguard passengers and third parties, but coverage details can still vary between Uber, Lyft, and Veyo.

Rideshare Company Insurance Structures

Uber

Uber provides:

• $1 million liability coverage during active rides
• Contingent coverage while waiting for ride requests
• Collision/comprehensive coverage for drivers’ vehicles (deductibles apply)

Lyft

Lyft’s policies closely mirror Uber’s, with the same $1 million liability coverage during active rides and limited coverage while waiting.

Veyo

As a provider of medical transport, Veyo has different insurance rules. The company offers liability and uninsured motorist coverage but may lack medical payment or underinsured protection, leaving potential gaps for both drivers and patients.

Challenges Drivers Face With Insurance

Rideshare drivers in Arizona often face difficulties ensuring continuous and sufficient coverage. Common issues include:

• Personal policy exclusions for commercial activity, which can void coverage
• High deductibles on rideshare company collision policies
• No income replacement coverage if an accident prevents them from working
• Medical expense limitations that leave drivers reliant on personal health insurance

Some insurers now offer rideshare-specific policies designed to fill these gaps, providing continuous protection across all driving periods.

Navigating the Claims Process

Filing a claim after a rideshare accident in Arizona can be complex because multiple insurance companies may be involved:

• The driver’s personal insurer
• The rideshare company’s insurer
• Other drivers’ insurers

Each carrier may attempt to shift responsibility or delay payment by disputing the driver’s status at the time of the crash.

Steps to take after a rideshare accident:

1. Call 911 and ensure safety.
2. Document the accident scene with photos, videos, and witness information.
3. Report the accident through the rideshare company app.
4. Notify your personal insurer.
5. Seek medical attention immediately.
6. Contact an experienced rideshare accident lawyer to protect your rights.

Common Coverage Gaps

Even with multiple layers of protection, coverage gaps can arise:

• Deductible disparities: Rideshare deductibles ($1,000–$2,500) may be higher than personal auto deductibles.
• Medical payment limits: Minimal or no coverage for driver injuries during active rides.
• Lost wages: Standard rideshare insurance does not cover income loss.

Drivers may need disability insurance, supplemental coverage, or specialized policies to address these vulnerabilities.

The Role of Legal Representation

Because of the complexity of rideshare insurance in Arizona, victims often benefit from legal representation. A skilled rideshare accident attorney can:

• Identify all applicable insurance policies
• Prove the driver’s status at the time of the crash
• Negotiate with multiple insurers simultaneously
• File lawsuits when coverage is disputed
• Maximize compensation for medical bills, lost wages, and pain and suffering

At Lebovitz Law Group, our attorneys understand the tactics rideshare insurers use to minimize payouts. With Managing Attorney Brandon Lebovitz personally overseeing cases, we provide personalized legal strategies to secure the compensation victims deserve.

Conclusion

Understanding rideshare insurance coverage in Arizona is essential for both drivers and passengers. With multiple coverage periods, high deductibles, and potential policy exclusions, the system can be difficult to navigate without legal support.

Whether you were driving for Uber, riding in a Lyft, or using medical transport like Veyo, the attorneys at Lebovitz Law Group can help you understand your options and fight for fair compensation after an accident.

FAQs: Rideshare Insurance in Arizona