If you're driving for Uber or Lyft in Florida, here's something that might surprise you: the moment you turn on that rideshare app, your regular car insurance probably stops covering you. Most personal auto policies have fine print that excludes commercial activities—and yes, driving strangers around for money counts as commercial use. This creates a coverage gap that could leave you personally liable for tens of thousands of dollars if you get into an accident while waiting for your next passenger.
The good news? Rideshare insurance exists specifically to bridge these gaps, and in Florida, it's more affordable than you might think. Let's break down exactly what coverage you need, when you need it, and how much it actually costs.
The Three Coverage Periods Every Rideshare Driver Needs to Understand
Rideshare insurance operates in distinct phases, and understanding these periods is crucial because different insurance policies apply at different times. Think of it like zones of protection that activate based on what you're doing with the app.
Period 0 is when the app is off and you're just driving normally. Your personal auto insurance covers you here, no problem. But the moment you open that Uber or Lyft app, everything changes.
Period 1 is the danger zone. You've got the app on and you're waiting to be matched with a rider, but no one has requested you yet. Uber and Lyft provide some coverage here—$50,000 per person for injuries, $100,000 per accident, and $25,000 for property damage—but there's a catch. This coverage only kicks in if your personal insurance doesn't apply first. And here's the problem: most personal policies specifically exclude this period because you're technically working. You're in a coverage gap, potentially on the hook for damage to your own car and facing limited liability protection.
Period 2 starts when you accept a ride request and head to pick up your passenger. Now Uber and Lyft's commercial insurance activates, providing $1 million in liability coverage. This continues through Period 3 while you have the passenger in your vehicle. This is solid coverage, but if you want protection for damage to your own car during these periods, you'll pay a steep deductible—$1,000 with Uber or $2,500 with Lyft.
What a TNC Endorsement Actually Does
A TNC endorsement (Transportation Network Company endorsement) is an add-on to your existing personal auto policy that specifically covers rideshare activities. Some insurers call it rideshare coverage or rideshare gap coverage, but it's all the same thing. This endorsement fills that dangerous Period 1 gap and often extends your collision and comprehensive coverage across all rideshare periods.
Here's what makes it valuable: instead of relying on Uber or Lyft's minimal Period 1 coverage, your own policy extends to cover you with the same limits you've chosen for regular driving. If you carry $100,000 in liability coverage normally, that's what you get while waiting for rides. If you have collision coverage with a $500 deductible, that stays the same instead of jumping to Uber's $1,000 or Lyft's $2,500 deductible.
In Florida, you can get this endorsement from several major insurers. State Farm offers what they call Rideshare Driver Coverage. GEICO, Allstate, and Farmers (through their Foremost brand) all offer versions of rideshare coverage. The key is to call your current insurer first—adding an endorsement to your existing policy is almost always cheaper than buying a separate rideshare-only policy from another company.
How Much Rideshare Insurance Actually Costs in Florida
Let's talk real numbers. In Florida, adding a rideshare endorsement to your existing policy costs an average of $31 per month—that's actually $3 cheaper than the national average of $34. Depending on your insurer, your driving record, and how much you drive for rideshare companies, you might pay as little as $6 per month or as much as $30 to $50 per month.
Mercury Insurance advertises rideshare coverage for as little as $0.90 per day, which works out to about $27 per month. For full coverage with collision and comprehensive, Florida rideshare drivers pay an average of $291 per month total, compared to $185 per month for liability-only coverage. These numbers include your base auto insurance plus the rideshare endorsement.
Is it worth it? Consider this: if you cause an accident during Period 1 without rideshare coverage, you could be personally liable for all damages. Even a minor accident can easily result in $20,000 to $50,000 in medical bills and property damage. Paying $31 per month ($372 per year) to avoid that risk is a no-brainer, especially if you drive regularly for Uber or Lyft.
Florida's Specific Requirements for Rideshare Drivers
Florida has its own rules for rideshare insurance that differ from other states. First, you need to maintain Florida's minimum auto insurance requirements: $10,000 in personal injury protection (PIP) and $10,000 in property damage liability. This is your baseline coverage whether you drive for rideshare or not.
Beyond that, Florida law requires Uber and Lyft to provide specific coverage levels. During Period 1, they must provide at least $50,000 per person and $100,000 per accident for bodily injury, plus $25,000 for property damage. During Periods 2 and 3, they must provide $1 million in liability coverage, plus uninsured motorist protection and PIP coverage.
Recent updates to Florida's transportation network company regulations in 2025 have strengthened protections for both riders and drivers. The state now requires TNCs to carry significant commercial limits when a ride is accepted, and there have been adjustments to how pre-ride exposures are handled. If you're driving in Florida, it's important to stay current with these evolving regulations.
How to Get Started with Rideshare Coverage
The smartest approach is to call your current auto insurance company first. Ask specifically about rideshare coverage, TNC endorsements, or Period 1 gap coverage. Companies like State Farm, GEICO, Allstate, Travelers, Safeco, and Farmers all offer this in Florida. Your agent can usually add the endorsement to your existing policy in a single phone call.
If your current insurer doesn't offer rideshare coverage, don't just go without it. Get quotes from the companies that do offer it. Compare not just the monthly premium but also what deductibles apply and whether the coverage extends through all periods or just Period 1.
One important tip: be honest with your insurance company about your rideshare activities. Some drivers are tempted to skip mentioning it to avoid higher premiums, but this is a terrible idea. If you have an accident while the app is on and you haven't disclosed your rideshare work, your insurer can deny your entire claim. The few dollars you save per month aren't worth risking complete loss of coverage.
Driving for Uber or Lyft can be a great way to earn extra income in Florida, but protecting yourself with proper insurance is non-negotiable. For about $31 per month, you can close the coverage gaps and drive with confidence knowing you're protected from the moment you turn on the app to the moment you drop off your last passenger. Contact your insurance agent today and ask about adding rideshare coverage to your policy—your financial security depends on it.
