Actual insurance policies will vary by rideshare company; however, all drivers are required to have their own insurance in order to be eligible to work for a ridesharing company. Additionally, both Lyft and Uber carry up to $1 million of liability company insurance, but this coverage is only in effect when at certain times. For example, Uber’s insurance policy has three levels: Uber App is OFF: Only the driver’s personal insurance is in effect. App is ON and Driver is “Available”: In addition to driver’s insurance, Uber’s contingent liability coverage can now be accessed. This includes up to $100,000 for injuries. Driver is on Uber Trip: Company’s full commercial insurance coverage is in effect. This includes $1 million in third-party liability and $1 million in uninsured and underinsured coverage.

Rideshare companies have gone to great lengths in order to distance themselves from legal responsibility. Uber, for example, does not consider their drivers employees and instead lists them as independent contractors. When confronted with litigation, parent companies like Uber will attempt to claim they only facilitate fares and are not responsible for their driver’s actions. It is then up to the plaintiff’s attorneys to prove the company’s liability.

The short answer: only a driver’s license. Unlike taxi services which are heavily regulated, there are no certified licensing programs for rideshare drivers. All a driver needs is a valid driver’s license and auto insurance. After meeting a few other company-based requirements, drivers are free to transport clients with no additional training or experience. Initially, this resulted in many of these services being banned as unlicensed taxi companies. However, bans have since been lifted, leaving the companies free to operate.