In Arizona, Uber and Lyft drivers must adhere to specific insurance requirements that vary based on their activity status within the app. These requirements are defined in phases:
Phase 1 - personal use with rideshare app turned off
When the driver is offline and not accepting passengers, their personal auto insurance is applicable.
Arizona mandates a minimum liability coverage during this phase, which includes $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $15,000 per accident for property damage.
If uninsured/underinsured motorist coverage is purchased, the policy limits must be $25,000 per person and $50,000 per accident for bodily injury.
Phase 2 - rideshare app is on, waiting for a ride request
This phase requires specific coverage limits even if the driver isn't carrying passengers. In Arizona, the required coverage includes $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $20,000 for property damage.
Uber and Lyft provide varying degrees of coverage in this phase. Rideshare insurance from the driver's personal auto insurance may offer additional coverage, such as comprehensive, collision, and underinsured or uninsured motorist coverage.
Phase 3 - driving to pick up a passenger and transporting them
In this phase, the personal auto insurance coverage does not apply, and the rideshare company’s coverage takes over.
Arizona requires rideshare drivers to have a minimum of $250,000 for bodily injury and an endorsement for uninsured motorist coverage.
Uber and Lyft both provide $1 million in bodily and property liability coverage during this phase, as well as first-party insurance that may include underinsured/uninsured motorist, personal injury protection, and medical payments coverage.