Uber and Lyft Insurance Requirements in New Jersey Four Stops on Every Shift, and a Different Answer at Each One

Uber insurance requirements in New Jersey change the moment you turn the app on, and again the moment you accept a ride. Lyft works the same way, because both answer to the same state law. Here is what's required at each stop, who carries it, and what nobody is required to cover.

Check My Coverage See the four lanes

Jeff Friedlander reads every review against these four stops.

Who stands behind you, stop by stop

Generic example
  1. App off
  2. Period 1
  3. Period 2
  4. Period 3

Your personal policy, no rideshare option

  • Covered
  • Gap
  • Gap
  • Gap

Uber or Lyft liability, for other people

  • Not in play
  • Thin
  • Covered
  • Covered
As your own policy steps out, the app's limits climb. See all four lanes

01 · The four lanes

Uber and Lyft Insurance Requirements, Stop by Stop

Read down a column for one moment of your shift. Read across a row for one source of coverage. Period 1 is marked because that is where most of the trouble starts.

Who Pays at Each Stop of a New Jersey Shift

One shift, four sources of coverage. Generic example, not a client.

  • Covered
  • Thin
  • Gap
  • Not in play

  1. App off Personal driving Errands, commute, school run

    • Personal policy, no rideshare optionCoveredYour policy works the way it was written
    • Uber or Lyft policy (what NJ law requires)Not in playNo app policy applies while you're offline
    • Your own carCoveredYour own comp and collision, if you carry them, at your deductible
    • With the right rideshare endorsementCoveredNothing changes while the app is off

  2. Period 1 App on, waiting No ride accepted yet

    • Personal policy, no rideshare optionGapCan exclude any and all coverage once you log on
    • Uber or Lyft policy (what NJ law requires)ThinLaw requires $50k/$100k/$25k liability, PIP and UM/UIM. Nothing for your car
    • Your own carGapUber says it pays nothing toward your car until you accept a trip
    • With the right rideshare endorsementCoveredUsually carries your own liability, medical and car coverage into the wait

  3. Period 2 Ride accepted Driving to the pickup

    • Personal policy, no rideshare optionGapCan exclude from the moment you accept
    • Uber or Lyft policy (what NJ law requires)Thin$1.5M liability and UM/UIM. Only $10,000 medical for you if no one else is at fault
    • Your own carThinContingent, actual cash value, $2,500 deductible, only if you carry comp and collision
    • With the right rideshare endorsementCoveredSits on top of the app's policy and pays the deductible difference

  4. Period 3 Passenger aboard Until the last rider gets out

    • Personal policy, no rideshare optionGapSame exclusion until the ride ends
    • Uber or Lyft policy (what NJ law requires)ThinSame $1.5M tiers until the last rider leaves the car
    • Your own carThinSame $2,500 deductible, and no rental car from Uber
    • With the right rideshare endorsementCoveredSame top-up, through drop-off

Uber and Lyft amounts are New Jersey statutory minimums (N.J.S.A. 39:5H-10). The $2,500 deductible is on both companies' New Jersey certificates (Uber, Lyft); Uber's car and rental terms are from Uber's insurance page. The endorsement lane shows an enhanced-style option. Endorsement terms vary by insurance company, some stop at Period 1, and the policy wording governs.

02 · The statute

What N.J.S.A. 39:5H-10 Requires, Coverage by Coverage

The law names two stages, not three periods. "Period 1, 2 and 3" is the industry's shorthand. The dollar figures below are the statute's own.

Sources: N.J.S.A. 39:5H-10 · N.J.S.A. 39:5H-2 (when a ride begins) · N.J.S.A. 17:28-1.1 (UM/UIM minimum for policies issued or renewed on or after January 1, 2026) · NJ MVC TNC FAQ
CoverageLogged on, no ride accepted (Period 1)Ride accepted through drop-off (Periods 2 and 3)
Liability for othersPeople you injure, property you damage$50,000 per person / $100,000 per incident bodily injury, $25,000 property damage$1,500,000 for death, bodily injury and property damage
Medical coverage for youYour own injuriesPrimary PIP, at the amounts selected under N.J.S.A. 39:6A-4Medical payments of at least $10,000 per person per incident, for the driver only
UM/UIMWhen the other driver is uninsured or underinsured"To the extent required" for a personal policy: today $35,000 / $70,000 bodily injury, $25,000 property damageAt least $1,500,000
Damage to your own carComprehensive and collisionNot requiredNot required
Who must carry itSection 10(a) and (d)The driver, the app company, or any combination of the two. If the driver's coverage lapses or falls short, the company's insurance pays from the first dollar and must defend the claim.

03 · Go deeper

Each Stop, and the Law Behind It, in Detail

Start with the stop you drive in most. If nobody has ever shown you the rideshare exclusion in your own policy, start there.

General information. Coverage depends on the policy's actual forms and endorsements.
PageWhat it answers
Period 1: app on, waitingRideshare gap insuranceWhy waiting for a ping is the widest gap, what the app pays for your car, and how your own policy may respond.
Periods 2 and 3: ride accepted to drop-offDoes Uber insurance cover my carWho the $1.5M is for, the $10,000 medical figure, and the $2,500 deductible on your car.
The rideshare endorsementThe add-on that fills the gapsHow it attaches to your personal policy, and why a Period-1-only design is different from an all-periods design.
The rideshare exclusionN.J.S.A. 39:5H-12What your personal insurer may exclude while the app is on, and how to find that wording in your policy.
New Jersey rideshare lawThe full statute, as of November 2026Every section that touches a driver's insurance, plus pending bill A1507.

04 · How the lines are drawn

Where One Period Ends and the Next Begins

You'll hear the same moment called three different things. The statute describes a driver who is logged on and "available to receive a prearranged ride request," and a driver who is "providing a prearranged ride." Uber's insurance page says online, en route and on trip. Lyft's New Jersey certificate says Period 1 and Period 2/3. Insurance people split the second stage at the pickup, which is how you get three periods. The law treats Periods 2 and 3 exactly the same.

Acceptance Is the Line That Matters

New Jersey defines a prearranged ride as beginning "when a driver accepts a ride requested by a rider" and ending "when the last requesting rider departs from the personal vehicle." Two things follow. The drive to the pickup is already inside the $1,500,000 tier. And after the last rider gets out, if the app is still on, you're back in Period 1 with its lower limits.

Source: N.J.S.A. 39:5H-2, definition of "prearranged ride."

Who Actually Carries It

The law lets the driver, the app company, or both supply the required coverage. In practice Uber and Lyft carry it, and you can see it: Uber keeps its certificates in the Driver app under Account, then Insurance. If a driver's own coverage lapses, the company's insurance has to pay from the first dollar and defend the claim, and it can't make you wait for your personal insurer to deny the claim first.

Sources: N.J.S.A. 39:5H-10(a), (d), (e) · Uber insurance page.

What Nobody Is Required to Cover

Section 10 lists liability, PIP, medical payments and UM/UIM. It never mentions comprehensive or collision. Whatever Uber or Lyft pays toward your own car is the company's choice, not a legal requirement, and it could change without any change in the law. Before you can accept your first ride, the app company must tell you in writing that your own policy "may or may not provide any coverage" while you're logged on.

Sources: N.J.S.A. 39:5H-10 · N.J.S.A. 39:5H-11.

Your own policy is the other half. New Jersey lets your personal insurer exclude any and all coverage while you're logged on or on a ride; whether yours does depends on its wording, which is why that lane turns to Gap the moment the app goes on. See the rideshare exclusion (N.J.S.A. 39:5H-12).

This page is general information about New Jersey law, not legal advice. For your own situation, talk to your own attorney. Coverage depends on the policy's actual forms and endorsements.

FAQ

Uber and Lyft Insurance Requirement Questions

The three we hear most from New Jersey drivers. More on the full FAQ.

What are Uber's insurance requirements in New Jersey?

New Jersey sets them by stage, not by company. While you're logged on and waiting, at least $50,000/$100,000/$25,000 of liability, plus PIP and UM/UIM. From the moment you accept a ride until the last rider gets out, at least $1,500,000 of liability, $10,000 of medical payments for you and $1,500,000 of UM/UIM. Nothing is required for damage to your own car.

Are Lyft's insurance requirements the same as Uber's?

Yes. The legal minimums are the same because N.J.S.A. 39:5H-10 applies to every rideshare company in New Jersey. Both companies' New Jersey certificates show $1,500,000 of liability once a ride is accepted and a $2,500 deductible for damage to your car.

What is Uber Period 1?

It's the industry's name for the time the app is on and you're available, but you haven't accepted a ride. The statute itself never uses the word period. It's the stage with the lowest required limits, and Uber says it maintains no collision or comprehensive coverage for your car during it.

Free review · about 10 minutes

See Your Own Policy Laid Over These Four Stops

Send us your declarations page and tell us which apps you drive for. We'll mark each stop covered, thin or open for your policy, and show you what would change it. No cost. No pressure.

Get My Free Rideshare Coverage Review

Prefer to talk? Call (908) 730-6443. You'll reach a rideshare specialist, not a call center.