What Does Rideshare Insurance Cover?

 

If you're interested in going to work for a rideshare company such as Uber or Lyft, you should take time to consult your current auto insurance agent to find if there's a rideshare endorsement available for your auto policy.  If you drive for a rideshare company without telling your insurance company and you have an incident for which you file a claim, that claim will likely be denied.  In addition, your auto coverage will probably be canceled.

Standard car coverage does not cover rideshare drivers and if you drive for a company like Uber or Lyft, you'll need to get a special rideshare insurance policy.  While these insurance companies do offer some coverage for their drivers, it's incomplete protection that doesn't cover the entire duration of your trip.

Rideshare Insurance From the Rideshare Company

Rideshare companies break down a rideshare trip into three parts, only two of which are covered by their  provided insurance.

1. Period 1 is when you're logged into your rideshare app and waiting for a ride request.  At this point, you're not being covered by your employer-provided insurance but, since actively on the app waiting for a ride request, you're technically on the clock and not being covered by your personal auto insurance either.
2. Period 2 is when you've received a ride request and are on your way to pick up a customer.  While you're covered by the rideshare company's insurance at this time, it's probably just limited liability coverage such as the minimum required by the state.  This is $50K per person per accident for bodily injury liability, $100K bodily injury liability for all persons per accident and $25K liability for property damage per accident.
3. Period 3 is the time during which you're transporting your passenger.  During Period 3, you have the same coverage as in Period 2.  Once your fare has been dropped off, you revert back to zero coverage as in Period 1. 

Purchasing Additional Coverage

As a rideshare driver you're not legally required to buy extra coverage to provide yourself with full protection but it's a good idea.  The gap that exists when you're not covered, which is when you're logged onto the rideshare app and waiting for a ride request, needs to be addressed.  If you're involved in an accident during this window, you're not covered by your rideshare company's commercial insurance policy or by your personal auto insurance coverage.