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Rideshare Insurance Tips

By February 11, 2019Personal Insurance

Uber, Lyft, and other rideshare services have become increasingly popular in recent years. If you are a rideshare driver, here are some rideshare insurance tips to consider before you log on.

First, it is important to understand four distinctions that are important to your insurance company.
  1. When your app is offline.
  2. When your app is logged on and you are waiting for a pick-up.
  3. When you are en-route to pick-up your passenger.
  4. When you are driving your passenger to their destination.

What coverage is provided when my app is offline?

When your app is offline and you are driving your personal vehicle, your personal auto insurance carrier provides coverage. However, it is important to talk to your insurance advisor and disclose that you use our vehicle for rideshare. If not and you do have an accident in your vehicle, off the clock, your insurance carrier can cancel or nonrenew your insurance coverage.

What coverage is provided when I am logged into my rideshare app?

Uber and Lyft both provide similar coverage for drivers while logged in. When you are logged into your app and while you are waiting for a ride request, both Uber and Lyft provide liability coverage of $50,000 per person and $100,000 per accident, along with $25,000 property damage coverage.

From the time you accept a ride to the time that the ride ends, Uber and Lyft both provide higher limits up to $1,000,000 liability and uninsured / underinsured motorists coverage. They also provide physical damage coverage for your vehicle, as long as you carry physical damage coverage on your personal insurance. Keep in mind that the deductibles for your vehicle damage can range from $1,000 to $2,500, depending on the rideshare company. (Refer to Uber and Lyft’s policy for specific details.)

What coverage do I need to purchase as a rideshare driver?

After disclosing that you use your car for rideshare, your insurance advisor can determine whether your personal insurance company provides a rideshare add-on coverage. Not all insurance carriers provide rideshare coverage. These add-ons generally provide higher limits and broader coverage from the time that you turn on your app to the time you pick up your passenger. This helps eliminate a large gap in coverage that could leave you paying out of pocket if you are not properly protected.

If you drive for Uber or Lyft and want to discuss what insurance options are available to you, please contact an insurance advisor at Evarts Tremaine today.

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