How Rideshare Insurance Works During Different Driving Periods

Driving for rideshare companies like Uber and Lyft can be a great way to earn extra income. However, it’s crucial to understand how your insurance coverage works during the different phases of your driving shift. Many drivers are unaware that their personal auto insurance policies often have gaps when they are driving for a transportation network company (TNC).

Understanding the Three Driving Periods

Rideshare insurance coverage is typically divided into three distinct periods:

• Period 1: App Off—This is when your rideshare app is turned off, and you are using your car for personal use. In this period, your personal auto insurance policy provides coverage as usual.
• Period 2: App On, Waiting for a Ride Request—This is when you have the rideshare app turned on and are waiting to receive a ride request. This is where a gap in your personal auto insurance coverage often exists. Many personal policies exclude coverage once the app is on, even if you haven’t accepted a ride yet.
• Period 3: En Route to Pick-up and During a Ride—This period begins when you accept a ride request and are on your way to pick up a passenger, and it continues until the passenger has been dropped off. During this period, Uber’s or Lyft’s insurance policy typically provides coverage.

Insurance Gaps and How to Fill Them

The most significant gap in coverage usually occurs during period 2. While you’re waiting for a ride request, your personal auto insurance may not cover you, and the rideshare company’s coverage might not kick in until you have a passenger or are en route to pick them up. A rideshare insurance policy can provide coverage during period 2, bridging the gap between your personal policy and the TNC’s coverage. It may offer financial protection for incidents not covered by standard insurance.

Why Choose Fast Insurance for Your Rideshare Insurance Needs?

At Fast Insurance, we understand the unique insurance needs of rideshare drivers. Contact our team today to discuss your rideshare insurance options and ensure you have the right coverage for every driving period.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.