Rideshare Insurance

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The Type of Insurance You Will Need as a Rideshare or Delivery Driver

Becoming a delivery or rideshare driver is a great way to make extra money. But it’s important to know what your insurance will and will not cover. Here’s everything you need to know about gig and rideshare insurance. 

Rideshare Insurance - The Craven Agency

Will My Personal Car Policy Cover Me?

Many drivers believe that as long as they have car insurance, they are covered if they’re driving for a company like Uber or DoorDash. However, that is very often inaccurate. In fact, most insurance companies exclude or limit coverage for livery, or delivering passengers or goods for a fee. Some will go so far to specifically exclude coverage once you are connected to the transportation network. Therefore, it’s critical for drivers to check with their specific company to confirm whether there is coverage or not. 

Will The Transportation Network Company Cover Me?

As far as what the transportation network company will cover, this is a bit more complicated. Companies such as Uber and Lyft will provide some coverage but there are still potential gaps in coverage if you’re not careful. Generally, coverage can be explained by the different phases of a trip:

  • Phase 1: Phase one begins when a driver is in their car but not actively connected to the app. In this phase, a driver is not “on the clock” so their personal car policy may cover any damages that occur. Of course this can vary by company, so be sure to check with your agent on what your car insurance company will cover.
  • Phase 2: Once a driver connects to the rideshare/delivery app and is waiting for a request, they enter phase two. This is where many insurance companies will stop providing coverage. Any accidents that occur during this phase may not be covered by your personal car insurance policy. However, Uber, Lyft and other delivery services do provide limited coverage at this point; usually bodily injury and property damage up to a certain limit.
  • Phase 3: As soon as a driver is en route to pick up a passenger or delivery and when a trip is in progress, phase three is in effect. If there were an accident during this time, Uber and Lyft increase their liability coverage and may cover any damage to the driver’s car, assuming they carry comprehensive and collision on their personal auto policy. Many delivery companies may offer the same, but it depends on the company.

How Do I Get Rideshare Insurance Coverage?

With the potential coverage gaps that can exist between your standard car insurance policy and the coverage provided by the employing transportation company, what is a driver to do? Luckily, with the rise of the gig economy, many personal car insurance companies have started to offer rideshare insurance. These insurance policies give you the peace of mind that you have the coverage you need while you’re on the clock. Contact The Craven Agency for additional information! 

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