Understand Rideshare Insurance

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understand rideshare insurance

Rideshare services such as Uber and Lyft have grown quickly, surpassing taxicab use by travelers. This growth presents rideshare drivers with a fantastic opportunity to earn additional income. However, using a personal vehicle for passenger transportation also creates some insurance challenges. If you drive for Uber or Lyft, it is critical you understand rideshare insurance and the potential coverage gaps you might face.

Understand Rideshare Insurance

First, let’s talk about the insurance offered to you as a rideshare driver by Uber and Lyft and when that coverage applies.

  1. Offline, meaning your vehicle is being driven for personal use only.
  2. App on, meaning you are waiting for a rideshare request and logged into the Uber or Lyft application.
  3. Request accepted, meaning you have accepted a ride request and are on your way to pick up a passenger.
  4. On trip, meaning the passenger is in your vehicle and you are driving to the requested destination.

The offline period is, of course, covered by your personal auto insurance policy. Once you activate the Uber or Lyft application is when things get murky. Many personal auto insurance providers have added exclusions that remove all coverage from the moment a rideshare driver activates the application and thru the end of the ride. Uber and Lyft do provide some coverage during the App On period, but only on a contingent basis and only for liability coverage. This coverage is limited to a lower limit, typically $50,000/$100,000 for bodily injury and $25,000 for property damage. There is no coverage provided for damage to your vehicle during the App On period by Uber and Lyft.

Once a ride has been accepted and while on trip, both Uber and Lyft provide primary liability coverage of at least $1,000,000 and uninsured motorist coverage of $1,000,000.  This coverage may be higher is some states (including Nevada) due to statutory requirements. Coverage for damage to your vehicle is also provided on a contingent basis. As of the date of this article, Uber’s policy has a $1,000 deductible and Lyft’s policy has a $2,500 deductible.

How to Buy Rideshare Insurance

Some personal auto insurance carriers now offer an endorsement to fill the gap in coverage during the App On period. These endorsements will provide liability and uninsured motorist coverage up to your full policy limits. Physical damage is also provided, subject to your policy deductibles. This endorsement does not apply once you have accepted a ride and while on trip – the periods when primary coverage is provided by Uber or Lyft.

For a no-obligation ridedshare insurance quote, contact us today at 702.638.0022 or request a quote on our Uber and Lyft Insurance page.

Safeguard Insurance is licensed to offer rideshare insurance in Nevada, California, Utah, Idaho, New Mexico, Arizona, Oregon, and Washington.

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