How Auto Insurance Works for Rideshare Drivers

Rideshare driving has become a popular way to earn extra income or make a full-time living. However, it introduces unique insurance needs that differ from personal auto insurance.

When you drive for a rideshare company like Uber or Lyft, your personal auto insurance policy typically does not cover you while working. This is because personal policies often exclude coverage for commercial activities. To bridge this gap, rideshare companies provide their own insurance coverage, but it is essential to tailor your coverage to meet your unique needs.

The Three Periods of Rideshare Driving

Rideshare insurance is generally divided into three distinct periods, each with different levels of coverage:

• App on, no passenger—During this period, you have the rideshare app on and are waiting for a ride request. The rideshare company’s insurance usually provides limited liability coverage but may not include comprehensive or collision coverage.

• En route to pick up—Once you accept a ride request and are on your way to pick up a passenger, the rideshare company’s insurance may provide higher liability coverage.

• Passenger onboard—When you have a passenger in your vehicle, the rideshare company’s insurance typically provides the highest level of liability coverage comparatively.

Supplementing Rideshare Insurance

Many rideshare drivers choose to purchase additional rideshare insurance or a rideshare endorsement on their personal auto policy. This supplemental coverage can help fill the gaps and provide more financial protection.

Rideshare endorsements are typically added to your existing personal auto policy and extend coverage to include periods when driving for a rideshare company. This can be particularly useful when the rideshare company’s coverage is limited.

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Contact Kiero Insurance & Multiservices, LLC for a personalized auto insurance quote.

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.