If You Are a Uber or Lyft Driver, Check Your Insurance Policy

Updated on May 30, 2019
Susan Lewis profile image

Susan is a successful insurance agent and writer. Between work and writing, she also spends her days as an advocate for human rights.

The Insurance Coverage Gap for Ride Share Drivers

I've been an Uber and Lyft driver for two years. I am also an insurance agent, so I knew to check my personal policy before I logged onto the app and started driving.

What was interesting to me was even though I am a licensed agent, I found the subject somewhat confusing until I took some time to study and learn. I realized that if I was confused, others must be also.

Following is a general overview of how insurance works in regards to ride share. Hopefully it will give you enough information to understand it. It's not a complicated subject, but it is a new subject.

I can only speak to drivers in California, but this would apply to anyone in the United States who is driving for a ride share company.

Most Personal Policies Don't Cover You When Ride Sharing

Your personal auto policy is not designed to provide you any coverage when you drive for a ride share company. That is considered to be commercial use and requires a commercial auto policy, such as those written for limo drivers and taxi drivers. In fact, most personal auto policies exclude coverage for any commercial use.

Ride share is a new business and it has taken insurance carriers a while to figure out what to do, if anything, to provide coverage for your personal auto. Some carriers have figured it out and offer additional coverage you can purchase for ride sharing.

Are You Insured for All Three Stages of The Trip?

There are three parts to the coverages when it comes to accepting fares. Let me break them down for you.

  • Part A is when you log onto your ride share app but don't have a fare. This is where there is a coverage gap for all of us. Yes, Uber and Lyft do provide coverage for you, but may not when you are logged in, looking for fares, but haven't accepted a ride. If there is some coverage available, it may be limited to low limits and no collision coverage for your car. This is where there is a huge gap in coverage.
  • Part B is when you've accepted a fare and are driving to pick them up. This is when the insurance for the ride share company kicks in.
  • Part C is when you've picked up your fare and are driving to their destination. The ride share's insurance coverage continues to be in force.

Once you drop them off and confirm it has been done, you then start again at Part A.

A "Ride Share" endorsement is for Part A. What it does is take your personal auto coverage and extend it to cover you for any accidents. It gets rid of your gap in coverage and protects you, your passengers, and your vehicle (should you have physical damage to your vehicle).

Without the endorsement, you will be responsible for paying for all damages out of your own pocket.

Insurance Adjusters Will Ask if You Were Ride Sharing

I know from working with insurance companies, and having my own collision loss, one of the first questions an insurance adjuster will ask you when you report a claim is "Were you driving for a ride share company?"

Most insurance companies will NOT extend this coverage for food deliveries, which is why I don't do Uber Eats or Door Dash. I stick with passengers only.

Please check with your insurance agent before you log on again to ride share and make sure you have the proper coverage. If they don't offer it, find a company that does.

Be safe out there and make sure your policy is correct.

Source

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

Questions & Answers

    © 2019 Susan Lewis

    Comments

      0 of 8192 characters used
      Post Comment

      No comments yet.

      working

      This website uses cookies

      As a user in the EEA, your approval is needed on a few things. To provide a better website experience, toughnickel.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

      For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://toughnickel.com/privacy-policy#gdpr

      Show Details
      Necessary
      HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
      LoginThis is necessary to sign in to the HubPages Service.
      Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
      AkismetThis is used to detect comment spam. (Privacy Policy)
      HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
      HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
      Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
      CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
      Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
      Features
      Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
      Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
      Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
      Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
      Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
      VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
      PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
      Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
      MavenThis supports the Maven widget and search functionality. (Privacy Policy)
      Marketing
      Google AdSenseThis is an ad network. (Privacy Policy)
      Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
      Index ExchangeThis is an ad network. (Privacy Policy)
      SovrnThis is an ad network. (Privacy Policy)
      Facebook AdsThis is an ad network. (Privacy Policy)
      Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
      AppNexusThis is an ad network. (Privacy Policy)
      OpenxThis is an ad network. (Privacy Policy)
      Rubicon ProjectThis is an ad network. (Privacy Policy)
      TripleLiftThis is an ad network. (Privacy Policy)
      Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
      Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
      Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
      Statistics
      Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
      ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
      Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
      ClickscoThis is a data management platform studying reader behavior (Privacy Policy)