Rideshare Insurance

Your TNC is generally mandated by state law to provide insurance coverage for their drivers. However, you may not be as protected as you think with your rideshare company's insurance policy. TNCs may not cover you while you're waiting for a rider, and your personal auto policy may not either — unless you add a separate rideshare endorsement. 

But, since personal car insurance generally excludes all business use, the driver may not be covered by either policy when he is available for hire but has not yet accepted a ride request, the  National Association of Insurance Commissioners  (NAIC )says.  

A ridesharing endorsement may also help reduce your out-of-pocket expenses when it comes to paying a TNC policy's high deductible. Though some TNCs provide commercial insurance for drivers, if you get into an accident while driving for the company, you'll likely have to pay the TNC policy's deductible.

A deductible is what you pay out of pocket toward a covered claim. Collision coverage and comprehensive coverage each have separate deductibles. On a personal auto insurance policy, you may be able to select your collision and comprehensive deductibles — for example, $500 each.

On the other hand, when you drive for a TNC under the protection of its commercial insurance policy, you may have to pay higher deductibles for collision and comprehensive coverage — for example, $1,000 or $2,500. If you're involved in a covered collision while you're on your way to pick up a passenger or have a passenger in the vehicle, you'd have to pay the TNC's deductible out of pocket before commercial insurance benefits kick in to help repair your car.

A ridesharing insurance endorsement may help cover the gap between your personal auto policy's deductible and the TNC policy's deductible in this type of scenario. So, if your collision coverage deductible is $500, and the TNC's collision coverage deductible is $1,000, the ridesharing endorsement may help pay the $500 difference.

If you're thinking of becoming a rideshare driver for a service like Uber or Lyft, the Insurance Information Institute suggests that you discuss with your TNC its coverage types, limits and deductibles.

Once you know what coverage may be available through your ride-hailing company, you can talk to your agent about filling in any potential coverage gaps with a rideshare insurance endorsement.

Common questions

Am I covered for an accident during an Uber or Lyft ride?

Example: You're waiting with the app on when you're involved in an accident. Your car is damaged and you're hurt. Neither your personal auto policy nor your rideshare company would necessarily pay for all your medical bills and repairs. But with Rideshare Insurance you'd be covered.

Does rideshare insurance apply to delivery services like Uber Eats and DoorDash?

In most states, rideshare insurance covers drivers who operate on delivery service platforms like Uber Eats or Door Dash. The exact coverages that apply between your personal auto policy with rideshare insurance and any insurance provided through the delivery company may vary by state.