We are frequently asked, by clients that work with Uber or Lyft, if their personal auto insurance policies cover them while they are driving for either of rideshare companies. It is important to understand how your personal auto policy works in conjunction with the insurance provide by these or any other rideshare service. Typically, we are concerned with three periods.
Period one is when the driver activates the app and has signaled that they are available to rideshare. Once your app has been activated, unless you have a rideshare endorsement, on your personal auto policy, your individual insurance company may not cover you for any losses during this time. Depending on your state, the rideshare company may or may not provide coverage for this time period either.
If coverage is not provided, by the rideshare company, at this stage, you will need to make sure that your auto insurance company has a rideshare endorsement attached to your personal auto policy. At the time of this writing, only three companies, in the state of Nevada, offer an endorsement for this time period.
If you are a rideshare driver and are not crystal clear about whether your policy covers you adequately, call Stellar Insurance at 702-315-4567 for a full coverage analysis of your current policy.
Period two is when the driver has accepted a request and is on their way to pick up the passenger. Typically, the rideshare company policy is now in force and the driver is covered for bodily injury, uninsured motorist, underinsured motorist, comprehensive and collision coverages. Limits and coverages vary by state and company. A deductible usually applies to the first party coverages.
Note: The original live blog post may have included additional content on period three and other rideshare topics beyond what was captured in the text export.