Ridesharing: Do Insurers Know?

If you're a rideshare driver, your personal auto insurance policy won't cover you, and you'll need to purchase rideshare insurance to fill the gaps and protect yourself and others in your vehicle. While ridesharing companies like Uber and Lyft may provide some insurance for their drivers, their coverage is often limited to when you're en route to pick up a passenger or already have a passenger in your vehicle. This means that if you're waiting for a ride request, your personal auto insurance policy won't cover you, and neither will the ridesharing company's insurance. As a result, you may need to purchase a commercial auto policy or rideshare insurance, which is typically offered as an add-on to your personal auto policy.

Auto insurance companies may be able to see if you do rideshare if you have informed them

Auto insurance companies may be able to see if you do ridesharing if you have informed them. If you drive for a ridesharing company, such as Uber or Lyft, you will likely need rideshare insurance to fill the gaps and protect yourself and others in your vehicle. While ridesharing companies may provide some insurance that applies to their drivers, their coverage may be limited while waiting to match with a rider or when a rider is in the vehicle.

Rideshare insurance is a specific type of commercial insurance that fills in coverage gaps specific to the needs of those who work in the rideshare industry. It is important to note that you need to inform your insurance company if you are using your vehicle for ridesharing, as engaging in ridesharing activities without informing your insurer may result in your policy being cancelled or non-renewed.

Some insurance companies require you to add rideshare insurance to your personal auto policy if you drive for a ridesharing company. This is because your personal auto policy may not cover you during certain periods of a rideshare trip, leaving you with gaps in your auto insurance. However, not all insurance companies offer rideshare coverage, and it may not be available in all states.

If you are involved in an accident while driving for a ridesharing company, it is important to understand what insurance policies will cover the damages. The ridesharing company's insurance will typically provide liability coverage for injuries and damage you cause to others and their property. If you have comprehensive and collision coverage on your personal auto policy, the ridesharing company may also provide coverage for damages to your vehicle. However, there is usually a high deductible associated with this coverage.

In some cases, you may be able to purchase a rideshare endorsement or add-on to your personal auto insurance policy to help fill the gaps in coverage. This endorsement can help cover the deductible amount required by the ridesharing company's policy.

Overall, it is important to understand the insurance requirements and coverage when participating in ridesharing activities. Failing to disclose your ridesharing activities to your insurance company can have negative consequences, including claim rejection or policy cancellation. By informing your insurance company and purchasing the appropriate coverage, you can ensure that you are properly protected in the event of an accident.

Not disclosing your ridesharing activities to your auto insurance company may result in your policy being cancelled

When you buy car insurance, you are usually asked questions about whether you have had a policy cancelled in the past. If you do not disclose that you are using your car for ridesharing, your insurance company may consider this withholding of information as a form of lying or fraud, and they could cancel or void your policy. In addition, insurance companies can access a database called the Claims and Underwriting Exchange (CUE), which tells them about any incidents you may have been involved with and whether you made a claim or not. This makes it difficult to withhold information without your insurance company finding out.

If your insurance is cancelled due to non-disclosure, it can be harder and more expensive to get insured in the future. Your insurer could also prosecute you for fraud, which will result in you being blacklisted by major insurance companies.

Therefore, it is important to be honest with your insurance company about any ridesharing activities and to add rideshare coverage to your policy. This will ensure that you are properly insured and protected in the event of an accident.

You can add rideshare coverage to your personal auto insurance policy

If you're a rideshare driver, you can add rideshare coverage to your personal auto insurance policy to fill in any gaps in coverage. While ridesharing companies like Uber and Lyft are mandated by state law to provide insurance coverage for their drivers, their policies may not cover you while you're waiting for a passenger.

Adding rideshare coverage to your personal auto insurance policy will protect you and your vehicle if you're in an accident while waiting to receive a ride request. It will also cover you if you're liable for injuries or damages, and pay to repair or replace your own damaged vehicle.

Some insurance companies don't offer rideshare coverage, or only offer it in certain states, so you may need to switch to a company that does, or consider a commercial auto policy. Commercial insurance is typically more expensive, but in some cases, it's the only way to obtain rideshare coverage.

It's important to note that engaging in ridesharing activities without informing your insurer could result in your policy being cancelled or non-renewed. Therefore, it's crucial to contact your auto insurer before you start ridesharing to ensure you have the necessary coverage and aren't violating the terms of your policy.

Rideshare insurance is not available everywhere

Some insurance companies don't offer rideshare coverage at all, while others only offer it in certain states. If you're considering driving for a ridesharing company, it's important to check with your insurance provider to see if they offer rideshare insurance in your state. If they don't, you may need to switch to a company that does or consider a commercial policy. In some states and for some rideshare services, you may be required to purchase a commercial policy instead.

Commercial insurance is typically more expensive, but in some instances, it's the only way to obtain rideshare coverage. It's also important to note that even if your rideshare company offers full coverage during all phases of the job, your personal auto insurer could drop you if you don't disclose that you use your car for commercial purposes.

When it comes to delivery app drivers, the availability of rideshare insurance can vary even more. For example, while Progressive's rideshare insurance covers drivers for delivery services like Uber Eats and DoorDash in most states, it's important to check with your insurer to see if there are any specific exclusions or limitations.

Rideshare insurance fills the gap between your personal auto insurance and the coverage provided by rideshare companies

If you're a rideshare driver, you may need to purchase rideshare insurance. This is because, if you get into a car accident while driving for a ridesharing company and don't have rideshare insurance, your personal liability car insurance policy may not cover the cost of damages, and you could even have your coverage dropped.

Rideshare insurance provides protection during this time, filling in the liability gaps and providing excess coverage when the TNC coverage isn't in effect. If you get into an accident and are liable, your rideshare insurance will pay to fix the damage to the other vehicle(s) and cover any resulting injuries. It will also pay to have your vehicle fixed, depending on the terms of the policy.

Rideshare insurance is usually offered as a form of gap or supplemental coverage, and you typically can't buy it as a stand-alone policy. You can add it to your existing auto policy, and many of the best car insurance companies offer rideshare insurance policies in most states. It's a good idea to contact your insurer and ask about coverage, as you may be required to add rideshare insurance to your personal auto policy if you drive for a rideshare company.

Frequently asked questions