If you are thinking about driving for Uber, Lyft or other ridesharing companies your current personal auto insurance policy probably suspends all liability coverage once you turn on the rideshare app to start accepting rides for hire.
Uber and other ridesharing companies do offer insurance coverage to their drivers but, the coverage only extends once a fare is accepted by the driver until the passengers’ ride is over. Travelers Insurance Company offers a rider to their personal auto insurance policies which will provide coverage to a rideshare driver when they become “for hire” by turning on the app to start accepting fares. The coverage suspends once the driver accepts a fare because at that point Uber’s insurance coverage for the driver takes over.
Here is a simple flowchart to understand the three periods that trigger each policy coverage:
Period 1: Driver is offline, app is off, not for hire. Your personal auto insurance is in force.
Period 2: Driver turns app on, they are now for hire. Available coverage from Travelers provides $50k injury/ $100k total / $25k property.
Period 3: Driver accepts fare and is enroute to pickup passenger. Uber insurance policy now provides coverage which continues until passengers ride is over and they exit the vehicle. Uber insurance coverage provides $1million liability for injury and property damage combined/ $1million for underinsured and uninsured motorist / Actual cash value for driver’s vehicle less $1,000 deductible.