do not provide coverage for using your personal vehicle to give rides for hire. Commercial auto does not have a ridesharing policy only livery, but that covers cabs and limo services. So what is a person to do that drives from a ridesharing service? While it’s true that Uber and Lyft do offer a policy while you are driving, it comes with limits and a higher deductible than you may be able to afford ($1,000 and $2,500). And oftentimes the TNC insurance company demands that you file the claim with your personal carrier first before you can submit under the rideshare program. This now dumps two more problems in your lap. When you file the claim with your personal insurance company they may decide that they no longer want to insure you due to your rideshare activities and will non-renew your policy. Then there is the increase in time to get your claim settled, paid and get your car repaired. I took the time to read the policies that Uber and Lyft offer. Repeatedly, they assure they offer their limited coverage in the event your personal insurance won’t cover the claim. Newsflash, your personal insurance WILL NOT cover the claim. As a matter of fact, in recent years with the increase of ride for hire drivers hitting the roads, standard insurance companies have tightened the restrictions on their personal policies, specifically with regard to ride share driving. The coverage provided by the TNC policies are restricted to while you are active on the app and will only provide comprehensive and collision insurance IF you have this coverage on your personal auto policy. So this means if you have a crash while you have a passenger in the vehicle and it’s your fault AND you do not have collision insurance on your personal policy, the TNC policy WILL NOT pay for the collision damages to your vehicle. If you do have collision on your personal policy, the TNC policy will cover the cost to repair the damage or the current value of the vehicle (whichever is less) after a $1,000 deductible for Uber and a $2,500 deductible for Lyft. Depending on what you are doing with the rideshare service, determines the level of coverage provided. There three “zones”:
- The app is on but no request received yet: you are covered for liability only to the third party for an accident that you are at fault. There is NO coverage for any damages to you or your vehicle.
- You are en route to pick up a rider: you are covered for liability for an at-fault accident; contingent comp/collision based on your personal policy, and underinsured/uninsured motorist coverage for any third party driver that may not have enough coverage or no insurance and they are at fault.
- While you have a paying passenger in your vehicle: the same as the en-route to pick up the fare plus liability coverage if there is an accident and the fare is injured, up to the TNC policy limits.