Driving for ride share companies, like Uber or Lyft, has become more and more popular. With many people doing it as a side job and even more people driving as a full-time gig. But most drivers don’t realize that the coverage provided by your typical car insurance policy and the insurance provided by your rideshare company leaves gaps that can put you at risk liability wise.
Let’s take a look to see how it works…
The Three Periods of Ridesharing
When you are a rideshare driver, there are three periods in the process.
Period 1 – Your app is on, waiting to accept a ride request
Period 2- On your way to pick up a passenger
Period 3 – Ride in progress – passenger on board
While Uber and Lyft provide generous insurance protection during Periods 2 and 3, the amount of coverage they provide is minimal during Period 1. During this period, a driver is provided with only $50,000 in liability coverage with no property damage, medical payments, or uninsured motorist coverage. That means if you get in an accident with an underinsured or hit and run driver during this period, you would have no coverage to get your car repaired or pay medical bills. With almost half the drivers on Tennessee roads underinsured or uninsured, this puts you at a huge risk.
What is Rideshare Gap Coverage?
Rideshare gap coverage fills in the coverage gaps during Period 1. It brings the minimal coverage offered by Uber and Lyft up to the coverage limits on your personal car insurance policy. Rideshare coverage fills in missing coverage for physical damage, medical payments, and uninsured motorist coverage to provide you with full protection during Period 1.