Rideshare Insurance for Uber and Lyft

Rideshare insurance is pretty tricky to understand, what exactly are you covered for? Driving for rideshare companies such as Uber or Lyft they explain the areas that they cover for your insurance. Knowing this, you should be aware of where your personal insurance stops and where rideshare kicks in. 

Darrell from nukem384 explains what you need to know about rideshare insurance and how to protect yourself from substantial losses. 

Darrell: Hey, guys. Today we’ll be talking about RideShare Insurance. If you thought this video was helpful, don’t forget to comment, like, share and subscribe. I’m sure most of you have heard the term, but I’ll explain what it is in detail and why it’s important. Because you’re driving for Lyft or Uber, you’re now using your personal car for commercial business purposes. Under insurance, that’s a different category from just your normal personal coverage. If you were to get into an accident, your personal coverage wouldn’t cover you because you’re driving for Lyft or Uber.

You’ll see under Lyft and Uber’s policy that they cover periods two and three but not one. Period one is the time from when you turn on the app and when you’re waiting for a ping. Most of the time, you’ll just be sitting around in period one. There’s a misconception that because you’re going to be sitting around in period one getting into an accident is unlikely, and that you don’t need Rideshare insurance because you’ll be “covered” under periods two and three. Wrong.

The first thing that Lyft or Uber is going to do if you get into an accident in periods two or three is contact your personal carrier. They do this because they want to make sure that you’re fully covered before they even review your claim. Once this happens your personal carrier is going to find out that you’re driving Rideshare and they will drop you because you’re doing something that you’re not supposed to be doing. Finding another carrier is going to be an expensive outing because now you’re considered a risk. On top of all that, Lyft or Uber won’t cover you for the accident because you don’t have the right coverage.

How do you fix this? You might ask. There’s two things you can do. One, you can get a full commercial policy and you’ll be double covered. I wouldn’t recommend this though because it’s really expensive and you’re basically paying for two insurance policies. Number two is to get Gap coverage, or what we call a TNC endorsement. This endorsement will cover you under period one using your personal coverage and then you’ll be able to use Lyft or Uber’s coverage for periods two and three. This type of coverage is totally affordable and only cost me $10 more a month.

Check with insurance carriers in your state because each state is different. Here in California, I know Mercury, State Farm, Allstate, and Farmers have gap coverage for $10 a month. Drivers, how many of you have Rideshare insurance and from which carrier? Let me know in the comments. Don’t forget to like, share, and subscribe. Thanks for watching.