5 Car Insurance Considerations for Rideshare Drivers

Just like any type of driver on the road, rideshare drivers will likely have to get separate coverage to be protected when driving. Companies such as Uber or Lyft can provide some type of coverage, but what do you actually need beyond what they cover? You’ll need to meet with your agent and ask if you are completely covered when you’re looking for a passenger, have a passenger in the car, or when you drop off a passenger and what types of coverage changes to look out for.

Will Your Personal Policy Cover You While You Work?

Short answer: no. As a driver, you have personal auto insurance to protect you on the road, but once you get on the road to work, as a rideshare driver, you aren’t covered by your typical auto policy. Insurance companies offer different products and some can offer special policy endorsements to help fill in some gaps for rideshare type of jobs.  

Can Your Insurance Company Still Cover You When You’re Driving for a Rideshare?

A rideshare insurance policy can be made available to cover the gaps between your personal auto insurance. Even though Uber and Lyft provide coverage for their drivers in certain circumstances, some companies will require that you get a commercial insurance policy to be able to drive for them. Others may not provide any coverage at all. Discussing your options with your agent can give you better insight into what type of coverage you will need if you’re looking into working with a rideshare company. 

Will you be covered between rides?

Some rideshare companies will provide coverage for their drivers, but it can get tricky. It’s important to look into what is provided by the rideshare company before you hit the road. Ridesharing companies will generally cover whenever the ride request shows up on your app, but the type of coverage and the amount will be based on the company. 

With Farm Bureau, our Transportation Network Companies (TNC) Driver Endorsement helps drivers get coverage for most of these types of situations. It is broken down into three phases:

1. You’ve turned on the app, but haven’t accepted a trip yet. Farm Bureau can provide coverage on an excess basis. 
2. You’ve accepted a trip and you’re en route to pick them up. Vehicle liability coverage must come from insurance provided by the TNC at this point. The TNC Driver Endorsement will provide up to $2,500 to fill the gap between your comprehensive or collision deductible and the deductible on the TNC provided coverage.
3. You’re on the trip, hauling passengers. Vehicle liability coverage must come from insurance provided by the TNC at this point. The TNC Driver Endorsement will provide up to $2,500 to fill the gap between your comprehensive or collision deductible and the deductible on the TNC provided coverage. 

This type of coverage is for the first phase, which most companies like Uber or Lyft don’t provide. The other two phases will help “fill the gap” generally providing a deductible gap coverage. In Arizona and Minnesota, the endorsement is only available for ridesharing arrangements carrying people and is not available for delivery of food or other property. 

Does Rideshare Insurance Cover Food Delivery?

Food delivery apps can also have certain specifications, but ultimately it can be different coverage from rideshare companies. It’s often more common to see companies, like DoorDash, provide protection for their drivers, but it may only be limited coverage pushing for the driver to get additional protection through their own policy.

What If You Drive More Than One Car?

If you have more than one car that you drive, you will have to make sure they are all listed under your auto insurance policy. Depending on what car you use for your side gig or for personal day-to-day use, make sure you’re aware of the insurance coverage and limitations for that vehicle. It’s a good rule of thumb to take care of your insurance needs before relying on a ride sharing company, but always be aware of what coverage is provided by the TNC and reach out to your insurance provider to take a look at your needs.  

Getting Enough Coverage

No matter what, making sure you are protected can help make you and your passengers feel safer while on the road. If you’re not sure you have enough coverage, feel free to reach out to your local Farm Bureau agent today.