Rideshare Insurance Options for Uber and Lyft Drivers

Once you have decided to drive for a rideshare program like Uber or Lyft, your next thought should be about insurance protection and the options available to you. Your personal auto policy is not going to cover your rideshare activities. Some insurance providers may even drop you from coverage if they find out you participate without notifying them. With that in mind, what are your options for insurance protection?

Why Don’t Rideshare Companies Offer Insurance Coverage?

Ultimately, both Uber and Lyft do offer insurance protection, but with limited protection to drivers.  To understand how limited the policies are, you first must understand the stages of rideshare driving and how it applies to insurance protection.

  • Off Duty – Routine daily driving when you are not running the app.
  • Period One – Your app is on, but you have not yet been matched with a passenger.
  • Period Two – You’ve been matched with a passenger and are on your way to pick them up.
  • Period Three – Your passenger is in your car and on his or her way to the prescribed destination.

When you are off duty, your personal auto policy is in effect. If you have an accident during this period, your auto insurance will offer protection like normal.

During the second and third periods, you are protected by the policy provided by Uber or Lyft.

It is during the first period, though, that problems arise. This period is not covered by personal insurance or the policies provided by rideshare organizations. It is a gap in your coverage that could prove costly if you are in an accident while the app is on and you are unmatched with a passenger.

What are Your Options to Cover the Gap?

It has taken a while for insurance companies to come around to the idea of widespread drivers offering rideshare services, the demand has grown sufficiently that more and more providers are beginning to offer this type of insurance protection.

Many of the rideshare organizations do offer third-party protection for the gap period in coverage. However, the policies you can purchase through Insurance Center of North Jersey can provide you with a comprehensive and cost-effectiveness to the coverage options available through most rideshare companies.

At Insurance Center or North Jersey, we have been in the business of protecting the people and businesses that call New Jersey and surrounding areas home for the past 90 years. Part of our secret for long-term success is our commitment to offering a constantly evolving suite of insurance products to meet your ever-changing needs. Rideshare insurance protection is yet another example of this commitment to our friends and neighbors in action.

Contact us here at Insurance Center of North Jersey at Contact us at 201-525-1100 to obtain your rideshare insurance.