If you’re thinking of becoming a rideshare driver to make some extra money (or if you’re currently a driver) you’re going to want to take a look at the following tips to understand what you have coverage for and where you might have gaps.
1. Know the rideshare language
Rideshare is a general term in which a driver transports one or more passengers for a fee, and is arranged through a smartphone app.
TNC stands for “transportation network company.” It’s a company that uses an online-enabled platform to connect passengers with drivers who use their personal vehicles (i.e. Uber or Lyft)
There are three distinct time periods in the TNC rideshare process:
Period 1 – Driver is logged in to a TNC app and is waiting for a ride request.
Period 2 – Driver accepts a ride request and drives to pick up passengers.
Period 3 – Passengers enter the vehicle and the driver takes them to their destination.
2. Check your auto insurance policy
Your car insurance policy might not provide you coverage while you are working for a TNC. Look at the exclusions in your policy. Most policies have exclusions for when a vehicle is used “in connection with a transportation network company,” “as a public or livery conveyance,” or “to carry persons or property for a charge.” You should also look at the terms and conditions of the policy because using your car for business purposes may be a violation and can cause your policy to be cancelled.
3. Find out what insurance TNC provides and look for gaps
Before signing up with Uber or Lyft, review their insurance provisions for the coverages and limits they would provide if you were involved in an accident while logged into their app. Many are finding gaps in Period 1 (the time the driver is logged into the app and waiting for a ride request). You might want to think about purchasing a specific rideshare insurance endorsement to fill in any gaps that aren’t covered by the TNC. Acuity offers an endorsement to your existing personal auto policy, which is usually less expensive.
Before you log in and open up a rideshare app for business, make sure you understand the insurance protection you have while on the clock!
Contact our professionals today to discuss the rideshare options available to you!