Insurance Provided by Rideshare Companies
If you’re involved with the rideshare industry, you should be informed about ridesharing coverage. In the United States, Uber and Lyft both provide $1 million liability and collision coverage during periods 2 and 3. During the first period, uber and lyft drivers do not have coverage from the rideshare company or personal auto insurance.
Both of the aforementioned rideshare apps’ insurance policies for periods two and three are very similar. Uber has a $1,000 collision deductible and Lyft’s deductible is $2,500. Uber has a $1,000 collision deductible and Lyft’s deductible is $2,500.
For Lyft or Uber drivers unaware of periods 1,2 and 3, we’ll elaborate. Period 1 is when a rideshare driver has the app on and is actively searching for a passenger.
After the driver has accepted a ride request, that’s when period 2 begins. Period 2 is the window of time when a driver is en route to the customer who requested a ride. Finally, period 3 begins when the passenger enters your car and ends when the passenger exits.
During periods two and three, drivers are insured for the following three things:
This covers a driver’s liability for third party damages. Liability coverage limits are at least $1,000,000 per accident.
Uninsured or underinsured motorist bodily injury coverage
This protects drivers from people who don’t have insurance. It also covers them from drivers who have limited insurance and hit & run accidents. Coverage limits are at least $1,000,000 per accident.
Contingent collision and comprehensive coverage
This type of coverage protects a car in case of an accident, whether it is the driver’s fault or not. This is so long as drivers sharing rides have collision coverage on their personal policy. The policy limit is the actual cash value of the car.
Have questions about potential medical expenses and property damage? Want to know more about insurance provided by rideshare companies? Our team of insurance agents is here to help with your insurance needs in real time.
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*Please review your own policy carefully for details on rideshare insurance. Rideshare insurance coverage varies by contract.