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Harry here. Rideshare insurance is one of the topics we get asked about most frequently here on the blog. Today, RSG senior contributor Jon Knope takes a look at the 11 most frequently asked questions about rideshare insurance. If you’d like to sign up for rideshare insurance, or talk to an agent and get a quote, please click here.
Car insurance can be an overwhelming topic and adding Uber and Lyft into the mix just makes it more so! Here, we’ll answer some questions we get from new drivers and seasoned veterans alike. If you’ve been ridesharing for a while but still aren’t 100% clear on the insurance issue, give this a read – and let us know if we missed anything!
1. Don’t Uber and Lyft provide insurance?
Rideshare driving is divided into three periods: period one is when you’re online waiting for requests, period two is when you’ve accepted a request and are en route to pick up the passenger, and period three is when you’ve acquired the passenger and are driving to their destination.
During period one, you won’t receive any collision coverage – and the liability limits are much lower than normal. One nasty accident could quickly exceed them, putting you on the hook for many months’ worth of earnings. During periods two and three, Uber and Lyft provide commercial insurance with $1 million in liability but $1,000 deductible on Uber and $2,500 deductible on Lyft.
Another issue is that personal insurers reserve the right to nullify your coverage entirely if you violate their terms and using your vehicle for commercial purposes (such as Uber, Lyft, or food delivery) is one such violation. If (or when) your personal insurer finds out you’re a rideshare driver, they might drop you from your policy and/or deny coverage.
See more reasons to get rideshare coverage here.