RSG021: New Rideshare Insurance Requirements, Employee Rulings and 1 Year Site Anniversary

There’s been a lot of activity in the news cycle lately and on today’s podcast, I’m going to update drivers on a couple big issues that there may be some confusion around.  I know that I’ve personally spent a lot of time dealing with insurance and there is a big new law that went into effect on July 1st in California that affects a lot of drivers.  Uber and Lyft sent out some information but it was pretty confusing to decipher so today, I break it all down.

The other big issue that today’s podcast will cover is the recent ruling by the California Labor Commission that deemed one driver an employee.  I’ll be talking about what the potential implications of that case could be and also go over the other lawsuits being brought against Uber and Lyft in San Francisco this summer.

There’s a lot to stay up to date on but today’s podcast should provide you with a concise and detailed summary of what you need to know.

If you’d like to read a transcript of this podcast, please click here.


  • Thanks to everyone who’s left a 5 star review on iTunes!
  • Time to update everyone on insurance changes, ridesharing events in the news and court rulings
  • This month marks‘s One Year Anniversary
  • Surprise jingle at the end of the episode
  • Thank you to everyone who used Your Mechanic last month! For a limited time, you’ll get 5 free oil changes for friends and family after you get your first oil change.

Rideshare Insurance Update

  • Handy new post about rideshare insurance for drivers – updated for this year
  • With this new feature, you can search by state and check out vetted insurance agents
  • Check out previous posts about rideshare insurance because not a lot has changed
  • Insurance continues to be an issue for most drivers
  • Insurance is different in every state, so you’ll have to do some independent research

Current State of Rideshare Insurance

  • 90% of drivers don’t have rideshare policies – not great news since there are liabilities associated with rideshare driving. 70% don’t have rideshare policies but want them
  • Many rideshare drivers are still on their personal policies – may not actually be allowed to be rideshare drivers
  • The problem is if you get into a car accident while rideshare driving – some big insurers ask you if you’re a rideshare driver no matter what

How Uber Insurance Coverage Works

  • Uber Period 1: This is when your app is on, but you haven’t received requests
  • Period 2: Accepted ride, en route to passenger
  • Period 3: When you begin trip with passenger
  • Periods 2 & 3 have the same coverage by Uber
  • Period 3 ends when passenger exits
  • Restarts at period 1 if you go back online
  • Deductibles associated with these claims
  • Biggest issue with period 1 – no collision coverage provided at all. This is where your own rideshare-friendly policy comes in handy
  • July 1, 2015 – new law in California takes effect. Personal auto insurance no longer applies when you log in to your ridesharing app unless you purchase specific ridesharing insurance.
  • Uber will cover you now in periods 1-3, but you still do not receive any collision insurance in period 1. Very important to know if you’re driving in California, and this ruling likely will spread to the rest of the US
  • Definitely check out our list of insurance providers and agents for your particular state – insurance varies by state

Current Events & What They Mean for Drivers

  • Recent court case ruled against Uber, said that driver should be considered an employee and not an independent contractor
  • The ruling only applies to Berwick, not any other drivers
  • Big implications for the industry – almost all companies use the independent contractor model
  • Another class action lawsuit to be considered soon about making independent contractors employees. Set for jury trial in August.
  • Based on a recent poll on RSG, 50% of you want to be independent contractors, only 20% want to be employees. Shows we really like the flexibility.
  • There is a room for compromise among drivers who want to be independent contractors and those who want to be employees
  • By the time the lawsuit concludes, Uber may have to come to some type of compromise
  • Will keep you posted

1st Year Anniversary News

  • 25% traffic growth every month
  • 100k visitors every month
  • Shows there is a lot going in the industry
  • Very lucky to be doing something I love, helping you all to work smarter and not harder

How I Make Money

  • Referrals and affiliates, like companies like YourMechanic
  • I try to be very careful with the products I promote because I’m building trust
  • Google Ads
  • Amazon commissions


  • Very excited about the direction of the site
  • Questions, comments, or feedback? Let me know!
  • Important to know the basics behind ridesharing insurance
  • RSG business card and logo from Fiverr
  • New jingle for RSG podcast that I bought on Fiverr from a reader – listen around 50:55 to hear the jingle!

Show Notes

  • Fiverr: Get your first gig free
  • RSG in iTunes
  • Get $20 off your first service with YourMechanic with the code ‘RSG15

Drivers, what do you think about the current state of rideshare insurance and the recent Uber ’employee’ ruling and pending lawsuits?

-Harry @ RSG