The Rideshare Coverage Gap When Your App Is on but You Haven’t Accepted a Ride

If you drive for Uber, Lyft or another rideshare platform in Fort Payne, AL, you may already know that your personal auto insurance policy doesn’t cover you while you’re working. What many drivers don’t realize is that the rideshare company’s coverage doesn’t fully apply right away either. The window between logging into the app and accepting a ride can leave you financially exposed if an accident happens.

What Is the Rideshare Coverage Gap?

Rideshare companies typically divide driver activity into three periods. Period 1 is when the app is on, but no ride has been accepted. Periods 2 and 3 cover the time from accepting a ride through completing the trip. During Period 1, Uber and Lyft offer only contingent liability coverage and no collision or comprehensive coverage for your own vehicle. This contingent coverage only activates if your personal auto insurance denies the claim or offers insufficient coverage. Your personal auto insurer may deny a claim during this window if they weren’t told you use your vehicle for rideshare purposes.

Ways to Confirm You’re Covered

Closing this gap takes a little planning, but the options are straightforward:

• Ask your current insurer whether your personal auto policy includes a rideshare endorsement; many carriers now offer one.
• If your policy doesn’t offer an endorsement, look into a commercial auto policy that covers rideshare activity.
• Check the rideshare company’s coverage documents carefully so you understand exactly what they offer during each period.

Coverage on Every Trip

The rideshare coverage gap is a real risk, but it’s one that’s easy to address with the right auto insurance policy in place. Contact Goggans Insurance today to review your current coverage and find options that cover you whether the app is on, a ride is accepted or the trip is complete.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.