We are frequently asked, by clients that work with Uber or Lyft, if their personal auto insurance policies cover them while they are driving for either of rideshare companies. It is important to understand how your personal auto policy works in conjunction with the insurance provide by these or any other rideshare service. Typically, we are concerned with three periods.

Period one is when the driver activates the app and has signaled that they are available to rideshare. Once your app has been activated, unless you have a rideshare endorsement, on your personal auto policy, your individual insurance company may not cover you for any losses during this time. Depending on your state, the rideshare company may or may not provide coverage for this time period either. If coverage is not provided, by the rideshare company, at this stage, you will need to make sure that your auto insurance company has a rideshare endorsement attached to your personal auto policy. At the time of this writing, only three companies, in the state of Nevada, offer an endorsement for this time period. If you are a rideshare driver and are not crystal clear about whether your policy covers you adequately, call Stellar Insurance at 702-315-4567 for a full coverage analysis of your current policy.

Period two is when the driver has accepted a request and is on their way to pick up the passenger. Typically, the rideshare company policy is now in force and the driver is covered for bodily injury, uninsured motorist, underinsured motorist, comprehensive and collision coverages. Limits and coverages vary by state and company. A deductible usually applies to the first party coverages.

Period three is when the passenger has been picked up and is now on the way to their desired location. The rideshare company’s policy is clearly in force at this stage. As with period two, the limits may vary by state and company but clearly, the rideshare policy is primary during period three.

Unless you have a rideshare endorsement, your personal auto policy does not cover you, for most losses, while you are carrying people or property for a charge. Once you have activated the app, you are considered carrying people or property for a charge. This is important during the initial activation of the rideshare app as well as once you have dropped off the passenger are and are waiting for the next rideshare. Having the correct auto policy fills in the gaps between the personal auto policy and the rideshare policy. Don’t take chances as you may be personally liable for any losses that are not covered by an unendorsed personal auto policy or the rideshare policy.

Call Stellar Insurance, at 702-315-4567, to avoid any uncertainty and ensure that you have the correct auto insurance coverages if you drive for Uber, Lyft or any other rideshare service.