If you’re considering signing up to ridesharing companies like Uber or Lyft, you might be wondering about the implications on your auto insurance and who would pay in the event of an accident. Ultimately, your personal auto insurer is unlikely to cover any accidents that happen during commercial activity. It could even cancel your policy if it finds out you haven’t disclosed you drive for ridesharing companies or app-based delivery services.

How Does Uber and Lyft Commercial Auto Insurance Work?

While Uber or Lyft provide some coverage while on the job, the coverage is only temporary and may offer less protection than you actually need. In the world of ridesharing and insurance, commercial coverage is broken down into four stages, depending on where the driver is in the process.

Period 0 – The app is closed. Since the driver is not in driver mode, the driver’s own personal car insurance coverage will apply to any accident that occurs.

Period 1 – The driver has the app on, and is driving around waiting for a ride request. Uber and Lyft insurance is limited to liability coverage. A personal policy without ridesharing coverage won’t cover you.

Period 2 – The driver has been matched with a rider and is on the way to the pick-up. Your rideshare company’s policy is in full force.

Period 3 – You have passengers in the car. Your rideshare company’s policy is in full force.

Uber and Lyft’s commercial coverage policies are in full effect when you’ve accepted a ride and are carrying passengers. So, if an accident occurs when the driver has the app on and is waiting for a ride request (Period 1), you’ll be less protected than any other stage of the trip.

Why Buy a Rideshare Insurance Policy?

Rideshare auto insurance covers personal auto use and any other time the driver is signed in to a ridesharing app, but not covered by the rideshare’s company insurance. It, therefore, gets to account for what might not be covered through Uber or Lyft’s commercial coverage. If you do not have rideshare insurance, you run the risk of not only losing your personal auto coverage but also paying out of pocket for repairs, injuries, and other damages. You want to avoid this at all costs.

No Need to Risk – Nevada Insurance Enrollment Has Got You Covered

For complete coverage whenever you drive, consider buying a rideshare insurance policy with us. Our knowledgeable auto insurance agents will help you understand what you need, what your rideshare company covers, and what to do in an accident. Get in touch with us at (702) 898-0554 to find the auto insurance policy that best fits your driving needs.

Related Articles:

♦ Do Uber and Lyft Drivers Need Ridesharing Auto Insurance?

♦ All About Automobile Liability Insurance: What Does It Cover?

♦ Commercial Auto Insurance vs. Personal Auto Insurance

♦ Different Coverages That Are Available With Auto Insurance

Read More: Auto Insurance in Las Vegas, Nevada

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DISCLAIMER: It is important to note that the information contained herein is made general for the purpose of explanation.  You should consult your policy for exclusions or other language that may alter your policy.

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