Ride share services are increasing in popularity. As a result, insurance policies to cover these drivers are beginning to hit the market.
A ride share driver has major stress. You have to find your way around town. You deal with drunk passengers. Furthermore, the work hours are not ideal. Being in an accident could cause a loss of income.
Ride share policies can assist in reducing stress. A driver’s mind can be put at rest by having full insurance coverage while out on the streets.
However, these policies are not available in all states. There is a lack of competition amongst insurance providers. In several states, drivers have little choice but to accept the price of coverage levels on offer.
Ride sharing is divided into timelines.
Period 1: The app is off. This is the driver’s personal driving time.
Period 2: Driver accepts bid, en route to pickup location.
Period 3: Passenger in vehicle.
Ride share drivers receive significant liability coverage from Uber or Lyft as long as a passenger has been assigned.
However, low limits and coverage gaps are applicable during the rest of the drive.
Collision and Comprehensive are offered during periods 2 and 3, but the coverage is contingent. Therefore these should be covered by a personal policy. Furthermore, the deductible can be very high. $2500 if you drive for Lyft.
The policies vary in price, covered periods and even ride share company. An endorsement is the only way to ensure that you are fully covered while working as a ride share driver.
Some insurance companies offer ride share policies that cover all phases of the driving. Companies like Farmers, offer only a Period 1 endorsement. In comparison to commercial policies for taxis, ride sharing policies are less expensive. However, taxi coverage is usually more comprehensive.
Geico : You have a uniform policy whether you are driving for personal or business reasons.
Erie Insurance: This policy covers you for the entire trip.
Farmers: This policy has a constraint on the extent of your personal coverage. For example, if you logged into the app at 10.00 am but did not accept a ride until 10.30 am, for that half hour you would still be covered under personal insurance.
Allstate: You are NOT guaranteed continuous coverage when signed into the app.
State Farm: They do not cover the driver for liabilities while signed into the app.