Two years ago, we published an article about the insurance concerns for drivers of ridesharing services. The moral of the story was Proceed With Caution—gaps in insurance can put you in a costly situation. Since that time, some of our carriers have created endorsements to provide coverage, so here’s an update on what’s now available.
Coverage for Period 1.
Recall that Period 1 is when a driver is logged into a rideshare app but not yet matched with a passenger. Period 1 creates a gap for the ride-sharing driver. You see, depending on which service you’re engaged with (Uber, Lyft, etc), you may have contingent liability at lower limits that your personal auto insurance. What does this mean? The ridesharing company’s insurance only kicks in once your primary insurance has denied coverage. A hassle, at minimum; a potential gap at its worst.
Today, about half of our carriers offer an endorsement for this Period 1 gap. Costs range from $50 to $200 a year. What does this endorsement do? Imagine this: you are logged into a rideshare app and driving around waiting for a passenger. You rear-end a vehicle and are cited for following too closely. Under this endorsement, your personal auto policy would respond with no questions asked. No hassle with the rideshare company’s insurance carrier; no worries about their limits being too low. Without the endorsement, your personal auto policy would deny coverage because you’re driving for hire.
So, if you are a rideshare driver, please contact us right away. We can review your policy and talk you through your options to buy the endorsement. Our strong advice is that everyone who is a rideshare driver should have this endorsement. But we can’t advise you if we don’t know that you’re driving for hire.
How to contact us? Pick your pleasure:
SMS Text: 419.963.3223
We look forward to serving you.