Rideshare Insurance – What is it?

Rideshare insurance is a specialized type of coverage designed for drivers using their personal vehicles for ridesharing services like Uber, Lyft or other similar platforms. This insurance bridges the gap between personal auto insurance and the commercial coverage provided by rideshare companies, helping drivers stay adequately covered at all times.

How Does Rideshare Insurance Work?

Rideshare insurance is an add-on or separate policy that complements your existing personal auto insurance. It covers the unique risks associated with ridesharing, such as transporting passengers for a fee. While rideshare companies provide some level of insurance, it often has limitations; it may not cover all scenarios, especially when the app is on but no passengers are in the car.

Why Do I Need Rideshare Insurance?

If you drive for a rideshare company, your personal auto insurance may not cover accidents that occur while you work. This is because most personal policies exclude coverage for commercial activities. Without rideshare insurance, you could be left financially vulnerable in the event of an accident.

Additionally, rideshare insurance can help fill coverage gaps during periods when you are waiting for a ride request, which is typically not fully covered by the rideshare company’s insurance.

What Does My Policy Cover?

Rideshare insurance generally covers three main periods of ridesharing:

• When the app is on, but you haven’t accepted a ride yet—This period is often the most underinsured by rideshare companies.

• When you are en route to pick up a passenger—During this time, both your rideshare insurance and the company’s insurance are usually active.

• When you have passengers in the car—This period typically has the highest level of coverage from the rideshare company, but additional rideshare insurance can provide extra protection.

How to Get Rideshare Insurance Near You

Contact Hanway Insurance in Oak Lawn, Illinois, today to learn more about rideshare coverage or compare personalized quotes.

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.