What Type Of Auto Insurance Do Rideshare Drivers Need

You need to invest in rideshare auto insurance if you drive for a rideshare company like Uber or Lyft. As a rideshare driver, you need rideshare auto insurance to cover your job and protect yourself where your personal auto insurance plans cannot. In addition, because you use your car to carry out a paid service, you need commercial or rideshare insurance to protect yourself, your passengers, your vehicles, and others.

What Is Rideshare Insurance?

Rideshare insurance is meant for drivers employed by ridesharing companies. This insurance can fill the gap between your personal auto policy and the ridesharing company’s insurance. While driving for a ridesharing company has its own advantages, such as flexibility and independence, you’ll need additional insurance protection.

How Does Rideshare Insurance Work?

Rideshare and insurance companies break down the working process into different stages to help distinguish between drivers using their cars for professional and personal use. These stages include:

Period 0: Here, the driver uses their car for personal use. They have the rideshare app closed and are not looking for passengers. Therefore, all accidents in this stage will fall under your personal insurance policies.
Period 1: This stage begins when drivers switch on the app and wait for passengers to request a ride. They can use rideshare insurance because they are working for the rideshare company during this period.

Period 2: This stage is when the rideshare app matches drivers with passengers. This period starts when the driver and passenger embark on the journey. Like Period 1, rideshare insurance covers this process because drivers are working.
Period 3: This is the stage where the passenger enters the rideshare car and gets to their destination. This period will follow Periods 1 and 2, where rideshare insurance covers everything that happens.

Regardless, the driver should have some form of personal insurance coverage, whether a liability or comprehensive policy, to protect themselves.