If you are currently a rideshare driver, or are considering becoming one,
be sure you are properly insured!
A Transportation Network Company (TNC) is any other company that uses an online platform to connect drivers (using their own vehicles) with passengers, such as Uber or Lyft. A rideshare is a driver transporting one or more passengers for a fee, that is arranged via a smartphone app.
Having car insurance does not necessarily mean you are covered as a rideshare driver. In fact, many car insurance policies exclude it. Check your auto insurance policy for the exclusions and terms and conditions. Rideshare driving can even be cause for cancellation if using your car for business is a violation of the policy.
Review the insurance provisions of any TNC before signing up. Check what their limits and coverages are for being involved in an accident while logged on as a driver. Also note the differences listed between coverages for different rideshare periods (explained below). The TNC may be considered primary (pay before other insurance policies), contingent (only cover if your policy includes it), or excess (only cover after full limits of other insurance polices have been used).
Period 1 - Being logged into the app and waiting for a ride request
Period 2 - Accepting a ride request and driving to pick up passengers
Period 3 - Passengers entering the vehicle and taking them to their destination
Check for gaps in coverage! Consider minimum liability, medical coverage, comprehensive and collision deductibles, towing, labor, roadside assistance, etc.
Contact your insurance agent before deciding to be a rideshare driver!