Ridesharing services like Uber and Lyft have become a popular way to get around Ohio. They offer convenience, affordability, and (supposedly) a safe ride. However, what happens if you, the driver, are involved in an accident while transporting a passenger? This is where things can get complicated, especially if you don’t have a rideshare endorsement on your personal auto insurance policy. Below we will share what rideshare and delivery drivers should know about coverage.
Standard Auto Insurance vs. Ridesharing
While regular car insurance protects you in most personal driving situations, it excludes commercial activities like ridesharing. This means if you’re in an accident while logged into the app and actively seeking or transporting a passenger, your standard policy will likely deny coverage altogether. Even if you didn’t know this before being involved in an accident, insurance companies are not likely to show compassion towards you.
Adding a rideshare endorsement to your policy will likely increase your insurance premium. However, the cost is minimal compared to the potential financial burden of an accident without proper coverage. To add a rideshare endorsement to your policy, contact your insurance agent and inquire about rideshare endorsements. They can assess your driving record, car usage, and other factors to determine the cost and coverage details.
Don’t Bet on Rideshare App Coverage
Ridesharing companies like Uber and Lyft do provide some insurance coverage for their drivers. However, this coverage only applies during specific periods:
- Period 1: When the app is on but you haven’t accepted a ride request. Coverage is usually minimal (around $50,000 per person/$100,000 per accident for bodily injury and $25,000 for property damage).
- Period 2: When you have accepted a ride request and are on your way to pick up the passenger. Coverage increases significantly.
- Period 3: When a passenger is in your car. Coverage remains increased.
The crucial point here is the gap in coverage during Period 1. If you’re in an accident while logged into the app but haven’t yet accepted a ride, the ridesharing company’s minimal insurance might not be enough. A rideshare endorsement would bridge this gap and provide comprehensive protection throughout all three periods.
Have Questions? Reach Out for Help
If you have questions regarding your insurance, and what
endorsements you need to keep yourself and your passengers protected— reach out
to your insurance agent, or a qualified personal
injury attorney. We can help you evaluate your different policies to ensure
that we are making our community a safer place.
Turn 2 Tittle & Perlmuter | (216) 222-2222
If you or a loved one has been injured in a rideshare accident, Turn 2 Tittle & Perlmuter. We have recovered millions for car accident victims, and will stand up for the justice you deserve.
To schedule a free case strategy session to determine if you even need an attorney, visit our contact us page, or call us directly by clicking the button below.
