Rideshare Insurance Coverage Periods

What are Rideshare Insurance Coverage Periods?

When we are driving rideshare, depending on what phase of the ride we are on depends on what kind of coverage we are entitled to from Uber and Lyft. It also determines how our personal policy comes into play. 

How Uber and Lyft Insurance Coverage Changes During Your Trip

It’s important to understand the different rideshare insurance coverage periods in order to understand rideshare insurance coverage and how protected or exposed you are as a driver.

Period 0: Personal Use. The Uber or Lyft App is not on.

Period 1: This is when you are logged into the app, and waiting to be paired with a ride.

Period 2: This is when you have accepted a trip and are on the way to pick the passenger up, but the passenger is not yet in your car and the trip hasn’t officially started.

Period 3: You have picked the passenger up, started the trip and are en route to the destination.

How covered you are, and who is covering you - be it Uber or Lyft’s Rideshare Policy or your Personal Carrier - is completely different depending on what uber insurance or Lyft insurance coverage period the accident takes place in. 

Protect Yourself With the Right Rideshare Insurance Policy

Imagine you have a passenger in your car, and when you get to the destination, the passenger opens your car door onto a light post, damaging it. As long as the trip was not ended on the app, the accident occurred during Period 3, which is where Rideshare coverage is the strongest from Uber and Lyft. 

If the trip was ended before the rider got out, that means from an insurance standpoint, the accident occurred during period 1 - no longer on a ride, and waiting to be paired with another. 

As a result, his coverage from Uber is much less, and it would be extremely important for him to have a strong personal rideshare insurance policy that would make sure to take care of him for incidents that happen during Period 1. 

There are two lessons here.

First, do not end a trip until a passenger is completely out of your car and the door is closed in order to maintain the maximum protection provided by Uber and Lyft. 

The second major takeaway is the importance of understanding your rideshare insurance policy details and how your personal carrier covers you during the different rideshare coverage periods. While Uber and Lyft provide a standard policy and deductible for all drivers, your personal policy will determine how protected you are in case something goes wrong in Period 0 or 1. Depending on your coverage, what you are liable for can vary greatly.

I’d encourage you to speak with the insurance professionals at VOOM today about their Insurance Coverage for Rideshare Drivers to find out how how exposed you are with your current policy, and how their approach, which was made for rideshare drivers with our specific needs in mind, could not only save you money, but leave you better protected.