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Navigating the Insurance Maze of Rideshare and Delivery (TNC) Platforms:
Your Car Insurance Guide for Gig Workers
The gig economy has opened many opportunities for those looking to make a living on their own schedules. However, as a rideshare or delivery driver, understanding the insurance landscape of the platform you operate on can be difficult and confusing. Each gig platform has distinct insurance provisions across different periods of your work, and it's imperative to know these to ensure you are adequately covered. We will delve into the insurance coverage and potential gaps across various platforms such as Uber, Lyft, DoorDash, and Amazon Flex, among others, and introduce VOOM Insurance, a solution that addresses these gaps and made specifically for gig drivers.
Understanding Insurance Periods for Gig Drivers:
In auto insurance, especially pertaining to rideshare and delivery services, coverage is often broken down into three periods:
- Period 0: This starts before you log into the app, covering personal exposure.
- Period 1: This starts the moment you log into the app and wait for a ride / delivery request.
- Period 2: This period begins once you accept a request and are on the way to pick up the passenger / item.
- Period 3: Is the duration from when you pick up a passenger or item until the drop-off.
Now, with a better understanding of periods, let's take a look into the insurance offerings of some popular gig platforms:
Uber and Uber Eats Insurance:
Period 1:
Provides third-party liability coverage if your personal auto insurance doesn’t apply, this entails:
- $50,000 in bodily injury per person
- $100,000 in bodily injury per accident
- $25,000 in property damage per accident
Period 2 and 3:
- Covers at least $1,000,000 for third-party auto liability.
- Covers Uninsured/underinsured motorist bodily injury and/or first-party injury insurance (Uber only).
- Covers Contingent comprehensive and collision coverage (if the same coverage exists on personal auto policy) up to the actual cash value of the car with a $2,500 deductible.
Lyft Rideshare Insurance:
Period 1:
Provides third-party liability coverage if your personal auto insurance doesn’t apply, this entails:
- $50,000 in bodily injury per person
- $100,000 in bodily injury per accident
- $25,000 in property damage per accident
Period 2 and 3:
- Covers up to $1,000,000 for third-party auto liability.
- Provides first party coverages, and contingent comprehensive and collision coverage (if the same coverage exists on personal auto policy) up to the actual cash value of the car with a $2,500 deductible.
DoorDash:
Period 1:
There is no coverage - your personal auto insurance is the primary while online but you haven’t accepted a delivery request.
Period 2 and 3:
- Covers up to $1,000,000 in BI/PD to third parties while on an active delivery. *Coverage begins when a Dasher accepts a request until the order is delivered, unassigned, or canceled.
- Does not cover physical damage.
DoorDash Insurance Information
Amazon Flex:
There is No Period 1:
There is no coverage by Amazon Flex, as work is scheduled in advance by "reserving delivery blocks."
Period 2 and 3:
- Protection is provided under the Amazon Commercial Auto Insurance Policy while actively driving and delivering.
- Covers up to $1,000,000 in auto liability coverage, uninsured motorist/under-insured motorist coverage, and contingent comprehensive and collision coverage (passengers are not covered).
Amazon Flex Insurance Information
Grubhub and Instacart:
These platforms do not provide coverage.
Addressing Insurance Gaps with VOOM Insurance:
VOOM is the unique solution gig workers need, meticulously designed to fill the insurance voids that exist in each of the different working periods as well as covering you when the other platforms will not.
So How Does VOOM Compare with the Gig Platforms?
Period 0:
VOOM provides coverage for drivers in the same way a standard auto insurance company does when the driver is logged out of rideshare or delivery apps and using their vehicle for personal purposes.
During this period, VOOM calculates this mileage for your rate, which in turn would likely lower your premium as typical rideshare/delivery professional drivers drive less than average for personal purposes.
Period 1:
Depending on your selected policy coverages and limits VOOM can extend coverage beyond the minimal liability limits provided by the platforms and provide physical damage coverages if the driver already has said coverage on their gig policy, ensuring enhanced protection while waiting for a passenger or delivery request.
Period 2 and 3:
VOOM does not provide primary coverage. However, VOOM steps in to cover the gap in the deductible. So, if a driver selected a comprehensive/collision coverage and has a deductible of $500. In case an accident triggers a payout of a $2,500 deductible to Uber or Lyft, VOOM will reimburse you for the $2,000 difference. This would significantly help the driver from paying a huge amount out of pocket and stay afloat financially.
Navigating the insurance waters as a gig worker can be less daunting with a clearer understanding of the periods and the coverage provided by the platforms. With VOOM's Rideshare Insurance, the gaps in coverage can be bridged and a safety net in place to ensure that drivers can focus on their earnings with peace of mind. Whether you are just starting or are a seasoned gig worker, it's time to review your insurance coverage and consider how VOOM can provide you with that extra layer of protection you need in your gig career.
