Rideshare and Delivery Drivers: Are You Covered by Your Auto Insurance? 

Picking up gig work as a rideshare or delivery driver is a great way to bring in extra money. You may even decide to make it your full-time job. But what happens in the event of an accident? Can the passenger sue you for damages? Will your regular auto insurance policy cover damages? Is there rideshare insurance to protect you if an unfortunate accident occurs? These are important questions to answer. You don’t want to be left with a hefty bill because you don’t have adequate insurance. 

Read on to find out more about delivery driver auto insurance and determine if you need additional insurance. 

The Insurance Gaps Most Rideshare and Delivery Drivers Don’t Know About 

Many delivery and rideshare drivers may wonder, “Does auto insurance cover Uber/Lyft?” Or they assume that rideshare companies have their own insurance that will provide financial protection for an accident. While there may be some limited coverage, there are rideshare insurance gaps. Even if your personal policy comes with rideshare coverage, you may still discover it’s not enough. 

When Personal Auto Insurance Stops Covering You 

Most auto policies stop coverage as soon as you turn the rideshare app on. Even if you aren’t driving but are just sitting and waiting for someone, you won’t have coverage. Obviously, when you’re transporting someone, your policy stops covering you. 

Delivery drivers also face gaps in coverage when they are en route with goods. 

What Company Policies Cover — and What They Don’t 

Your personal policy will cover an accident when you drive your vehicle for personal use. However, as soon as you turn the app on, indicating that you are available to work, your policy turns off. 

Rideshare insurance, such as through Uber or Lyft, may not kick in until you actually have a customer in the car. This results in a window of time where you are unprotected. 

Coverage During App On, App Off, and Ride Periods 

There are three main periods during ride sharing: 

App on: This is when you turn on the ridesharing app, notifying others that you are open for work. 

Coverage: There may not be any. If covered by the rideshare company, the deductible is likely very high or the limits low. 

App off: This occurs when you are not accepting work and driving for your own pleasure or to a place of employment. 

Coverage: Your personal policy fully covers this period. 

Ride periods: This is the time when someone enters your vehicle, and you transport them to their destination. 

Coverage: Your rideshare insurance will provide some coverage. However, since you have a passenger in the vehicle, you want to ensure the protection amount is adequate. 

The Types of Coverage Gig Drivers Should Consider 

Determining what type of policy you need for all situations may seem overwhelming. Gig economy workers must be wise about all their insurance needs. Between food delivery insurance coverage, rideshare protection, and your personal auto policy, you might question which is best. You have options that are designed to meet your unique needs. 

Rideshare Endorsements 

When the app is on and you’re technically “on the job” but haven’t picked up a customer yet, a rideshare endorsement will step in to cover you if something happens. If you don’t have this endorsement added to your personal auto policy, you won’t be financially protected in an accident. 

With this endorsement, you receive protection for liability, collision, and comprehensive claims. Be sure to discuss policy coverage amounts with your carrier so you aren’t underinsured. 

Commercial Auto Policies 

You could opt for a full commercial auto policy. This type of policy is for vehicles that are used primarily for business. If you are a full-time rideshare or delivery driver, this may be a good choice for you. It will cover you during all periods of business use. 

Liability, Collision, and Uninsured Motorist Protection 

Let’s briefly review the three main elements of your policy: 

• Liability: pays for injuries or damage you cause to others in the event you’re at fault in an accident. 

• Collision: pays for damage to your own vehicle after an at-fault accident. 

• Uninsured Motorist Protection: helps cover your costs if you’re hit by a driver with little or no insurance 

Steps Drivers Can Take to Protect Themselves Fully 

• Make sure your policy covers all the gaps. You may benefit from a commercial policy. 

• Understand your coverage amount and limits. 

• Keep thorough records. 

• Take photos and notes at the scene. 

• Seek medical attention promptly. 

• Report the accident to both insurers. 

Gig Driving? Let’s Fill in the Auto Insurance Gaps Together 

Whether you’ve picked up rideshare work on the side or it’s your full-time hustle, make sure you have financial protection at all times. At Acceptance, we will provide you with a free, no-obligation quote that keeps you covered. We are here to give you a budget-friendly rate. 

Reach out to our experienced policy advisors to receive your free auto insurance quote today. Find an affordable plan that works with your vehicle and budget. Contact us by phone at (877) 405-7102, visit one of our many locations, or get a quote online.