Rideshare Insurance: What You Need to Know

1. Personal Policies Rarely Cover Rideshare

A standard personal auto insurance policy explicitly excludes "livery" or commercial driving. If you get into an accident while logged into a driver app, your personal insurer will almost certainly deny the claim, and they may even cancel your policy.

You need either a commercial auto policy or, more commonly, a "rideshare endorsement" added to your personal policy.

2. The Three Periods of Driving

Insurance coverage depends on what you are doing at the time of the incident:

• Period 1 (App On, Waiting for Request): The platform provides very low liability coverage. Your personal policy provides zero coverage. This is the coverage gap.
• Period 2 (Request Accepted, En Route): The platform's commercial coverage kicks in (usually $1 million liability).
• Period 3 (Passenger in Car / Order Picked Up): The platform's commercial coverage continues until drop-off.

3. How to Close the Coverage Gap

A rideshare endorsement (or rideshare gap insurance) from your auto insurer extends your personal policy coverage into Period 1. This means your personal limits apply while you are waiting for a ping, protecting you from crippling liability.

4. Deductible Differences

Uber and Lyft often have high commercial deductibles ($2,500 for Uber). If you have a rideshare endorsement, some insurers will cover the difference between the platform's deductible and your personal deductible (e.g., $500), saving you thousands out of pocket.