Uber and Lyft are called Transportation Network Companies (TNCs). Drivers who work for TNC are only covered under the company’s commercial insurance while drivers are linked with a passenger OR have a passenger in their vehicle. This leaves a driver completely uninsured during period one since personal auto insurance companies consider driving for a rideshare program a commercial activity.
To avoid this lap in coverage, insurance providers have created rideshare insurance policies to reduce the liability a driver takes on while working for rideshare companies. Rideshare insurance policies come in two forms: Gap Coverage and Extended Coverage.
Gap coverage insures drivers during period one, the time a driver spends waiting to be linked to a passenger.
Extended coverage insures drivers during all three periods on top of the coverage a rideshare company already provides.
If rideshare insurance is not available in your state, the only other option a rideshare driver has is a commercial auto policy. New York, New Jersey, Michigan and Florida are the only states in the U.S. that do not have rideshare insurance.
Do you need more information about rideshare insurance? Our agents and customer service representatives are here to help. Call us today at 1-888-949-6289 or visit your nearest Insurance Navy location. For your convenience, Insurance Navy is open from 8 a.m. to 9 p.m. CST, 7 days a week.
*Please review your own policy carefully for details on rideshare insurance. Rideshare insurance coverage varies by contract.