What You Need to Know About Uber/Lyft Insurance

Here at Curtis Helms Insurance, we know that more and more drivers are signing up to participate in rideshare programs like Uber or Lyft, whether as a way of making some extra cash or as a primary source of income. Either way, we strongly encourage you to invest in Uber/Lyft insurance if you drive for any rideshare app. In this article, we’ll go over some key information you need to know about this insurance and how it works.

What You Need to Know About Uber

  • Rideshare Apps are Not Employers. The first thing you need to know about Uber/Lyft insurance actually has to do with the rideshare services themselves. Uber and Lyft both go to great lengths to not treat their drivers as employees, but rather as independent contractors–essentially, this means that they are not responsible for you, your car, or anything that happens to either when you are not on the clock.
  • Personal Car Insurance Excludes Commercial Applications. Another thing to consider when deciding whether to get Uber/Lyft insurance is that your personal car insurance policy will likely not cover you at all in the event that you get in an accident while driving a rideshare passenger. This is because driving for commercial purposes comes with a completely different set of risk calculations than just using your vehicle for personal use.
  • Uber/Lyft Insurance Periods. When they consider rideshare drivers, insurance companies, and even Uber and Lyft themselves, divide the driver’s time into three distinct periods. Period 1 starts when the driver opens the app to look for a passenger and continues until they get a bite. Once they get matched with a rider, they enter period 2, which lasts until they reach the rider for pick-up. Period 3 starts when the rider gets into the car and ends when they get out. Each of these periods comes with different coverage amounts and different stipulations from the rideshare companies and the driver’s own Uber/Lyft insurance policy–the specifics can get pretty thorny, so we encourage you to give us a call if you have questions.