Ask Your Agent – I Drive for a Rideshare company. Am I covered? – Raleigh NC
Hi, I’m Michael Lawson with Lawson Insurance Group, and I’m here with another episode of Ask Your Agent. Today’s question is, “I drive for a ride share company. Am I covered?” That is a great question. Please know that when we mention rideshare, it makes no difference for this discussion if it’s Uber, Lyft, Grubhub, or any other ride share or food delivery services. They’re all very similar in how they handle insurance. Most of these companies have liability and physical damage coverage for your auto while you were working for them. But timing of when their insurance kicks in and timing of when your personal insurance stops, that’s where there’s a gap of coverage.
Let me explain. When you pick up that rider from the airport, the rideshare company’s insurance kicks in and is active. Or when you pick up that food from a local restaurant or fast food company, the food delivery company’s insurance kicks in and is active. And it stays active in both cases until your rider or food is delivered to their destination. But with most carriers, your personal insurance pauses as soon as you open the app and start working.
So here’s an example. You decided for the next four hours, you’re going to drive for a rideshare. And when you open the app and you start your time, your personal insurance officially stops. You immediately link up with a person who need to be picked up at point B, and it’s going to take you 15 minutes to drive to that location and pick them up from your location over at point A. As soon as you pick them up, the company’s insurance kicks in and it’s active. But for that 15 minutes, while you’re driving from point a to point B to pick up that ride, you have no liability or physical damage coverage on your vehicle. That is the gap in coverage. If you were to get in an accident during that time, you have no insurance coverage to cover your vehicle or another vehicle you hit or a person you may injure, and that could be financially devastating.
There are some insurance carriers that offer an endorsement that can be added to your policy that would give you that coverage during the gap time. We strongly recommend that you reach out to your insurance company before ever signing on to drive for a rideshare or food delivery company. Thanks for checking out this video and we hope it was helpful. You have a question you would like us to answer, you can email it to us, comment on the video, hit us up on Facebook, Instagram, Twitter, or our YouTube channel. And subscribe to this channel for more Ask Your Agent content.
Call Lawson Insurance Group in Raleigh NC at (919) 846-2090