Lately I have been helping a lot of Drivers with Auto Insurance for Transportation Network Companies (TNC); i.e. Lyft, Uber, and to some extent services like Postmates. The questions that I get asked the most are "Do I need Rideshare Coverage on my insurance?" and "What does the Rideshare company insurance cover?", and "How much does coverage cost?".
Here in Arizona - you are required to have the proper coverage for your car. You give the TNC company the right to verify your insurance when you begin driving, but it is up to you to make sure you're completely protected. The TNC coverage is designed to primarily protect the passenger and any at-fault damage caused by the driver. And the deductibles for any accident are substantial. Uber currently has a $1000 deductible for damage to your car and Lyft's deductible is $2500. TNC coverage is also broken down into 3 Periods.
Period 1: The app is on, but you have not accepted any fares. It is during this time that your personal Rideshare coverage is helping to protect you. There is limited coverage from the TNC at this point. Your personal coverage helps you to bridge any gaps betweent he TNC coverage and your personal policy.
Period 2: You've accepted a fare. This is where the TNC company coverage really kicks in. They will begin to cover any damage caused by your driving if there is an accident. If the other driver is at fault, they may even help you get the situation resolved with the other Insurance company.
Period 3: This is from the time you pick up the passenger until a few minutes after you've dropped them off. This is the peak of the TNC coverage. Again, they are looking to protect passengers and damage caused by the driver. They will definitely help the passenger in an at-fault OR as the victim of an accident. You are again covered as a victim of another driver's negligence, and subject to the deductibles above for at-fault accidents.
If you don't have the proper coverage, you are leaving yourself exposed to lawsuits and the loss of your car if there is an accident. You also may have coverage dropped by your current provider if they find out that you have been driving for a TNC. This can be at renewal, immediately or if you have any claims. Only a select few companies here in AZ offer Rideshare coverage to drivers currently, with more predicted to come in 2017. We are able to quote you polices with Safeco, Mercury and Commonwealth - They all offer the rideshare endorsement immediately.
As with any other Insurance, costs all depend on your individual situation. Your driving record, accidents, claims and potentially even credit score will affect your rates. Most coverage for adding the rideshare endorsement adds anywhere from $10 to $50 per month, depending on the driver.
As always - if you have any questions or if I can help you with your insurance coverage, please let me know.
*** Update March 2019 ***
Since I wrote this original post, there have been a LOT more drivers come into the market, and more & more the question comes up about coverage. Insurance companies have gotten a lot tougher on policies without the endorsement. I hear stories often about drivers that do not have the TNC/Rideshare endorsement on a policy, get in an accident, and get dropped from their insurance company with no help in recovering from the accident. This is a risk at all times if you don’t have the right coverage.
I also now have more options for Rideshare coverage - Bristol West, Progressive & more have began to offer the Endorsement option for drivers.
