Do I Need Rideshare Insurance?

Have you started working for a rideshare company like Uber or Lyft? Are you considering trying your luck at earning additional income by becoming a rideshare driver? If so, you need to determine if your current auto insurance policy will cover you if you are involved in an accident while transporting a customer.

But do you need rideshare insurance, or will any liability insurance do? We’re going to look at what rideshare insurance is, so you can see what the benefits are, and make the right decision for you.

What is rideshare insurance?

Rideshare insurance does not come standard in auto insurance policies. It is considered an add-on to your current policy. Anyone who drives for Uber, Lyft, or any other rideshare company should consider purchasing this insurance as added protection on top of your current auto policy. Rideshare insurance is also known as Transportation Network Company (TNC) coverage. This additional insurance covers drivers when their company’s auto policy or their personal auto policy might not cover them for an accident.

Coverage provided by rideshare insurance

Rideshare insurance covers almost all the same things your personal auto policy covers, including underinsured/uninsured motorist, property damage liability, bodily injury liability, MedPay, comprehensive and collision. The area of coverage that comes into question is when the coverage actually activates or applies to an accident.

There are three categories for rideshare driving and they are as follows:

1. App is activated and you are waiting for a passenger
2. Matched with a passenger and are traveling to pick them up
3. The passenger is riding in your vehicle

Each of these categories has limitations on coverage provided by the rideshare insurance you purchase.

Companies that offer rideshare insurance in Tennessee

The companies that offer rideshare insurance in Tennessee include the following:

• State Farm (cost is 15-20% of premium)
• Geico
• Progressive
• USAA (starts at $6 per month)
• Farmers
• Erie (cost is $9 to $15 per month)

Purchasing rideshare insurance

When you decide to purchase rideshare insurance, it’s important that you notify your insurance company that you are working as a rideshare driver. Determine if there are any gaps between personal auto insurance coverage and the coverage offered by Uber or Lyft. If there are gaps, ask your current insurance company if it will fill those gaps or if you need to buy a commercial policy.

Are you driving for a rideshare company? Are you interested in becoming a rideshare driver but aren’t sure about insurance coverage? If you answered yes to either of these questions, it’s time to consider purchasing rideshare insurance to add another layer of protection for yourself and your vehicle.  The important thing is not to wait until it’s too late.

At Rocky McElhaney Law Firm, we fight for injury victims across Tennessee and the Southeast.  If you were hurt while working as an Uber driver or a Lyft driver or if you were hurt while riding in an Uber or Lyft as a passenger, you’re going to need an informed and experienced attorney to help you guide you through this new legal territory.  We’re here to help.   Call the dedicated team of lawyers at Rocky McElhaney Law Firm at 615-425-2500 or complete a contact form to schedule an appointment today. We have offices in Nashville, Hendersonville and Knoxville to conveniently serve our clients.