Working for a rideshare service is a great way to earn a little extra cash. The requirements are pretty simple, too. To register as a driver for most rideshare companies, you’ll need a valid driver’s license, at least one year of driving experience, and the documents and information necessary to pass a background check.
Due to the nature of the work, these companies also provide their drivers with state-mandated insurance coverage. This is not a replacement for your personal auto insurance policy, and it only applies while you’re on the job, with certain limitations. But you’ll likely need to add rideshare liability coverage to your personal auto policy to help fill the gaps between your coverage and that of the rideshare company. It can be a little confusing, and there’s a lot to unpack when it comes to rideshare liability insurance. With all of our experience in handling cases such as these, Wayne Hardee Law is here to help you make sense of it all. Read on to learn more!
There are three phases or periods that are officially recognized when dealing with rideshare liability. These three periods center around your app activity and current status:
- Period 1: The rideshare app is activated, and you’re driving around waiting for a service request.
- Period 2: You’ve received a request, and you’re en route to the pickup location.
- Period 3: The passenger is in your car, and you’re driving to the final destination.
This is an important distinction, as it will ultimately determine who pays for what. For example, well-known rideshare companies like Uber have committed to providing limited third-party liability coverage under Period 1. The full extent of the rideshare company’s coverage does not kick in until Periods 2 and 3, with a fixed deductible for repairs contingent upon your personal insurance coverage.
That’s all well and good, but why would you need additional rideshare coverage on your personal policy if the company covers most circumstances? The answer lies in those gaps between your personal coverage and commercial coverage provided by the rideshare company. Without gap coverage added to your insurance policy, you may be held financially responsible for damages and repairs that occur on the road, especially considering the low limits under Period 1. Whatever you do, be sure to notify your personal insurance agency regarding rideshare activity to avoid a breach of contract.
If you’ve suffered a rideshare accident, it’s recommended that you seek legal counsel at once to help you navigate insurance claims and battle any potential disputes. Wayne Hardee Law is ready to make sure you receive the compensation you deserve. Fill out the form on our website to get in touch with us and schedule a consultation today!