If you didn’t know already, most insurance companies exclude coverage when a vehicle is used for “public or livery services”. Transportation Network Companies, like Uber or Lyft, provide coverage when a customer has been matched, the driver is in route to pick up the customer and when the customer is being transported. Your personal auto policy is suspended the entire time your app is on. This can cause a huge gap in coverage!
The gap exists when the driver is on the app and awaiting a passenger match. Transportation Network Companies do provide some coverage in this gap, but that coverage is minimal liability and does not cover personal injury or damage to your vehicle. Some insurance companies, such as Safeco and Allstate, are creating endorsements that can be added to a standard auto policy that can fill in this gap and can provide excess coverage where the Transportation Network Company is the primary insurer.
The chart below provides information on the gap in coverage when driving for Uber or Lyft.
Give Michelle or Todd at our office a call to close this gap!