There are two main reasons why insurance becomes complicated when it comes to rideshare drivers. Firstly, rideshare drivers spend more time on the road than ordinary drivers. Purely because of frequent driving therefore, this increases the chances of getting involved in accidents. Secondly, rideshare drivers carry several passengers on a routines basis. In turn, this increases the possibility of being at fault on the driver’s part in the event that passengers suffer injuries or damages. These two areas of risk are the main reason why the default coverage provided by rideshare companies focuses on protecting passengers and ordinary drivers while placing conditions on whether rideshare drivers themselves should be fully covered when accidents happen. In-house rideshare insurance is typically applied according to four main scenarios:
When drivers are not logged in to, or using, the app.
Period 1When drivers activate the app and wait for requests.
Period 2When drivers activate the app and are en route to pick up passengers.
Period 3When drivers activate the app and are ferrying passengers.
When accidents happen during Period 1, personal insurers refuse to offer coverage because the vehicle is being used for commercial purposes.
Their policies are predominantly designed to protect third-parties or passengers. It’s up to you to make sure that you as a rideshare driver are comprehensively insured.