Rideshare drivers have a unique set of insurance needs. Most personal auto policies exclude coverage for any commercial use of your vehicle, so if you're using your car to give rides for a living, you need a commercial auto policy. That being said, there are still some important distinctions when it comes to rideshare insurance.
For example, many insurance companies offer coverage for the period between when you turn on your app and when you match with a ride. However, this coverage may be limited, and you may still be responsible for damages if you cause an accident during this time. Once you've matched with a ride, you're usually covered by the rideshare company's insurance policy.
However, there can be gaps in coverage if you have to make a detour or if there's an issue with the ride itself.
Rideshare Insurance Period 1
Period 1 coverage applies when the driver has the ridesharing app turned on, but isn't carrying any passengers. This period is also known as the "gap period" because it's the time when the driver's personal auto insurance policy no longer applies and the rideshare company's policy hasn't kicked in yet.
Rideshare Insurance Period 2
Period 2 is the time between when a driver accepts a ride request and when the ride ends. Rideshare insurance covers drivers during this period. During Period 2, drivers are covered by the rideshare company's insurance policy. However, this insurance may not provide sufficient coverage in the event of an accident.
Rideshare Insurance Period 3
Period 3 starts when the last passenger exits the vehicle and ends when the driver turns off the app. During this period, most rideshare companies do not provide any insurance coverage, so it's important for drivers to make sure they have sufficient coverage through their personal auto insurer.
At The Gatti Law Firm, we work to provide high-level representation whenever our clients suffer harm because of a negligent rideshare driver. Our Oregon rideshare accident lawyers work to obtain maximum compensation following severe harm.